Title

The Expansion of Higher Education and Household Saving in China

Document Type

Article

Publication Date

12-29-2021

Department

Economics

Language

English

Publication Title

China Economic Review

Abstract

We examine whether access to higher education impacts household saving rates. A 2-period model of household saving decisions demonstrates why increased college opportunities induce households with children to save more. We examine this theory using survey data from Chinese households during the unprecedented education expansion. Using estimates of the change in the expected probability of college attendance, we estimate the effect on household saving rates by comparing households before and after the reform. We find that a 10-percentage point increase in the probability of going to college raises the saving rate by 5.9 percentage points.

Comments

For more information on the published version, visit Science Direct's Website.

DOI

10.1016/j.chieco.2021.101736

Full text currently unavailable.

COinS