The Impact of an Un(Der)Funded Inclusive Education Policy: Evidence from the 2013 China Education Panel Survey

37 Pages Posted: 3 Jul 2021

See all articles by Massimiliano Tani

Massimiliano Tani

University of New South Wales - Australian Defence Force Academy; IZA Institute of Labor Economics

Yu Zhu

University of Dundee

Lei Xu

National Institute of Economic and Social Research (NIESR)

Abstract

Using the 2013 China Education Panel Survey (CEPS), we study the impact of a 2008 inclusive education policy, through which the central government mandated urban public schools to exempt migrant children from tuition and temporary schooling fees. Whereas the non-disclosure rule regarding geographical location of CEPS sampling units precludes the control of locational characteristics, we identify the causal effect of the policy through a novel identification strategy, which relies on the types of primary sampling units. Specifically, we only use non-migrant rural hukou children living in counties in the nationally representative sample as the control group (the never-takers), while, in the treatment group, we only include migrant children who are currently living in China's top 120 migrant-receiving counties or city districts, and Shanghai. We also distinguish migrant children who started urban schooling before and after 2008 as separate treatment groups of always-takers and compliers, respectively. Using the Inverse Probability Weighted Regression Adjustment (IPWRA) approach, we find that the average treatment effect of the policy on migrant children is around 0.18 SD, as measured by a standardised cognitive test score – a large effect. We also present complementary evidence that the average treatment effect tends to be larger for municipalities and provincial capitals, consistently with the notion that the (potential) value-added of attending urban schools is higher the larger the initial gap with rural schools.

JEL Classification: I21, I24, I25, I28, J15

Suggested Citation

Tani, Massimiliano and Zhu, Yu and Xu, Lei, The Impact of an Un(Der)Funded Inclusive Education Policy: Evidence from the 2013 China Education Panel Survey. IZA Discussion Paper No. 14512, Available at SSRN: https://ssrn.com/abstract=3879360

Massimiliano Tani (Contact Author)

University of New South Wales - Australian Defence Force Academy ( email )

Sydney, NSW 2052
Australia
+612 6268 8512 (Phone)
+612 6248 8450 (Fax)

HOME PAGE: http://www.unsw.adfa.edu.au/sbus/staff_cvs/about_max_t.html

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Yu Zhu

University of Dundee ( email )

Dundee, Scotland DD1 4HN
United Kingdom

Lei Xu

National Institute of Economic and Social Research (NIESR)

2 Dean Trench Street
Smith Square
London, SW1P 3HE
United Kingdom

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