Family assets and their influence over children’s academic achievement: an empirical study based on China’s micro-data

Abstract

ABSTRACT Children's academic accomplishment is a priority for parents as they want to provide an excellent educational foundation for their future growth personally as well as professionally. This makes it imperative to investigate the impact of economic factors on children's academic achievement in the Chinese setting. This study utilises China Family Panel Studies (CFPS) data on children aged below 15 years to highlight the impact of several factors on students’ academic achievements in several areas including types of financial holdings, number of family members and siblings, years of schooling, academic discipline, and family income & assets. Three primary insights emerged from our investigation (1) family income and family assets both positively impact children's academic achievement, and family assets mitigate the effect of family income on children's academic achievement; (2) such family assets owned by children as educational savings devoted to children's development have more significant positive impacts on children's academic achievement; and (3) the impact of family assets on children's academic achievement exhibits a threshold effect, implying family assets have a threshold effect. These findings urge initiatives in China to increase children's educational equality for all income levels.