An Analysis of Youth Participation in Labour Market of Pakistan

Abstract

The aim of this micro level study is to give an analysis of the situation in the youth labour market of Pakistan. Using the micro data from the Labour Force Survey (2014-15), the study gives a descriptive analysis of the provincial and country level situation of the youth labour market. An econometric analysis of the determinants of employment is also provided in the study, based on the logistic regression analysis. A second section of the study focuses on the inactive youth who forgo labour force participation and education attainment. This inactive youth constitutes a major portion of the youth population and is indicative of immediate policies targeting this unproductive young population. Our results indicate that females are less likely to be employed and more likely to be inactive. Unemployment during early start of career can have scarring impacts. Youth in rural area is more like to be employed than urban youth, because they contribute as family worker in agriculture. A similar result is found for youth with no formal education. Age, gender, education, area, family head‟s activity and family head‟s education have a significant impact on probability of being employed. Inactivity increases with age for females while it declines for males. Inactivity gap between the two gender declines with increase in qualification level. The major reason for the gap in inactivity is the high rate of females being occupied in housekeeping, and therefore being unavailable to work.