The Perceived Marital Returns to Education and the Demand for Girls’ Schooling

We study how marriage market considerations influence parental investments in daughters’ education in Pakistan. Using a hypothetical choice methodology, we estimate parents’ preferences and willingness-to-pay for marital customs and daughters’ marital and post-marital outcomes. Our findings highlight considerable heterogeneity between mothers and fathers, even within the same family. On average, fathers prioritize adherence to traditional customs, while mothers emphasize daughters’ post-marital agency. Using a model of schooling decisions that incorporates these preferences, perceived costs, and parental beliefs about marital returns to education, we examine educational investments. Counterfactual simulations show that belief-targeting campaigns and policies boosting mothers’ decision-power could significantly improve girls’ education.