Pakistan Institute of Development Economics

PDR

THE PAKISTAN DEVELOPMENT REVIEW 

Factors Determining Work Participation and Labour SupplyDecisions in Pakistan’s Urban Areas

Labour force participation in PClkistan, even amongstprime-aged males, is lower than observed in many similar countries. Theanalysis of labour force participation in urban PClkistan in this paperindicates that systematic factors explain a fair amount of thisparticipation. The extended family structure as well as the availabilityof remittances allow younger, educated males to extend their job search.Using tobit and probit estimation techniques, the study found thatlabour supply is explained primarily by participation as opposed tohours worked con~tional upon participation. The study also found thatthe rise in wages attributed to education is fairly high and similar towhat was found in Pakistan in the late 1970s.

Harold Alderman, Valerie Kozel

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