Financing Inclusion, Structuring Inequality? Fiscal Policy in Social Mobility for Rural-to-Urban Migrants in China

• In Event: AERA Roundtable Session Thursday 4:15 pm - Gold 1
  In Roundtable Session: Equity, Access, and Targeted Funding in Education Policy

Abstract

This study examines the impact of fiscal transfers on public education funding for children of rural-to-urban migrants, conducting an evaluation framework and employing quasi-natural experimental methods. Findings indicate that generalized transfers can narrow funding gaps and promote more equitable educational inclusion, but may also reduce fiscal intensity, efficiency, and sustainability. In contrast, reward-based transfers incentivize local governments to increase funding, enhance sustainability, and foster local independent potential. However, they may inadvertently widen inter-municipal disparities, as fiscally stronger cities are better positioned to secure additional resources. Heterogeneity analyses reveal that local fiscal capacity and demographic trends critically shape policy effectiveness. While reward-based approaches can help address resource pressures arising from demographic changes, they may also curtail local autonomy and intensify regional inequities.

Author

• Yangguang Hu, Guangzhou University