TAF PUBLISHING

This study sketches a portrait of education investment for villagers in Daliang Mountain in Sichuan province with a detailed survey for parents. Those families have below-average income and receive government support on the 9-year compulsory education. The survey data shows that parents with a higher expectation of return on education are more likely to spend more time with their children on homework and tutoring, but monetary expenditure on education is insignificant. Also, children whose parents expect a higher return on education are less likely to drop out of school. Both the direct costs (e.g., tuition) and indirect costs (forgone income because of schooling) do not significantly impact education investment. In terms of time preferences, more patient parents desire a higher level of education for their children. In summary, with government funding, the financial concern is not the major constraint for education investment for most families, but parents' attitudes and beliefs play a more important role. Based on the findings, useful suggestions for parents, government and policy makers have been made.