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Factors Determining Work Participation and Labour Supply Decisions in Pakistan's Urban Areas

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  • Valerie Kozel

    (World Bank and International Food Policy Research Institute, Washington, D. C.)

  • Harold Alderman

    (World Bank and International Food Policy Research Institute, Washington, D. C.)

Abstract

Labour force participation in Pakistan, even amongst prime-aged males, is lower than observed in many similar countries. The analysis of labour force participation in urban Pakistan in this paper indicates that systematic factors explain a fair amount of this participation. The extended family structure as well as the availability of remittances allow younger, educated males to extend their job search. Using tobit and probit estimation techniques, the study found that labour supply is explained primarily by participation as opposed to hours worked conditional upon participation. The study also found that the rise in wages attributed to education is fairly high and similar to what was found in Pakistan in the late 1970s.

Suggested Citation

  • Valerie Kozel & Harold Alderman, 1990. "Factors Determining Work Participation and Labour Supply Decisions in Pakistan's Urban Areas," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 29(1), pages 1-18.
    • Handle: RePEc:pid:journl:v:29:y:1990:i:1:p:1-18
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    File URL: http://www.pide.org.pk/pdf/PDR/1990/Volume1/1-18.pdf
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    References listed on IDEAS

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    Cited by:

    1. Kalaj, Ermira Hoxha, 2009. "Do Remittances Alter Labor Market Participation? A Study of Albania," MPRA Paper 48271, University Library of Munich, Germany.
    2. Mahpara Begum Sadaquat & Qurra‐tul‐ain Ali Sheikh, 2011. "Employment situation of women in Pakistan," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 38(2), pages 98-113, January.
    3. Mr. Jacques Bouhga-Hagbe, 2004. "A Theory of Workers' Remittances with An Application to Morocco," IMF Working Papers 2004/194, International Monetary Fund.
    4. Kalaj, Ermira, 2013. "Do remittances alter labour market participation?," SEER Journal for Labour and Social Affairs in Eastern Europe, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 16(4), pages 417-432.
    5. Ralph Chami & Connel Fullenkamp & Samir Jahjah, 2005. "Are Immigrant Remittance Flows a Source of Capital for Development?," IMF Staff Papers, Palgrave Macmillan, vol. 52(1), pages 55-81, April.
    6. International Monetary Fund, 2006. "Albania: Selected Issues," IMF Staff Country Reports 2006/285, International Monetary Fund.
    7. Sayantan Ghosh Dastidar, 2017. "Impact of Remittances on Economic Growth in Developing Countries: The Role of Openness," Global Economy Journal (GEJ), World Scientific Publishing Co. Pte. Ltd., vol. 17(2), pages 1-12, June.
    8. Zafar Mueen Nasir, 1998. "Determinants of Personal Earnings in Pakistan: Findings from the Labour Force Survey 1993-94," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 37(3), pages 251-274.
    9. Michael A. Clemens & Timothy N. Ogden, 2020. "Migration and household finances: How a different framing can improve thinking about migration," Development Policy Review, Overseas Development Institute, vol. 38(1), pages 3-27, January.
    10. Shair, Waqas & Tariq Majeed, Muhammad & Ali, Amjad, 2021. "Labour Participation Decision and Preferences towards Different Employment Status in Response to Remittances: Evidence from the Provincial Capital of Punjab and Khyber Pakhtunkhawa (KPK), Pakistan," MPRA Paper 106330, University Library of Munich, Germany.
    11. Zareen F. Naqvi & Lubna Shahnaz, 2002. "How Do Women Decide to Work in Pakistan?," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 41(4), pages 495-513.
    12. repec:ebl:ecbull:v:30:y:2010:i:1:p:351-364 is not listed on IDEAS
    13. Mr. Jacques Bouhga-Hagbe, 2006. "Altruism and Workers’ Remittances: Evidence from Selected Countries in the Middle East and Central Asia," IMF Working Papers 2006/130, International Monetary Fund.
    14. Ather Maqsood Ahmed & Ismail Sirageldin, 1994. "Internal Migration, Earnings, and the Importance of Self-selection," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 33(3), pages 211-227.
    15. repec:aly:journl:202047 is not listed on IDEAS
    16. Tasnim Khan & Rana Ejaz Ali Khan, 2009. "Urban Informal Sector: How Much Women Are Struggling for Family Survival," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 48(1), pages 67-95.
    17. Amtul Hafeez & Eatzaz Ahmad, 2016. "Analysis of Joint Hours of Work Function of Currently Married Working Couples: A Case Study of Pakistan," Asian Journal of Social Sciences and Management Studies, Asian Online Journal Publishing Group, vol. 3(1), pages 75-81.
    18. Michael Clemens and Timothy N. Ogden, 2014. "Migration as a Strategy for Household Finance: A Research Agenda on Remittances, Payments, and Development- Working Paper 354," Working Papers 354, Center for Global Development.
    19. Nargis Sultana & Hina Nazli & Sohail J. Malik, 1994. "Determinants of Female Time Allocation in Selected Districts of Rural Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 33(4), pages 1141-1153.
    20. Hina Nazli & Shahnaz Hamid, 1999. "Concerns of Food Security, Role of Gender, and Intrahousehold Dynamics in Pakistan," PIDE-Working Papers 1999:175, Pakistan Institute of Development Economics.
    21. Lim, Sokchea & Morshed, A.K.M. Mahbub, 2015. "International migration, migrant stock, and remittances: Reexamining the motivations to remit," The Quarterly Review of Economics and Finance, Elsevier, vol. 57(C), pages 101-115.
    22. Mumtaz Hussain & Sofia Anwar & Shaoan Huang, 2016. "Socioeconomic and Demographic Factors Affecting Labor Force Participation in Pakistan," Journal of Sustainable Development, Canadian Center of Science and Education, vol. 9(4), pages 1-70, June.
    23. Zafar Iqbal & Abdus Sattar, 2005. "The Contribution of Worker’s Remittances to Economic Growth in Pakistan," PIDE Research Report 2005:187, Pakistan Institute of Development Economics.
    24. Michael Clemens and David McKenzie, 2014. "Why Don't Remittances Appear to Affect Growth? - Working Paper 366," Working Papers 366, Center for Global Development.
    25. Muhammad Zahir Faridi & Ayesha Rashid, 2014. "The Correlates of Educated Women’s Labor Force Participation in Pakistan: A Micro-Study," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 19(2), pages 155-184, July-Dec.

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