The Research On Relationship Between Incomr Of Rural Families And Expenditure On Higher Education

Our national economy and social development are getting into a new stage in the 21st century. It is very necessary to enhance the overall national strength and to cultivate all kinds of specialized and new pattern talents. It is a tendency to develop advanced education and enlarge higher education scale. It has been about twelve years to increase enrollment in higher education since 1999. The number of students of recruitment and at school is increasing; the level of higher education popularization is more improving. With the enlargement of advanced education scale and operation of sharing the cost of higher education, the expenditure on higher education is also rising. Received advanced education by rural families'children realizes the improvement of economic and social status. The possibility of receiving advanced education may be decreasing for the rise of expenditure and bounds of economic condition. In the light of this fact, it is essential to analyze the relationship between income of rural families and expenditure on advanced education. According to the current study, most of scholars put emphasis on the developed eastern area and the poor western area, and do less study on middle area of china. Therefore, we investigate a county in Shanxi province which is in the middle of china, on the basis of field investigation, applying quantitative and analysis and integrating the present situation of income and expenditure, and explore the burden rate of higher education and relationship between expenditure on higher education and income of rural families.Analyzing the income and expenditure, this thesis found that expenditure on education is regressive,. Expenditure on higher education of rural families includes tuition fees, lodging fees, textbook fees, living expenditure at school, traffic fare, communication fees, social fees and other fees for spending improving quality of learning. The lowest tuition fee is 2200 Yuan, the highest is 7980 Yuan, the mean is 4241.5 Yuan. As a whole, the lowest expenditure on higher education is 7700Yuan per family, the highest is 20900 Yuan and the mean is 12005.39 Yuan which account for 72% of mean of education of family. This paper figures out that the burden rate of expenditure on higher education is 72% which is very high and the rural families assume high burden to afford their children.According to Budget Constraint Theory, one of the most important factors of confining children receiving advanced education is family economic condition and level of income. Through quantitative analysis, this thesis found that the correlation coefficient of family income and general expenditure is 0.763, the correlation is significant. The correlation isn't significant of income and tuition fees, textbooks fees, and so on because of these fees not changing with the change of income. Applying regressive analysis, this paper found that with the rise of 1 Yuan of rural family's income, expenditure on education increases 0.131 Yuan and that on higher education 0.092 Yuan which account for 70% of expenditure on education. The income elasticity of expenditure varies by level of household income. Middle income households are predicted to have an income elasticity of education that is greater than one.Based on the above recognizing, the paper suggests that governments should raise income of rural households in order to enhance their ability to invest in education, perfect subsidy system in colleges and universities.