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

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  • 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.

Suggested Citation

  • 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.
    • Handle: RePEc:pid:journl:v:37:y:1998:i:3:p:251-274
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    2. Monazza Aslam, 2009. "Education Gender Gaps in Pakistan: Is the Labor Market to Blame?," Economic Development and Cultural Change, University of Chicago Press, vol. 57(4), pages 747-784, July.
    3. 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.
    4. Madeeha Gohar Qureshi, 2012. "The Gender Differences in School Enrolment and Returns to Education in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 51(3), pages 219-256.
    5. Abdul Qayyum & Idrees Khawaja & Asma Hyder, 2008. "Growth Diagnostics in Pakistan," PIDE-Working Papers 2008:47, Pakistan Institute of Development Economics.
    6. 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.
    7. Asma, Hyder, 2007. "Employment Preferences and Length of Job Queues in Pakistan: An Update," MPRA Paper 19572, University Library of Munich, Germany.
    8. Durdana Qaiser Gillani & Karamat Ali, 2013. "Employment status and earning functions in urban informal sector : A case of Southern Punjab, Pakistan," Pakistan Journal of Applied Economics, Applied Economics Research Centre, vol. 23(2), pages 97-113.

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