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The Review of Economics and Statistics Vol. 106 No. 5 2024

The Value of Private Schools: Evidence from Pakistan

Pedro Carneiro1; Jishnu Das2; Hugo Reis3

1 UCL, IFS, CEMMAP, FAIR-NHH · 2 Georgetown University · 3 Banco de Portugal and Católica Lisbon School of Business and Economics

open access

Abstract

Using unique data from Pakistan, we estimate a model of demand for differentiated products in 112 rural education markets with significant choice among public and private schools. Families are willing to pay substantially for reductions in distance to school, but, in contrast, price elasticities are low. Using the demand estimates, we show that the existence of a low-fee private school market is of great value for households in our sample, reaching 2% to 7% of annual per capita expenditure for those choosing private schools.

DOI
10.1162/rest_a_01237
Volume
106
Issue
5
Pages
1301-1318
Language
en
Sources
bibtex:phds-export.bib openalex crossref

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