Recent anecdotal reports suggest that dropout rates may be higher and actually increasing over time in poor rural areas. There are many reasons not to be surprised that there is a dropout problem, given the fact that China has a high level of poverty among the rural population, a highly...

This paper, using unique survey data from the banking industry in rural China, investigates the effect of incentive contracts on performance. In the context of China`s economic transition, we find that the incentive contracts have a positive effect on the bank manager`s performance in deposit...