IDEAS home Printed from https://ideas.repec.org/a/bla/asiaec/v36y2022i2p159-179.html
   My bibliography  Save this article

Heterogeneous Effects on Private Education Spending in Latent Groups in Korea

Author

Listed:
  • Jaeram Lee
  • Jungjoon Ihm

Abstract

This study examines people's response to well‐known determinants in private education spending (PES). Based on the Korean Education Longitudinal Study, we divided the private education decision‐making process into two parts: whether to spend and how much to spend. Due to omitted environmental factors, latent subgroups that share the same PES effects were classified using a clustering methodology. Empirical analysis found that people respond differently only to household income and school year. For 40% of the observations, household income has a significant impact on PES decisions. There is no effect of household income in the other subgroups, whereas different patterns of PES according to the school year induce heterogeneity in other subgroups. There is no heterogeneity for the effects of gender, educational environment and plans to attend college.

Suggested Citation

  • Jaeram Lee & Jungjoon Ihm, 2022. "Heterogeneous Effects on Private Education Spending in Latent Groups in Korea," Asian Economic Journal, East Asian Economic Association, vol. 36(2), pages 159-179, June.
    • Handle: RePEc:bla:asiaec:v:36:y:2022:i:2:p:159-179
    DOI: 10.1111/asej.12263
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/asej.12263
    Download Restriction: no
    File URL: https://libkey.io/10.1111/asej.12263?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Sunwoong Kim & Ju-Ho Lee, 2010. "Private Tutoring and Demand for Education in South Korea," Economic Development and Cultural Change, University of Chicago Press, vol. 58(2), pages 259-296, January.
    2. Reinhard Schunck, 2013. "Within and between estimates in random-effects models: Advantages and drawbacks of correlated random effects and hybrid models," Stata Journal, StataCorp LP, vol. 13(1), pages 65-76, March.
    3. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, December.
    4. Vasilis Sarafidis & Neville Weber, 2015. "A Partially Heterogeneous Framework for Analyzing Panel Data," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 77(2), pages 274-296, April.
    5. Cragg, John G, 1971. "Some Statistical Models for Limited Dependent Variables with Application to the Demand for Durable Goods," Econometrica, Econometric Society, vol. 39(5), pages 829-844, September.
    6. Arellano, M, 1987. "Computing Robust Standard Errors for Within-Groups Estimators," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 49(4), pages 431-434, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mandikiana, Brian W., 2021. "Choice and expenditure: A double hurdle model of private tutoring in Qatar," Economic Analysis and Policy, Elsevier, vol. 71(C), pages 1-15.
    2. Jourdain C. Lokossou & Hippolyte D. Affognon & Alphonse Singbo & Michel B. Vabi & Ayoni Ogunbayo & Paul Tanzubil & Alcade C. Segnon & Geoffrey Muricho & Haile Desmae & Hakeem Ajeigbe, 2022. "Welfare impacts of improved groundnut varieties adoption and food security implications in the semi-arid areas of West Africa," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 14(3), pages 709-728, June.
    3. Aleksey Oshchepkov & Anna Shirokanova, 2020. "Multilevel Modeling For Economists: Why, When And How," HSE Working papers WP BRP 233/EC/2020, National Research University Higher School of Economics.
    4. Subir K. Chakrabarti & Srikant Devaraj & Pankaj C. Patel, 2021. "Minimum wage and restaurant hygiene violations: Evidence from Seattle," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(1), pages 85-99, January.
    5. Mehtabul Azam, 2016. "Private Tutoring: Evidence from India," Review of Development Economics, Wiley Blackwell, vol. 20(4), pages 739-761, November.
    6. Antony W. Dnes & Raymond Swaray, 2020. "Criminalizing price‐fixing," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 41(8), pages 1417-1430, December.
    7. Vigren, Andreas, 2020. "The Distance Factor in Swedish Bus Contracts How far are operators willing to go?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 132(C), pages 188-204.
    8. Matloob Piracha & Massimiliano Tani & Zhiming Cheng & Ben Zhe Wang, 2023. "Social assimilation and immigrants’ labour market outcomes," Journal of Population Economics, Springer;European Society for Population Economics, vol. 36(1), pages 37-67, January.
    9. Baum, Christopher F & Lööf, Hans & Stephan, Andreas, 2018. "Economic impact of STEM immigrant workers," Working Paper Series in Economics and Institutions of Innovation 472, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    10. Fujimoto, Takefumi & Suzuki, Aya, 2021. "Do Fertilizer and Seed Subsidies Strengthen Farmers' Market Participation? the Impact of Tanzania NAIVS on Farmers' Purchase of Agricultural Inputs and Their Maize-Selling Activities," 2021 Conference, August 17-31, 2021, Virtual 315044, International Association of Agricultural Economists.
    11. Smale, Melinda & Kergna, Alpha & Thériault, Véronique & Assima, Amidou & Keita, Naman, 2016. "Gender, Generation And Agricultural Intensification: A Case Of Two Cereals In The Sudanian Savanna Of Mali," Feed the Future Innovation Lab for Food Security Policy Research Papers 259505, Michigan State University, Department of Agricultural, Food, and Resource Economics, Feed the Future Innovation Lab for Food Security (FSP).
    12. Lööf, Hans & Sahamkhadam, Maziar & Stephan, Andreas, 2022. "Is Corporate Social Responsibility investing a free lunch? The relationship between ESG, tail risk, and upside potential of stocks before and during the COVID-19 crisis," Finance Research Letters, Elsevier, vol. 46(PB).
    13. Lisette Ibanez & Sébastien Roussel, 2022. "The impact of nature video exposure on pro-environmental behavior: An experimental investigation," Post-Print hal-03847453, HAL.
    14. Laura Neumeyer & Anna Gründler & Anna-Luisa Stöber, 2023. "Don’t Worry, Be Happy—Does the CEO’s Personality Mitigate the Negative Effect of Financial Constraints on Employee Satisfaction?," Schmalenbach Journal of Business Research, Springer, vol. 75(1), pages 71-98, March.
    15. Juliana D. Araujo & Povilas Lastauskas & Chris Papageorgiou, 2017. "Evolution of Bilateral Capital Flows to Developing Countries at Intensive and Extensive Margins," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 49(7), pages 1517-1554, October.
    16. Stewart, Hayden & Kuchler, Fred & Dong, Diansheng & Cessna, Jerry, 2021. "Examining the Decline in U.S. Per Capita Consumption of Fluid Cow’s Milk, 2003–18," USDA Miscellaneous 316500, United States Department of Agriculture.
    17. Wu, Yu & Sills, Erin O., 2018. "The Evolving Relationship between Market Access and Deforestation on the Amazon Frontier," 2018 Annual Meeting, August 5-7, Washington, D.C. 274317, Agricultural and Applied Economics Association.
    18. Alberto Abadie & Susan Athey & Guido W Imbens & Jeffrey M Wooldridge, 2023. "When Should You Adjust Standard Errors for Clustering?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 138(1), pages 1-35.
    19. Dumont, Etienne & Fortin, Bernard & Jacquemet, Nicolas & Shearer, Bruce, 2008. "Physicians' multitasking and incentives: Empirical evidence from a natural experiment," Journal of Health Economics, Elsevier, vol. 27(6), pages 1436-1450, December.
    20. Pallegedara, Asankha & Mottaleb, Khondoker Abdul, 2018. "Patterns and determinants of private tutoring: The case of Bangladesh households," International Journal of Educational Development, Elsevier, vol. 59(C), pages 43-50.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:asiaec:v:36:y:2022:i:2:p:159-179. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/eaeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.