Socioeconomic, demographic, and locational predictors of households’ educational investment in Somalia

Abstract

This study investigates the determinants of household educational investment in Somalia, focusing on economic, demographic, and geographic factors. Using data from a nationally representative sample of 7,212 households from the Somali Integrated Household Budget Survey (SIHBS) 2022, descriptive analysis, correlation diagnostics, and multinomial logistic regression were employed to examine investment patterns. Households were categorized into low (< USD 200), medium (USD 200–400), and high (> USD 400) investors. The results show that household income, parental education, and geographical location are significantly associated with investment levels. Specifically, higher household income and university-educated parents are linked to greater educational spending, while urban households are more likely to invest than rural and nomadic households. The employment status of the household head and the gender of the child also show significant effects, with employed heads and male children being associated with higher investment. Marginal effects further indicate that a USD 100 increase in household income reduces the probability of low investment by 2.3% and increases high investment by 1.5%, with parental education emerging as the strongest determinant, followed by income and geographic access. These findings highlight persistent disparities in household educational investment across Somalia and underscore the need for policies that enhance household income, expand adult education, improve rural and nomadic access to schooling, support employment opportunities, and address gender-based inequalities.