Heterogeneous Effects on Private Education Spending in Latent Groups in Korea. Issue 2 (17th June 2022)

• Record Type: Journal Article
• Authors: Lee, Jaeram; Ihm, Jungjoon
• Is Part Of: Asian economic journal. Volume 36:Issue 2(2022)
• Page Start: 159
• Page End: 179
• Publication Date: 2022-06-17
• Subjects: private education -- private education spending -- private education decision‐making -- the Korean Education Longitudinal Study -- clustering methodology; Asia -- Economic conditions -- 1945- -- Periodicals; 330.95
• DOI: 10.1111/asej.12263
• Languages: English
• ISSNs: 1351-3958

Abstract

Abstract : This study examines people's response to well‐known determinants in private education spending (PES). Based on the Korean Education Longitudinal Study, we divided the private education decision‐making process into two parts: whether to spend and how much to spend. Due to omitted environmental factors, latent subgroups that share the same PES effects were classified using a clustering methodology. Empirical analysis found that people respond differently only to household income and school year. For 40% of the observations, household income has a significant impact on PES decisions. There is no effect of household income in the other subgroups, whereas different patterns of PES according to the school year induce heterogeneity in other subgroups. There is no heterogeneity for the effects of gender, educational environment and plans to attend college.