We investigate household expenditure on education of 4-year old children
and its determinants using the Panel Study on Korean Children. In this
research, household expenditure on education for children is classified into
three categories: narrow-sense, common-sense and broad sense expenditure.
We find that narrow-sense and common-sense expenditure for education of
4-year old children is 700,000,000,000 Korean Won total. Broad-sense
expenditure is estimated in 1,600,000,000,000 Korean Won total. Compare the
size of the expenditure with household wealth in South Korea, we infer that
expenditure on children’s education is economic burden to household. We
also find that income level and educational level of parents are the critical
determinant of the expenditure. We find that household attending half-day
private academy tends to use more private expenditure than household
attending childcare facility and kindergarten. Hence, the government needs
to increase childcare facility and kindergarten. Possible policies are supplies
of public childcare facilities and public kindergarten or quality control of
extra-curriculum activities.