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The Economist included SCCEI Co-Director Hongbin Li's new book in their lineup of the best books of 2025. Here's what they had to say:

"The Highest Exam: How the Gaokao Shapes China. By Ruixue Jia and Hongbin Li with Claire Cousineau. 

The gaokao—China’s university entrance exam—shapes much of the country’s society, from pay to politics. Read this thoughtful book to learn how the test is the first of many tournaments in which the Chinese have to compete over the course of their lives."

See the full list: https://www.economist.com/culture/2025/11/20/the-best-books-of-2025 

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Understanding China’s Gaokao Exam

Authors Hongbin Li and Ruixue Jia break down their new book, "The Highest Exam: How the Gaokao Shapes China", in an interview with Harvard University Press.
Understanding China’s Gaokao Exam
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On November 20, 2025 The Economist published their list of the best books of 2025 and included Hongbin Li's new book, "The Highest Exam: How the Gaokao Shapes China" in the line-up.

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Book cover "The Hghest Exam"

Each year, more than ten million students across China pin their hopes on the gaokao, the nationwide college entrance exam. Unlike in the United States, where standardized tests are just one factor, in China college admission is determined entirely by gaokao performance. It is no wonder the test has become a national obsession.

Drawing on extensive surveys, historical research, and economic analysis, and informed by Ruixue Jia and Hongbin Li’s own experiences of the gaokao gauntlet, The Highest Exam reveals how China’s education system functions as a centralized tournament. It explains why preparation for the gaokao begins even before first grade—and why, given its importance for upward mobility, Chinese families are behaving rationally when they devote immense quantities of money and effort to acing the test. It shows how the exam system serves the needs of the Chinese Communist Party and drives much of the country’s economic growth. And it examines the gaokao’s far-reaching effects on China’s society, as the exam’s promise of meritocracy encourages citizens to focus on individual ability at the expense of considering socioeconomic inequalities.

What’s more, as the book makes clear, the gaokao is now also shaping debates around education in the United States. As Chinese-American families bring the expectations of the highest exam with them, their calls for objective, transparent metrics in the education system increasingly clash with the more holistic measures of achievement used by American schools and universities.

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Combining personal narratives with decades of research, a vivid account of how the gaokao—China’s high-stakes college admissions test—shapes that society and influences education debates in the United States.

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Hongbin Li
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China’s unprecedented expansion of higher education in 1999 increased annual college enrollment from 1 million to 9.6 million by 2020. We trace the global ripple effects of that expansion by examining its impact on US graduate education and local economies surrounding college towns. Combining administrative data from China’s college admissions system and US visa data, we leverage the centralized quota system governing Chinese college admissions for identification and present three key findings.

First, the expansion of Chinese undergraduate education drove graduate student flows to the US: every additional 100 college graduates in China led to 3.6 Chinese graduate students in the US. Second, Chinese master’s students generated positive spillovers, driving the birth of new master’s programs and increasing the number of other international and American master’s students, particularly in STEM fields. And third, the influx of international students supported local economies around college towns, raising job creation rates outside the universities, as well. Our findings highlight how domestic education policy in one country can reshape the academic and economic landscape of another through student migration and its broader spillovers.

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Imagine one test deciding your future. For millions of students in China every year, that test is the gaokao—the national university entrance exam and one of the most competitive educational systems in the world. Published by Harvard University Press in Fall 2025, The Highest Exam: How the Gaokao Shapes China, takes readers inside this high-stakes exam and uncovers how it has shaped families, careers, and even the nation itself.

Written by leading scholars Ruixue Jia and Hongbin Li, with writer and researcher Claire Cousineau, the book combines rigorous research with compelling personal narratives to reveal how the gaokao has become much more than a test: it is a tool to shape China’s society and economy.

The gaokao has long been considered one of the world’s most consequential educational exams. Each year, tens of millions of students sit for this high-stakes test that determines access to universities, career opportunities, and pathways of social mobility. The Highest Exam traces the gaokao’s historical origins and evolution, showing how it became deeply intertwined with China’s governance, social strata, and economy. 

Through empirical analysis and personal narrative, the book illustrates how the exam system reflects broader themes in Chinese society: the pursuit of meritocracy, the tension between equality and advantage, and the state’s reliance on education to reinforce legitimacy. The authors aptly identify China’s education system as a centralized hierarchical tournament, returning to this framework in each section of the book: family, state, and society. 

The Highest Exam also brings a comparative lens, contrasting China’s exam-driven system with education practices in the United States and beyond. It raises urgent questions about fairness, access, and the role of education in shaping societies—questions that resonate far beyond China’s borders.

Engaging and deeply researched, The Highest Exam is essential reading for anyone interested in education, global society, or the forces shaping the next generation.



About the Authors
 

Ruixue Jia is Professor of Economics at the School of Global Policy and Strategy, University of California, San Diego.

Hongbin Li is Co-director of Stanford Center on China's Economy and Institutions, and a Senior Fellow of Stanford Institute for Economic Policy Research (SIEPR) and the Freeman Spogli Institute for International Studies (FSI) at Stanford University.

Claire Cousineau is a writer and former researcher at the Stanford Center on China’s Economy and Institutions, she is currently pursuing her MBA at Duke University.



Availability


The Highest Exam: How the Gaokao Shapes China is available now for purchase from Amazon and elsewhere.  



Upcoming Book Event


Join us on Tuesday, October 21 at 4 PM (Pacific) for a fireside chat with co-authors Ruixue Jia and Hongbin Li. The fireside chat will be held in-person in the Bechtel Conference Center and livestreamed for virtual attendees. Learn More & Register
 


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"The Highest Exam: How the Gaokao Shapes China", written by Ruixue Jia, Hongbin Li, and Claire Cousineau, combines rigorous research with compelling personal narratives to reveal how the gaokao has become much more than a test: it is a tool to shape China’s society and economy.

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Join us for a fireside chat with co-authors Ruixue Jia and Hongbin Li who will discuss their most recent book, The Highest Exam: How the Gaokao Shapes China. The fireside chat will be held in-person in the Bechtel Conference Center and livestreamed for virtual attendees. After the fireside chat, we invite in-person attendees to join us for a light reception and book signing with Hongbin Li. Order your copy of the book here.

Join the webinar to watch the event live:

Webinar ID: 985 1962 7327
Passcode: 361163
 


The Highest Exam book cover.

Each year, more than ten million students across China pin their hopes on the gaokao, the nationwide college entrance exam. Unlike in the United States, where standardized tests are just one factor, in China college admission is determined entirely by gaokao performance. It is no wonder the test has become a national obsession.

Drawing on extensive surveys, historical research, and economic analysis, and informed by Ruixue Jia and Hongbin Li’s own experiences of the gaokao gauntlet, The Highest Exam reveals how China’s education system functions as a centralized tournament that serves the needs of the Chinese Communist Party and drives much of the country’s economic growth. The book examines the gaokao’s far-reaching effects on China’s society and beyond. As Chinese-American families bring the expectations of the highest exam with them, their calls for objective, transparent metrics in the education system increasingly clash with the more holistic measures of achievement used by American schools and universities.



About the Authors
 

Hongbin Li

Hongbin Li is the Co-director of Stanford Center on China's Economy and Institutions, and a Senior Fellow of Stanford Institute for Economic Policy Research and the Freeman Spogli Institute for International Studies. Li obtained his Ph.D. in economics from Stanford University in 2001 before joining the economics department at the Chinese University of Hong Kong (CUHK). He was also one of the two founding directors of the Institute of Economics and Finance at the CUHK. He taught at Tsinghua University from 2007 to 2016 in the School of Economics and Management and was the founder and Executive Associate Director of the China Social and Economic Data Center. 

Li’s research has been focused on the transition and development of the Chinese economy, and the evidence-based research results have been both widely covered by media outlets and well read by policy makers around the world. He is currently the co-editor of the Journal of Comparative Economics and co-author of the book, The Highest Exam: How the Gaokao Shapes China, published by Harvard University Press.
 

Ruixue Jia headshot.

Ruixue Jia is a professor of economics at the School of Global Policy and Strategy at UC San Diego. She also serves as Co-director of the China Data Lab, executive secretary of the Association of Comparative Economic Studies (ACES) and co-chair of the China Economic Summer Institute (CESI). 

Jia’s research lies at the intersections of economics, history and politics, with a focus on how power structures evolve and shape economic development. Her recent work examines the political economy of idea formation and diffusion, including the interplay between the state, education, science and technology. She is the co-author of The Highest Exam, a book that explores how China’s education system both mirrors and molds its society.
 

Headshot of Claire Cousineau.

Claire Cousineau  is a writer and former researcher at the Stanford Center on China’s Economy and Institutions, she is currently pursuing her MBA at Duke University.

Since studying and working in Beijing and Kunming, Claire is passionate about fostering a deeper public understanding of China’s role on the global stage and creating cross-cultural relationships. Claire is the co-author of the book, The Highest Exam: How the Gaokao Shapes China, along with Hongbin Li and Ruixue Jia, published by Harvard University Press in 2025. 
 



Bechtel Conference Center
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616 Jane Stanford Way, Stanford University

or via Livestream

Ruixue Jia

John A. and Cynthia Fry Gunn Building, 366 Galvez Street
Stanford, CA 94305-6015

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Professor, by courtesy, of Economics
Senior Fellow at the Freeman Spogli Institute for International Studies
Senior Fellow at the Stanford Institute for Economic Policy Research
Director of the China, Labor, Income, and Population Research Program, Stanford Center on China's Economy and Institutions
Faculty Affiliate at the King Center of Global Development
Faculty Affiliate at Stanford Institute for Human-Centered Artificial Intelligence
Faculty Affiliate at the Stanford Center on China's Economy and Institutions
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Hongbin Li is a Senior Fellow of Stanford Institute for Economic Policy Research (SIEPR) and the Freeman Spogli Institute for International Studies (FSI).

Hongbin obtained Ph.D. in economics from Stanford University in 2001 and joined the economics department of the Chinese University of Hong Kong (CUHK), where he became full professor in 2007. He was also one of the two founding directors of the Institute of Economics and Finance at the CUHK. He taught at Tsinghua University in Beijing 2007-2016 and was C.V. Starr Chair Professor of Economics in the School of Economics and Management. He also founded and served as the Executive Associate Director of the China Social and Economic Data Center at Tsinghua University. He founded the Chinese College Student Survey (CCSS) in 2009 and the China Employer-Employee Survey (CEES) in 2014.

Hongbin’s research has been focused on the transition and development of the Chinese economy, and the evidence-based research results have been both widely covered by media outlets and well read by policy makers around the world. He is currently the co-editor of the Journal of Comparative Economics and co-author of the forthcoming book, “The Highest Exam: How the Gaokao Shapes China” published by Harvard University Press.

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For years the Rural Education Action Program (REAP) has been working to improve early childhood development outcomes across rural China. One of the most impactful programs has been the development and implementation of  REAP’s parenting curriculum and parenting centers. The centers expand upon our parenting curriculum by providing free and accessible spaces where caregivers and their young children can read, play, and explore together using developmentally appropriate toys and books that promote cognitive development. REAP has now supported the development of over 150 centers at county, township, and village levels across multiple provinces. 

Recently, REAP helped establish a parenting center at the Zhengzhou Foxconn Facility serving migrant factory employees and their families. Since opening, the center has already hosted over 10,000 child visits and supported over 350 families. Following the REAP model, this parenting center combines a research-based curriculum for early childhood development with local needs. The new center has received positive media attention across several outlets in China, including Henan Daily, Global Times, and Zhenggang News. The success of this parenting center introduces new opportunities for future parenting center collaborations that better serve manufacturing communities across China. 
 


Discover more REAP research projects on early childhood development (ECD).

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This article was published by Stanford Daily. Please click below to read the full article.

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Using reading performance data from a randomized controlled trial of 5224 fifth-grade students in East China, this paper provides a novel test of the hypothesis that evoking a gender stereotype creates gender gaps in education through self-fulfilling prophecies. We found that without intervention, boys performed worse than girls did in reading tests. Evoking a gender stereotype by indicating the expected outperformance of girls over boys in reading had a significantly negative effect on boys and an insignificant effect on girls. As a result, the net effect on the gender gap in reading performance was economically important but statistically insignificant. We also found evidence that increased anxiety was likely the underlying mechanism. Finally, a heterogeneous analysis showed that boys from environments with biased gender role beliefs were more susceptible to the intervention.

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This paper examines whether education can play a role in mitigating gender inequality in the process of sectoral reallocation of labour. We exploit the exogenous variations in educational attainment induced by the implementation of the 1986 Compulsory Education Law (CEL) in China. Using data from the 2018 wave of the China Family Panel Studies (CFPS) and a cohort difference-in-differences (DID) approach, we find that the CEL narrowed the gender gap in education for rural residents, but it did not reduce gender inequality in labour market outcomes, such as wage labour participation and wage rate. Our analysis reveals that this persistent inequality in labour market outcomes can be attributed to gender differences in migration and occupational choices. Specifically, rural males exposed to the CEL were more likely to migrate outside local provinces and work in low-skilled manufacturing sectors, while rural females tended to stay within local counties and work in low-skilled service sectors. Furthermore, we provide evidence that their differential migration responses are driven by household labour divisions and social gender norms, rather than disparities in cognitive skills.

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