The aim of this paper is to study an impact of education on socio-economic status and demand for education in rural China, based on our sample survey, which was carried on in September-October 2003 in several villages in Zhejiang Province. We selected randomly 1,002 students in elementary and junior high schools and made surveys for their parents about their education career and present economic status, and attitudes for education of their children. Estimating a relation of income to educational career, we got the rate of return to education(3.2～4.1%). Combining this figure with estimates by other authors, we argued that the rate of return has been almost constant in rural China since the end of the 1980s and is smaller than the rate for urban areas. Parents have strong demand for education of children; that is, they realize higher education is needed for getting better jobs and higher income. Education expenditure was much larger for higher educated parents than for less educated parents, but a ratio of this item in total family expenditure was rather higher for less educated and lower income parents. This implies that the latter group of parents is forced to raise educational expenses by saving on other items.
