Overview

Recent research studies cover the varying perspectives on education by ethnicity and race and the methods in which families exert influence over educational choices. In addition, a number of studies that are rooted in Human Capital Theory evaluate returns to schooling-education increases an individual's productivity and contributes to an individual's capacity to improve his or her financial and social well-being. Using Consumer Expenditure Survey microdata, this article extends previous research on human capital and investment in education by examining the patterns of educational expenditures by race and ethnicity. The results reveal that differences in investment arise principally from (1) differences in college attendance and (2) the likelihood to assume educational expenditures. Once families decide to invest in their children's higher education, little difference exists in the level of expenditures between racial and ethnic groups.