New AIJER now accepts submissions exclusively via the Editorial Scholar portal — a dedicated submission & review system.
Go to Editorial Scholar →
Associated Management Consultants Pvt. Ltd. | COPE Member
UGC-CARE Group I Google Scholar |
Arthshastra Indian Journal of Economics & Research logo

Arthshastra Indian Journal of Economics & Research

ISSN: 2278-1811 Frequency: Quarterly Peer Review: Double-blind Published since: 2012 Language: English
A publication of AMCPL
amcon.co.in
New Delhi, India
Indexed in: UGC-CARE Group I Google Scholar J-Gate

The Differential Effects of the Determinants of Household Education Expenditure in India : Quantile Regression Estimation

Open Access Original Article

The Differential Effects of the Determinants of Household Education Expenditure in India : Quantile Regression Estimation

T. Lakshmanasamy1

1 Formerly Professor, Department of Econometrics, University of Madras, Chennai - 600 005, Tamil Nadu

Volume 10
Issue 1
Pages 8–26
Year 2021
Received: Dec. 18, 2020 Accepted: Feb. 15, 2021 Published: March 31, 2021
Abstract

Despite substantial government expenditure on education, scholarships, and financial aid to students to provide affordable education, the household education expenditure on children is sizable and varies widely on account of gross differences in the socioeconomic, demographic, religious, and cultural factors. This paper attempted to identify such determinants and analyze the differential effects of the determinants of household education expenditure on children in India using the 2014 NSSO 71st Round survey data by applying the quantile regression method. Unlike the standard regression method, the quantile regression method allows estimation beyond the average effects at different points of the distribution of household expenditure on education. The quantile regression estimates revealed that low-income households were more sensitive to changes in household income and government programmes than upper-income households. The proportion of household income spent on the education of children increased more in the lower quantiles than in the higher quantiles. Gender bias existed at the lower quantiles and was considerably less at the higher quantiles. The SC/ST households spent less than the non-SC/ST communities at the lower quantiles and the difference got reduced at higher quantiles. Compared to scholarships, the provision of educational materials had a higher impact on household education expenditure. More children from lower quantiles attended government institutions, and a substantial difference existed in household education expenditure between the students attending government and private educational institutions. Despite government policies and programmes for affordable education, the study observed that the lower-income households still incurred a considerable proportion of their income on the education of their children.

Keywords Household Education Expenditure Socioeconomic Determinants Differential Effects Gender Bias Quantile Regression
How to Cite

T. Lakshmanasamy (2021). The Differential Effects of the Determinants of Household Education Expenditure in India : Quantile Regression Estimation. Arthshastra Indian Journal of Economics & Research, 10(1), 8–26. https://doi.org/10.17010/aijer/2021/v10i1/159883

References
  1. Bayar, A. A., & Ilhan, B. Y. (2016). Determinants of household education expenditures: Do poor spend less on education ? Topics in Middle Eastern and African Economies, 18(1), 83–111.
  2. Chandrasekhar, S., Geetha Rani, P., & Sahoo, S. (2019). Household expenditure on higher education : What do we know and what do recent data have to say ? Economic and Political Weekly, 54(20), 52–60.
  3. Chatterji, M., Mohan, S., & Dastidar, S.G. (2015). Determinants of public education expenditure : Evidence from Indian states. International Journal of Education Economics and Development, 6(1), 1–19. https://doi.org/10.1504/IJEED.2015.068355
  4. Jana, S. K., & Maiti, A. (2019). State-wise public expenditure on higher education in India : An empirical analysis. Arthashastra Indian Journal of Economics & Research, 8(2), 7–20. https://doi.org/10.17010/aijer/2019/v8i2/145222
  5. Khan, B. M. (2013). Public expenditure on education in Karnataka. Arthashastra Indian Journal of Economics & Research, 2(6), 31–39. https://doi.org/10.17010/aijer/2013/v2i6/54538
  6. Koenker, R.W., & Bassett, G. (1978). Regression quantiles. Econometrica, 46(1), 33–50. https://www.jstor.org/stable/1913643
  7. Koenker, R. W., & Hallock, K. F. (2001). Quantile regression. Journal of Economic Perspectives, 15(4), 143–156. https://doi.org/10.1257/jep.15.4.143
  8. Motiram, S., & Osberg, L. (2012). Demand or supply for schooling in rural India? Electronic International Journal of Time Use Research, 9(1), 1–27.
  9. NSSO. (2014). 71s t Round - Key indicators of social consumption in India: Education. http://mospi.nic.in/sites/default/files/national_data_bank/ndb-rpts-71.htm
  10. Ota, M., & Moffatt, P. G. (2007). The within-household schooling decision: A study of children in rural Andhra Pradesh. Journal of Population Economics, 20(1), 223–239. https://doi.org/10.1007/s00148-005 0033-z
  11. Rajalakshmy, G. (2012). Higher education in India : Challenges and prospects. Arthashastra Indian Journal of Economics & Research, 1(4), 25–32. https://doi.org/10.17010/aijer/2012/v1i4/54534
  12. Sarkar, N. (2017). Determinants of household expenditure on higher education in India. International Education and Research Journal, 3(6), 12–14.
  13. Steinberg, M. B. (2015). On the demand for education in India (Doctoral dissertation). Department of Economics, Harvard University.
  14. Tilak, J. B. (1996). How free is free primary education in India ? Economic and Political Weekly, 31(5), 355–366.
  15. Tilak, J. B. (2002). Determinants of household expenditure on education in rural India (Working Paper Series No. 88). National Council of Applied Economic Research.
Editorial Scholar

Submit your Research to AIJER

Submit your Manuscript → Author Guidelines