Determinants of household expenditure on children's education in Egypt

Abstract

This paper primarily examines the determinants of household expenditure on children’s education using data extracted from the 2010/2011 Egyptian Household Income, Expenditure and Consumption Survey. Specifically, the paper focuses on the income effect and the effect of other household characteristics on the patterns of educational expenditure allocation among school-age children. Applying the ordinary least squares and the generalised method of moment estimation techniques, the paper finds that expenditure on children’s education significantly increases with increasing of levels household income. Furthermore, the paper finds that household head’s level of education has an increasingly positive and significant effect on expenditure on children’s education, with households in which the heads have received at least college education spending the most on children’s education. Based on the findings, the paper strongly recommends that children from households, which are less endowed with financial resources and human capital be given educational subsidy or scholarship.

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