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  • P-ISSN 2586-2995
  • E-ISSN 2586-4130
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KDI Journal of Economic Policy. Vol. 48, No. 2, May 2026, pp. 63-87

https://doi.org/10.23895/kdijep.2026.48.2.63

× KDI Open Access is a program of fully open access journals to facilitate the widest possible dissemination of high-quality research. All research articles published in KDI JEP are immediately, permanently and freely available online for everyone to read, download and share in terms of the Creative Commons Attribution 4.0 International License.

The Effects of Parental Competitive Pressure on Private Education Investment

SUNGMIN HAN; SEUNGJOO HAN

Author & Article History

Manuscript received 08 February 2026; revision received 10 February 2026; accepted 01 April 2026.

Abstract

In South Korea, education serves as a critical engine for social mobility, where academic credentials from prestigious universities function as a decisive factor in shaping career trajectories and earning potential. This dynamic has fostered intense educational fervor and led to the proliferation of a massive private education market. This study empirically examines the relationship between parental competitive pressure – defined as a synthesis of achievement expectations and anxiety – and investment in private education within a highly competitive educational environment. The analysis shows that private education expenditures are positively associated with parental competitive pressure. Notably, this increase occurs primarily through greater spending rather than an increase in total tutoring hours. This pattern suggests that, given children’s time constraints, highly pressured parents strategically prioritize quality over quantity. Furthermore, the effect varies across family backgrounds, indicating that reliance on private education reflects the interplay between socio-structural factors and household resources, thereby reproducing intergenerational educational inequality. Overall, it was found that dependence on private education is a structural phenomenon amplified by status competition within a success-oriented society. Consequently, policy interventions should shift away from superficial regulations and focus on addressing the fundamental socioeconomic drivers of parental competitive pressure.

Keywords

Parental Competitive Pressure, Private Education Investment, Number of Academies, Private Tutoring Time, Private Tutoring Expenditure

JEL Code

I21, I24

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