Income and expenditure pattern of private schools' teachers in Kathmandu Metropolitan city

Abstract

Income is the flow of cash received from works (wage or salary), capital interest or profit and rent from the land. Income is the consumption and savings opportunity gained by an entity within a specified time frame, which is generally expressed in monetary terms. Mainly private schools’ teachers have two sources of income and they are salary and tuition. Consumption is major concept in economics and it is also studied by other social science. According to mainstream economists only final purchase of goods services by individual constitute consumption. Consumption in urban area is sum of total expenditure on different food and non- food items. The study has made analysis about income and consumption of private school teachers. The study is based on 19 different private secondary schools from North and East sectors of Kathmandu. Out of total 50% of private school teachers hold Master degree. Percentage of tuition taking teachers is 56.66% and rest 43.34% are salary holder only. The average income of private school teachers is Rs.21,136.67. Contribution of salary and tuition in total income of private school teachers is 68.58% and 31.42% respectively. The maximum and minimum salary earned by private school teachers is Rs.4,000 and Rs.37,000 respectively. Contribution of salary in total income of private school teachers household is highest among all, and that is 66.84%. Gini coefficient of income of private school teachers is 40.18% i:e 0.4018. The lowest 10% of households covers 3.72% and highest 10% earns 19.87% of total households income. The study finds out that there is less involvement of female teachers in higher post than male in private schools. The average household consumption of private school teachers is Rs.33,441.67. Families of private school teachers’ spend 31.54% of total consumption on food and 68.46% on non food items. Moreover, 15.81 % of total expenditure is covered by education and this is highest among the all. Expenses on rent, food grains and festival are the second preference of private school teachers families and seem about to be equal.The study shows truly reflect the consumption behavior of people with academic background since private school teachers’ family invest 11.7 times more on education than in Cigarettes & Alcoholic Beverage.