The Effects of Multiple Welfare Program Participation on Educational Expenditures and Time Use: Evidence From the Social Safety Net in China

Abstract

Objective: This study examined the effects of participation in multiple social safety net programs (in particular, Dibao and an education subsidy) on the educational expenditures and educational time use of middle school students in China.

Background: China’s social safety net is a comprehensive system consisting of means-tested cash transfer and supplementary assistance programs. This study offers insights into how multiple welfare program participation contributes to children’s educational development.

Methods: Using nationally representative data from the China Education Panel Survey, we adopted propensity score matching and adjusted regression methods to examine the effects of receiving only Dibao, only an education subsidy, and both programs relative to comparable nonwelfare recipients.

Results: Our results indicated that the combination of Dibao and an education subsidy reduced recipient families’ school expenditures. However, Dibao and an education subsidy did not have significant effects on out-of-school expenditures and children’s total time spent on educational activities.

Conclusion: The combination of Dibao and education subsidy programs is an effective policy instrument to relieve the financial burden of school expenditures for low-income families, yet the effectiveness varies for relatively disadvantaged and advantaged children. Moreover, current social safety net programs in China may not be sufficient for increasing the time children devote to educational activities.