This chapter examines the variability of household expenditure on higher education in rural Odisha (one of the backward states of India) and its relationship with individual, household and institutional factors. This chapter uses the data collected through a student survey in two tribal dominated districts of Odisha (Mayurbhanj and Keonjhar) in 2016–2017. In total 563 scheduled caste, scheduled tribe and other backward class students pursuing their undergraduate and postgraduate courses in 19 colleges are surveyed for the study. The findings suggest that the annual average household expenditure on higher education among marginalized sections of the society in rural Odisha is approximately 30% of the annual family income. Also, students enrolled in government and aided colleges have spent more than the students enrolled in unaided higher education institutions and interestingly; this difference is largely due to the difference in the payment of non-fee items such as private tuition, food and accommodation, transport, Internet, etc. On an average, students pay only about 5% of their total expenses in higher education as fees per year and rest on non-fee items. The pattern of household spending on higher education varies significantly between hostellers and day scholars. As expected, students belonging to poor households have invested less on higher education than the households with better income. Results also indicate pro-male bias in household spending on higher education in rural Odisha.
- Household expenditure
- Higher education
- Pattern and determinants
- Rural Odisha
The chapter is based on an ICSSR-sponsored study titled ‘Effectiveness of Select Scholarship Schemes for the Improvement in Access and Retention of Scheduled Caste and Scheduled Tribe Students in Odisha’.
This is a preview of subscription content, access via your institution.
Tax calculation will be finalised at checkout
Purchases are for personal use onlyLearn about institutional subscriptions
Institution-wise students surveyed are given in Table 10.5 in appendix.
In Odisha, degree colleges are classified into five groups on the basis of fund they receive from the Government of Odisha. These are: government, aided, block grant, unaided, and self-financing. The government HEIs receive highest fund (almost all the expenses) from the Odisha Government, aided and block grant colleges get partial funding while unaided and self-financing colleges do not get any money from the government. For this chapter, the sample colleges are categorised into three groups: government, aided (aided and block grant colleges taken together) and unaided (unaided and self-financing combined).
Out of the total students surveyed (563), only about 20% stay in the hostel and this share varies significantly by type of HEIs. More than half (54%) of the students in government institutions avail hostel facilities while it is 11.36% in aided institutions and 10.24% in unaided institutions and this variation is largely due to the availability of such facility in sample HEIs.
The expenditure of the day scholars incurred on food and accommodation largely includes their occasional spending in college canteen and short-term stay in private accommodation during examination time.
The families are classified under four different groups according to their annual family income which ranges from Rs. 5000 to Rs. 2,35,000. These are lower income (< Rs. 20,000), lower middle income (≥Rs. 20,000 but < than Rs. 40,000), upper middle income (≥ Rs. 40000 but < Rs. 60,000), and higher income (≥Rs. 60,000 but < Rs. 2,50,000).
Acar Elif Oznur, Seyit Mümin Cilasun, & Burak Günalp. (2016). An analysis of education expenditures in Turkey by income groups (Working Paper 991). The Economic Research Forum, Egypt.
Acevedo, G. L., & Salinas, A. (2000). Marginal willingness to pay for education and the determinants of enrolment in Mexico (World Bank Policy Research Working Paper No. 2405). Washington, DC: World Bank.
Aslam, M., & Kingdon, G. G. (2008). Gender and household education expenditure in Pakistan. Applied Economics, 40(20), 2573–2591.
Azam, M., & Bolm, A. (2009, April). Progress in participation in tertiary education in india from 1983 to 2004. Journal of Educational Planning and Administration, 23(2), 125–167.
Azam, M., & Kingdon, G. G. (2013). Are girls the fairer sex in India? Revisiting intra-household allocation of education expenditure. World Development, 42, 143–164.
Chakrabarti, A. (2009, July/December). Determinants of participation in higher education and choice of disciplines: Evidence from urban and rural Indian youth. South Asia Economic Journal, 10(2), 371–402.
Chakrabarti, A., & Joglekar, R. (2006). Determinants of expenditure on education: An empirical analysis using state level data. Economic and Political Weekly, 41(15), 1465–1472.
Chandrasekhar, P., Rani, G., & Sahoo, S. (2019). Household expenditure on Higher education what do we know and what do recent data have to say? Economic and Political Weekly, 54(20), 52–60.
Chattopadhyay, S. (2007). Exploring alternative sources of financing higher education. Economic and Political Weekly, 42(42), 4251–4259.
Chaudhuri, K., & Roy, S. (2006). Do parents spread educational expenditure evenly across the two genders? Evidence from two North Indian States. Economic and Political Weekly, 41(52), 5276–5282.
Dang, H. (2007). The determinants and impact of private tutoring classes in Vietnam. Economics of Education Review, 26(6), 683–698.
Gangopadhyay, K., & Sarkar, A. (2014). Private investment in education – Evidence across castes and religion from West Bengal. Economic and Political Weekly, 49(13), 44–52.
Glocker, D. (2011). The effect of student aid on the duration of study. Economics of Education Review, 30(1), 177–190.
Gong, X., Soest, A., & Zhang, P. (2005). The effects of the gender of children on expenditure patterns in rural China: A semiparametric analysis. Journal of Applied Econometrics, 20(4), 509–527.
Himaz, R. (2009). Is there a boy bias in household education expenditure? The case of Andhra Pradesh in India based on Young Lives data (Working Paper No. 46). Young Lives, Department of International Development, University of Oxford.
Iddrisu, A. M., Danquah, M., Quartey, P., & Ohemeng, W. (2018). Gender bias in households’ educational expenditure: Does the stage of schooling matter. World Development Perspectives, 10–12, 15–23.
Indira, M. (2006). Can self-financing be a viable source of resource in traditional universities. Journal of Educational Planning and Administration, 20(1), 109–123.
Iriti, J., Page, L., & Bickel, W. (2017). Place-based scholarships: Catalysts for systems reform to improve postsecondary attainment. International Journal of Educational Development, 58, 137–148.
Jensen, R. (2012). Do labor market opportunities affect young women’s work and family decisions? Experimental evidence from India. Quarterly Journal of Economics, 127(2), 753–792.
Kambhampati, U. S. (2008). Does Household Expenditure on Education Depend upon Returns to Education in India? (Henley Business School Working Paper No. 060). University of Reading.
Kanellopoulos, C., & Psacharopoulos, G. (1997). Private education expenditure in a ‘free education’ country: The case of Greece. International Journal of Educational Development, 17(1), 73–81.
Kaul, T. (2018). Intra-household allocation of educational expenses: Gender discrimination and investing in the future. World Development, 104, 336–343.
King, E. (1998). Who really pays for education? The roles of government and families in Indonesia. In C. Colclough (Ed.), Marketising education and health in developing countries: Miracle or mirage? (pp. 165–182). New York: Oxford University Press.
Kingdon, G. G. (2005). Where has all the bias gone? Detecting gender bias in the intra-household allocation of educational expenditure. Economic Development and Cultural Change, 53(2), 409–451.
Lancaster, G., Maitra, P., & Ray, R. (2008). Household expenditure patterns and gender bias: Evidence from selected Indian states. Oxford Development Studies, 36(2), 134–157.
Li, D., & Tsang, M. C. (2003). Household education decisions and implications for gender inequality in education in rural China. China: An International Journal, 1(2), 224–228.
Masterson, T. (2012). An empirical analysis of gender bias in education spending in Paraguay. World Development, 40(3), 583–593.
Mathew, E. T. (1996). Financial aspects of privatisation of higher education: Issues and options. Economic and Political Weekly, 31(14), 866–869.
Omori, M. (2010). Household expenditures on children, 2007–08. Monthly Labor Review (9), September 3–16.
Panchamukhi, P. R. (1990). Private expenditure on education in India: An empirical study. Unpublished report of Indian Institute of Education, Pune.
Pasqua, S. (2005). Gender bias in parental investments in children’s education: A theoretical analysis. Review of Economics of the Household, 3(3), 291–314.
Prakash, V. (2007). Trends in growth and financing of higher education in India. Economic and Political Weekly, 42(31), 3249–3258.
Psacharopoulos, G., & Mattson, R. (2000). Family size, education expenditure and attainment in a poor country. Journal of Educational Planning and Administration, 14(2), 169–186.
Psacharopoulos, G., & Papakonstantinou, G. (2005). The real university cost in a “free” higher education country. Economics of Education Review, 24(1), 103–108.
Rani, G. P. (2004). Economic reforms and financing higher education in India. Indian Journal of Economics and Business, 3, 1) 1–1)30.
Saha, A. (2013). An assessment of gender discrimination in household expenditure on education in India. Oxford Development Studies, 41(2), 220–238.
Shafiq, N. M. (2011). What criteria should policy-makers use for assisting households with educational expenditure? The case of urban Bangladesh. South Asia Economic Journal, 12(1), 25–37.
Subramaniam, S., & Deaton, A. (1991). Gender effects in Indian consumption patterns. Sarvekshana April–June, pp. 1–30.
Tansel, A., & Bircan, F. (2006). Demand for education in Turkey: A Tobit analysis of private tutoring expenditures. Economics of Education Review, 25(3), 303–313.
Tilak, J. B. G. (2002). Determinants of household expenditure on education in rural India (Working Paper Series, No. 88). New Delhi: National Council of Applied Economic Research.
UGC. (2016). Annual report 2015-16. New Delhi: University Grants Commission.
Urwick, J. (2002). Determinants of the private costs of primary and early childhood education: findings from plateau state, Nigeria. International Journal of Educational Development, 22(2), 13–44.
Varghese, N. V. (2013). Private higher education – The Global surge and India concerns (India Infrastructure Report 2012) (pp. 145–156). New Delhi: Routledge.
Varghese, N. V. (2015). Challenges of massification of higher education in India (CPRHE Research Paper 1). New Delhi: Centre for Policy Research in Higher Education, National University of Educational Planning and Administration.
Zimmermann, L. (2012). Reconsidering Gender Bias in Intra-Household Allocation in India. The Journal of Development Studies, 48(1), 151–163.
Editors and Affiliations
© 2019 Springer Nature Singapore Pte Ltd.
About this chapter
Cite this chapter
Choudhury, P.K. (2019). Pattern and Determinants of Household Expenditure on Higher Education: Evidence from Rural Odisha. In: Bhushan, S. (eds) The Future of Higher Education in India. Springer, Singapore. https://doi.org/10.1007/978-981-32-9061-7_10
Publisher Name: Springer, Singapore
Print ISBN: 978-981-32-9060-0
Online ISBN: 978-981-32-9061-7