AN EMPIRICAL INVESTIGATION OF HOUSEHOLD HEAD’S DECISION FOR DEMAND FOR EDUCATION IN PAKISTAN: EVIDENCE FROM PAKISTAN SOCIAL AND LIVING STANDARD MEASUREMENT (PSLM) SURVEY

Abstract

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.