An Analysis of the Income Elasticity of Education Expenditure of Urban Residents in Hubei Province

Abstract

With the proposal of prioritizing education development and the first-time positioning of education, technology, and talent as top strategic priorities in China, the country and the people are paying more and more attention to education, and investment in education is increasing. This paper analyzes the per capita disposable income and household education expenditure of urban residents in Hubei Province from 2013 to 2020, calculates the elasticity of household education expenditure to income and its changing trend, and analyzes the sensitivity of changes in household education expenditure to changes in disposable income. It is found that household education expenditure of urban residents is relatively sensitive to changes in disposable income. Based on the actual situation of education investment in Hubei Province. This paper proposes suggestions for promoting rational consumption of education among urban residents in Hubei Province, in order to provide reference for the formulation of relevant education policies.