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

  • 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.)

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.

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File URL: http://www.pide.org.pk/pdf/PDR/1990/Volume1/1-18.pdf
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Article provided by Pakistan Institute of Development Economics in its journal The Pakistan Development Review.

Volume (Year): 29 (1990)
Issue (Month): 1 ()
Pages: 1-18

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Handle: RePEc:pid:journl:v:29:y:1990:i:1:p:1-18
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  1. Rosenzweig, Mark R, 1980. "Neoclassical Theory and the Optimizing Peasant: An Econometric Analysis of Market Family Labor Supply in a Developing Country," The Quarterly Journal of Economics, MIT Press, vol. 94(1), pages 31-55, February.
  2. Behrman, Jere R. & Wolfe, Barbara L., 1984. "Labor force participation and earnings determinants for women in the special conditions of developing countries," Journal of Development Economics, Elsevier, vol. 15(1-3), pages 259-288.
  3. Sahn, David E. & Alderman, Harold, 1988. "The effects of human capital on wages, and the determinants of labor supply in a developing country," Journal of Development Economics, Elsevier, vol. 29(2), pages 157-183, September.
  4. M. Afzal & Zafar Moeen Nasir, 1987. "Is Female Labour Force Participation Really Low and Declining in Paotan? A look at Alternative Data Sources," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 26(4), pages 699-709.
  5. James J. Heckman, 1976. "The Common Structure of Statistical Models of Truncation, Sample Selection and Limited Dependent Variables and a Simple Estimator for Such Models," NBER Chapters, in: Annals of Economic and Social Measurement, Volume 5, number 4, pages 475-492 National Bureau of Economic Research, Inc.
  6. Chiswick, Carmel Ullman, 1977. "On estimating earnings functions for LDCs," Journal of Development Economics, Elsevier, vol. 4(1), pages 67-78, February.
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