Factors Determining Work Participation and Labor Supply in Pakistan

Urban Areas

This article is an effort to explore the determinants of low labor force
participation rate of males in the urban areas of Pakistan. The availability of
education and remittances enforce the males to increase their search for job.
They sample size includes 2179 women and 2254 men who are over 10 years of
age. The model is estimated through tobit and probit technique
Methodology:
The model used in this article is actually an extension of Becker and Mincer
models of wage determination. This model assumes that difference in wage
depends upon the difference in human capital which means difference in
education, training and experience.
Likelihood of Being Employed=f(Market Wages(+ve), Demand for leisure(-ve)