Title: Optimal levels of private tutoring investment in South Korea

Authors: Patrik T. Hultberg; David Santandreu Calonge; Ty Choi

Addresses: Department of Economics and Business, Kalamazoo College, 1200 Academy Street, Kalamazoo, MI 49009, USA ' Faculty of Communication, Arts and Sciences, Canadian University Dubai, 1st Interchange, Sheikh Zayed Road, Dubai, UAE ' College of Economics and Business, Hankuk University of Foreign Studies, Global Campus, 81, Oedae-ro, Mohyeon-eup, Cheoin-gu, Yongin-si, Gyeonggi-do, 17035, Korea

Abstract: During the past several decades, South Korea has transformed itself into an international educational powerhouse. The rapid economic and social achievements have largely been attributed to intentional government-regulated education plans and policies. However, since the 1960s, a powerful parallel for-profit private tutoring sector (hagwons) has emerged with significant effect on families. The main aim of this study is twofold: to model how Korean households decide on the level of investment in private tutoring and to explore whether the current amounts of such investment seem optimal across various income levels, an issue which, to date, has received scant attention in the research literature. This exploratory investigation takes the form of a two-period life-cycle model that provides a framework in which to discuss household private tutoring investment decisions.

Keywords: educational expenditures; private tutoring; economic model; South Korea.

DOI: 10.1504/IJEED.2021.114364

International Journal of Education Economics and Development, 2021 Vol.12 No.2, pp.97 - 115

Received: 25 Oct 2019
Accepted: 05 Apr 2020
Published online: 20 Apr 2021 *

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