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ID:
124559
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| Publication |
2013.
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| Summary/Abstract |
This paper attempts to identify neighborhood peer effects on children's dropout decision in rural China using the China Health and Nutrition Survey data (CHNS). Identifying peer effect is complicated by several endogenity problems including "self-selection" problem, "reflective" problem and uncontrolled "correlated effect". By taking advantage of the special feature of "Hukou" system and "son preference" phenomenon in rural China, the endogenity issues are quite reasonably addressed. More specifically, we discover a new and valid instrumental variable for peer's dropout rate: peers' firstborn boy rate. Intuitively, the more the firstborn boy peers, the lower the peers' dropout rate because of son preference and the lower one's own dropout probability due to peer effect. It is found that as peers' dropout rates increase by one percentage point, the child dropout rate would increase by 0.393 to 0.504 percentage points, the corresponding social multiplier effects of peer dropout are from 1.647 to 2.016. It is also found that elder kids and females are more susceptible to peer pressure in dropout decisions. Many other interesting findings are documented.
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| 2 |
ID:
124895
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| Publication |
2013.
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| Summary/Abstract |
We use the Chinese College Student Survey, conducted in 2010, to examine levels of poverty among students on China's campuses. With the poverty line defined as the college-specific expenditures a student needs to maintain a basic living standard on campus, we find that 22 per cent of college students in China are living in poverty. Poverty is more severe among students from rural or western parts of the country. With a targeting count error of more than 50 per cent, it is important that the college need-based aid programme be improved. Lacking other income sources, poor students rely heavily on loans and paid employment to finance their college education.
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