Effects of Covid-19 on Shadow Education Expenditures by Income Groups in South Korea

This study uses the Gyeonggi Education Panel Study data to explore the impact of the COVID-19 pandemic on shadow education spending in South Korea. It uses the average propensity to consume (APC) for education to account for income changes, applying the double-difference method to eliminate grade effects. The findings reveal reduced nominal education expenses and APC for lower-income groups. The widening gap in shadow education spending between the lowest and highest income brackets worsens the Gini coefficient of education expenditure. Implementing compensatory measures like smaller classes, one-on-one tutoring, and adaptive teaching strategies tailored to individual students can help prevent temporary increases in inequality from becoming permanent.