Aiming to provide better education facilities and improve the educational attainment of poor rural students, China’s government has been merging remote rural primary schools into centralized village, town, or county schools since the late 1990s. To accompany the policy, boarding facilities have been constructed that allow (mandate) primary school-aged children to live at school rather than at home. More generally, there also have been efforts to improve rural schools, especially those in counties and towns. Unfortunately, little empirical work has been available to evaluate the impact of the new merger and investment programmes on the educational performance of students. Drawing on a unique dataset that records both the path by which students navigate their primary school years (i.e., which different types of schools did students attend) as well as math test scores in three poverty-stricken counties, we use descriptive statistics and multivariate analysis (both Ordinary Least Squares (OLS) and covariate matching) to analyse the relationship between different transfer paths and student educational performance. This allows us to examine the costs and benefits of the school merger and investment programmes. The results of the analysis show that students who attend county schools perform systematically better than those who attend village or town schools. However, completing primary school in town schools seems to have no effect on students’ academic performance. Surprisingly, starting primary education in a teaching point does not hurt rural students; on the contrary, it increases their test scores in some cases. Finally, in terms of the boarding effect, the neutral estimate in OLS and the negative estimate in covariate matching results confirm that boarding at school does not help the students; in some cases it may even reduce their academic performance.

A significant gap remains between rural and urban students in the rate of admission to senior high school. One reason for this gap may be high tuition and other school fees at the senior high school level. By reducing student expectations of attending high school, high tuition and school fees can reduce student academic performance in junior high school. In this paper we evaluate the impact of a senior high tuition relief program on the test scores of poor, rural seventh grade students in China. We surveyed three counties in Shaanxi Province and exploit the fact that, while the counties are adjacent to one another and share similar characteristics, only one of the three implemented a tuition relief program. Using several alternative estimation strategies, including difference-in-differences (DD), difference-indifference-in-differences (DDD), propensity score matching (PSM) and difference-indifferences matching (DDM), we find that the tuition program has a statistically significant and positive impact on the math scores of seventh grade students. More importantly, this program is shown to have the largest (and only significant) impact on the poorest students.

Despite requirements of and support for universal education up to grade 9, there are concerning reports that poor rural areas in China suffer from high and maybe even rising dropout rates. Although aggregated statistics from the Ministry of Education show almost universal compliance with the 9-year compulsory education law, there have been few independent, survey-based studies regarding dropout rates in China. Between 2009 and 2010 we surveyed over 7800 grade 7, 8, and 9 students from 46 randomly selected junior high schools in four counties in two provinces in North and Northwest China to measure the dropout rate. We also used the survey data to examine factors correlated with dropping out, such as the opportunity cost of going to school, household poverty, and poor academic performance. According to the study's findings, drop out rates between grade 7 and grade 8 reached 5.7% and dropout rates between grade 8 and grade 9 reached 9.0%. In sum, among the total number of students attending junior high school during the first month of the first term of grade 7, 14.2% had left school by the first month of grade 9. Dropout rates were even higher for students that were older, from poorer families (and families in which the parents were not healthy), or were performing more poorly academically. We conclude that although the government's policy of reducing tuition and fees for junior high students may be necessary, it is not sufficient to solve the dropout problem.

Despite the rise in grade retention in poor areas in rural China recently, little work has been done to understand the impact of grade retention on the educational performance of students in these areas in rural China. This paper seeks to redress this shortcoming and examines the effect of grade retention on educational performance on 1649 students in 36 elementary schools in Shaanxi province. With a dataset that was collected from a survey designed specifically to capture school performance of students before and after they were retained, we use Differences-in-Differences, Propensity Score Matching and Differences-in-Differences Matching approaches to analyze the effect of grade retention on school performance. Although the descriptive analysis shows that grade retention helps to improve the scores of the students that were retained, somewhat surprisingly, the results from the multivariate analysis consistently show that there is no significant positive effect of grade retention on school performance of the students. In fact, in some cases (e.g., for the students who repeat grade 2), grade retention is shown to hurt school performance.

Recently the number of informal employees in the monopolistic state-owned enterprises (SOE) in China has increased rapidly as a result of the reform of the employment system; however, their welfare is quite inferior to that of the formal employees, which harms the incentive of the informal employees a lot. In this paper current incentive system of these employees is studied, the factors of the satisfactory degree of current incentive system are focused, and finally conclusions are drawn and policy implications are imposed regarding to improve the incentive of the informal employees in the state-owned enterprises.

Migration is one of the main ways of alleviating poverty in developing countries, including China. However, there are concerns about the potential negative effects of migration on the educational achievement of the children that are left behind in villages when one or both of their parents out-migrate to cities. This paper examines changes in school performance before and after the parents of students out-migrate. Surprisingly, we find that there is no significant negative effect of migration on school performance. In fact, we find that educational performance improves in migrant households in which the father out-migrates.