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<p>The Student Subsidy Program (SSP) is a key cash transfer initiative aimed at alleviating the educational financial burden on low-income households in China. Despite the recognized importance of socio-emotional skills in breaking the cycle of poverty, there remains a limited understanding of the SSP’s impact on children’s non-cognitive skill development. Using data from the China Education Panel Survey (CEPS) and employing the Big Five personality traits as non-cognitive measures, this study examines the effects of the SSP on children’s non-cognitive development. Our findings indicate that the SSP increases students’ non-cognitive skills by an average of 0.097 standard deviations, with more pronounced effects among girls, non-only-child students, those with local <i>hukou</i>, and those from low-income families. Further analysis suggests that the mechanisms underlying this effect include improvements in parent-child interactions, children’s height-for-age z-scores (HAZ), cognitive skills, as well as enhanced teacher-student relationships. Our research highlights that the SSP not only improves children’s educational opportunities but also plays a significant role in the development of their skills, particularly non-cognitive skills.</p>

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Cash transfers and children’s non-cognitive skills: evidence from the student subsidy program in rural China

  • 期刊论文

  • 发表日期：

    2025年6月2日

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  • Dian Chen,
  • Yuru Jiang,
  • Xiaodong Zheng

摘要

The Student Subsidy Program (SSP) is a key cash transfer initiative aimed at alleviating the educational financial burden on low-income households in China. Despite the recognized importance of socio-emotional skills in breaking the cycle of poverty, there remains a limited understanding of the SSP’s impact on children’s non-cognitive skill development. Using data from the China Education Panel Survey (CEPS) and employing the Big Five personality traits as non-cognitive measures, this study examines the effects of the SSP on children’s non-cognitive development. Our findings indicate that the SSP increases students’ non-cognitive skills by an average of 0.097 standard deviations, with more pronounced effects among girls, non-only-child students, those with local hukou, and those from low-income families. Further analysis suggests that the mechanisms underlying this effect include improvements in parent-child interactions, children’s height-for-age z-scores (HAZ), cognitive skills, as well as enhanced teacher-student relationships. Our research highlights that the SSP not only improves children’s educational opportunities but also plays a significant role in the development of their skills, particularly non-cognitive skills.