Abstract |
This paper studies the determinants of parental choices of school attributes in Pakistan, a country where a long fraction of schools are private. We estimate a standard model of demand for differentiated products using a rich dataset with school attributes, household and child characteristics, and school choices We find that a one-standard deviation increase in the quality of basic facilities is valued at about 270 rupees, which corresponds to an increase of the average school fee by around 55 per cent. In terms of distance, a one standard deviation decrease (on average an 800 meter decrease) is valued at about 350 rupees. There is some evidence that the determinants of school choice change with household/student characteristics, like gender and parents education, in particular regarding price and distance. |