The Impact Of The Funds Ensuring Mechanism Of Compulsory Education On Human Capital

Improving the level of human capital can help reduce poverty and social inequality.Promoting the development of education is an important measure to improve the level of human capital,and its core is to increase financial investment in education.There are regional differences in the impact of the funds ensuring mechanism of compulsory education on the average education expenditure of rural junior middle school students.Based on the regional differences,this paper applies the difference-in-differences strategy to identify the effects of the reform on the human capital of rural individuals by using the data of China Family Panel Studies(CFPS)and China Statistical Yearbook of Education Funds.We find that:(1)The reform has significantly increased the probability of rural individuals graduating from junior high school and senior high school,thus increasing their years of education.(2)The reform improves rural individuals’ trust in parents and strangers,and helps them form internal control personality.The reform also improved their body mass index and self-rated health,but the positive impact on mental health was not significant.(3)The reform has a significant effect on males and individuals with low level of human capital of their parents.4)Mechanism is to improve the level of regional education resources,family’s spending on education and individual education expectation and behavior habit.(5)Finally,the probability of participating in the labor market and the annual income level of the beneficiaries will increase significantly,and the reform will help improve their income satisfaction and job satisfaction.In view of the impact of the reform,on the one hand,the government should continue to maintain or increase the level of investment in public education.On the other hand,under the background of provincial pooling of compulsory education funds,it is also an important issue to eliminate the uneven educational results caused by the level of regional economic development and financial support.