The Heterogeneous Effect of Post-Compulsory Education on Subjective Well-Being: Evidence Based on Marginal Treatment Effect

The education-happiness puzzle has long been debated in the existing literature with conflicting results. Based on the generalized Roy model, this study evaluates the marginal treatment effect of post-compulsory education on subjective well-being in China using individual-level microdata. The results indicate that post-compulsory education has a positive and robust impact on subjective well-being, especially for those with fewer opportunities for further education, such as women and rural residents. Regarding the mechanisms, our findings suggest that while post-compulsory education can enhance both income and health on average. However, it's the impact on health, not income, that explains the heterogenous effect of education on subjective well-being. Our research suggests that post-compulsory education can be a crucial tool for increasing social equity in subjective well-being. It is therefore important for policy makers to recognize the importance of assessing the heterogeneous effects of education across individuals.