Xinzheng Shi

Does an intra-household flypaper effect exist? Evidence from the educational fee reduction reform in rural China

We test for evidence of an intra-household flypaper effect by evaluating the impact of an educational fee reduction reform in rural China on different categories of household expenditure, including spending on individual children. Using pre- and post-reform data, this study exploits cohort comparisons, variation in the extent of school fee reductions across different villages, and variation in the subsidies received by children enrolled in different grades within the same family to identify the impact of the reform. The results show that educational fee reductions are matched by increased voluntary educational spending on the same children who receive the fee reductions, providing strong evidence of an intra-household flypaper effect.

Magnet Classes and Educational Performance: Evidence from China

We investigate the effect of entering magnet classes on the educational performance of high school students in China. Using the regression discontinuity design and data from a high school in Hebei Province, we find that enrollment in a magnet class can increase students’ gross final examination score in the first semester by 0.647 standard deviations. However, we find no evidence to suggest that the positive effect of entering magnet classes is different for female students, students of different ages, or minority students.

Poverty in China’s Colleges and the Targeting of Financial Aid

To examine poverty on China’s campuses, we utilize the Chinese College Students Survey carried out in 2010. With poverty line defined as the college-specific expenditures a student needs to maintain the basic living standard on campus, we find that 22 percent of college students in China are living in poverty. Poverty is more severe among students from the rural or Western parts of the country. The college need-based aid program must be improved because its targeting count error is over 50 percent. Lacking other income sources, poor students rely heavily on loans and working to finance their college education.

Retirement Consumption Puzzle in China

Using data from Chinas Urban Household Survey and exploiting Chinas mandatory retirement policy, we use the regression discontinuity approach to estimate the impact of retirement on household non-durable expenditures. Retirement reduces total non-durable expenditures by about 21 percent. Among the categories of non-durable expenditures, retirement reduces the work-related expenditures and the expenditures on food consumed at home but does not has a significant effect on expenditures on entertainment. After excluding work-related expenditures, expenditures on food consumed at home and expenditures on entertainment, retirement does not have a significant effect on the remained non-durable expenditures. The findings suggest that retirement consumption puzzle might not a puzzle if an extended life-cycle model with home production is considered.

Does Competitive Experience Affect Gender Difference in Economic Preference and Academic Performance

This study examines whether competitive experience affects gender difference in the economic preference and academic performance. By utilizing the provincial differences in college admission rates as an indication of competitive experience for students, we assess the effects on risk preference, trust preference, and academic performance. We find that after experiencing more competitive environment, females are more risk averse and less trustful, and perform better in more competitive environment, compared with their male counterparts. Our study suggests that observed gender differences may partially reflect the effects of schooling environment rather than inherent gender traits.