Template-Type: ReDIF-Article 1.0 Author-Name: Sarbajit Chaudhuri Author-X-Name-First: Sarbajit Author-X-Name-Last: Chaudhuri Author-Workplace-Name: University of Calcutta, India Title: Incidence of Child Labour, Free Education Policy, and Economic Liberalisation in a Developing Economy Abstract: The paper analyses the implications of a subsidy policy on education and of different liberalised trade and investment policies on the incidence of child labour in a developing economy in terms of a three-sector general equilibrium model with informal sector and child labour. The supply function of child labour is endogenously determined. The paper shows that different policies, if undertaken concurrently, may produce mutually contradictory effects, thereby producing little or no impact on the incidence of child labour. The paper provides a theoretical answer as to why the incidence of child labour has not significantly declined in the developing economies in spite of economic development and globalisation. Classification-JEL: I21, J13, J24 Keywords: Child Labour, Educational Policy Journal: The Pakistan Development Review Pages: 1-25 Volume: 43 Issue: 1 Year: 2004 File-URL: http://www.pide.org.pk/pdf/PDR/2004/Sarbajit%20Chaudhuri.pdf File-Format: Application/pdf Handle: RePEc:pid:journl:v:43:y:2004:i:1:p:1-25 Template-Type: ReDIF-Article 1.0 Author-Name: Najam us Saqib Author-X-Name-First: Najam us Author-X-Name-Last: Saqib Author-Workplace-Name: Pakistan Institute of Development Economics, Islamabad. Title: Willingness to Pay for Primary Education in Rural Pakistan Abstract: Highly subsidised public schools are the principal provider of education in the rural areas of Pakistan. Steady growth of school age population over time coupled with stagnant public funding has put enormous pressure on this system. The alternative of cost recovery through user charges has its own critics. They argue that introduction of tuition fees would substantially reduce the already small representation of low-income households in primary schools due to high price elasticity of their demand for schooling. Moreover, the revenue-generating potential of this policy may also be limited due to same reason. The present study uses a discrete choice random utility model of household utility maximising behaviour to evaluate feasibility and consequences of introducing user fees in primary schools in rural Pakistan, particularly with reference to above criticisms. The demand function for school enrolment derived from this model allows us to test the hypothesis that price elasticity of demand for schooling varies with income. It also provides estimates of the parameters of the utility function needed for measuring parents’ willingness to pay for their childrens’ education if money generated from tuition fees is reinvested in education. The estimated demand function takes into account total price of education, including opportunity cost. Estimation results show that price elasticity of demand for school enrolment is higher for lower-income groups. Hence school enrolment of the poorest children would bear the main brunt of user fees policy. Children’s gender and age, father’s education, presence of T.V. in the household, and community variables like the presence of an elected district council member, electricity, and public transport in the village turn out to be significant influences on the probability of primary school enrolment. Willingness to pay for education is lower for poorer households and can generate revenues to cover only a fraction of the cost of running a school. Hence the need to search for other sources of financing primary education in rural Pakistan. Classification-JEL: I22 Keywords: Primary Education, Pakistan Journal: The Pakistan Development Review Pages: 27-51 Volume: 43 Issue: 1 Year: 2004 File-URL: http://www.pide.org.pk/pdf/PDR/2004/Najam.pdf File-Format: Application/pdf Handle: RePEc:pid:journl:v:43:y:2004:i:1:p:27-51 Template-Type: ReDIF-Article 1.0 Author-Name: Naushin Mahmood Author-X-Name-First: Naushin Author-X-Name-Last: Mahmood Author-Workplace-Name: Pakistan Institute of Development Economics, Islamabad. Title: Transition in Primary and Secondary Schooling in Pakistan: Gender and Age Cohort Analysis Abstract: This study assesses the changing pattern of school attendance through age cohort analysis for both males and females in Pakistan. Based on the 1998 census data on educational attainment, the results indicate a profound rise in school attendance among younger age cohorts contributing to elimination of gender gap in primary-level schooling in urban areas only. The disadvantaged situation of rural females is reflected by a combination of low school entries/attendance to begin with, and high chance of discontinuing education before completing primary levels. The pattern of school transition reveals that among those few who have completed Class Five, the chances of staying through the secondary level are much higher—after which dropout accelerates rapidly. Two overall conclusions emerge from these results. First, the bulk of the deficit from universal primary education comes from females population, especially in rural areas. Second, the key to reducing dropouts and gender gap in school attendance lies in actions that raise the demand for schooling of girls, with equally matched availability of quality primary- and secondarylevel schools. It appears that achieving universal primary education by 2015, as mandated in the Millennium Development Goals (MDGs), remains a tall order for Pakistan. Classification-JEL: I22 Keywords: Primary Education, Secondary Education, Schooling, Pakistan Journal: The Pakistan Development Review Pages: 53-71 Volume: 43 Issue: 1 Year: 2004 File-URL: http://www.pide.org.pk/pdf/PDR/2004/Naushin%20Mahmood.pdf File-Format: Application/pdf Handle: RePEc:pid:journl:v:43:y:2004:i:1:p:53-71 Template-Type: ReDIF-Article 1.0 Author-Name: Faiz Bilquees Author-X-Name-First: Faiz Author-X-Name-Last: Bilquees Author-Workplace-Name: Pakistan Institute of Development Economics, Islamabad. Title: Elasticity and Buoyancy of the Tax System in Pakistan Abstract: This paper examines the elasticity and buoyancy of the tax system for the period 1974-75–2003-04. The elasticity of the total tax revenue both with respect to the total GDP and the non-agricultural GDP base is less than unity. Overall, sales tax takes the lead by way of improving revenues. The high coefficient of income tax inclusive of withholding tax, which is an indirect tax, is high. Excluding the withholding tax leads to a lower coefficient. Sales tax with respect to imports and manufacturing also takes care of loss of revenue due to lowering of tariff and excise duties. However, the sales tax coefficient with respect to the GDP base reflects the inclusion of service sector and utilities in the sales tax net, which has serious implications for the poor. The estimates of buoyancy suggest that tax changes did not lead to significant revenue augmentation. The low buoyancy of income tax exclusive of the withholding taxes implies that imposition of massive withholding taxes coupled with an increase in the taxable income limits is working at cross purposes. Classification-JEL: H21 Keywords: Taxation, Tax Revenues Pakistan Journal: The Pakistan Development Review Pages: 73-93 Volume: 43 Issue: 1 Year: 2004 File-URL: http://www.pide.org.pk/pdf/PDR/2004/Faiz%20Bilquees.pdf File-Format: Application/pdf Handle: RePEc:pid:journl:v:43:y:2004:i:1:p:73-93