Title: Determinants of household expenditure on children's education in Egypt

Authors: Reham Rizk; John Owusu-Afriyie

Addresses: Department of Economics, British University in Egypt, Sweis Road, El Sherouk City, Cairo, Egypt ' Department of Economics, University of Ghana, Legon Boundary, Legon, Accra, Ghana

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.

Keywords: family expenditure; household expenditure; education costs; educational demand; Egypt; education economics; income effect; spending patterns; expenditure allocation; school-age children; ordinary least squares; OLS; generalised method of moment; household income; education levels; financial resources; human capital; educational subsidies; scholarships.

DOI: 10.1504/IJEED.2014.067194

International Journal of Education Economics and Development, 2014 Vol.5 No.4, pp.332 - 360

Received: 02 Jun 2014
Accepted: 30 Oct 2014

Published online: 07 Feb 2015 *

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