TY - JOUR
T1 - The expansion of higher education and household saving in China
AU - Bollinger, Christopher
AU - Ding, Xiaozhou
AU - Lugauer, Steven
N1 - Publisher Copyright:
© 2021 Elsevier Inc.
PY - 2022/2
Y1 - 2022/2
N2 - We examine whether access to higher education impacts household saving rates. A 2-period model of household saving decisions demonstrates why increased college opportunities induce households with children to save more. We examine this theory using survey data from Chinese households during the unprecedented education expansion. Using estimates of the change in the expected probability of college attendance, we estimate the effect on household saving rates by comparing households before and after the reform. We find that a 10-percentage point increase in the probability of going to college raises the saving rate by 5.9 percentage points.
AB - We examine whether access to higher education impacts household saving rates. A 2-period model of household saving decisions demonstrates why increased college opportunities induce households with children to save more. We examine this theory using survey data from Chinese households during the unprecedented education expansion. Using estimates of the change in the expected probability of college attendance, we estimate the effect on household saving rates by comparing households before and after the reform. We find that a 10-percentage point increase in the probability of going to college raises the saving rate by 5.9 percentage points.
KW - China
KW - Higher education expansion
KW - Saving
UR - http://www.scopus.com/inward/record.url?scp=85122162281&partnerID=8YFLogxK
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U2 - 10.1016/j.chieco.2021.101736
DO - 10.1016/j.chieco.2021.101736
M3 - Article
AN - SCOPUS:85122162281
SN - 1043-951X
VL - 71
JO - China Economic Review
JF - China Economic Review
M1 - 101736
ER -