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MULTIVARIATE TOBIT SYSTEM ESTIMATION OF EDUCATION EXPENDITURE IN URBAN CHINA

MULTIVARIATE TOBIT SYSTEM ESTIMATION OF EDUCATION EXPENDITURE IN URBAN CHINA Using the 2007 education survey data in urban China, this paper measures the inequality of education expenditures, an indicator of education inequality, and analyzes the effect of household income on the components of education expenditures. Since the components of education expenditure are censored and inter-related, this paper runs a multivariate Tobit system regression of five categories of education expenditures. Our results imply that household income per capita positively affects expenditure on boarding, private tutoring and costs for selecting schools but does not affect expenditure on textbooks. In return, the inequality of education expenditures contribute to income inequality in urban China. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png The Singapore Economic Review World Scientific Publishing Company

MULTIVARIATE TOBIT SYSTEM ESTIMATION OF EDUCATION EXPENDITURE IN URBAN CHINA

The Singapore Economic Review , Volume 59 (01): 1 – Mar 1, 2014

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Publisher
World Scientific Publishing Company
Copyright
Copyright ©
Subject
Special Issue on Income Distribution & Inequality; Guest Editor: Yuko Arayama, Nagoya University
ISSN
0217-5908
eISSN
1793-6837
DOI
10.1142/S0217590814500052
Publisher site
See Article on Publisher Site

Abstract

Using the 2007 education survey data in urban China, this paper measures the inequality of education expenditures, an indicator of education inequality, and analyzes the effect of household income on the components of education expenditures. Since the components of education expenditure are censored and inter-related, this paper runs a multivariate Tobit system regression of five categories of education expenditures. Our results imply that household income per capita positively affects expenditure on boarding, private tutoring and costs for selecting schools but does not affect expenditure on textbooks. In return, the inequality of education expenditures contribute to income inequality in urban China.

Journal

The Singapore Economic ReviewWorld Scientific Publishing Company

Published: Mar 1, 2014

Keywords: Education expenditure urban China multivariate tobit JEL Classifications: C30 JEL Classifications: I24 JEL Classifications: I28 JEL Classifications: J31 JEL Classifications: O15 JEL Classifications: R23

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