Analysis of "Two Exemptions and One Subsidy" Policy on Educational Expenditure at Chinese Rural Residents


Authors : He Xiao Min

Volume/Issue : Volume 5 - 2020, Issue 12 - December

Google Scholar : http://bitly.ws/9nMw

Scribd : https://bit.ly/2XtuaA0

China implemented the "two exemptions and one subsidy" education policy in 2008 to promote the development of China's education. This paper conducts an in-depth analysis on "two exemptions and one subsidy" policy and rural residents' educational expenditures by constructing an individual fixed effect model. This paper concludes that the implementation of the “two exemptions and one subsidy” policy has reduced the proportion of rural residents’ education expenditures and optimized the consumption structure of rural residents. At the same time, the "two exemptions and one subsidy" policy has reduced the cost of raising children in rural areas and increase the supportive ratio of children. Moreover, children can further reduce the proportion of rural residents' education expenditures.

Keywords : Education, Expenditure, Rural Residents, Polic y, Population, Economic Development

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