The objective of this study is to investigate the influence of education on the probability of employment (self-employment and wage employment) in Pakistan. Household integrated income and consumption survey (HIICS, 2015-16) data is used for this analysis. Logistic regression technique is used to estimate the impact of education on the probability of employment selection. This study concludes that primary, middle and matric level of education are positively whereas, intermediate, graduation and post-graduation level of education are negatively associated with the selection of self-employment. In addition to this, other determinants of employment selection like age of worker, total monthly income of household, family size, dependency ratio are positively and significantly effecting the probability of choosing self-employment. This study suggests that government should formulate such policies that changes the preferences of individuals from wage-employment towards self-employment. The effect of education on employment choice suggest that educational system is not creating the skills among the highly educated individuals which are necessary for becoming an entrepreneur. Therefore, government and private institute should focus on provision of education which enhances the entrepreneurial skills among the educated workers. Supervisor: Dr. Muhammad Nasir