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

Author

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  • Uma Kambhampati

    (Department of Economics, University of Reading)

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.

Suggested Citation

  • Uma Kambhampati, 2008. "Does household expenditure on education in India depend upon the returns to education?," Economics Discussion Papers em-dp2008-60, Department of Economics, University of Reading.
    • Handle: RePEc:rdg:emxxdp:em-dp2008-60
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    File URL: http://www.reading.ac.uk/nmsruntime/saveasdialog.asp?lID=23973&sID=34517
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    Cited by:

    1. Uma Kambhampati & Raji Rajan, 2008. "The 'Nowhere' Children: Patriarchy and the Role of Girls in India's Rural Economy," Journal of Development Studies, Taylor & Francis Journals, vol. 44(9), pages 1309-1341.
    2. Ananda Mukherjee & Sarbajit Sengupta, 2023. "An Analysis of Factors Affecting Private Expenditure on Education in India," Arthaniti: Journal of Economic Theory and Practice, , vol. 22(2), pages 206-227, December.
    3. Jannet Farida Jacob, 2018. "Human capital and higher education: rate of returns across disciplines," Economics Bulletin, AccessEcon, vol. 38(2), pages 1241-1256.
    4. Amita Majumder & Chayanika Mitra, 2017. "Gender Bias in Education in West Bengal," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 15(1), pages 173-196, March.
    5. Heather Congdon Fors, 2012. "Child Labour: A Review Of Recent Theory And Evidence With Policy Implications," Journal of Economic Surveys, Wiley Blackwell, vol. 26(4), pages 570-593, September.
    6. Rashmi Rashmi & Bijay Kumar Malik & Sanjay K. Mohanty & Udaya Shankar Mishra & S. V. Subramanian, 2022. "Predictors of the gender gap in household educational spending among school and college-going children in India," Palgrave Communications, Palgrave Macmillan, vol. 9(1), pages 1-11, December.

    More about this item

    Keywords

    Education; Returns to education; India; household expenditure.;
    All these keywords.

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • R22 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Other Demand

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