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• W4313251181 abstract "ABSTRACTEducation expenditure accounts for a rising proportion of household income and gradually becomes a burden on households. Few studies have analysed whether the household’s subjective well-being (SWB) decreases under these conditions. To fill the gap, we explore the nexus between education expenditure and the SWB of households, using China Household Finance Survey data. The results confirm that education expenditure significantly attenuates the SWB of Chinese households. Moreover, empirical results suggest that the ‘arms race’ in education investment, the crowding out effect on other household consumption, and the synergy effect on family liabilities are three channels for education expenditure’s adverse effects on SWB. Further analysis shows that this expenditure’s detrimental impacts are more significant in provinces with high Gaokao pressure and the middle-income class, indicating that Gaokao pressure is the main driving force for the education arms race in China and that middle-class families are the most likely to be involved and be injured in the education arms race. Our findings confirm that the ‘double reduction’ regulation is necessary, and relevant policies require improvement to promote equality in education and achieve higher life satisfaction for people across China.KEYWORDS: Education expendituresubjective well-being (SWB)education arms racesynergy effectcrowding out effectJEL CLASSIFICATION: D12I21I31 AcknowledgmentsWe are very grateful to the anonymous reviewers for their careful reading of our manuscript and their insightful comments and constructive suggestions. Yongyi Zhu acknowledges the financial support from the “Fundamental Research Funds for the Central Universities” in UIBE (21QD04).Disclosure statementNo potential conflict of interest was reported by the authors.Notes1 The results of benchmark estimation are consistent if we adopt the original data.2 In following part of this article, ‘education expenditure’ means the proportion of the education expenditure to the household’s total income.3 The ‘double reduction’ regulations were announced in a policy document released by the Ministry of Education (MOE) on July 24, 2021. The regulations intend to ease the burden on primary and middle school students (i.e. students in the compulsory stage of the Chinese education system) by addressing two aspects of students’ workload: homework and off-campus supplementary courses.Additional informationFundingThis work is supported by the “Fundamental Research Funds for the Central Universities” in UIBE (21QD04)" @default.
• W4313251181 created "2023-01-06" @default.
• W4313251181 creator A5021763198 @default.
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• W4313251181 date "2022-12-27" @default.
• W4313251181 modified "2023-09-27" @default.
• W4313251181 title "Education and happiness: does education expenditure undermine households’ subjective well-being? Evidence from China" @default.
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• W4313251181 doi "https://doi.org/10.1080/00036846.2022.2140772" @default.
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