Determinants of educational expenditure in Vietnam

Using the Vietnamese Household Living Standards Survey from 2006 (VHLSS 2006), this study investigates the factors affecting household expenditure on children's education. The main findings from the Tobit model in this study are as follows: First, household income has significant effects on the total amount of educational expenditure. In most cases, increase in the income of the household is always associated with an increase in educational expenditure. Second, households where the household heads have a higher level of education or with professional jobs, enhances the probabilities of educational expenditure. Third, households with more primary-school-age or secondary school-age children spend more on education, while households with pre-school-age or college-age children spend less on education. These results show that families with more resources and better human capital are those who are able to spend more resources on their children's education.