The Impact of Nepotism on Employment Status in Public Sector Institutions: An Evidence from Fresh Graduates of Pakistan

The purpose of the study was to determine the impact of nepotism on employment status of fresh graduates in public sector institution along with other relevant factors. Current study is the first study in which the impact of nepotism was estimated by adding different factors responsible for nepotism by using primary data. Primary data were collected from 400 respondents through survey research. Logit model was applied to check the probability for a graduate. The results showed significant impact of nepotism on probability job of a graduate in public sector institutions. Political affiliation has a strong positive and significant impact on hiring process to make a candidate successful in getting job in public sector institutions. The nature of home institution also has an impact on probability of getting a job in public sector institutions. The candidates graduated from the public sector university have more probability to get a job. The graduates from private sector institutions are unable to be selected in public sector institutions as compared to graduates from public sector institutions. Financially strong families can easily influence on the hiring process for obtaining a job in public sector. The positive and significant impact of land on probability of getting a job has proven the presence of the element of nepotism in hiring process.