Study On The Impact Of Education Transfer Payments On Compulsory Supply And Equalization

Compulsory education plays an important role in promoting economic growth and improving the national quality, But affected by rural dual structure and regional economic development gap, there is still a great gap between regional compulsory education.With the popularization of compulsory education, the size of compulsory education gap shrinks, and the gap of regional compulsory education gradually reflected in education funds, educational condition and education quality. The gap of compulsory education’s quantity and quality may result in the difference of human capital accumulation and income disparity. Therefore, solving the problem of the regional compulsory education gap not only relates to education fair, but also relates to social stability, economic development and other important practical problems.This paper takes Shandong province as an example, through the analysis of the education data of 17 cities in Shandong province, we find that the quantity and quality of compulsory education in our province has improved, but at the same time, there is still a big gap on regional education funds, school conditions (books of library and computer sets) and the quality of education (number of teacher above bachelor degree and student/teacher ratio) etc.The purpose of education transfer payment is to balance the regional education gap, the effect of this system in the concrete implementation need further test. Therefore, we use the data of 17 cities in Shandong province in 2007-2012 and take method of panel data regression and end-result interests to analysis the influence of education transfer payment on compulsory education. Results show that education general transfer payments and special transfer payments both promote education expenses in junior and primary school in Shandong province, the influence of special transfer payments on education spending is greater than the effect of general transfer payments. Through method of average benefit we find that minimum education expenses set takes benefit from education general transfer payments and education special transfer payments, namely, general transfer payments and special transfer payments is conducive to the weak parts of compulsory education, they play an important role on promoting education investment in low education funds region and narrowing the gap between regional education. But we also can see that in some years, higher education funding areas benefit from education transfer payment, there is a phenomenon of "reverse distribution". And through method of marginal benefit, we find that the minimum education expense set is not beneficiary but impaired, the middle, second highest and highest student group are beneficiaries of the transfer. This shows that, although education transfer payment is in favor of low-education funding group in general, which helps to balance the compulsory education gap, but this effect is gradually weakened. So it needs to improve our education transfer payment system to further promote regional equalizationFinally, According to the weakness of our compulsory transfer payment system, we put forward policy recommendations in four aspects of financing, management, distribution and supervision.