The spillover effect and external welfare of extracurricular tutoring: evidence from academic tutoring for middle-school students in China

Zhenyu Yao, He Jiang and Jingqi Wang

Applied Economics, 2024, vol. 56, issue 44, 5263-5288

Abstract: This paper investigates the spillover effects of middle school students taking up academic tutoring on students’ cognitive and noncognitive skills in the same class in China. The identification relies on variations across classes within schools, which are formed roughly randomly. Correcting for measurement error, we find a significantly positive spillover effect of peers’ academic tutoring on students’ English test scores, and no spillover effect exists on students’ ranks at the school level. For noncognitive performance, we find a positive spillover effect of academic tutoring on improving confidence. Our results show no positive external welfare exists for academic tutoring for students’ grades or ranks, consistent with the newly released ‘Double Reduction’ policy that the Chinese government prohibits extra academic tutoring.

Date: 2024
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DOI: 10.1080/00036846.2023.2244251

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