How Much Indian Households Spend in Higher Education? Tobit Analysis using National Sample Survey Data

Abstract

Higher education in India is undergoing massive expansion, with enrolment figures touching 38.5 million and Gross Enrolment Ratio attaining 27.1%. However, this expansion is brought about by extensive privatisation, catering around 70% of students enrolled in the sector. This shift also marks a departure in perceiving higher education as a public good – impacting its sources of funding – disproportionately straining the pockets of households. Drawing on National Sample Survey data (2017-18), the present study examines the pattern and quantum of household expenditure and estimates key determinants of household expenditure in higher education. Employing Tobit model the study brings out the interplay of gender, caste and class in shaping households’ decision to allocate resources in higher education.