ABSTRACT It is well known that different socioeconomic, household sizes, school levels, and cultural factors are highly related to the problem of out-of-school children. The main objective of this study is to quantify the determinants of out-of-school children in Pakistan. For this study, the data are used from the Pakistan Social and Living Standards Measurement (PSLM) survey, collected for the year 2015–16. The children aged 6–16 years who are in or out of school are considered as a unit of the analysis. Unlike the previous studies that generally provide a theoretical framework or empirical investigation based on simple econometric models, this work used fixed and random effect models capable of accounting for the hierarchical structure present in the data. To assess the results’ reliability, the models’ predictive ability has also been tested and found satisfactory. The results reveal many important aspects of the current problem regarding disparities between gender, provinces, regions, and other variables used in the analysis. For example, parental education is highly significant and has a negative impact on out-of-school children at the province and region level for both boys and girls. In addition, income levels, child labor, household size, and residency are highly influential on the problem of out-of-school children. Therefore, the government should prioritize female education, especially in rural areas. The provision of monetary incentives and enforcement of a strict ban on child labor can reduce the problem under study.
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