| In essay one, I analyze the effect of neighborhood on the education expenditure of Korean families using the survey data of the "Korean Consumer Protection Board" which was gathered in 1997. In this study, I find the existence of neighborhood effect in the family's education consumption which can be one of the factors reflecting the competition among parents. My results indicate that there is additional education consumption for the more interaction-exposed (neighborhood effect) families, and that 34% of total education demand can be explained by consumers' behavior of following their neighbors' consumption.In essay two, I analyze the determinants of resource allocation among siblings in the Korean families. I find that more education resources were spent on a firstborn child, which means that there is a birth order effect in favor of the lower order siblings. In addition, I find that an only child does not consume more than a first born child in education even though an only child can monopolize a family's education resources. |
