Free education policy and rural Residents' happiness: Financial perspective

Abstract

Using data from the 2010–2015 China General Social Survey, we applied a propensity score matching difference-in-differences model to examine how a 12-year free-education policy reform affected the happiness of Chinese rural residents. We found that the 12-year free-education pilot will make rural residents happier if the local government's spending on education does not reduce spending on other public services. We also found that the policy has benefited the beneficiaries' grandparents, high-income rural families, and relatively well-educated groups mainly by improving family finances and health. We recommend expanding the pilot program to increase the number of beneficiaries. We suggest that China would be in a position to fully implement the 12-year compulsory education only when the central and local governments can support its implementation.