Economics Of Private Schooling Industry In Kohima, Nagaland (India)
AbstractThe enterprise of running private schools has of late assumed the nature of an industry in India. Ever-increasing population, a race for providing education to ones children, degenerating quality of education in govt.-run schools, unlimited supply of educated youths ready to work at the lowest salary, and the possibilities of earning huge profits for a modest investment together have contributed to the viability of this industry. In Kohima, the capital city of Nagaland (India), there are 31 private high/higher secondary schools against only 3 govt.-run schools. These private schools enroll some 25000 pupils. Enrolment in the govt.- run schools is barely 1600. These private schools employ 766 teachers and pay them an average salary, just 1/3rd of what the govt.-run schools pay. According to the ILO (1996) definition of subsistence wages the employees of these schools barely earn a subsistence wage. Nevertheless, these schools generate a revenue of Rs. 88 million of which Rs. 37 million is the net profit. Our analysis shows that private schooling industry in Kohima operates in a monopolistic competition market - bordering on oligopoly. There is price leadership in determining the fees to be charged by the schools making this industry.
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Bibliographic InfoPaper provided by EconWPA in its series Others with number 0504006.
Length: 17 pages
Date of creation: 14 Apr 2005
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Note: Type of Document - doc; pages: 17. Micro-economics of small privately run schools in India
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Micro-economics of schools; private schooling industry; India; Kohima; Nagaland; oligopoly; subsistence level salaries;
Find related papers by JEL classification:
- P - Economic Systems
- Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics
- Z - Other Special Topics
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-04-16 (All new papers)
- NEP-EDU-2005-04-16 (Education)
- NEP-URE-2005-04-16 (Urban & Real Estate Economics)
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