This paper investigates the determinants of the type of higher education chosen by students in urban Pakistan. Using unique data on choices and probabilistic expectations about school-related outcomes from Pakistani students of college-going age, we estimate a model of school choice. We find that students accurately perceive differences in relative returns, costs, and academic difficulty levels associated with the different school types. Our analysis reveals that credit constraints play a major role in school choice: if awarded with a scholarship financing school fees and boarding, a third of the students would enroll at a different school. Estimates from the choice model show that both future earnings and non-pecuniary school-specific outcomes, such as parents’ approval and school’s ideology are significant determinants of school choice.
Presented by:
Adeline Delavande (ISER)
Date & time:
September 25, 2013 12:00 pm
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