An Analysis of Socioeconomic Inequality in Household Investment in Private Schooling: The Case of India

• In Event: School Finance Policy, Equity, and Resource Allocation: Evidence From K–12 and Higher Education

Abstract

Using a nationally representative household survey dataset, this paper empirically examines the socioeconomic inequality in household investment in private schooling in India. Results show that a unit increase in household consumption expenditure (a proxy to family income) increases the total private schooling spending by 28 per cent, with a greater impact among rural households. We also document that the social identity of the households (caste and religion) and region (rural/urban) exerts a strong influence on households’ spending on private schools. The findings have implications related to the heterogeneity in the expansion of private schools and the inequality in household investment in private schooling in India.

Authors

• Pradeep Kumar Choudhury, Jawaharlal Nehru University

• Amit Kumar Kumar, Jawaharlal Nehru University

• Angrej Singh Gill, Panjab University