The Economic Approach To Shadow Education Products

In the 1960s,the phenomenon of modern shadow education Began to generate;In the 1990s,shadow education began to attract attention of the academic community;Nowadays,it has been a market behavior with large scale of economy and social impact,supported by the increasing proportion and cost of shadow education products purchased by households.The Chinese Society of Education found the market size of Chinese shadow education is over 800 billion yuan including 137 million students.Thus,it is necessary to analyze shadow education as an market phenomenon by adopting economic analysis.Currently,few researches of it base on economic paradigm and the major discussion is focus on the perspective of pedagogy and sociology:the former concentrates on educational effects while the latter quality,and both of them on regulations.Macro-regulations can be established upon Macro-conditions.However,as the perspectives of previous studies are Micro-level discussing economic capital,culture capital,social capital and etc.,they fail to build up Macro-regulations.Macro-conditions of shadow education should be analyzed relying on definition by economic paradigm.The purpose of receiving education is to reduce the level of information asymmetry in market transaction by improving human capital and obtaining educational certificates.On the account of it,the present study uncovers the features of shadow education like privacy,supplementary and certification,corresponding to three analyzing dimensions:(1)publicity and profitability;(2)subjectivity and supplementary;(3)certification of homogeneity,certification of heterogeneity and none-certification.Additionally,divide the education content into four secondary classifications and twelve thirdly classifications.The shadow education is a part of secondary classifications and divided into three thirdly classifications.Furthermore,education is divided into four secondary and twelve thirdly classifications.Among them,shadow education is part of a secondary one,separated into three thirdly ones.Besides,shadow education can also be divided as online and offline products.After define the boundary of shadow education,according to supplementary and certification,the Macro-conditions of shadow education generated including mainstream education bestowal and uncertainty of pass the evaluation.It is not only provided a Macro-aspect to the policymakers,but also establish the fundamental of the economic analysis in shadow education products.Moreover,this article analysis the shadow education in four aspects:Firstly,it is about general analysis of consumers choosing the shadow education products.The more anticipated revenue,the less current expenditure,or the more educational environment balance degree,the more probability of family purchase shadow education products.So,the article Developed the MMI and EMI theory.Secondly,it is about general analysis of producers choosing the shadow education products.Shadow educational enterprises are characterized by light assets and lagging hysteresis,by built a confidence model,this article found that these features made consumers worried enterprises "run away",and made producers worried their own teacher set up theirs' own organizations.So the producers chose going public to send the "standard" signal to consumers.According to the research of Shadow education enterprises which going public in new OTC market,going public will bring a positive impact to their financial performance on brand effect,while stronger specialty of light assets brings deeper impact.By removing the brand effect,however,performance would still go down,based on which the IPO Effect Theory,on account of earnings management,is generated.Thirdly,it is about heterogenous analysis of consumers choosing the shadow education products.Classified the shadowed education products of online shadow education and offline shadow education,which have same contents and different forms,to analyze the condition of consumers choose offline shadow education products which is more expensive.Basing on the division of impacting social consumption——internal and external view,the concept of social index can be raised.It includes two first class indexes which are social intense and distance,and four second class indexes containing social identification,flaunt,authority and intimacy.Moreover,it turns out that the indexes still keep a distinctive positive correlation in the offline shadow education products while an indistinctive in the offline,which indicates a positive impact from social ingredients on consumes.Fourthly,it is about heterogenous analysis of producers choosing the shadow education products.Online shadow education enterprises have urged a transform in offline:from "Large classes+famous teachers" to "mini classes+common teachers".And the labor quantity and experience of emerging offline shadow education organizations are improved by online ones.Therefore,the emerging offline enterprises are more attractive to potential and intra-industry labor than the traditional ones,on account of the high output elasticity and positive human capital externality.The above analysis respectively demonstrates that on what conditions consumers will choose shadow education products;that on what conditions producers will prompt consumers purchase their products;that on what conditions consumers will turn to offline products instead of the online ones with same contents at cheaper prices;that on the ground of what conditions the offline companies will fulfill their transformation impacted by the online counterparts.Last but not least,related proposals have been offered.