Labor education, cash transfers and student development: Evidence from China

Based on China Education Panel Survey data, this study used the PSM-DID method to explore the relationship between labor education and cash transfers and analyzed the causal effect of its impact on student development. We found that labor education and cash transfers can significantly improve student academic performance and cognitive and noncognitive abilities. There was an obvious crowding in effect between labor education and cash transfers. Upon increasing investment in labor education and reducing cash transfers, students improved their academic performance and had better cognitive and noncognitive abilities. We suggest that the government, schools and families increase investment in labor education to achieve a better level of student development and reduce financial burdens.

Automated summary

Based on the China Education Panel Survey, this study investigates the relationship between labor education and cash transfers using the PSM-DID method, and examines the causal effect on student development. The findings indicate that both labor education and cash transfers significantly enhance student academic performance and cognitive and noncognitive abilities. There is a clear substitution effect between labor education and cash transfers, as increasing investment in labor education while reducing cash transfers improves students' academic performance and cognitive and noncognitive abilities. The study suggests that the government, schools, and families should increase investment in labor education to promote higher levels of student development and alleviate financial burdens.