Chapter II:

Review of Related Literature

The definition of socioeconomic background used varies widely, even across

educational research. In the Organization for Economic Cooperation and

Development’s (OECD) rigorous large-scale international assessment of more than

70 countries over 15 years, the Programme for International Student Assessment

(PISA), socioeconomic background is represented by the index of Economic, Social

and Cultural Status, which is a composite score derived by principal components

analysis and is comprised of the International Socioeconomic Index of Occupational

Status; the highest level of education of the student’s parents, converted into years

of schooling; the PISA index of family wealth; the PISA index of home educational

resources; and the PISA index of possessions related to 'classical' culture in the

family home. (Thomson, 2018)

Various studies examined the impact of parental socio-economic status on students’

educational achievements at Secondary Schools of District Malir, Karachi.

Questionnaires were used to collect data from 240 students using purposive

sampling technique. Statistical tables were used for data analysis. A significant

relationship was found between family income and academic performance of

students in matriculation examination. They also found a significant relationship

between parent’s occupational status and academic performance of the students at

matriculation examination. They concluded that students whose family income was
higher performed well in matriculation examination as compared to those students

who belonged to low income families (Memon, et al., 2010).

Many governments have adopted a policy of seeking to increase the number of

students entering higher education and to finance this expansion by transferring

costs from the state to the individual

In the United Kingdom, this policy has been pursued with relatively little concern for

the impact that the increasing financial burden may have on students. (Harding,

2011)

(Nnamani, Kinta, & Dikko, 2014) conducted a study about the impact of Students’

Financial Strength on their Academic Performance: Kaduna Polytechnic Experience.

The researchers used a carefully designed questionnaires distributed by stratified

random sampling with proportional allocation scheme, to find out the impact of

finance on students‟ academic performance with reference to Kaduna Polytechnic.

The statistical tests we applied are Chi-square, Phi coefficient and Bi-serial

correlation. It was found that financial status depends on the source of finance. The

self-sponsored students are more satisfied than those that get their money either

from their parents or from a scholarship fund. It was also discovered that the

adequacy /inadequacy of a student’s finance does not depend on gender. Bi-serial

correlation analysis reveals that adequacy of the money affects student’s academic

performance. The conclusion that satisfaction cum improved academic performance

depends on source of finance (and, those that sponsor themselves feel more

satisfied) explains why graduates from the countries where job opportunities are
provided for students perform well in both external/professional examination and in

the industry.

Raychaudhuri (2010) examined factors affecting students’ academic performance: a

case study in Agartala Municipal Council area. Family income was one of the basic

objectives of their study. Primary data was collected through random sample survey

from students in the government and government aided schools and their

households. Using regression analysis, they found that factors like students’

attendance, mother’s education and presence of trained teacher in the school have a

positive impact of students’ academic performance. They also found that academic

performance of students depends on several socio-economic factors. They

concluded that students’ economic status affects their performance and the risk of

becoming a dropout.

A paper that examines the relationship between family income and the academic

performance of tertiary students in Ghana, the case of Ho Polytechnic. The study

focuses on the sources of family income, expenditure patterns of students on

campus and students’ performance. Case study under qualitative research design

was used. Simple random sampling technique was used to select 480 students

across the faculties in the Polytechnic. Questionnaires were used to collect primary

data to support the secondary data. The study found a mixed significant relationship

between higher family income and better students’ academic performance based on

the students’ cumulative grade point average (CGPA). Thus, though family financial

status affects students’ performance to some extent, but it is not an essential

predictor of higher academic performance. A good number of student respondents

indicate that low family income does not necessarily lower their academic

achievement. The study concludes that financial status of families/parents and the

students’ academic performance must be a shared responsibility for the purpose of

mutual benefits in the future. Financial interventions from the government and other

external parties are paramount for the future socio-economic growth of the nation,

since these students are great assets and future leaders of the country. (Adzido,

Dzogbede, Ahiave, & Dorkpah, 2016).

Multiple studies in the USA revealed interesting empirical results on third through

fifth grade students from 71 high-poverty schools. They found that students who

lived in poverty scored significantly worse than other students; schools with the

highest percentages of poor students scored significantly worse initially but closed

the gap slightly as time progressed (U.S. Department of Education, 2001).

A study investigated factors affecting academic performance of graduate students of

Islamia University of Bahawalpur Rahim Yar Khan Campus. Among variables

examined against students’ academic performance was father/guardian social

economic status. Questionnaires were used to collect data from 100 students

randomly selected. Linear regression model, correlation analysis, and descriptive

analysis were used for data analysis. Findings revealed that father/guardian higher

social economic (income) status significantly contribute to higher academic

performance of graduate students. They proposed a linear model to improve the

academic performance of graduate students at University level (Ali et al., 2013).

Lacour and Tissington (2011) examined the effects of poverty on academic

achievement in the USA. They concluded their study that poverty directly affects

academic achievement due to the lack of resources available for students’ success;

thus, low academic achievement is closely correlated with lack of resources, with

emphasis on financial resources.

(Ominde, S.H 1964) observes that even in families with above average income

parents often lack the time and energy to invest fully in their children’s preparation

for school, and they sometimes face a limited array of options for high-quality child

care both before their children start school and during the early school years.

Kindergarten teachers throughout the country report that children are increasingly

arriving at school inadequately prepared.

A study was designed to investigate how financial status affects academic

performance of the students enrolled in University of Cebu-Maritime Education and

Training Center for a basis of college tuition planning. Emphasis was put on trying to

establish the relationship between profile of the respondents, parents’ financial

status, school background and academic performance of BSMT and BSMare

students at University of Cebu-METC. The study employed the use of correlation

design to establish the nature of the relationships.

One study by Pribesh, Gavigan, & Dickinson, (2011) asserts that schools with

students from the highest concentrations of poverty have fewer library resources to

draw on specifically, libraries are open fewer hours per week than those serving

middle- income children. And as what we have observed our school experience

scarcity of books and that’s why students are limited to obtaining information and

data.
The research study by (Mujis, Harris, Chapman, Stoll, & Russ, 2009) justified the

factors to improve the quality of schools in low-SES neighborhoods; a focus on

improving teaching and learning, creation of an information- rich environment,

building of a learning community, continues professional development, involvement

of parents, and increase funding and resources. Because applying and implementing

all these strategies, made students improve their learning and performance in school.