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Family Characteristics and Educational Expenditures in Japan and the United States

This study examined family expenditures on education for children up to secondary school age in Japan and the United States to compare how family characteristics explain the variations in such expenditures differently in these countries. The data for this study were taken from the 2004 Japanese Consumer Panel Study and the 2004 U.S. Consumer Expenditure Survey. The probability of having expenditures on children's educations and the associated costs were analyzed simultaneously using double-hurdle models. Overall, families in Japan spent more when children were older, while families in the United States spent more when children were younger. Furthermore, homeownership status, mother's age, educational attainment, employment status, and marital status explained the variations in expenditures differently for Japan and the United States. The findings of this study supported the conclusions that the present situation reinforces intergenerational economic inequality in both countries and that the current family economic burden discourages the improvement of birthrates in Japan.