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Ming-Hsuan Lee

Chapter 14 reviews the literature on parental investment in children’s human capital in China. The range of human capital can be very broad. This chapter focuses on formal education, that is, schooling in the government educational system. It identifies 11 important subjects in the literature and divide the literature into 11 categories based on the research focus of the studies. Specifically, categories 1_7 pertain to household characteristics and discuss how these household factors affect parental investment in children’s human capital and cause educational inequality. Policy changes that affect households (such as the Compulsory Education Law and the one-child policy) are also discussed. Categories 8_10 pertain to outside factors and examine how these outside factors affect parental investment in children’s human capital and cause educational inequality. Category 11 discusses the target of parental investment and its consequences. Finally, Lee discusses some issues when applying these accounts for future research on human capital investment on children in China.