Redistribution, Incentives, and Educational Equity: An Institutional Economics Perspective on China's “Double Reduction” Policy

Research Article
Open access

Redistribution, Incentives, and Educational Equity: An Institutional Economics Perspective on China's “Double Reduction” Policy

Xueying Xie 1*
  • 1 Department of Finance, Guangdong University of Finance, Guangzhou, China    
  • *corresponding author 2982718535@qq.com
AEMPS Vol.191
ISSN (Print): 2754-1177
ISSN (Online): 2754-1169
ISBN (Print): 978-1-80590-189-1
ISBN (Online): 978-1-80590-190-7

Abstract

This paper examines China’s 2021 “Double Reduction” policy through the lens of institutional economics and incentive theory, analyzing its implications for educational equity, efficiency, and resource allocation, The study identifies how institutional misalignments, particularly between policy goals and the exam. oriented evaluation system-undermine implementation. While the policy has achieved partial success in redistributing resources and shifting household educational expenditures, its long-term effectiveness remains constrained by structural rigidities, uneven governance capacity, and behavioral adaptations. The paper argues that improving institutional coherence, optimizing micro-level incentives, and reforming the education evaluation system are essential for achieving sustainable outcomes. These findings contribute to the growing literature on the economics of education and institutional policy design in transitional economies.

Keywords:

Double Reduction, Institutional Economics, Resource Allocation Educational Equity, Incentive Mechanisms

Xie,X. (2025). Redistribution, Incentives, and Educational Equity: An Institutional Economics Perspective on China's “Double Reduction” Policy. Advances in Economics, Management and Political Sciences,191,10-16.
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References

[1]. State Council of the People's Republic of China. (2021). Opinions on further reducing the burden of homework and off-campus training for students in compulsory education. http://www.gov.cn/zhengce/2021-07/24/content_5627132.htm

[2]. Heckman, J. J., & Lochner, L. J. (2000). Rethinking myths about education and training: Understanding the sources of skill formation in a modern economy. In S. Danziger & J. Waldfogel (Eds.), Securing the future: Investing in children from birth to college (pp. 47–83). Russell Sage Foundation.

[3]. Ministry of Education of the People’s Republic of China. (2022). China Education Statistics Yearbook 2021. People’s Education Press. [In Chinese].

[4]. Hanushek, E. A. (2003). The failure of input-based schooling policies. The Economic Journal, 113(485), F64–F98. https://doi.org/10.1111/1468-0297.00099

[5]. Lu, M., & Zhang, Y. (2022). Efficiency lock-in and education resource allocation in underdeveloped regions. Journal of China Education Development, 12(3), 45–59. [In Chinese].

[6]. UNESCO. (2020). Global education monitoring report 2020: Inclusion and education – All means all. https://unesdoc.unesco.org/ark:/48223/pf0000373718

[7]. Loyalka, P., Sylvia, S., Liu, C., Chu, J., & Rozelle, S. (2019). Pay by design: Teacher performance pay design and the distribution of student achievement. Journal of Labor Economics, 37(3), 621–662. https://doi.org/10.1086/701935

[8]. World Bank. (2020). World development report 2018: Learning to realize education’s promise. World Bank Publications. https://doi.org/10.1596/978-1-4648-1096-1

[9]. Lareau, A. (2011). Unequal childhoods: Class, race, and family life (2nd ed.). University of California Press.

[10]. Tsinghua University Center for Basic Education Quality Monitoring. (2023). Survey report on the implementation of the Double Reduction policy in pilot provinces. [Unpublished internal report].

[11]. Shi, Y., & Liu, C. (2021). The impact of the “Double Reduction” policy on non-cognitive skill development in primary school students. Journal of Educational Development, 18(4), 33–49. [In Chinese].

[12]. Gutman, L. M., & Schoon, I. (2013). The impact of non-cognitive skills on outcomes for young people. Education Endowment Foundation. https://educationendowmentfoundation.org.uk

[13]. Chinese Academy of Educational Sciences. (2022). Annual report on basic education reform in China. [Unpublished internal report]. [In Chinese].

[14]. Guarino, C. M., Santibañez, L., & Daley, G. A. (2006). Teacher recruitment and retention: A review of the recent empirical literature. Review of Educational Research, 76(2), 173–208. https://doi.org/10.3102/00346543076002173

[15]. Zhao, Y., & Wang, Q. (2022). Teacher workload and professional identity under the Double Reduction policy. Contemporary Education Review, 14(2), 76–91. [In Chinese].

[16]. Fullan, M. (2007). The new meaning of educational change (4th ed.). Teachers College Press.

[17]. Tan, C. (2020). Policy implementation and local discretion in Chinese education governance. International Journal of Educational Development, 78, 102249. https://doi.org/10.1016/j.ijedudev.2020.102249

[18]. Bruns, B., Filmer, D., & Patrinos, H. A. (2011). Making schools work: New evidence on accountability reforms. The World Bank. https://doi.org/10.1596/978-0-8213-8679-8

[19]. Andrews, M., Pritchett, L., & Woolcock, M. (2017). Building state capability: Evidence, analysis, action. Oxford University Press.

[20]. Lavy, V. (2009). Performance pay and teachers’ effort, productivity, and grading ethics. American Economic Review, 99(5), 1979–2011. https://doi.org/10.1257/aer.99.5.1979

[21]. Author-collected data based on local reports by Shanghai Municipal Education Commission. (2022). [Unpublished internal source].

[22]. China Development Research Foundation. (2022). Survey on the impact of Double Reduction policy on family education investment. [Unpublished internal report].

[23]. Schelling, T. C. (1978). Micromotives and macrobehavior. W. W. Norton & Company.

[24]. Sahlberg, P. (2015). Finnish lessons 2.0: What can the world learn from educational change in Finland? Teachers College Press.


Cite this article

Xie,X. (2025). Redistribution, Incentives, and Educational Equity: An Institutional Economics Perspective on China's “Double Reduction” Policy. Advances in Economics, Management and Political Sciences,191,10-16.

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About volume

Volume title: Proceedings of ICEMGD 2025 Symposium: The 4th International Conference on Applied Economics and Policy Studies

ISBN:978-1-80590-189-1(Print) / 978-1-80590-190-7(Online)
Editor:Florian Marcel Nuţă , Xuezheng Qin
Conference website: https://www.icemgd.org/
Conference date: 20 September 2025
Series: Advances in Economics, Management and Political Sciences
Volume number: Vol.191
ISSN:2754-1169(Print) / 2754-1177(Online)

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References

[1]. State Council of the People's Republic of China. (2021). Opinions on further reducing the burden of homework and off-campus training for students in compulsory education. http://www.gov.cn/zhengce/2021-07/24/content_5627132.htm

[2]. Heckman, J. J., & Lochner, L. J. (2000). Rethinking myths about education and training: Understanding the sources of skill formation in a modern economy. In S. Danziger & J. Waldfogel (Eds.), Securing the future: Investing in children from birth to college (pp. 47–83). Russell Sage Foundation.

[3]. Ministry of Education of the People’s Republic of China. (2022). China Education Statistics Yearbook 2021. People’s Education Press. [In Chinese].

[4]. Hanushek, E. A. (2003). The failure of input-based schooling policies. The Economic Journal, 113(485), F64–F98. https://doi.org/10.1111/1468-0297.00099

[5]. Lu, M., & Zhang, Y. (2022). Efficiency lock-in and education resource allocation in underdeveloped regions. Journal of China Education Development, 12(3), 45–59. [In Chinese].

[6]. UNESCO. (2020). Global education monitoring report 2020: Inclusion and education – All means all. https://unesdoc.unesco.org/ark:/48223/pf0000373718

[7]. Loyalka, P., Sylvia, S., Liu, C., Chu, J., & Rozelle, S. (2019). Pay by design: Teacher performance pay design and the distribution of student achievement. Journal of Labor Economics, 37(3), 621–662. https://doi.org/10.1086/701935

[8]. World Bank. (2020). World development report 2018: Learning to realize education’s promise. World Bank Publications. https://doi.org/10.1596/978-1-4648-1096-1

[9]. Lareau, A. (2011). Unequal childhoods: Class, race, and family life (2nd ed.). University of California Press.

[10]. Tsinghua University Center for Basic Education Quality Monitoring. (2023). Survey report on the implementation of the Double Reduction policy in pilot provinces. [Unpublished internal report].

[11]. Shi, Y., & Liu, C. (2021). The impact of the “Double Reduction” policy on non-cognitive skill development in primary school students. Journal of Educational Development, 18(4), 33–49. [In Chinese].

[12]. Gutman, L. M., & Schoon, I. (2013). The impact of non-cognitive skills on outcomes for young people. Education Endowment Foundation. https://educationendowmentfoundation.org.uk

[13]. Chinese Academy of Educational Sciences. (2022). Annual report on basic education reform in China. [Unpublished internal report]. [In Chinese].

[14]. Guarino, C. M., Santibañez, L., & Daley, G. A. (2006). Teacher recruitment and retention: A review of the recent empirical literature. Review of Educational Research, 76(2), 173–208. https://doi.org/10.3102/00346543076002173

[15]. Zhao, Y., & Wang, Q. (2022). Teacher workload and professional identity under the Double Reduction policy. Contemporary Education Review, 14(2), 76–91. [In Chinese].

[16]. Fullan, M. (2007). The new meaning of educational change (4th ed.). Teachers College Press.

[17]. Tan, C. (2020). Policy implementation and local discretion in Chinese education governance. International Journal of Educational Development, 78, 102249. https://doi.org/10.1016/j.ijedudev.2020.102249

[18]. Bruns, B., Filmer, D., & Patrinos, H. A. (2011). Making schools work: New evidence on accountability reforms. The World Bank. https://doi.org/10.1596/978-0-8213-8679-8

[19]. Andrews, M., Pritchett, L., & Woolcock, M. (2017). Building state capability: Evidence, analysis, action. Oxford University Press.

[20]. Lavy, V. (2009). Performance pay and teachers’ effort, productivity, and grading ethics. American Economic Review, 99(5), 1979–2011. https://doi.org/10.1257/aer.99.5.1979

[21]. Author-collected data based on local reports by Shanghai Municipal Education Commission. (2022). [Unpublished internal source].

[22]. China Development Research Foundation. (2022). Survey on the impact of Double Reduction policy on family education investment. [Unpublished internal report].

[23]. Schelling, T. C. (1978). Micromotives and macrobehavior. W. W. Norton & Company.

[24]. Sahlberg, P. (2015). Finnish lessons 2.0: What can the world learn from educational change in Finland? Teachers College Press.