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Impact of Internal Remittances on Labour Participation and Employment Choice in Pakistan

Author

Listed:
  • Waqas Shair

    (Lecturer, Minhaj University Lahore, Pakistan)

  • Zaira

    (Independent Researcher, Pakistan)

  • Muhammad Nawaz

    (Assistant Professor, Department of Business Administration, Iqra university Karachi, Pakistan)

  • Muhammad Asif

    (Independent Researcher, Pakistan)

Abstract

This study examines internal remittances’ effects on Pakistan’s labour market outcomes. The study utilises data from the Pakistan Social and Living Standard Measurement – Household Integrated Economic Survey (PSLM – HIES 2018-2019). The study uses Logit and Multinomial Logit models to estimate the effect of internal remittances on labour participation and employment choices. The study’s findings suggest that individuals from households receiving internal remittances are less likely to participate in the labour market than those from households that do not receive remittances. Moreover, internal remittances lower the likelihood to participate in the labour market. Amongst the labour participating, the individuals of remittance-receiving households are more inclined to participate in farming vis-à -vis non-receiving individuals. It is also observed that a rise in remittances results in a greater likelihood of farming activities. The study’s findings have important implications pertaining to understanding the entrepreneurial level and economic activities in remittance-receiving households.

Suggested Citation

  • Waqas Shair & Zaira & Muhammad Nawaz & Muhammad Asif, 2023. "Impact of Internal Remittances on Labour Participation and Employment Choice in Pakistan," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 12(3), pages 192-201.
    • Handle: RePEc:rfh:bbejor:v:12:y:2023:i:3:p:192-201
    DOI: https://doi.org/10.61506/01.00021
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    References listed on IDEAS

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    Keywords

    internal remittances; labour participation;

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