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The effects of economic shocks to households on children education: An evidence from China

By Tran Thi Kieu Oanh (VNP 22)

Supervisor: Dr. Vo Tat Thang

Abstract:

Using data from the Institute of Social Science Survey (ISSS) of Peking University conducted in China, this article examines the impact of economic shock to households on changes in school attendance levels and education expenditure. Firstly, ordered logit model is utilized to estimate the effect of adverse income shock on additional overage of children. The results suggest that the overage of children tends to be greater if income per capita decreases by less than 40%, while adverse income shock defined by income per capita falls by more than 40% have no effect on overage. Secondly, using OLS model, this study also indicates that households are likely to reduce education expenditure to cope with income shocks.

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