Does Fiscal Education Expenditure Promote the Common Prosperity of Urban and Rural Residents?——Empirical Evidence Based on Micro Household Survey Data
This paper matches Chinese Household Income Project Suryey data with the fiscal education expenditure of municipal-level cities,and empirically examines the economic effects,mechanisms,and heterogeneity of fiscal education expenditure on the income gap between urban and rural residents.The study finds that increasing fiscal education expenditure effectively narrows the income gap between urban and rural residents,with a stronger effect in households with multiple children and lower parental education levels.Mechanism analysis shows that fiscal education expenditure gradually narrows the gap in education levels and years of schooling between urban and rural residents,promotes educational equity,enhances rural residents'opportunities for formal employment,facilitates the transformation of rural residents'identities from agricultural to non-agricultural,and reduces the gap in social insurance participation rates between urban and rural residents,thus achieving long-term improvement in the income gap between them.Based on this,fiscal policy should optimize and integrate urban and rural educational resources,improve educational quality,and implement targeted strategies,deepen the delegation of powers and expenditure responsibilities below the provincial level,innovate institutions,accelerate China's transformation from a populous country to a human resources-rich country,and ultimately achieve common prosperity.
Fiscal Education ExpenditureHuman CapitalUrban-Rural Income GapCommon Prosperity