New Books in Economics Ruixue Jia et al., "The Highest Exam: How the Gaokao Shapes China" (Harvard UP, 2025)
Feb 15, 2026
Ruixue Jia, UC San Diego economist who studies education and China; Hongbin Li, Stanford economist focused on China’s institutions. They explain how the gaokao works, why it creates intense early investment and limited second chances, how elite colleges mainly signal status, and the exam’s role in governance and regional fairness. They end by discussing reforms and limits of tutoring bans.
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Early Investment Pressure On Families
- Ruixue Jia describes families planning for the Gaokao from kindergarten because early investment affects future exam outcomes.
- Even elite parents feel forced to pay for tutoring to keep their children competitive.
Elite College Yields Big Returns
- Attending college raises earnings about 40%, while elite colleges add another ~40–50% premium.
- Elite college placement also grants access to state jobs, housing, and other non-monetary benefits.
Elite Parents Still Use Tutoring
- Ruixue Jia recounts a fellow elite professor who reluctantly sends his daughter to tutoring because classroom pace has accelerated.
- Tutoring becomes necessary even when parents dislike it, showing how equilibrium pressure spreads demand.
