Effects of Governments Regulations on Private Education Expenditures in Korea

Abstract

The private education market has been expanding in Korea. Hence,

various measures at the government level are implemented, such as

regulating private educational institutes and strengthening school

curricula at all levels. This paper analyzes whether direct regulation

on the business hours of private educational institutes is effective in

reducing the countrys overall private education expenditure. Using

the youth panel data of the Korea Employment Information Service

from 2007 to 2010, the paper focuses on the regulation of private

educational institutes and analyzes the regulation effect on private

education expenditures of Korean high school students using Tobit

model. Furthermore, the stochastic dominance test is conducted by

taking the nonparametric approach of Linton et al. (2010). Regulation

effects in both approaches vary among the regulated regions.