A community (tehsil/town) level study has been carried out by analyzing data
extracted from a household survey (tehsil-based Multiple Indicator Cluster Survey
(MICS) 2007-08) of Punjab, Pakistan. The objectives of this study are to identify
those community characteristics that significantly affect literacy rate and to
identify differences and similarities among communities on the basis of factors
significantly related to literacy rate. Average literacy rate in the province of
Punjab is 59.32% with a standard deviation of 13.48. Statistical techniques of
Multiple Linear Regression, Principal Component Analysis, Principal
Components Regression and Cluster Analysis have been used. Characteristics
identified to be significantly related to literacy rate are pre-school attendance,
one-year overage for grade, primary school net attendance ratio, many years
overage for grade, access to public primary school at nearest distance, access to
public middle school at nearest distance, child disability, child labor, availability
of health facilities at nearest distance, rudimentary floor of house, rudimentary
roof of house, rudimentary walls of house, utilities at home, possessions,
improved drinking water and adequate sanitation, large family size and receiving
cash donations.