School Quality, School Cost, and the Public/Private School Choices of Low-Income Households in Pakistan

Abstract

An analysis of the factors that impact choice of school by low income households in rural areas of Pakistan and the growth of private sector education.

School fee constitutes as an important factor for enrollment of children within educational system and this study aims to understand the impact of fees on school choice while also analyzing the growth of private sector education within Pakistan. Logit regressions, elasticities and willingness to pay for quality improvements along with simulations based on 1000 households in neighboring areas of Lahore reveals that quality of school, proximity and fees are important determinants of school choice. The study demonstrates that private schools are preferred by poor and this is largely attributable to the high quality of education and ample learning opportunities provided by private school environment. The study ascertains that development of private school sector can play a key role in education sector progress within Pakistan. Accessibility of private schools can also positively impact enrollment rates by transfer of children from government schools and enrollment of children who have never attended school.

The study reveals that high quality of education within private schools raises mathematics and English skills and greater access to private schools by appropriate government intervention can increase public returns. The fee constraint limits poor households from gaining access to private school education and therefore it is recommended that provision of public subsidy should be provided to private schools which will reduce cost of operations and ultimately lower fee levels.

Publishing Year: 2001

Attached File:

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