Student Loans and Intergenerational Educational Mobility: Evidence from China

• In Event: Opportunity and Outcomes in School Choice Contexts

Abstract

This study examines the impact of China’s student loan program on intergenerational educational mobility. Using nationally representative data from the 2019 China Institute of Education Finance Research Survey (CIEFR-HS) survey and exploiting regional and cohort variation in program rollout, we apply a staggered difference-in-differences approach. Results show that the program significantly increases upward mobility: treated students attain 0.8 more years of schooling than their parents and achieve higher educational ranks among peers. Mechanism analysis suggests the effect operates primarily through easing household financial constraints. Moreover, larger loan amounts yield greater mobility gains. These findings highlight the effectiveness of targeted financial aid in promoting educational equity and upward human capital mobility.

Authors

• Manru Wang, Peking University

• Sen Zhou, Peking University