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Does household expenditure on education in India depend upon the returns to education?

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Author Info
Uma Kambhampati () (Department of Economics, University of Reading)

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Abstract

This paper analyses whether the amount households spend on education depends upon the returns to education prevalent in the region in which they live. To this end, we estimated rates of return to education separately for boys and girls in 33 states and UTs in India. These rates of return were then included in our education expenditure model. Our results clearly indicated that the rate of return to education was highly significant in increasing the amount spent on education by the household both for boys and girls. However, we find that the impact of this variable is much larger at secondary level and for girls.

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Publisher Info
Paper provided by Henley Business School, Reading University in its series Economics & Management Discussion Papers with number em-dp2008-60.

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Length: 38 pages
Date of creation: 2008
Date of revision:
Handle: RePEc:rdg:emxxdp:em-dp2008-60

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Related research
Keywords: Education; Returns to education; India; household expenditure.;

Find related papers by JEL classification:
I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
I22 - Health, Education, and Welfare - - Education - - - Educational Finance
R22 - Urban, Rural, and Regional Economics - - Household Analysis - - - Other Demand

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This page was last updated on 2009-11-17.

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