DETERMINANTS OF NON-LABOR FORCE PARTICIPATION AMONG PROFESSIONAL DEGREE HOLDING WOMEN

Abstract

This study aims to identify the various factors due to which professional degree holding women in Pakistan choose not to participate in the labor force, and calculates the loss in GDP that Pakistan faces due to the decision of women who are able; but not willing; to participate in the labor force. The study uses both primary as well as secondary data to analyze these factors. The Pakistan Social and Living Standards Measurement Survey (PSLM 2013-14) was used as a source of secondary data on which a logistic regression was applied to analyze the relationship between non-labor force participation and explanatory determinants. The secondary data is backed by primary research, which was collected through questionnaires filled by professional degree holding women of Pakistan who do not participate in the labor force, which gives an empirical view of the results of the analysis. The study concludes that cultural rigidities and reasons regarding personal satisfaction impact non-labor force participation more than the common misconception, which is the rigidities of labor market’s dynamics.