An Analysis of Occupational Choice in Pakistan: A Multinomial Approach

Type Journal Article - The Pakistan Development Review
Title An Analysis of Occupational Choice in Pakistan: A Multinomial Approach
Author(s)
Volume 44
Issue 1
Publication (Day/Month/Year) 2005
Page numbers 57-79
URL http://www.pide.org.pk/pdr/index.php/pdr/article/viewFile/2054/2027
Abstract
Occupational choice plays an important role in determining earnings and success in the labour market. In the social structure of Pakistan, an occupation reflects the socio-economic status of the individual. In this backdrop, the paper looks at the occupational structure and analyses how different characteristics help individuals to access jobs of their choice. The main issue discussed in the paper is how men and women have a different occupation distribution. Estimates are based on a multinomial log model of occupation choices for men and women, using the Pakistan Integrated Household Survey (PIHS) 2001-02 data. The empirical results show that individuals with high educational achievements choose high-ranking jobs. It is also noted that gender has a role in the labour market and males are sorted out
in high-paying occupation. Occupational choice is influenced more by the human capital variables than by the individual characteristics. Among human capital variables, education has the strongest impact in the selection of an occupation of choice.

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