A STUDY OF THE DISPARITIES OF DEMAND FOR HIGHER EDUCATION IN URBAN AND RURAL REGIONS IN CHINA: PERSPECTIVES OF HUMAN CAPITAL AND SOCIAL CAPITAL THEORY

Based on the human capital theory and social capital theory, this study analyzes the disparities of demand for higher education in urban and rural regions in China. Holding other things constant, demand for higher education is equally high for students from both urban and rural regions (URR). However, there exists significant interactions between URR background of students with the human capital and social capital factors in influencing such demand: (1) secondary students from rural regions tend to demand for higher education more strongly than those from urban regions when the expected rate of return is low; but would demand less strongly when the expected rate of return is high. (2) secondary students from rural regions tend to demand for higher education more strongly than those from urban regions when the family networking resource is low, but would demand less strongly when the family networking resource is high. To those in lower social economic status, higher education is almost the only channel to change their disadvantage status and realize their social mobility. The Chinese government should response to such demands by innovating the systems of education finance and enrollment.