Impact of the Financial Resources Allocated to Education in Each Region on Family Investment in Education at the Compulsory School Level

Abstract

Compulsory education has a vital role in the process of national development, so financial education funding is a public expense that must be guaranteed and implemented by all regional governments. And family education investment also plays an important role in education as the supplementary funding for every school-age child to receive education. Due to data limitations, the number of studies on the relationship between the two is relatively small, so this paper, based on the micro-database of the China Education and Finance Household Survey (CIEFR-HS), examines in depth the impact of financial education funding on household education inputs during the compulsory education stage, and accordingly makes recommendations for policy targeting. The result reveals that the local financial expenditures on compulsory education have a significant crowding-in effect on families education investment. The present study provides novel evidence on the relationship between educational investment and household investment and accordingly makes recommendations for policy targeting.