Economic Affairs
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We estimate the impact of two early commitment of financial aid (ECFA) programs—one at the start and one near the end of junior high school (seventh and ninth grades, respectively)—on the outcomes of poor, rural junior high students in China. Our results demonstrate that neither of the ECFA programs has a substantive effect. We find that the ninth-grade program had at most only a small (and likely negligible) effect on matriculation to high school. The seventh-grade program had no effect on either dropout rates during junior high school or on educa- tional performance as measured by a standardized math test. The seventh-grade program did increase the plans of students to attend high school by 15%. In examining why ECFA was not able to motivate significant behavioral changes for ninth graders, we argue that the competitiveness of the education system successfully screened out poorer performing students and promoted better performing students. Thus by the ninth grade, the remaining students were already committed to going to high school regardless of ECFA support. In regards to the results of the seventh grade program, we show how seventh graders appear to be engaged in wishful thinking (they appear to change plans without reference to whether their plans are realistic).

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Journal of Development Economics
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Prashant Loyalka
Scott Rozelle
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The lost decades for China in the 1950s, 1960s and 1970s look remarkably like the lost decades of Africa in the 1980s an 1990s.  Poor land rights, weak incentives, incomplete markets and inappropriate investment portfolios.  However, China burst out of its stagnation in the 1980s and has enjoyed three decades of remarkable growth.  In this paper we examine the record of the development of China's food economy and identify the policies that helped generate the growth and transformation of agriculture.  Incentives, markets and strategic investments by the state were key.  Equally important, however, is what the state did not do.  Policies that worked and those that failed (or those that were ignored) are addressed.  Most importantly, we try to take an objective, nuanced look at the lessons that might be learned and those that are not relevant for Africa.  Many parts of Africa have experienced positive growth during the past decade.  We examine if there are any lessons that might be helpful in turning ten positive years into several more decades of transformation.

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Frontiers in Food Policy: Perspectives on sub-Saharan Africa
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Scott Rozelle
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Researchers typically explain inequalities in access to elite high schools by looking at gaps that appear before the high school admissions process. However, even when disadvantaged students reach the stage of high school admissions with identical qualifications as advantaged students, mechanisms particular to the high school admissions process may prevent disadvantaged students from accessing elite high schools. The overall goal of this paper is to examine the degree to which the high school admissions process deters disadvantaged students from accessing elite high schools. To fulfill this goal, we analyze longitudinal, administrative data on approximately 24,000 students in one region of China. In this setting, according to our data, the rural-urban gap in elite high school attendance can be larger than 50 percentage points (even though rural students comprise well more than half of the high school student population). Our results show that the five subject exams of the high school entrance exam (HSEE) are biased against rural students. If the HSEE dropped two of the most biased subject exams from the HSEE, access to elite high schools among rural students would increase by 4 percentage points (or 8 percent). Furthermore, conditional on HSEE scores, rural students are 13 percentage points less likely than urban students to apply for elite high schools. Finally, conditional on HSEE scores and application choices, the existence of an alternative admissions channel that charges extra admissions fees further reduces rural access by 18 percentage points.

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Scott Rozelle
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This paper contributes to the assessment of China’s rural labor markets. According to our data, the increase in off-farm employment that China experienced during the 1980s and 1990s continued during the 2000s. Our analysis shows that migration has become the most prevalent off-farm activity, although the destination of migrants is shifting from outside of one’s province to destinations closer to home. The present paper finds that large shares of male and female individuals, especially those under 40 years, are working off the farm. These findings represent an important contribution to the labor economics field. First, the results of the present paper reveal that the labor transition from the agricultural sector to the non-agricultural sector for key segments of China’s rural labor force is nearly complete. Second, although a large share of China’s rural labor force work in agriculture, most of these workers are older men and women (and likely would not be willing to take low-wage, labor-intensive jobs). Third, the rising unskilled wage rate in China is partially a result of the tightening of the labor force in the young age cohorts. Finally, due to factors associated with the one child policy and other demographic transition forces, successive age cohorts will continue to fall in absolute number in the coming decade. Assuming China’s growth continues, we expect to see further wage increases since it will take higher wages to coax more workers to work off the farm.

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China & World Economy
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This paper reports on a survey conducted among more than 800 engineering students at elite universities in China and the United States. Results from the survey reveal that US and Chinese students are roughly equivalent in their desire to form or join startup ventures. Far more US students, however, plan on actually doing so. In contrast, Chinese students are more likely to join the state/government sector. Our results also reveal a wide gap in perceptions on the availability of financing, mentorship and other innovation resources. The findings suggest that the innovation ecosystem in China remains underdeveloped in certain important respects.

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Asia Pacific Journal of Accounting and Economics
Authors
Matthew Boswell
Scott Rozelle
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Past studies find that disadvantaged students in the United States are often misinformed about college costs and financial aid opportunities and thus may make sub-optimal decisions regarding college. This information problem may be even more serious in developing countries. We therefore conducted a cluster-randomized controlled trial to examine the effects of providing information on college costs and financial aid to high school students in poor regions of northwest China. We find that information increases the likelihood that students receive some types of financial aid. Information also positively affects the choice to attend college but does not seem to affect more specific college choices.

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Economics of Education Review
Authors
Prashant Loyalka
Scott Rozelle
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We describe the degree to which household income is negatively associated with the prevalence of different types of disability (i.e. medical impairments) in China using data from the 2006 China National Sample Survey of Disabled Persons. We then calculate the extra costs of disability across different types of households and show how these costs differ by the type and severity of disability in both urban and rural areas. We finally use nationally-representative panel data on persons with disabilities from 2007 to 2009 to examine the degree to which social security measures are reaching persons with different types and severity of disabilities in both urban and rural areas. We conclude that while social assistance and insurance for households with disabilities is increasing rapidly over time, it is still not enough to offset the income differential between households with and without disabled persons, especially when accounting for the extra costs of living associated with disability.

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Demography
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Prashant Loyalka
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The rapid expansion of enrollment capacity in China’s colleges since the late 1990s has come at the price of high tuition hikes. China’s government has put forth financial aid programs to enable poor students to access higher education. Although studies have shown that poor high school students are indeed able to attend college when their test scores are high enough (that is, few are unable to attend when they are qualified to attend), the literature has not explored whether poor students have sufficient amounts of aid to thrive in college.

 Using findings from a randomized controlled trial, this study evaluates the impact of providing full scholarships to students from poor rural areas (henceforth treatment students) on student stress levels, self-esteem/self-efficacy, and participation in activities in four first-tier colleges. To do so, we compare outcomes of the treatment students with students who were not given full scholarships by the project (and were left to search for scholarships and other sources of financial aid from the university system itself—the control students). The project was run among the 200 poorest first-year students in four first-tier colleges in inland China. Somewhat surprisingly, we find that treatment students (those receiving full scholarships from the project) were only slightly more successful in obtaining financial aid than control students. This suggests that control students (those who did not receive full scholarships from the project) were still able to access comparable levels of financial aid. Most importantly, scholarship recipients were statistically identical in outcome to control students in terms of stress, self-esteem, and participation in college activities, suggesting that poor students (who are dependent on aid from the university system) currently are able to access sufficient levels of financial aid, are able to take advantage of the activities offered at college, and do not shoulder heavy financial or psychological costs.

 We find, therefore, that efforts of the government to alleviate the financial burden of college on the poor have been relatively successful in first-tier colleges. Because of this, foundations and individuals may decide that if they want to improve human welfare, giving additional scholarships at high tier colleges may be having little effect. 

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China Economic Review
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Scott Rozelle
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The goal of this article was to document and explain the gap in educational achievement between Han and minority students in primary schools in western China. In our survey of 300 schools in Shaanxi, Gansu, and Qinghai provinces (involving nearly 21,000 fourth- and fifth-grade students), we find large differences in achievement on standardized exams between Han and minority students. On average, minority students perform 0.25 SD lower in math and 0.22 SD lower in Chinese. Most strikingly, minority students who do not generally speak Mandarin as their primary language score 0.62 SD lower than Han in math and 0.65 SD lower than Han in Chinese.

Using decomposition methods pioneered by Oaxaca (1973) and Blinder (1973), we find that most of the achievement gap between Han and minority students with no alternative ethnic language can be explained by differences in endowments of student, family, and school characteristics. Of these, differences in students and family characteristics appear to contribute the most to differences in achievement. Little of the gap between Han students and non-Mandarin minority students (Salar and Tibetan in our sample), however, can be explained by endowment differences. Comparing these students only to Han students in the same schools significantly reduces the size of the achievement gap, yet a difference of more than 0.2 SD persists. None of this remaining gap is explained by differences in endowments. Although several explanations are possible, we believe that a likely explanation is that the ability of students to learn may be hindered by difficulty comprehending instruction in Mandarin (given that no schools in our sample provided instruction or texts in minority languages). While we cannot say with certainty why these students may benefit less from a given amount of schooling inputs, our analysis suggests that teachers play a significant role.

While we believe that the findings of this article are important, admittedly, the study has a number of limitations. First, although our sample contains suf- ficient numbers of minority students to conduct analyses, studies involving a larger sample of minority students (particularly non-Mandarin minority stu- dents) would provide further insight into the achievement gap. Second, our survey did not collect information on the Mandarin ability of individual students (although we tested students on the Chinese curriculum, this may be distinct from pure language ability). Future studies should employ such information to assess to what degree language is contributing to the underperformance of students belonging to groups that do not speak Mandarin as their primary language.

Despite these limitations, however, our results call for the attention of policy makers to approaches to address the underperformance of minority students in China’s rural areas. Given the large and increasing importance of educational attainment to economic well-being, addressing the large achievement gap between Han and minority students may help to mitigate economic disparities in the future. On the basis of our results, promising approaches to address the achievement gap would include those focused on improving the returns to minority students of given schooling inputs (e.g., through pedagogical practice). Further, if future studies show language to contribute significantly to the gap, interventions such as remedial tutoring in Mandarin may also yield large benefits. 

 

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Huan Wang
Scott Rozelle
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Economics of Development & Cultural Change
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Officials in China claim that voting rates in rural village elections are high. Unfortunately, these rates are assumptions, not facts. The true voting rate is lower, and much lower for women. We postulate that this could be due to insufficient knowledge about their rights.

The objective of this paper is to test whether women and village leaders’ knowledge about women’s voting rights affects women’s voting behavior. We report on the results of a randomized controlled trial (RCT) involving 700 women in China’s Fujian and Liaoning Provinces. Villages were randomly assigned to either a control group or one of three intervention groups. One intervention provided voting training to women only, another provided training to both women and village leaders and the third provided training to village leaders only.

The data show that after women received training, their scores on a test of voting knowledge increased and they more fully exercised their voting rights. When only village leaders were trained, test scores and voting behaviors were not statistically different from the control villages.

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The China Quarterly
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Scott Rozelle
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