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

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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 & Management Discussion Papers em-dp2008-60, Henley Business School, Reading University.
  • Handle: RePEc:rdg:emxxdp:em-dp2008-60
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    Cited by:

    1. 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.
    2. 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.

    More about this item

    Keywords

    Education; Returns to education; India; household expenditure.;

    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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