Educational expenditure of Asian American families

Abstract

Parental spending is an essential measure of parenting styles and is crucial in the intergenerational transmission of advantage. Popular media outlets portray Asian Americans as a “model minority” who invest heavily in education. Past literature on racial spending gaps for children often does not include Asians. A limited number of studies that have examined Asian–White spending gaps focus predominantly on savings and spending for college. Using nationally representative Consumer Expenditure Surveys (CE) Public Use Microdata 2009–2022, this study examines K–12 spending gaps between Asian American and White families and how race interacts with class in affecting parental spending. I find that Asian households outspend Whites overall. A detailed analysis of three academic and three enrichment expenses shows that although Asian spend more on recreational lessons and tutoring, White outspend Asians on sports and cultural activities. The spending gap on tutoring is most prominent among households with a graduate degree, not among families with a high school education or below, where the Asian–White achievement gap is the most salient. Considering the increasing weight of home choices in determining the quality of public K–12 education, this study also examines the racial spending gap on housing. A difference-in-difference analysis suggests that Asian households across the educational spectrum spend more on housing for the sake of K–12 children. This spending gap is the most salient among families without a college degree and those with a graduate degree.