AN EMPIRICAL INVESTIGATION OF HOUSEHOLD HEAD’S DECISION FOR DEMAND FOR EDUCATION IN PAKISTAN: EVIDENCE FROM PAKISTAN SOCIAL AND LIVING STANDARD MEASUREMENT (PSLM) SURVEY
DOI:
https://doi.org/10.61506/Keywords:
Demand for education, per capita educational expenditure, multiple regression model, , PSLM, , PakistanAbstract
The current study tried to investigate the role of socioeconomic and demographic factors over the household head’s decision in case of educational expenditures in Pakistan. Pakistan Social and Living Standard Measurement Survey (PSLM) ROUND-IX (2013-14) was used in this regard. Descriptive as well as parametric analysis was done to achieve the objectives of the study. The results of descriptive statistic show that mean educational expenditures of households belongs to Khyber-Pakhtunkhwa (KP) and Punjab were almost same while the minimum educational expenditures were found among the Baluchistan province households. In case of regional comparison, the mean educational expenditures of urban households were three time higher than their counterpart rural households. The result of multiple regression indicates that majority of the independent variables includes in the demand for education model found significant. Age of the household’s head, location (urban/rural) of the household, education of the head, education of souse, types of educational institution (government and private), industry of the household head except transport and income of the households were found positive and significant determinants of demand for education/per capita educational expenditures in Pakistan. The result of age of head revealed that an additional year increases in age of the head leads to increases the per capita educational expenditures. Further, the type of educational institution, which has also dominant and positive impact on the head decision regarding educational expenditure means comparative to government educational institution, the parents were spending more on the education of their family members whose were enrolled in private educational institution as well as in both type of educational institution. Income of the head has also found significant positive determinant of demand for education means as the income of the head increase; it leads to increase the demand for education in terms of educational expenditures. Both category unmarried and widow/divorced marital status of the household was found significant but negative impact on decision making of household in demand for education. In policy prospective, it is suggested that central authority should focus to provide a quality education to the residence of rural area and improve the educational standard of public educational institution for overall improvement in education status of Pakistan.
References
Aakvik, A., Salvanes, K. G., & Vaage, K. (2003). Educational Attainment and Family Background. German Economic Review, 6(3), 377-394
Academy of Educational Planning and Management, Pakistan (AEPAM, 2018)
Ali, A. & Naeem, M.Z. (2017). Trade Liberalization and Fiscal Management of Pakistan: A Brief Overview. Policy Brief-Department of Economics, PU, Lahore. 2017 (1), 1-6.
Ali, A. (2011). Disaggregated import demand functions of Pakistan; An empirical Analysis. M-Phil Thesis, NCBA&E, Lahore, Pakistan, 1-70.
Ali, A. (2015). The impact of macroeconomic instability on social progress: an empirical analysis of Pakistan. (Doctoral dissertation, National College of Business Administration & Economics Lahore).
Ali, A. (2018). Issue of Income Inequality Under the Perceptive of Macroeconomic Instability: An Empirical Analysis of Pakistan. Pakistan Economic and Social Review, 56(1), 121-155.
Ali, A. and Bibi, C. (2017). Determinants of Social Progress and its Scenarios under the role of Macroeconomic Instability: Empirics from Pakistan. Pakistan Economic and Social Review 55 (2), 505-540.
Ali, A., & Ahmad, K. (2014). The Impact of Socio-Economic Factors on Life Expectancy in Sultanate of Oman: An Empirical Analysis. Middle-East Journal of Scientific Research, 22(2), 218-224.
Ali, A., & Audi, M. (2016). The Impact of Income Inequality, Environmental Degradation and Globalization on Life Expectancy in Pakistan: An Empirical Analysis. International Journal of Economics and Empirical Research, 4 (4), 182-193.
Ali, A., & Audi, M. (2018). Macroeconomic Environment and Taxes Revenues in Pakistan: An Application of ARDL Approach. Bulletin of Business and Economics (BBE), 7(1), 30-39.
Ali, A., & Rehman, H. U. (2015). Macroeconomic instability and its impact on the gross domestic product: an empirical analysis of Pakistan. Pakistan Economic and Social Review, 285-316.
Ali, A., & Şenturk, I. (2019). Justifying the Impact of Economic Deprivation, Maternal Status and Health infrastructure on Under-Five Child Mortality in Pakistan: An Empirical Analysis. Bulletin of Business and Economics, 8(3), 140-154.
Ali, A., & Zulfiqar, K. (2018). An Assessment of Association between Natural Resources Agglomeration and Unemployment in Pakistan. Pakistan Vision, 19(1), 110-126.
Ali, A., Ahmed, F., & Rahman, F. U. (2016). Impact of Government Borrowing on Financial Development (A case study of Pakistan). Bulletin of Business and Economics (BBE), 5(3), 135-143.
Ali, A., Audi, M., & Roussel, Y. (2021). Natural Resources Depletion, Renewable Energy Consumption and Environmental Degradation: A Comparative Analysis of Developed and Developing World. International Journal of Energy Economics and Policy, 11(3), 251-260.
Ali, A., Audi, M., Bibi, C., & Roussel, Y. (2021). The Impact of Gender Inequality and Environmental Degradation on Human Well-being in the Case of Pakistan: A Time Series Analysis. International Journal of Economics and Financial Issues, 11(2), 92-99.
Ali, A., Mujahid, N., Rashid, Y., & Shahbaz, M. (2015). Human capital outflow and economic misery: Fresh evidence for Pakistan. Social Indicators Research, 124(3), 747-764.
Angelopoulos, C., & Psacharopoulos, G. (1997), Private Education Expenditure in a Free Education Country: The Case of Greece. International Journal of Educational Development, 17(1), 73-81.
Arshad, S., & Ali, A. (2016). Trade-off between Inflation, Interest and Unemployment Rate of Pakistan: Revisited. Bulletin of Business and Economics (BBE), 5(4), 193-209.
Ashraf, I., & Ali, A. (2018). Socio-Economic Well-Being and Women Status in Pakistan: An Empirical Analysis. Bulletin of Business and Economics (BBE), 7(2), 46-58.
Aslam, M, & Gandhi, K, G (2008). Gender and Household Education Expenditure in Pakistan. Applied Economics, 40 (20), 2573—2591.
Audi, M & Ali, A. (2017). Socio-Economic Status and Life Expectancy in Lebanon: An Empirical Analysis. Archives of Business Research, 5(11), 159-170
Audi, M. & Ali, A. (2017). Environmental Degradation, Energy consumption, Population Density and Economic Development in Lebanon: A time series Analysis (1971-2014). Journal of International Finance and Economics, 17(1), 7-20.
Audi, M., Ali, A., & Al-Masri, R. (2022). Determinants of Advancement in Information Communication Technologies and its Prospect under the role of Aggregate and Disaggregate Globalization. Scientific Annals of Economics and Business. https://doi.org/10.47743/saeb-2022-0009.
Bayar, A, A., & İlhan, B, Y. (2016). Determinants of Household Education Expenditures: Do Poor Spend Less on Education? Topics in Middle Eastern and African Economies, 18(1), 83-111.
Becker G, S. (1975). Human Capital: A Theoretical and Empirical Analysis, with Special Reference to Education, Second Edition.
Becker, G. S. (1965). A Theory of the Allocation of Time. Economic Journal, 75 (299), 493–517.
Becker, G. S., & Tomes, N. (1986). Human Capital and the Rise and fall of Families. Journal of Labor Economics, 4 (3), S1–S39.
Behrman, J, R., Pollak, R, A., & Taubman, P. (1982). Parental Preferences and Provision for Progeny. Journal of Political Economy, 90 (1).
Blanden, J., & Gregg, P. (2004). Family Income and Educational Attainment: A Review of Approaches and Evidence for Britain. Oxford Review of Economic Policy, 20(2), 245-263.
Connelly, R., & Zheng, Z. (2003). Determinants of School Enrolment and Completion of 10 to 18 Year Olds in China. Economics of Education Review, 22(2003), 379–388.
Donkoh, S. A., & Amikuzuno, J, A. (2011). The Determinants of Household Education Expenditure in Ghana. Educational Research and Reviews, 6(8), 570-579.
Glewwe, P., & Patrinos, H. (1999). The Role of the Private Sector in Education in Vietnam: Evidence from Vietnam Living Standards Survey. World Development, 27 (5), 887–902.
Glick, P., & Sahn, E. D. (2000). Schooling of Girls and Boys in a West African Country: The Effects of Parental Education, Income, and Household Structure. Economics of Education Review, 19 (1), 63–87.
Hamid, S. (1993). A Micro Analysis of Demand-side Determinants of Schooling in Urban Pakistan. The Pakistan Development Review, 32(4), 713-72.
Hamid, S., & Siddique, R. (2001). Gender Differences in Demand for Schooling. The Pakistan Development Review, 40(4), 1077-1092.
Huy, V. Q. (2012). Determinants of Educational Expenditure in Vietnam. International Journal of Applied Economics, 9 (1), 59–72.
Iddrisu, A. M., Danquah, M., & Quartey. P. (2016). Analysis of School Enrolment in Ghana: A Sequential Approach. Review of Development Economics.
Idrees, M., & Khan, F, N. (2020). An Analysis of Demand for Education in Pakistan. FWU Journal of Social Sciences, 14(1), 37-50.
Imran, C. A. B., Shakir, M. K., & Qureshi, M. A. B. (2021). Regulatory Perspectives on AI in Autonomous Vehicles Global Approaches and Challenges. The Asian Bulletin of Green Management and Circular Economy, 1(1), 62–74.
Imran, C. A. B., Shakir, M. K., & Qureshi, M. A. B. (2022). Applications of Artificial Intelligence in Enhancing Construction Safety and Productivity. The Asian Bulletin of Big Data Management, 2(1), 63-74.
Jayachandran, U. (2002). Socio-Economic Determinants of School Attendance in India. Working Paper No. 103. Centre for Development Economics.
Jenkins, G, P., Anyabolu, H. A., and P, Bahramian (2019). Family Decision-making for Educational Expenditure: New Evidence from Survey Data for Nigeria. Applied Economics, 51(52), 5663-5673.
Liu, J., Chou, S., & Liu, J. (2005). Asymmetries in Progression in Higher Education in Taiwan: Parental Education and Income effects, Economics of Education Review, In Press [online, accessed 25 October 2005].
Lloyd, C. B., & Blanc A. K. (1996). Children’s Schooling in Sub Saharan Africa: The Role of Fathers, Mothers, and Others. Population and Development Review, 22 (2), 265–298.
Mahmood, T., Najam Us Saqib & Qasim, M. A. (2017). Parental Effects on Primary School Enrolment under Different Types of Household Headship: Evidence from Pakistan. The Pakistan Development Review, 56(3), 249–264.
Ogundari, K., & Abdulai. A. (2014). Determinants of Household’s Education and Healthcare Spending in Nigeria: Evidence from Survey Data. African Development Review, 26 (1), 1–14.
Psacharapoulos, G., Arieira, C. R. & Mattson, R. (1997). Private Education in a Poor Country: The Case of Urban Bolivia. Economics of Education Review, 16 (4), 395-406.
Pushkar, M. (2003). Schooling and Educational Attainment: Evidence from Bangladesh. Education Economics 11, (2), 129–153.
Qian, J, X., & Smyth, R, (2011). Educational Expenditure in Urban China: Income Effects, Family Characteristics and the Demand for Domestic and Overseas Education. Applied Economics, 43(24), 3379-3394.
Sackey, H. A. (2007). The Determinants of School Attendance and Attainment in Ghana: A Gender Perspective (No. RP_173). African Economic Research Consortium.
Sawada, Y., &Lokshin, M. (2009). Obstacles to school progression in rural Pakistan: An analysis of gender and sibling rivalry using field survey data. Journal of Development Economics, 88(2), 335-347.
Schaffner, A. J. (2004). The Determinants of Schooling Investments among Primary School Aged Children in Ethiopia. The World Bank, Africa Region Human Development Working Paper Series, Background Paper for the 2004 Ethiopia Education Country Status Report.
World Education Services, (2020).
Zimmerman, J. F. (2001). Determinants of School Enrolment and Performance in Bulgaria: The Role of Income among the Poor and Rich. Contemporary Economic Policy, 19 (1), 87–98.
