Effect of compulsory education on retirement financial outcomes: evidence from China*
利用中国1986年义务教育改革，发现义务教育使农村居民参与新农保的比例提高3.5个百分点，对女性影响更大，认知和信息获取是关键机制。
Abstract This paper presents the first causal evidence that compulsory education improves retirement financial outcomes in a developing economy. By exploiting the 1986 compulsory schooling reform in China, we show that compulsory education increases rural residents’ participation in the New Rural Pension Scheme, the world’s largest public pension program. Using an instrumental variables strategy in a difference‐in‐differences framework, we find that an additional year of schooling significantly increases pension participation by 3.5 percentage points, and this positive result is more prominent among women. Mechanism analysis suggests that cognition and access to information are essential pathways in the education–pension nexus.