Higher education income elasticity demand for Iranian households

Author
Mohammad Javad Salehi
Department of Economics of Higher Education and Manpower, Institute for Research and Planning in Higher Education
Abstract
Higher education is an economic good like other goods and services that households, according to their income, have sensitivity to it. This sensitivity is an indicator for assessing household elasticity income for higher education demand. Therefore, in this study the attitude of households toward higher education was examined. The main objective of this study was to calculate higher education income elasticity demand for Iranian households.  The major question was: is higher education a kind of luxury, necessary or inferior good for Iranian households? By using a quantitative method and utilizing data from Statistic Center of Iran, the income elasticity demand for   urban and rural households during 2005-12 was calculated for 2012 by income deciles. The results showed that the higher the income growth, higher education as luxury goods has become an essential commodity for Iranian households. Consequently, the major hypothesis of this study is accepted. In addition, over time higher education has become an essential commodity for urban and rural households.  

Keywords

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  • Receive Date 06 March 2023
  • Publish Date 06 March 2023