Demand for Education in Pakistan

The aim of this study is to analyze the determinants of demand for education at the household in Pakistan. The study utilizes the Pakistan Social and Living Standards Measurements (2013-14) survey data and identifies the factors that affect the household’s decision to spend on education of their children at national level and the provincial level. The contribution of the study is three sold. First, it measures household’s demand for education by household’s expenditure on education as they directly reflect households’ willingness to pay for education. Secondly, the study proposes awareness about education at household level as a key determinant of demand for education. Thirdly, the study utilized log-normal Tobit models that corrects for the likely left-censoring in log of expenditure on education.