A Study On Education Gap And Its Influence On Economy Growth

With the knowledge economical time comes into, the future of human and the country's prosperity rely on the education development than any time. As an important "intrinsic variable" of knowledge, technology and economic development, education has more and more pilot status. Regarding the country and the nationality, the education relates to the enhancement of the entire national quality, and also relates the development of the politics, economy, culture and society. Regarding individual, education can decide whether a person who surviving in his society learns the basic skills, whether he enjoys the civilized achievement in modern society, whether he improves own quality of life.In the modern society, the education equity has already become the basic value in the education field. The educational equity is an important aspect of the social equity, it is the extension of the social equity in the realm of education and is also an important way to achieve the social equity.After the reform, China's education has been the rapid development, but at the same time, the education gap has been highlighting day by day. The education gap displays in many aspects, one of the most education gap are that between urban and rural areas, and difference regions. As an investment, education has a close relationship with economy. The expanding of education gap may lead to "Ma Tai Effect", thereby can increase the economic gap between the central-western and the eastern, rural areas and urban areas, caused some social problems. Under the time of building a harmonious society, the reduction of education gap is not only to achieve the education equity, but also to realize other aspects of social esis quity.Under the above background, the thesis analyses education gap and its influence on economic growth. The major contents and conclusions are as follows.Firstly, the paper analyses the situations of education gap. It analyses China's situations of education gap from three aspect that is education opportunity disparity, education process disparity and education result disparity. The analysis of opportunity disparity includes the enrollment rate, the career rate, the dropout rate and retention rate, that of process disparity includes funding of per student, school conditions and teachers, and that of result disparity includes population level of education. The results insults:the main opportunity disparity is the non-compulsory, the career rate of middle school students and the retention rate of senior high school students are relatively low in rural areas, the opportunity disparity of higher education between urban and rural areas is not only the enrollment rate, but also the level of their institutions, the main regional disparity is the admit rate. The main process disparity is each kind of funding of per student, the ratio of dangerous classroom, the computer of per 100 students, the fixed assets per student, and the academic structure of the full-time and so on. The result disparity is population level of education, which the western and rural areas have a high proportion of illiterate or semi-literate, the lower level of education of per capita, and a greater gap compared with other areas.Secondly, this paper decomposes and compares the education gap, obtaining the main origin of education gap. It constructs the weighted educational numbers of per capita by the ratio of funding in each stage, which is maked to compute the Gini Cofficient and the Theil Index, measures China's education gap and it's change, according to decomposition between urban and rural, and difference regions, extracts pure education gap between urban and rural areas and net regional gap by the Theil Index(O) and its decompositions, which is used to analyses and compares the pure education gap between urban and rural areas and net regional gap, obtains the main educational disparity. The results show that the trend of China's education gap are fluctuation, the education Gini Cofficient increases from 0.3138 in 1995 to 0.4187 in 1999 and then declines to 0.3903 in 2002, after 2003, it changes fluctuation and enlarges gradually, in regional inner, the large gap are eastern urban, eastern rural and west rural areas, from the changes trend of pure education gap between urban and rural areas and net regional gap, the pure gap between urban and rural areas is more than that between the different regions, the main gap is that between urban and rural. In 1995-2006, the pure gap between urban and rural account for 50% of the whole educational gap, after 2001, it declines rapidly from 62.4% in 2001 to 31.42% in 2006. The pure regional gap is smaller, it account for 14.7% in 1995-2006, however, it increases largerly, which goes up from 10.30% in 2001 to 24.56% in 2006.Thirdly, the paper analysis the influencing factors in the education gap. First, it analyses the influence of education policy and institutional, economic factors, basic conditions on education gap, decomposes the education Gini Coefficient and computes the contribution rate of various influencing factors by the regression-based decomposition of Shapley Value, and analyses its degree and trend that impact on education gap. The results insults, the education investment gap caused by regional income and economic gap is important reason for the education gap, the contribution to the education gap of them is 30% and 25%, and its influence expands gradually, the influence of basic conditions gap reduces gradually from 31.05% in 1995 to 19.87% in 2005, the improvement of education policy and institutional is helpful to reduce the gap caused by factors such as regional economic development and basic conditions, yet the degree is limited at present. Second, it analyses the influence of local government competition on public educational expenditures under fiscal decentralization and that of education spillover under the labor force floating. The results shows that the government competition has a negative effect on public expenditures, while that of the government governance has a positive effect. With the economic decentralization and political centralization, China' s local government is responsible for higher government not lower government, thus, it is more tend to compete for GDP rather than local governance, which is an important reason for the low level of motivation for education investment and lack of public education expenditures. In labor output area, the education spillover shows the outside overflow but in labor input area, it shows the internal runoff, and the former has a negative effect on public education investment, while the latter has a positive effect. Undeveloped area has low level of motivation for education investment because of education spillover, which leads to expand the education gap on investment between it and developed area.Fourthly, this paper analyses the influence of education gap on economic growth. It analyses the mechanisms that the influence of education gap on economic growth from theoretical aspect, which one is the influence of education gap on labor productivity, the other is that of material capital productivity. The results insults that the education gap impacts on economy by two mechanisms that the influence of labor productivity and material capital productivity. Educational gap has the negative effect on the labor productivity both the short-term or long-term. Education gap has a positive impact on material capital productivity in short-term, while that in medium and long-term is negative. Look from the cumulative effect of that is positive in short-term and medium, and that in long-term is negative. Education gap has the negative effect on economy by the two mechanisms above, the immediate impact is largest, which the rate of economic growth declines 0.3430 points when the education Gini Cofficient increases one points, and that influence declines to 0.0101 points in the second year and increases to 0.0279 points in the third year, after that it declines gradually, the cumulative effects of that increases gradually and it go up to-0.5590 in the 50th year.Finally, the paper puts forward to the policy suggestion of reducing the education gap and promoting the balanced development of education on perfect educational policy and institutional under the this paper and the conclusion of balanced development of education on abroad:(1) Funding for basic education applies the management system- " Multi-Level Sharing, County-Level Management".(2) Establishing a strict system of financial transfer payment.(3)Compensating disadvantaged areas and disadvantaged families.