Abstract:
ABSTRACT
Education financing has been a major challenge to both government budget and
household meagre income. Most research has been on education financing by
government and its related issues and limited empirical study on micro level data
on household education financing. This study therefore examines the household
education financing and the crowding out effect with household education
financing on other consumable goods and services. The main dependent variable
of the study was household education expenditure. The study used Ghana Living
Standard Survey round seven conducted by the Ghana Statistical Service to
analyse the determinant of household education expenditure and the crowding out
effect of the household educational expenditure on other goods and services.
Two econometric approaches used in this study were the Tobit model and the
Fractional response model with endogenous regressor. The results from the study
on the Tobit model revealed that household size is positive and significant in
explaining household education expenditure. Again, it was observed that
education expenditure crowds out basic necessities such as clothing and footwear,
utility and housing. The study then proposed these recommendations both to the
government and the household, following from the empirical test conducted. That
is a pragmatic measure should be taken on the household size by way of educating
household heads on birth control measures and also Ministry of Education should
organize non-formal education to household heads with lower education, since
education level of household head influences education positively