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Elasticity - Income from Private Sector Demand for Presential Higher Education in Brazil

Abstract

Brazilian higher education registered a remarkable growth from the 90's, explained by the changes that occurred in the Law of Directives and Bases of Education (Lei de Diretrizes e Bases da Educação- LDB) of 1996. These changes enabled the expansion of the private sector, by more than 500%, from the 80's until the year 2018. This article analyzed the income elasticity of demand based on data from the Higher Education Census and the Average Income of the Brazilian population in the period from 1984 to 2018. The aim is to demonstrate how family income substantially influences the number of students enrolled in private higher education in the country. The calculation showed an elasticity of approximately 2.96, that is, for each unit increased in the income of the Brazilian population, the demand for higher education will be increased by approximately 2.96 units. The results obtained, based on the growth of the country's income, help in the projection of future enrollments, in the revenue forecast and in the preparation of the sector's business planning.

Alexandre Oliveira, Cristiane Heleodoro Cardoso, Daiane Rodrigues dos Santos, Ludmila Santana de Azevedo Matos and Waldemar Chagas

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