Title: Unintended Consequences of China’s Double Reduction Policy: Its Immediate and Intergenerational Impacts

Speaker: Guochang Zhao, Southwestern University of Finance and Economics

Time: 2025/03/27 13:30-15:00

Venue: 106 Zhonghui Building

Abstract

Like many East Asian societies, Chinese households increasingly are facing fierce competition in the education market. Students spend longer hours either at school or on homework, household spending on private tutoring has skyrocketed, while mental and physical health issues among teenagers have become more prevalent. To address this growing concern, in July 2021, the Chinese government launched the “Double Reduction” (DR) policy, aimed at reducing both students’ excessive school homework burden and after-school private tutoring. Using a tailored household survey, a constructed policy enforcement index, and a difference-in-differences strategy, this paper evaluates the policy’s impact. We find that the policy’s effects run counter to its goals. On average, it increases children’s private tutoring enrolment, raises household tutoring expenses, and boosts the time parents spend on schoolwork. Moreover, these effects are not evenly distributed: children from low-income households suffer the most, as higher tutoring costs reduce their private tutoring participation and lead to poorer academic performance.