The effects of parental competitive pressure on private education investment

Sungmin Han and Seungjoo Han

KDI Journal of Economic Policy, 2026, vol. 48, issue 2, 63-87

Abstract: In South Korea, education serves as a critical engine for social mobility, where academic credentials from prestigious universities function as a decisive factor in shaping career trajectories and earning potential. This dynamic has fostered intense educational fervor and led to the proliferation of a massive private education market. This study empirically examines the relationship between parental competitive pressure - defined as a synthesis of achievement expectations and anxiety - and investment in private education within a highly competitive educational environment. The analysis shows that private education expenditures are positively associated with parental competitive pressure. Notably, this increase occurs primarily through greater spending rather than an increase in total tutoring hours. This pattern suggests that, given children's time constraints, highly pressured parents strategically prioritize quality over quantity. Furthermore, the effect varies across family backgrounds, indicating that reliance on private education reflects the interplay between socio-structural factors and household resources, thereby reproducing intergenerational educational inequality. Overall, it was found that dependence on private education is a structural phenomenon amplified by status competition within a success-oriented society. Consequently, policy interventions should shift away from superficial regulations and focus on addressing the fundamental socioeconomic drivers of parental competitive pressure.

Keywords: Parental Competitive Pressure; Private Education Investment; Number of Academies; Private Tutoring Time; Private Tutoring Expenditure (search for similar items in EconPapers)
JEL-codes: I21 I24 (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:kdijep:341453

DOI: 10.23895/KDIJEP.2026.48.2.63

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