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

Uma Kambhampati

No em-dp2008-60, Economics Discussion Papers from Department of Economics, University of Reading

Abstract: 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.

Keywords: Education; Returns to education; India; household expenditure. (search for similar items in EconPapers)
JEL-codes: I21 I22 R22 (search for similar items in EconPapers)
Date: 2008-11-12
New Economics Papers: this item is included in nep-cwa, nep-edu, nep-hrm and nep-lab
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Citations: View citations in EconPapers (7)

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