Pakistan Institute of Development Economics



Underemployment, Education, and Job Satisfaction

The economic role of human capital, particularly education has long been documented by economists and policy makers [Becker (1964)]. According to some observers view, educational system is an effective vehicle for producing the skills required to maintain growth in the economy.1 The versatile impact of education on every aspect of human existence makes it a vital area for policy framework especially for developing countries. Developing countries where majority of world’s population resides need to maximise productivity and capabilities of the advanced human capital. The benefits of education range from human to economic, social and cultural. At human level, education contributes in attractive self esteem and confidence leading towards empowerment. In Pakistan, there is significant rise in the average level of education, but over time, more and more workers incapable to use their educational background on the job. Two decades ago, it was judgment that supply of labour meeting the demand of labour. However in recent years, it is argued that supply of some skilled labour may have outstripped the demand of labour in some professions and high qualified peoples taking positions of low qualified peoples. Such underemployment/over-education has not been fully explored in Pakistan.

Shujaat Farooq, Usman Ahmed