The Decision to Invest in Child Quality Over Quantity: Declining Fertility and Rising Investment in Private Tutoring

Updated September 2009
Authors:
Halsey Rogers; Hai-Anh Dang

Abstract:
In this project, we will to investigate how lower fertility levels make it possible for households to invest in their children’s human capital—not only through leaving them in school longer, but also by increasing direct outlays on private tutoring and schooling generally. Expenditure on private tutoring may serve as an especially good measure of a household’s decision to invest voluntarily in educational quality, because expenditure on private tutoring is generally optional for the household and is likely to be harder for governments to ban or constrain. Consequently, expenditure on private tutoring may be a good measure of the impact of household fertility choices on their children’s education.
 
Using data from the World Bank LSMS, the study will answer the following questions:
1. Does lower fertility correlate with higher expenditures on private tutoring (and private education in general) in a broad cross-section, after controlling for other factors?
2. Is there a causal relationship running from lower fertility to higher investment in tutoring?
3. What effects are the fertility decline and corresponding increase in investment on children likely to have on educational outcomes, wages and inequality?

Contact Information:
Halsey Rogers, hrogers@worldbank.org; Hai-Anh Dang, hdang@worldbank.org, The World Bank

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