Gender Differences in Demand for Schooling‪.‬

The comparison of human development indicators in Table 1 shows that Pakistan's performance is below the average for South Asian countries and below the average for the developing countries. Furthermore, gender differences in human development are also significant within country and across countries. For example, in 1999, differences in male and female literacy rate was 24 points in Pakistan, higher then the difference in less developed countries (equalling 15 points). [See HDC (2001)]. Similarly, within Pakistan, male literacy rate increased from 35 percent in 1980-81 to 56.6 percent in 1998-99 whereas female literacy rate increased from 16 percent in 1980-81 to 32.6 percent in 1998-99. This shows that despite doubling of female literacy rate, the gap between male and female literacy rate widened from 19 percent in 1980-81 to 24 percent in 1998-99. Similarly, another indicator of human capital, i.e., the net enrolment rates at primary level exhibited a declining trend in 1990s, particularly among males. An important reason for the decline could be rise in poverty. Table 2 shows a sustained increase in net enrolment ratio with income, and the positive income effect is higher in urban areas. In rural areas, the enrolment rate increases with income but there is slight decline in female enrolment rate at the highest income level. Thus, despite rapid rise in female enrolment the gender, differences persist and income is the main factor affecting demand for education. The findings of earlier empirical studies, based on primary and secondary data, indicate that there is a vicious circle, where poverty or low income causing lower human capital accumulation, which in tern results in persistence of poverty. (1) These studies show that poverty in different forms such as poverty of income and assets, lower human capability, particularly education, and poverty of opportunity to work intensifies this vicious circle. The studies also indicate that human capital formation, i.e., particularly investment in education, is an important channel to reduce poverty. In Pakistan, the empirical studies emphasise the role of demand and supply side determinants in household decision about children's education. The demand side studies highlight household poverty as the main cause of lower demand for schooling. For example, Bilquees and Hamid (1989) found that in urban slums poverty is the main factor affecting the demand for schooling. Other studies also confirm these findings. However, the literature also shows that in addition to poverty, parental education, lower expected return on female education and higher opportunity cost, attitude and social bias against females also affects the females demand for schooling. Hamid (1993), based on survey data collected for the Project Food Security Management, shows that low household income, low occupational status and lower education of head of household, and male dominance in household decision-making play important role in constraining the demand for children's education. Interestingly the study by Khan and Siddiqui (1997) finds nonlinear relationship between landed power and educational attainment in rural areas of Pakistan. Glick and Sahn (2000), for West Africa, found that rise in household income leads to greater rise in investment in girls' education but has no significant impact on schooling for boys. Rise in father's education raises the schooling of both sons and daughters but mother's education has significant impact only on daughters' schooling. Thus, the studies reveal a causal relationship between demand for education and indicators of poverty (i.e., income and assets), and parental education.