De, Supriyo (2012). "New Measures of Household Educational Expenditure Propensities across Indian States: Income Inequality, Regional Variations and Policy Implications" Paper presented at the 9th annual conference of the HDCA, 5-7 September 2012, Jakarta, Indonesia.

Education is one of the most crucial aspects of human development. Households often make significant sacrifices to educate their members. For doing so, they dedicate a part of their income for educational purposes. The lower the level of household income, the more creditable this effort is. Given that household investments in human capital bear significant private risks but have high social returns, the educational expenditure efforts of lower income households need to be appreciated. To capture this phenomenon, a series of measures of Household Educational Expenditure Propensities (HEEP) are developed. They encapsulate educational expenditures in relation to income and consumption expenditures across household groups classified according to income. Some of the measures also account for the income or consumption inequality faced by the households. In doing so, the measures capture household educational ‘animal spirits’ as also the ‘uphill’ inequality profile that they have to encounter. The study uses household survey data grouped in a manner that allows the analysis across income groups and across states. The results indicate that across many states, the poorest segments of the population appear to be spending a larger proportion of income on education than comparatively prosperous groups. The quality of public education, the need for supplementary private tuition and increasing reliance on private schools may be playing a role. Migration, both domestic and overseas may be a driving factor encouraging higher proportion of educational expenditures among the poor.