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ERIC Number: EJ1114385
Record Type: Journal
Publication Date: 2016
Pages: 17
Abstractor: As Provided
ISSN: ISSN-0218-8791
Domestic Migration, Benefit Spillovers, and Local Education Spending: Evidence from China 1993-2009
Guo, Gang
Asia Pacific Journal of Education, v36 n4 p488-504 2016
The idea that educational externalities affect local governments' incentive to provide such service was proposed over a century ago. Several studies have tested the relationship in the US, with mixed results. However, the theory has rarely been tested systematically outside of the US context. Paradoxically the unique household registration system in China makes the study of educational benefit spillover simpler to grasp theoretically and easier to handle empirically. A dynamic panel-data analysis that spans 17 years across 31 provinces of China suggests that a one-percentage-point increase in intra-provincial migration rate would decrease non-personnel spending in the following year by 23, 30, and 45 yuan per student for elementary schools, junior middle schools, and senior middle schools respectively. Narrowing the focus only on rural education funding, this study also shows that intra-provincial migration negatively affects rural spending per student by a similar magnitude. While migration and urbanization often bring about prosperity and efficiency gains, the substantial negative consequences of benefit spillovers under a decentralized education system should not be overlooked, especially for non-personnel expense and for rural schools.
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Publication Type: Journal Articles; Reports - Research
Education Level: Elementary Education; Middle Schools; Secondary Education; Junior High Schools
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: N/A
Identifiers - Location: China
Grant or Contract Numbers: N/A