The Effect Of Housing Wealth On Decision Of Children's Education Investment For Urban Family

With the rapid development of economy,people's living needs gradually shift from pursuing the richness of material products to the pursuit of improvement of their own level,people are more inclined to consume education,culture and other service products,especially the education.Increasing personal income(including labor capacity,wage income,market competitiveness,and social status),as well as the society's emphasis on highly educated people,people's willingness to receive education is stronger.Since the 1990s,the Chinese family has a faster grown expenditure on education than GDP,as an average annual growth rate of 29.3%(Li Hongwei,2000).With the development of economy and society,family education expenditure is no longer only a part of family consumption expenditure.People are more deeply aware of the role of education in personal development.The concept of education expenditure as a productive investment has gradually been accepted by people.Parents want their children to receive quality education,and an increasing number of parents are clearly aware that children's educational level would positively correlate with their future income.During this period,China's real estate market has undergone substantial changes in the past 20 years.Since the 1990s,the Chinese government has begun to implement comprehensive reforms of urban private housing.The Chinese real estate market has begun to develop,and property prices have a large increase.By 2011,about 90%of urban households have owned a property(Gan Li,et al.,2013).As an important part of family wealth,the housing value fluctuation will significantly impact on family's wealth.Usually,the change in housing price means the change in property wealth and then will cause the change of family's wealth.This influence may change the family's wealth and income expectations,sequentially adjusting the family's investment structure.This paper assumes that the rapid development of the real estate market is likely to lead to the increase of family wealth,which will promote the increase of family investment in children's education,that is,the development of the real estate market increases the family's education expenditure.Combining with the remarkable increase of family education investment and the rapid development of the real estate market in recent years,this paper aims to explore the relationship between property wealth and family education investment decision-making.This paper will make improvements and innovations in the following three aspects:firstly,few scholars regard family real estate investment as the main concern variable to explore the influencing factors of family education investment decision-making in China,and this paper will supplement the existing literature to examine whether the rapid development of the real estate market will have an impact on the accumulation of human capital;secondly,this paper finds that the inequality caused by the change of property wealth distribution is likely to affect the family's educational expenditure and the unequal transmission of inter-generational education.Thirdly,this paper reveals an unexpected consequence of the rise in property prices,which has a strong practical significance for the comprehensive evaluation of the development of the real estate market and the formulation of relevant policies.This paper mainly uses the OLS and the Tobit to test the direct relationship between real estate wealth and family education investment decision-making,and explore its influence on family education investment decision from the new perspective of property asset wealth.Through the use of China Family Tracking Survey(CFPS)data,we find that there is an inverse U-shaped relationship between property wealth and family education investment.That is,for families with less property wealth,one standard deviation increments in property wealth will increase 0.14 standards deviation on children's education expenditure.When the property wealth reaches a certain level,education investment begins to decline.For families with children at different stages of education,the impact of the two is different:for families whose children are in kindergarten and primary school,the effect is more significant;for families whose children are in the Junior and senior high school,the two show a significant positive correlation linear relationship.With the censored quantile instrumental variable quantile regression(CQIV),for different quantile level of family education expenditure,there is a positive linear relationship between it and property wealth,and the greater the value of family education expenditure,the greater the impact.In addition,the study also finds that the more aged in the family,the more investment the family puts on children's education;the decision-making of family investment in children's education will not vary according to the gender difference of children;the single-child family's annual education investment for children is significantly higher than that of non-only-child families;Differences vary compared to households with two or more fully-owned housing,even if they only have a full-property housing,whether they are used to meet their housing needs or meet investment needs,they will be affected by the development of the housing market.