The Impact of Fiscal Investment in Education and the Structure of Investment on Urban–Rural Income Disparities: A Study Based on Quantile Panel Regression
DOI:
https://doi.org/10.54097/zkdyt854Keywords:
Education Finance; Educational Investment Structure; Urban–Rural Income Inequality; Human Capital; Quantile Panel Regression.Abstract
This study investigates the impact of government education expenditure and its structural composition on urban–rural income inequality in China, using provincial panel data spanning from 2004 to 2023. The empirical results reveal that increased per-student education spending plays a significant role in narrowing the income gap between urban and rural populations. However, a disproportionately large allocation to higher education tends to widen income disparities, indicating an urban bias in the distribution of educational resources. Mechanism analysis further demonstrates that human capital development serves as a key transmission channel linking education finance to income inequality. The study also uncovers strong regional heterogeneity: the income-equalizing effects of education spending are more evident in eastern provinces, while central and western regions exhibit weaker or inconsistent outcomes, likely due to institutional and structural limitations. These findings underscore the importance of rebalancing education budgets between basic and higher education and adopting regionally tailored fiscal strategies to promote equitable income distribution and inclusive economic development.
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