The Role of Education in Iranian household's Expenditure Basket

In the history of human societies, Education Institution has been thought of a key factor in human life and development. In Iran, Both before and after Islam, Education and culture have been considered as fundamental tools for human life exaltation. In Islamic republic of Iran’s law, development of education and increasing social welfare are of particular interest. Many scholars believe that, one of the effective ways out of poverty is human capital development. The aim of this investigation is to assess the role of Education in Iranian households’ consumption behavior. To this end, the budget survey of Iranian statistical centre was used to calculate indices such as: share of education in Iranian households’ expenditure and income elasticity of education demand. The results of this study indicate that education is a necessary service. Another important finding is that education expenditure in urban areas is significantly more than rural areas.
Journal of Economic Growth and Development Research, Volume:1 Issue: 2, 2011
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