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Title page
Contents
Abstract 3
1. Introduction 4
2. The reform of the hukou system in China 7
2.1. The hukou system and urban-rural education divide 7
2.2. The hukou reform in 1998 10
3. Data and key variables 12
3.1. Data 12
3.2. Key variables 14
4. Empirical strategies 18
4.1. Difference-in-differences model 18
4.2. Event study 19
5. Results 21
5.1. Baseline results 21
5.2. Validity of DID strategy and dynamic effect 25
6. Robustness checks, heterogenous effects, and mechanisms 27
6.1. Controlling for confounding factors 27
6.2. Other robustness checks 30
6.3. Heterogeneous effects 31
6.4. Mechanisms 33
7. Conclusions 36
References 38
Appendix 57
Figure 1. The urban-rural education gap in China. Panel A illustrates the urban-rural gap in enrollment rates. The enrollment rate is the proportion... 41
Figure 2. The urban-rural gap in education expenditure per student in China, 1998-2018. The rural-urban ratio is the relative value of rural education expenditure... 42
Figure 3. The educational outcomes of children from different family types. The x-axis indicates an individual's birth year, and the y-axis indicates the mean... 43
Figure 4. The effect of the 1998 reform on children's hukou status. The sample comprises individuals from households with urban fathers and rural mothers.... 44
Figure 5. The event study of the reform in 1998. The figure reports the estimates of timing dummies with a 95% confidence interval in the regression... 45
Figure 6. Estimated coefficients from the time-shifted placebo tests. The solid lines denote the true treatment effects estimated by equation (1).... 46
Figure 7. Estimated coefficients from the placebo tests using untreated samples. The solid lines denote the true treatment effects estimated by equation (1).... 47
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