Government policies and unintended consequences: Rising demand for private supplementary tutoring in China

Abstract

In recent decades, the worldwide demand for supplementary tutoring has increased dramatically. Studies suggest that families’ interest in supplementary tutoring is not only driven by a lack of school resources and the erosion of education quality, but also by governmental attempts to equalize educational opportunities. Using data from a nationally representative household survey from China, this study examined changes in students’ participation in private tutoring after the introduction of a national equalization policy called “Ten Regulations to Reduce Academic Burden for Primary School Students.” The findings showed that first-grade students’ participation in private tutoring doubled after the policy was introduced. The estimation of dynamic effects indicated that the policy’s impact on private tutoring participation had also increased over time. Further tests for heterogeneity between cities and student groups suggested that students in large cities, students with college-educated parents, and students in cities with severe shortages in after-school care tended to be more sensitive to the policy change, demonstrated by greater investments in private tutoring.