Effect of public education expenditure and per capita income on gender parity in Kenya

Abstract

Education is widely recognized as a crucial catalyst for economic development due to its capacity to cultivate human capital, a fundamental factor in fostering economic progress. To effectively attain the sustainable development goals (SDGs), it is imperative for the Kenyan government to prioritize the provision of inclusive and equitable quality education, as well as the facilitation of enhanced learning outcomes for all individuals. The achievement of gender parity, as assessed by the Gender Parity Index (GPI) of 1, is crucial for the realization of gender equality in the field of education. This objective aligns with Goal 5 of the Education for All (EFA) initiative, which aims to eliminate gender gaps in in enrolment at the primary and secondary levels education. The majority of research conducted on the impact of public education spending and per capita income on educational outcomes has been focused on metrics such as primary school enrollment, secondary school enrollment, adult literacy rates, and secondary school transition rates. Gender parity, however, has not been extensively utilized as a measure for assessing educational outcomes in these studies. The studies also employed the measure of overall education expenditure, rather than examining expenditure at different levels of schooling. The primary objective of this study was to investigate the impact of public education expenditure and per capita income on gender parity in Kenya. Specifically, the study aimed to assess the influence of expenditure on secondary education on gender parity, analyze the effect of expenditure on primary education on gender parity, and examine the effect of per capita income on gender parity in Kenya. This analysis was based on the human capital theory and the public spending theory proposed by Musgrave and Rostow. The research employed a correlational research approach, utilizing annual time series data spanning a period of 50 years from 1972 to 2021. The data was gathered from the world development indicators. The research utilized the Johansen Co-integration test to ascertain the existence of a long-term relationship among the variables. Additionally, the Vector Error Correction Mechanism was employed to integrate both long-term and short-term dynamics. Lastly, Granger causality analysis was conducted to determine the direction of causality. The study revealed unidirectional causality from expenditure on secondary education, expenditure on primary education, per capita income to gender parity in Kenya. The normalized co-integrating coefficients of 8.94, 2.29 and 0.0075 along with t-statistic values of 6.4317, 9.9565 and 2.8846 that surpassed the threshold of 2 implied that a one percent increase in expenditure on secondary education, expenditure on primary education and per capita income increased gender parity by 8.94%, 2.29% and 0.0075% respectively in the long run. Gender parity is significantly error correcting at 10.61% annually. The study concluded that in the long run, expenditure on primary education, expenditure on secondary education and per capita income promotes gender parity in Kenya. In view of this, the study is significant to literature by proving the human capital theory and the Musgrave’s and Rostow’s public expenditure theories by underscoring the importance of public investment in education and per capita income as key factors influencing the degree of investment in human capital. The study recommends increased financial allocation to the primary and secondary level of education with utmost efficiency and establishment of a robust data collection and monitoring system for efficient monitoring and tracing of the enrolment rates and to facilitate evidence based decision making which in the long run will help the country achieve the targeted gender parity index of 1.