Effects of free textbooks on academic performance: Evidence from China's compulsory education

Since little is known about the effects of free textbooks on compulsory school students in China, this paper examines the effects of free textbooks on the academic performance of Chinese middle school students. It combines propensity score matching and difference-in-difference estimation to control for both observable and unobservable factors that affect the probability of obtaining free textbooks as well as students' academic performance. Results indicate that free textbooks significantly improve the midterm scores of girls and rural students, and the effects vary across different subjects. Moreover, the impact mechanisms of free textbooks are different for different groups and different subjects.