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School Quality and Parental Schooling Decisions for Their
 Children: Public and Private Schools in Rural Pakistan

This study uses the Pakistan Rural Household Survey 2004-5
 (PRHS), a rich set of households and school data, to examine parents’
 schooling decision in rural Pakistan. Nested logit regressions are used
 to quantify the determinants of child school attendance. The analysis
 confirms that the greater the number of schools (public or private) in
 the local communities the higher is the attendance. Lower school
 attendance of boys seems to be the outcome of lower school quality more
 than it is for girls. A marginal increase in school quality correlates
 with increased school attendance in government schools more than in
 private schools. Nearly all school quality variables including control
 for number of schools in a community stand insignificant for girls. This
 shows that other factors might be of more importance than school quality
 of local schools for girl’s low attendance in rural Pakistan. Besides,
 parental education, especially mother’s education, and household income
 have strong positive impact on child school attendance. The greater the
 number of children in the household the lower is the child school
 attendance. Credit constraint seems not to be problematic as the
 estimated effect is statistically insignificant. The size of landholding
 seems to be important only in the case of girls schooling. JEL
 Classification: I21, I25, D13, C25 Keywords: Demand for Schooling,
 Public Education, Private Education, Pakistan