Education improvement in China slows as provincial imbalance comes into focus  

 20-Oct-15, Global Demographics 

Understanding the demographic profile of a country is an essential underpinning of any business or investment strategy. The age and education profile of the population determines many aspects of consumption as well as the capability of the society to develop. By understanding how China’s demographic profile will change we can see the opportunities that may emerge in future years.

Education is important as it influences not only the productivity of a worker but it also influences many aspects of society such as reducing the propensity to have more than one child, lifestyle choice and health.

China has achieved very significant improvements in education and clearly it lifted millions of people's opportunities and lifestyles. But the projected rate of improvement will now slow as a result of a combination of fewer young people exiting the education system (as a result of the changing age profile of the population) and because the big improvements have now been achieved with most having lower secondary or better education.

China: Educational attainment of people aged 15+ (million)

Image: Global Demographics

The challenge now is to reduce the differential between provinces. In part this has been a function of education – the more able have migrated to the cities (and provinces) where the better work opportunities are. However, it does mean the capabilities of the labour force of some provinces is not as good as others. This in turn impacts the ability of some Provinces to grow economically.

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