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

  • Uma Kambhampati


    (Department of Economics, University of Reading)

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

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Date of creation: 12 Nov 2008
Date of revision:
Handle: RePEc:rdg:emxxdp:em-dp2008-60
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