The Impacts of the Poverty Alleviation Relocation Program (PARP) on Households’ Education Investment: Evidence from a Quasi-Experiment in Rural China

Sangui Wang and Lijuan Zheng ()
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Sangui Wang: School of Agricultural Economics and Rural Development, Renmin University of China, Beijing 100872, China
Lijuan Zheng: School of Agricultural Economics and Rural Development, Renmin University of China, Beijing 100872, China

Sustainability, 2024, vol. 16, issue 10, 1-23

Abstract: Families’ education investment in their children is crucial for fostering and accumulating human capital among rural children in China. This study examines the impact of the Poverty Alleviation Relocation Program (PARP) on household education investment using panel data from a large-scale survey conducted in 16 counties across 8 provinces over three waves. Employing a staggered difference-in-differences (DID) method, we find a significant increase in average education investment per student in households following the PARP’s implementation, supported by multiple robustness tests. Mechanism analysis reveals that the increase is primarily driven by a higher household income and lower medical expenses among relocated families. Heterogeneity analysis shows notable variations based on relocation attributes and household characteristics, with stronger effects particularly observed for dispersed relocation, scattered resettlement, and household heads with over 6 years of education or in good health. The impact is sustained and strengthens with longer durations of relocation. Our findings offer valuable insights for enhancing rural household education investment.

Keywords: poverty alleviation relocation program; family education investment; income effect; complementary effect; quasi-experiment; difference-in-difference (DID) (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
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