Determinants of the Supply of Women in the Labour Market: A Micro Analysis

Abstract

Neoclassical economists consider education to be one of the key determinants of women entering the labour market. The higher the level of education, the greater is women's participation in the labour market. [Becker (1980); Mincer (1980)]. However, the structuralist school does not look at it so simply. In their view there are many other factors besides education which compel women to· sell their labour power. [Benham (1980); Strober (1980)]. The principal factor compelling women to sell their labour is income. Therefore, according to the structuralist school the lower is women's household income, the greater is their compulsion to enter the labour market. How does this square with neoclassical theory? The structuralist school states that household income is the primary determinant of women's sale of labour power. Therefore, in a society divided by income groups lower income class women will tend to sell their labour power more. However, within each income group an increase in education will increase the supply of women's labour and its returns. Due to inadequate data, relatively little analytical work on this issue has been undertaken so the present study is an attempt to explore why some married women are engaged in earning activities, while some of them are not. Our sample consists of ever-married women, because normally they are considered independent, and their status is equal to their male partners. So they have relatively more choice in entering the labour market compared to unmarried women. A comparison of this kind will help us to identify the factors besides education in determining women's supply of labour in the market.

Correlates of Women’s Labor Force Supply in Pakistan

“…If the income of a family is raised then women working hours will reduced. Our results are consisted with the results of Hamid (1991) and Kazi & Raza, (1991). The variable head of household employed is an important correlate of women working hours and have inverse relation with women working hours.…”

Negotiating Gender Relations: Muslim Women and Formal Employment in Pakistan's Rural Development Sector

“…Quantitative studies show that income, education, age and marital status are major determinants of female labour participation (Ahmad and Hafeez, 2007; Arifeen, 2008a, 2008b; Azid et al ., 2010; Faridi et al ., 2009; Gondal, 2003; Hamid, 1991; Naqvi and Shahnaz, 2002; Sultana et al ., 1994). In these studies, however, it remains unclear how women who actually work experience their employment and how they are able to reconcile conflicting expectations.…”

Urban Informal Sector: How Much Women Are Struggling for Family Survival

“…(2003) for married women's labor supply and Gonzalez (2004) for single mother's work supply. 7 See also earlier studies who have recognized the significant part of women's contribution in household income: Hamid (1991) for poor settlements of formal and informal sector of urban areas of Rawalpindi; Alderman and Chistie (1991) for market oriented work of rural women of Pakistan; Kazi and Raza (1991) for working women in Pakistan; and Buvinic and Gupta (1993) for women-headed and women-maintained families in developing countries. 8 See also, Hamid (1991) for determinants of female labor supply in Pakistan; Duncan, et.…”

“…The link between working hours, wages/income and contribution seems strong but in fact for informal sector it may be 9 See also, Hartog and Theevwes (1986) for work participation hours of women; and McGrattan and Rogerson (2004) for changing working hours of women. 10 See also the other studies who have focused on factor and determinants: Irfan (1983) for Pakistan; Kozel and Alderman (1990) for urban Pakistan; Alderman and Chistie (1991) for rural Pakistan; Hamid (1991) for Pakistan; Duncan, et. al.…”

“…Naqvi and Shahnaz (2002) estimated that more-educated women are more likely to participate in labor force. Hamid (1991) concluded that educational level of women negatively affects their labor force participation decision. Eapen and Kodoth (2002 for India) explained that improved endowment rates in India has not played the transformative role as expected, even higher education has not motivated the women to challenge the gender role assumptions.…”