Family Spending on Education India: Pattern and Determinants.

Abstract

The present paper estimates the drivers of education spending of households across economic groups. The questions that are explored include: (i) does expenditure on education vary across economic groups and over time? In other words, whether expenditure elasticity varies by levels of income and over time? (ii) The subsidiary question is to understand the gender bias in education spending across these groups? As a corollary to this, at which levels of education and to what extent the gender bias in expenditure on education is estimated using the hurdle model. The paper uses the NSSO survey data of 52nd, 64th and 71st rounds, relating to schedule 25.2, on Social Consumption: Participation in Education. Based on the expenditure elasticity, it has been found that middle class spend proportionately more than bottom (justifiably) but also at the top expenditure quintiles.