Patterns, Trends and Policy Implications of Private Spending on Skills Development in Mexico and the United States

Abstract

This paper explores families’ investment in skills development through education in a high-inequality, low-education
quality country such as Mexico, comparing it to a lower-inequality, higher-quality education country such as the
United States. The paper uses a series of Household Income and Expenditure Surveys for both countries spanning
around 20 years and different methodological approaches. Of particular interest is the analysis of education
expenditure patterns along the income distribution. Policy implications for both cases are discussed. While in Mexico
stimulating private spending in education through public resources might be regressive, the contrary might be the
case in the United States.