Neoliberalism, Compulsory Education and Compulsion to Pay: Magnitude, Patterns and Determinants of Household Expenditure in Indian Punjab

Based on a recent primary survey, this study aims to examine the magnitude, patterns and determinants of household expenditure on compulsory schooling in Punjab. Our findings suggest that the increasing presence of private schools in the education marketplace, particularly in the contemporary era of neoliberalism, has commodified the education in the state, and these education providers offer compulsory schooling in diverse forms, with varying costs depending on the demand of their student clientele. Parents who enroll their children in elite private schools pay approximately seven times more than those choosing low-fee private schools. Private schools exert undue financial burden on their parent clientele (particularly those from low- and middle-income groups). This situation highlights the concept of ‘compulsion to pay’, especially in the absence of an acceptable quality of service provided by state-owned schools. Our regression analysis results on determinants of household expenditure reveal that households from socially and economically marginalised sections (for example, scheduled castes and the poor) spend significantly less than their more affluent counterparts. We recommend that the state take a more stringent approach to regulating these non-state education providers, particularly in terms of exorbitant fees, which would prevent further widening of the existing socio-economic inequality in the state.