Determinants of the demand for education in Spain

The aim of this paper is to estimate an equation for household demand for b oth secondary and university education, using an estimation of the opportun ity cost associated with the decision to invest in education. Limited depen dent variable models are applied to the data provided by the Family Budget Survey 1991 for Spain. The results show that the social and economic status of the family has a comparatively greater impact on household expenditure on secondary education than on university education. The opportunity cost i s also shown to be a decisive variable in the decision to invest in seconda ry education, although the results are less conclusive in the case of unive rsity education.