Journal of Applied Finance & Banking

The Impact of Different Educational Experiences on Non- cognitive Ability and Consumption Decision Based on the Analysis of Dynamic Monitoring Data of Floating Population in China

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  • Abstract 

    This paper mainly studies the impact of general high education and secondary vocational education on people's non-cognitive ability, which thus influences the consumption decision-making mechanism of floating population. After controlling individual characteristics of the sample (age, gender, household registration, etc.) and income, this article empirically finds that the consumption ratio of floating population graduate from secondary vocational school is higher than that from senior high school, and after further controlling the uncertainty of future revenue and expenditure, this result remains significant. The difference in non-cognitive ability brought by different educational experiences can explain to a certain extent the phenomenon that the consumption proportion of the floating population with vocational education is higher. This article finds that vocational school graduates do a better job in self-control ability, and it is easier to think that there is difference between themselves and local residents, which shows a stronger demand for social recognition. This socially recognized demand is manifested in the fact that vocational education can significantly narrow the gap in consumption levels between migrants and local residents. Meanwhile, this narrowing effect shows a non-linear increase as the income increases.

    JEL classification numbers: I20 J01 J24 J30
    Keywords: non-cognitive ability, vocational education, floating population, consumption, social recognition requirements.