Effects of free compulsory education on rural well‐being in China

Abstract

We use a regression discontinuity design to estimate the effects of free compulsory education on rural family well‐being and explore the potential mechanisms. Using data from the Chinese Family Panel Studies, we observe a decline in the well‐being of rural families that were fully exposed to this policy. Our findings are robust to various checks, including changing the window widths, functional forms, estimating methods, selected samples, and indicators of family well‐being. Analysis indicates that the education cost burden did not decline significantly as expected by the treated families, contributing to a decline in their well‐being. These findings suggest that the government should introduce the policy at the pre‐school stage. At the same time, it is urgent that the educational expenditure burden on residents be reduced.