Household Education Expenditure Research Articles

Does rural transformation affect rural income inequality? Insights from cross-district panel data analysis in Bangladesh

Rural transformation plays a crucial role in enhancing the income and employment prospects of the rural labor force. We investigate the effects of rural transformation on rural income inequality at the district level in Bangladesh using data from five years of nationally representative Household Income and Expenditure Surveys. The Gini coefficient is used to measure rural income inequality. In contrast, the share of high-value agricultural outputs and the share of rural non-farm employment are used as indicators of rural transformation. We find that rural income inequality is positively associated with the share of high-value agricultural outputs and the share of rural non-farm employment. The non-linear regression result shows an inverted U-shaped relationship between rural transformation and income inequality, which indicates that income inequality initially increases with rural transformation but decreases in the long run. Additionally, we find that rural income inequality is positively correlated with the proportion of household education expenditures, agricultural rental activity, and the share of remittances. This study also reveals that income inequality in rural areas of Bangladesh has a significant negative correlation with the government's social safety net program.

Household Decision-Making Choices: Investment in Children's Education or Self-Consumption.

Analyzing the sustainable decision-making mechanism between household consumption and education investment can theoretically develop education. This study uses the continuous-time utility model to demonstrate the independent characteristics of consumption and education investment, as well as the principle of decision incompatibility in the decision-making process of the utility maximization problem. Then, we establish a three-phase logarithmic utility model to obtain the intertemporal decision-making path of a family. The analysis shows that the investment allocation ratio between the two phases depends on the expected and discounted level of the offsprings' abilities, while the total investment level is related to parental altruism. When parents, with foresight, factor in prospective transfer payments from progeny, the optimal decision is to maximize their children's ultimate human capital within a given total investment. Education investment not only squeezes out consumption but also promotes consumption in various periods due to future transfer payments. The decision-making process of three typical growth stages indicates that as offspring mature and their human capital increases, parents' willingness to invest in education decreases while self-consumption escalates. This study provides a new perspective and theoretical basis for studying household education expenditure, motivation, and related policy formulation.

An Empirical Analysis of Ashanti Region Annual Household Education Expenditure Using the Ghana Living Standards Survey Round Six Data

An Empirical Analysis of Ashanti Region Annual Household Education Expenditure Using the Ghana Living Standards Survey Round Six Data

Factors influencing household expenditure on school education in Karnataka

Private expenditure on school education is one of the sources of education expenditure other than state and central government spending. The 86th Constitutional Amendment Act 2002, and the Right to Education (RTE) Act, 2009 introduced a rights-based approach to free and compulsory education for all children in the age group of six to fourteen years in India. Under the Right to Education (RTE) Act, a limited number of seats are allocated for free education to economically backward sections in private and private-aided schools. Despite the free education for students in government schools and RTE admissions in private schools, parents incur considerable expenditure. With the increase in the number of private schools, there is an increasing trend in private expenditure on education in India. In this context, this paper analyses factors influencing household expenditure on school education. It is based on primary data collected at the household level in Mysuru district in both rural and urban areas through a survey. The sample consists of 192 households each from urban and rural areas selected randomly from the list available at the schools. Factors influencing the education expenditure of the households on school education were estimated through a linear regression model. Annual Household Income (AHHI), Occupational Status of Father (OSF), Location of Household (LHH), Education Level of Mother (ELM), Education Level of Father (ELF) and Type of Institution (TI) have a positive and significant relationship with total Annual Household Education Expenditure (AHHEE) of the first child in school. In the case of a second school-going child, only Annual Household Income (AHHI) and Type of Institution (TI) were found to have a significant relationship with Annual Household Education Expenditure (AHHEE).

Determinants of Household Education Expenditure in Uganda: Do the Poor Spend More on Education than the Rich?

This study estimates the Tobit and IV Tobit models using data from the UgandaNational Household Survey (UNHS) 2019/20 to analyse factors that influencehousehold education spending, and examine the impact of different income groups oneducation spending in Uganda. The findings show a positive relationship betweenhousehold income on the one hand; and the level of education of the head of household,household size, urban residence, female-headed household and education spending onthe other. Furthermore, higher-income households are found to have a high-incomeelasticity of demand than low-income households. An increase in total household incomefor high-income quintile households is found to increase educational expenditures by apercentage point than for low-income quintile households. Due to this disparity, thegovernment is advised to revise its cost-sharing approach to public education spending,which needs to be supplemented by household education spending.JEL Classification: D1, I21, I22, I24, C24, R20

Do pension subsidies reduce household education expenditure inequality? Evidence from China

This study focuses on the effect of pension subsidies on inequality in household education expenditures using data from the China Family Panel Studies for 2010, 2012 and 2014. Estimates from fixed effects (FE) models and instrumental variables (IV) methods show that New Rural Pension Scheme (NRPS) subsidies significantly reduce inequality in education expenditures among rural households. Further evidence suggests that pension subsidies significantly increase education expenditures of rural low- and middle-income households. Our study suggests that pension subsidies play an important role in reducing inequality in household education expenditures. Especially for low- and middle-income households, government welfare policies targeting the elderly may have longer-term benefits than expected.

The Impact of Medical Insurance for Urban and Rural Residents on Children's Education

This article uses data from the China Family Panel Studies (CFPS) in 2016 and 2018 to explore the impact of health insurance on household education expenditure, parental education expectations, and patterns of child rearing. The results showed that medical insurance for urban and rural residents significantly increased family education expenditure and improve parents' educational expectations. Children who participated in medical insurance had 0.174% higher family education expenditure than children who did not participate in medical insurance. The probability of expecting their children to go to college was 0.040% higher than who did not participate in medical insurance. Medical insurance for urban and rural residents significantly changed parents' parenting styles. In order to solve the problem of sample imbalance and endogeneity, this paper selects a propensity score matching model for robustness testing, and the conclusions are basically consistent. Medical insurance for urban and rural residents affects children's education through improving health and income effects. The significance of this study is to introduce medical insurance into children's education and provide a new research perspective for evaluating the policy benefits of the basic medical insurance system.

Influencing Factors of Household Education Expenditure and Mechanism of Urban-rural Disparity in China

Influencing Factors of Household Education Expenditure and Mechanism of Urban-rural Disparity in China

Income Shocks, Borrowing Constraints, and Household Child Schooling: Evidence from Rural Thailand

In rural areas of developing countries, shocks and financial constraints on households are generally recognized as obstacles to children’s schooling opportunities. This paper investigates the effects of income shocks and borrowing constraints on household demand for education in rural Thailand, using the Townsend Thai panel data spanning from 2013 to 2017. Information on annual rainfall at the provincial level is used to estimate a transitory income component for Thai rural households. Estimation results indicate that income risks and borrowing constraints have a substantial negative impact on child schooling outcomes, including educational attainment and the number of years delayed in school. It also finds that transitory income results in increased household education expenditures conditional on children’s attendance at school. These findings suggest that in addition to households’ socioeconomic status, children’s human capital is at risk mainly due to income uncertainty and the absence of well-developed financial and insurance markets.

Investigating the Effects of Poverty on Household Education Expenditure in Malawi

Investigating the Effects of Poverty on Household Education Expenditure in Malawi

Factors Affecting Household Expenditures on Education: A Heckman Sample Selection Application for Turkey

Education is undoubtedly one of the most important elements for the development levels of countries and societies. It is also one of the essential requirements in today's world. Education is a key element of an individual’s initial and later social development, therefore development across countries. Today, in most developed countries, the state spends a large amount of fund for education. Households, as well as governments, spend a lot on education. In this study, the expenses for the education of households in Turkey were discussed, and the effect of socio-demographic and economic factors on these expenditures was examined. For this purpose, the data set obtained from the 2019 Household Budget Survey published by the Turkish Statistical Institute (TURKSTAT) was analyzed with the Heckman sample selection model. According to the analysis results, the fact that the head of the household is male in a family, his age, and being married had a negative effect on education expenditures. Education expenses were positively affected by household income, population, the number of technological devices, and the employment of the head of the family. In addition, the structure of the household, the presence of individuals who smoke, go to the cinema, and do sports also affected household education expenditures.

New insights on the use of the Fairtrade social premium and its implications for child education

Fairtrade differentiates itself from other sustainability standards such as Rainforest Alliance and UTZ by demanding that buyers pay farmers at least a minimum price and a Fairtrade social premium. The social premium is a sum paid to cooperatives in addition to the agreed price to be used for projects that strengthen the cooperative or benefit the community in the villages more broadly and it is often mentioned in the literature as one of the key mechanisms through which Fairtrade engenders changes in the small farm sector. However, previous studies have not explicitly analyzed what the social premium is used for, what factors influence how it is used, and whether farmers, workers, and the local communities benefit from these projects. In this article, we use data from several cocoa cooperatives in Côte d’Ivoire to do a descriptive analysis of how the premium is used and how its allocation into different projects is related to the organizational characteristics of the cooperatives. Then, using instrumental variable regressions, we explore potential benefits of the social premium for child education. We analyze whether (i) participating in a certified value chain and (ii) living in a village with a premium-financed education project have an effect on household education expenditure. We show that organizational characteristics of cooperatives are only weakly correlated with the use of the social premium and that most of it does not go into projects that promote broad community development. Furthermore, our findings suggest that living in a village with a premium-financed education project has a positive effect on education expenditure among farmers, but does not affect expenditure among cooperative and farm workers.

The Impact of Fiscal Education Expenditure on Household Education Expenditure in China

<p align="justify">Education is always a hot topic in China attracting attention from many scholars, and the particularity of education frequently contributes to contradiction between education’s personal return and the social one. Therefore, to achieve common and equal development in educational development, macro control on education resources is of great importance. Learning the impact of fiscal education expenditure on household education expenditure can help in building a better understanding of the mechanism behind the effect of increasing or decreasing fiscal education expenditure, so that the government can set educational policies of higher efficiency. What’s more, merely understanding the general impact of fiscal education expenditure is far from enough. More factors, i.e., household income, educational stages, should be taken into consideration because different groups of people may have various reactions to the government’s macro control.<strong> </strong>Based on the secondary data collected from CFPS, an authoritative database in China, together with the primary data collected through the distribution of questionnaire, the researchers built three OLS regression models, and carried out certain data analyses, finally drawing the conclusions that the fiscal education expenditure plays the crowding out effect on the household one, and both income and educational stages have significant impact on this crowding out effect.</p>

Do remittances reshape household expenditures? Evidence from Nepal

Lack of economic opportunities in their local communities push many individuals to migrate and send remittances to their families. Remittances can potentially influence household spending in sizeable ways, making it an important source of income. This article investigates the impact of remittances on various categories of household expenditure, including those for food, alcohol and tobacco, clothing, ceremonies, healthcare, education, home improvement, agriculture, and livestock. Using data from 5,987 households observed in the 2010/11 Nepal Living Standards Survey and applying an instrumental variable approach, we show that remittances are positively associated with expenditures on food and education. In contrast, we find a negative association between remittances and expenditures on alcohol and tobacco. We further disaggregate our analysis to investigate any differential impact of remittances by gender of the household head and find qualitatively similar results across both genders, suggesting that both male- and female-headed households generally tend to spend remittances in similar ways. Findings regarding household food consumption and education expenditures are generally consistent with previous research on remittances in Nepal, but expand our understanding by examining the impacts of remittances on expenditures on tobacco and alcohol, ceremony, agriculture, and livestock purchases. Through increased consumption of food and greater expenditures on education, remittances have implications for long-term investments in human capital, which can, in turn, increase labor productivity, wage earnings, and overall economic development.

Crowding Out Effect of Tobacco Usage on Household Education and Health Expenditures - An Econometric Analysis

Tobacco consumption is growing day by day everywhere in the world in countless forms such as supari, tobacco raw, chew, pan, cigarettes, bidi and naswar etc. Tobacco consumption may avert the limited family resources far away from advantageous uses between low-slung income households. The relatively underprivileged households frequently allocate an ample share of the domestic budget on tobacco expenditures. These uneconomical expenditures on tobacco could be a diversion of household monetary resources from necessary things, such as foodstuff, healthcare and education. Explicitly this paper discovers the crowding-out impact of tobacco expenditures on a household’s education and health payouts. The facts for this study has been engaged from HIES (Household Integrated Economic Survey) conducted regularly by PBS (Pakistan Bureau of Statistics) that offers evidence at household level and covered the whole nation. The estimation has been carried out by employing the Engel Curves, the quadratic terms using QUAIDS (Quadratic Almost Ideal Demand System) were found to be empirically important in describing household budget behavior. By employing data on outlays, study evaluated a user demand structure that comprises numerous main spending classifications (tobacco, education and healthcare). OLS (Ordinary Least Square) was used to estimate the effect of tobacco outlay and other covariates on share of education and health in the total budget of a household. The results found out were just alike John (2006) that a rise in the tobacco expenditure brings a reduction in the budget quota dedicated to health and education. The quantitative results aim to help the policy makers to formulate and apply such policies to restrict the consumption of tobacco products and diverting those expenses for the formation of human capital by increased spending on health and education.

Multiple shocks and households’ choice of coping strategies in Benin: The relative importance of climate shocks

AbstractThis paper analyzes the extent to which shocks affect household education expenditures and the determinants of shock‐coping strategies in Benin, using the 2017 Comprehensive Food Security and Vulnerability Analysis survey data (14,300 households). The findings indicate that late‐onset/droughts, heavy rainfall/floods, and joblessness of a household member/reduction in income increase the likelihood to spend on education. Moreover, the occurrence of droughts/late onsets and floods/heavy rainfall lead to an increase and a decrease in education expenditures, respectively. Both idiosyncratic and covariate shocks force households to rely on shock‐coping strategies, with the effects of the latter (climate shocks) being among the highest.

A contribution to the determinants of annual household education expenditure in Ghana

This study uses household-level data from the sixth round of the Ghana Living Standards Survey 2013–2014, covering 16,772 household, and using the Tobit model, focuses on factors driving annual household expenditure on education in Ghana. The key combined results are that Ghanaian households spend an average of 52.1 percent of household expenditure on education on basic education and that household income is inversely proportional to annual household expenditure on education and the estimate is not statistically significant. Educated head of household, family size, basic, secondary, post-secondary, and tertiary studies expenditures are positively correlated with annual household expenditures on education and were all statistically significant in determining annual household expenditures on education, with a priori indications for these variables expected. The rural household expenditure, male-headed household and the age of the household head variables were negatively correlated with the annual household expenditure on education. From a pro-poor education policy perspective, the Ghanaian government should increase spending on basic education, taking into account its impact on economic growth and national development, in order to reduce high household spending, tax breaks for household with larger family sizes, and reduce inequality in access to education for rural residents.

Kids eat free: School feeding and family spending on education

We examine the relationship between children's participation in the Nutrition Improvement Programme (NIP) and household education expenditure on students under compulsory education in rural China. We find that participating in the school feeding programme can significantly increase household investment in children's education, especially in-school education expenditure. This positive relationship may be mediated by family economic status, parental time investment in children's education, and children's health status and cognitive ability. There is considerable heterogeneity in the impacts of the school feeding programme across subsamples. In general, male children and children from disadvantaged families, such as those in low- and middle-income households, those with less educated parents, and those left behind by migrant parents, are likely to benefit more from the school feeding programme. We also find suggestive evidence of intrahousehold resource reallocation away from eligible female children in response to the school feeding programme.

Interstate variation in household spending on education in India: Does it influence educational status?

Household education expenditure has grown manifold over the past few years, underscores an increased demand for education and the availability of private institutions. Hitherto, studies have analyzed this trend mainly at the individual level, however, the present study examines the inter-state disparities in the spending and how it influences the educational status of India at the state level, using National Sample Survey data (1987–2014). The conceptualization of this study is anchored in the theoretical framework of Education Production Function and General Earnings Function of Mincer. Based on Instrumental Variable Regression and Generalized Method of Moments, our empirical estimates reveal that geographical location of states matters as much as income in educational attainment and household expenditure serves as a crucial input for educational attainment. Given the stark inter-state variations in educational input and output, a differential approach is essential while devising policies to tide over perpetual educational backwardness across the states.

Modelling a Multilevel Data Structure Using a Composite Index

When modelling complexed data structures related to a certain social aspect, there could be various hierarchical levels where data units are nested within each other. There could also be several variables in each level, and those variables may not be unique for each case or record, making the data structure even more complexed. Multilevel modelling has been used for decades, to handle such data structures, but may not be effective at all times to capture the structure fully, due to the extent of complexities of the data structure and the inherent issues of the procedure. On the contrary, ignoring the multilevel data structure when modelling, can lead to incorrect estimations and thereby may not achieve acceptable accuracies from the model. This research explains a simple approach where a complexed multilevel structure is compressed to a single level by combining higher level variables to form a composite index. Moreover, this composite index, also reduces the number of variables considered in the entire modelling process, substantially. The process is exemplified, using a primary data set gathered on household education expenditure using a systematic sampling survey. Several variables are collected on each household and another set of variables relating to each school going child in the household, creating a multilevel data structure. The composite index, named as, “Household Level Education Index” is developed through a factor analysis where the detailed process of its construction is explained. The LASSO regression was performed to illustrate the use of the proposed composite index by predicting the monthly household education expenditure through a single level regression model. Finally, a Random Forest model was used to examine the feature importance, where the proposed composite index “Household level education index” was the most important feature in predicting the monthly household educational expenditure.