Study On The Impact Of The "Double Reduction" Policy On The Education And Training Sector

The education and training industry is one of the most rapidly developing industries in China in recent years,and the education and training industry has the largest market size and the largest customer base is the main education and training institutions of compulsory education.This is due to the high school entrance examination selection system in China and the fierce social competition,coupled with the anxiety trafficked by educational training institutions to better occupy the market,making parents pay more and more attention to the education of their children."Reducing the burden on students" has also become a key national concern,The introduction of the "double reduction" policy in July 2021,which has been described as the strictest in the history of compulsory education,has clearly set out the requirements for extra-curricular training at the compulsory education training stage,and has carried out an extensive overhaul of the education training industry,making it a "devastating" blow to the education training industry.What impact has the "double reduction" policy had on the education and training sector,what is the current state of the industry and how should it respond to the problems brought about by the policy are key issues that need to be addressed.Through a combination of theoretical and empirical analysis,this thesis firstly summarises the actual implementation of the "double reduction" policy and further sort out the problems encountered in the process of policy implementation,and then summarises the current situation of education institutions under the "double reduction"policy.The current situation of training institutions under the "double reduction" policy is then summarised.On this basis,an empirical analysis is then conducted,using K12 stocks as the experimental group and a propensity score matching method to set up a control group.A double difference model is constructed to study the impact of the policy in terms of business scale and profitability,and a robustness test is conducted.Finally,this thesis puts forward feasible suggestions based on the current situation of the education teaching and training industry and the results of the empirical analysis.The findings of this thesis show that under the "double reduction" policy,the education and training industry stage has significantly reduced its scale of operation and its profitability has also tended to decline,and major capitalists are no longer optimistic about this industry,which has led to stressful layoffs in the short term.In the face of these problems,education and training institutions sector should,first of all,strictly comply with the "double reduction" policy and continue to explore new lines of business to find new growth points,while at the same time staying close to the policy,helping schools to educate themselves and looking for opportunities for school-enterprise cooperation.