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Determinants of Personal Earnings in Pakistan: Findings from the Labour Force Survey 1993-94

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Author Info

  • Zafar Mueen Nasir

    (Pakistan Institute of Development Economics, Islamabad.)

Abstract

The paper explores the role of human and non-human capital factors in determining the earnings of workers in Pakistan. The Labour Force Survey data 1993-94, which provides detailed information about workers, has been used for this analysis. Ordinary least squares estimation technique has been utilised for the analysis. The analysis is carried out separately for male and female workers. It is found that in human capital variables, education plays a dominant role in wage determination. In non-human capital factors, occupation and size of the establishments are found to be relevant variables. Other important variables include regional location and technical training. The sample selection bias has been observed for female workers whereas no problem has been observed for male workers, and the bias has been corrected by using the Heckman procedure, though both corrected and uncorrected results are reported. Important conclusions and policy implications are discussed at the end.

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File URL: http://www.pide.org.pk/pdf/PDR/1998/Volume3/251-274.pdf
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Bibliographic Info

Article provided by Pakistan Institute of Development Economics in its journal The Pakistan Development Review.

Volume (Year): 37 (1998)
Issue (Month): 3 ()
Pages: 251-274

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Handle: RePEc:pid:journl:v:37:y:1998:i:3:p:251-274

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References

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  1. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
  2. Juster, F. Thomas & Stafford, Frank P., 1990. "The Allocation of Time: Empirical Findings, Behavioural Models, and Problems of Measurement," Working Paper Series 258, Research Institute of Industrial Economics.
  3. Rebitzer, James B, 1993. "Radical Political Economy and the Economics of Labor Markets," Journal of Economic Literature, American Economic Association, vol. 31(3), pages 1394-434, September.
  4. M. Ghaffar Chaudhry & Zubeda Khan, 1987. "Female Labour Force Participation Rates in Rural Pakistan: Some Fundamental Explanations and Policy Implications," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 26(4), pages 687-698.
  5. William T. Dickens & Lawrence F. Katz, 1987. "Interindustry Wage Differences and Industry Characteristics," NBER Working Papers 2014, National Bureau of Economic Research, Inc.
  6. Shahrukh Rafi Khan & Mohammad Irfan, 1985. "Rates of Returns to Education and the Determinants of Earnings in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 24(3-4), pages 671-683.
  7. Khalil A. Hamdani, 1977. "Education and the Income Differential. An Estimation for Rawalpindi City," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 16(2), pages 144-164.
  8. James B. Rebitzer & Michael D. Robinson, 1991. "Employer Size and Dual Labor Markets," NBER Working Papers 3587, National Bureau of Economic Research, Inc.
  9. 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.
  10. Tayyeb Shabbir, 1994. "Mincerian Earnings Function for Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 33(1), pages 1-18.
  11. Javed Ashraf & Birjees Ashraf, 1993. "An Analysis of the Male-Female Earnings Differential in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 32(4), pages 895-904.
  12. Krueger, Alan B & Summers, Lawrence H, 1988. "Efficiency Wages and the Inter-industry Wage Structure," Econometrica, Econometric Society, vol. 56(2), pages 259-93, March.
  13. Nadeem Ul Haque, 1977. "An Economic Analysis of Personal Earnings in Rawalpindi City," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 16(4), pages 353-382.
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Citations

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Cited by:
  1. Abdul Qayyum & Idrees Khawaja & Asma Hyder, 2008. "Growth Diagnostics in Pakistan," Development Economics Working Papers 22218, East Asian Bureau of Economic Research.
  2. Muhammad Sabir & Zehra Aftab, 2006. "Province-wise Growth Patterns in Human Capital Accumulation," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 45(4), pages 873-890.
  3. Mahmood, Moazam, 2006. "Poverty reduction in Pakistan : the strategic impact of macro and employment policies," ILO Working Papers 392050, International Labour Organization.
  4. Madeeha Gohar Qureshi, 2012. "The Gender Differences in School Enrolment and Returns to Education in Pakistan," PIDE-Working Papers 2012:84, Pakistan Institute of Development Economics.
  5. Monazza Aslam, 2006. "Rates of Return to Education by Gender in Pakistan," Economics Series Working Papers GPRG-WPS-064, University of Oxford, Department of Economics.

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