Estimation of Household Educational Expenditure Model Using Censored Data

The purpose of this paper is to investigate the determinant of educational cost in micro level (I.e. household). These determinants are categorized in four levels: household characteristics, child characteristics, head characteristics and mother characteristics. The effect of each one is estimated thorough a censored Tobit model for 2016 Iran household survey. The reason of model selection is for reporting zero cost in some cases. The result shows that urban residency and having girl child (versus boy) are context factors that increase expenditure on education. Sexuality of household head is the other important can increase income of family and so the educational costs. And finally, analyzing mother and head of the family shows that transition of financial capital to child is take place dominantly thorough head (greater effect of head income than mother income) and versus the transition of human capital to child is take place dominantly thorough head (greater effect of mother literacy than head literacy).