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Educational Investment Risk of the Urban Citizens: Empirical Evidence in China

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The risk of individual citizen’s investment in education specifically refers to the benefit changeability of individual investment in education. Risks always go with uncertainty. By adopting the method of quantile regression estimation and taking the Chinese urban citizens as samples, the author makes a positivist study of the risk of Chinese urban citizens’ individual investment in education. The result indicates that the individual citizen’s investment in education often suffers obvious benefit changeability, i.e., the risk and benefit of investment in education shows a positive correlation. It is not realistic to reduce the inequality of salaries by means of investing more money for receiving higher-level education. Therefore, relevant policy makers should pay due attention to the establishment of the mechanism for sharing the risk of investment in education and the system of social insurance.


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