This study began with the aim of understanding the problem of intensified educational competition and the resulting expansion of private education investment in South Korea. Expenditure on private education in Korea has continued to increase each year...
This study began with the aim of understanding the problem of intensified educational competition and the resulting expansion of private education investment in South Korea. Expenditure on private education in Korea has continued to increase each year, accompanied by a growing financial burden on parents and heightened academic pressure on students. Despite this situation, the study explores why competition in private education persists—namely, why parents tend to maintain or expand their spending on private education—by focusing on parents’ psychological factors. These psychological factors are examined through the concept of the positional goods nature of private education, using subjective socioeconomic status as an indicator that may capture the burden arising from parents’ status competition. Given that private education is a form of consumption closely associated with parental income, the study empirically examines how parents’ subjective socioeconomic status may be related to private education expenditures across different income levels.
Accordingly, this study began by proposing that subjective socioeconomic status constitutes a variable distinct from objective socioeconomic status. Research Question 1 examined whether subjective socioeconomic status differs from objective socioeconomic status, while Research Question 2 explored factors associated with the differentiation of subjective socioeconomic status within the same level of objective socioeconomic status. Research Question 3 analyzed whether the congruence or incongruence between objective socioeconomic status and subjective socioeconomic status may influence private education expenditures in relation to income. Research Question 4 further investigated whether the effects of income on private education expenditures, depending on the congruence between the two forms of socioeconomic status, may vary across socioeconomic status groups.
To address these research questions, Research Question 1 employed exploratory factor analysis to construct objective socioeconomic status, and Spearman rank correlation analysis and Cohen’s squared weighted Kappa analysis were conducted to examine discrepancies between objective and subjective socioeconomic status. For Research Question 2, one-way analysis of variance (ANOVA) was used to identify factors associated with the differentiation of subjective socioeconomic status within the same socioeconomic status group. In Research Question 3, the congruence variable was categorized into a congruent group, an underestimation group, and an overestimation group, and the moderating effect of congruence on the relationship between income and private education expenditures was examined through moderation analysis. Panel data were used for the analysis, and a year fixed-effects model was applied. In Research Question 4, socioeconomic status groups were classified into low-, middle-, and high-SES groups, and moderating effects of congruence on the relationship between income and private education expenditures were analyzed across these groups.
The results suggest that objective socioeconomic status and subjective socioeconomic status function as distinct variables. In addition, factors associated with status differentiation were found to vary across socioeconomic status groups. Third, the congruence between the two forms of socioeconomic status did not appear to influence private education expenditures in relation to income. However, when the analysis was conducted separately by socioeconomic status group, the moderating effect of congruence was found to be significant only within the middle-SES group (the middle class). Within this group, the underestimation group showed the highest rate of increase in private education expenditures as income increased, while the congruent group also exhibited a significant association between income and private education expenditures, though to a lesser extent than the underestimation group.
The conclusions drawn from these findings are as follows. First, among middle-class parents in the underestimation group, the increase in private education expenditures associated with rising parental income was larger than that observed in other groups. This suggests that parents who perceive their own socioeconomic status as lower than their objective status may, due to heightened anxiety, be more likely to engage in more competitive spending on private education. Second, parents whose objective and subjective socioeconomic status were congruent tended to increase their private education expenditures as income rose. This pattern suggests that, rather than anxiety, aspirations for status advancement may be associated with increased spending on private education.
Accordingly, this study empirically suggests that parents’ status competition and the anxiety arising from it may be related to private education expenditures. Its contribution lies in moving beyond explanations based solely on isolated psychological or economic factors, and in discussing where parents’ educational anxiety may originate and how it may be associated with spending on private education. In addition, this study proposes policy directions aimed at mitigating the excessive expansion of private education by taking parents’ psychological factors into account. Specifically, the suggested measures include, in the short term, continued investment in public education and regulation of private education marketing practices that may intensify educational anxiety, and, in the long term, the restoration of social trust through the promotion of equity in educational opportunities.