Why Women are Self-Employed? Empirical Evidence from Pakistan

Transcription

1 Why Women are Self-Employed? Emprcal Evdence from Pakstan Muhammad Zahr Fard Assstant Professor Department Of Economcs, Bahauddn Zakarya Unversty, Multan, Pakstan Tel: E-mal: Imran Sharf Chaudhry Assocate Professor Department of Economcs, Bahauddn Zakarya Unversty, Multan, Pakstan Tel: E-mal: Muhammad Shaukat Malk Assstant Professor, Management & HRM Insttute Of Management Scences, Bahauddn Zakarya Unversty Multan, Pakstan Tel: E-mal: Abstract In developng economes lke Pakstan, the rsng trend of women s labor partcpaton has become the core ndcator of growth and development. In ths respect, the MDGs (Mllennum Development Goals) relates to effcency and equty, especally elmnaton of gender dspartes n educaton, mprovement of maternal health, lessenng mortalty rate among chldren and women empowerment are desrable goals. But stll the representaton of women n wage as well as n the self-employment sector s very low. The present study nvestgates the factors whch nfluence women s partcpaton n self-employment. Prmary source of data s used for emprcal analyss. Logstc regresson technque s employed to estmate the women self-employment model. The fndngs ndcate that age and experence postvely affects women s self-employment. Further, t s concluded that educaton, locaton and number of dependents sgnfcantly reduce the women s work partcpaton as self-employed worker. It s suggested that the government provde techncal and vocatonal educaton to the women, and also gve old age benefts just to mnmze the dependency burden. Keywords: Women Self-employment, Experence, Logstc regresson, Dependency burden, Hgher Educaton, Per Capta Income. 1. Introducton The populaton of Pakstan ndcates a double faced phenomenon. On the one sde, populaton of the country s consdered as an asset and performs an ntegral role n the growth and development process of the country. On the other hand, the hgh growth rate of populaton s a great hndrance n way of economc prosperty and development of the country. For examnng the role of human captal n economc development, t s mperatve to study both the qualtatve and quanttatve aspects of the populaton. At the tme of ndependence n 1947, the total populaton of Pakstan was 32.5 mllon. By the year , the populaton reached mllon. The populaton of Pakstan has grown at an average rate of 2.6 percent per year. The changes n the labor force and employment level are affected by the populaton growth rate and ts composton. Ths hgh growth rate of populaton shows that Pakstan wll become the eghth most populous country n the world by the year 2010 (Govt. of Pakstan Economc Survey ). Employment generaton, poverty reducton and human resource development are the man features of Pakstan development polcy. The employment led growth rate captures a central place n attanng the sustaned development. Table 1 hghlghts the labor force partcpaton (LFPR) among the regon and gender based on crude actvty rates n the years to The labor force of Pakstan was estmated at mllon on the bass of partcpaton rate of 32.2 percent durng the year Durng the two years, ths rate has ncreased from mllon to the present level by addng 4.82 mllon, both men and women. The present stuaton nevertheless s the nformaton about a hgh dependency rato. From the table 1, t s clear that the LFPRs though low, s ncreasng gradually over the years. The rural urban partcpaton rates show also a gradual ncrease both for men and women for the last ten years. An ncrease of 3 percent female labor force partcpaton n the urban areas s domnated by males.e. (4.4 percent for males versus 2.0 percent for females). On the other hand, almost an ncrease of 4 percent n the rural areas s domnated by females.e. 5.5 percent of females vs. 2.7 percent of males. Such satsfactory rse n labor force partcpaton n rural areas, partcularly for females and of males n urban areas represents the postve step for development of Pakstan s economy. Ths all has happened due to expanson of educatonal facltes and health facltes n rural areas for females and further provdng employment opportuntes n socal as well as n economc sectors, both n rural and urban areas. 198 ISSN X E-ISSN

2 Although, facts ndcate a rsng trend n female labor force partcpaton over the perod but stll t s low as compared wth other developng and developed naton. The ssue of female s employment and labor market partcpaton has gven top prorty n the developng natons generally and especally n Pakstan. The present analyss s arranged as follows. The frst secton provdes a bref ntroducton and mportance of study. Secton 2 revews the relevant lterature, secton 3, dscusses the data source and presents the methodology. Secton four provdes the results and dscusses the fndngs. The fnal secton concludes the whole dscusson. 2. Revew of the lterature There s an mmense lterature avalable on the ssue of women partcpaton n economc actvtes at the natonal and nternatonal level. Women represent a szeable porton of the populaton and requre a lot of attenton. They are consdered as a supportng factor n the economc development of the country and put a sgnfcant effect on overall busness and economc actvtes. Hll (1983) concluded that husbands wages were nversely related to women partcpatng n the formal labor market but drectly to women workng for famly busness. Sheehan and Standng (1978) showed that age s less mportant by women partcpatng n the labor market whle educaton, socal and envronmental factors have sgnfcant mpact on partcpaton. Smlar study made by Behrman and Wolfe (1984). They nvestgated that number of chldren had no larger effect on partcpaton but schoolng, experence and nutrton level had a sgnfcant mpact on labor supply and wages. Amn et al (1995) analyzed the dfferent factors whch drectly or ndrectly affect women s work partcpaton. The results of the analyss showed that the ncome, purdah and patrarchal system had an nverse effect on female labor force partcpaton and educaton, age and martal status had postve nfluence on female labor force partcpaton. Irfan (1983) dscussed the factors whch determne the female labor supply. Usng ordnary least square (OLS) and Logt estmaton technques, he found that hgher level of educaton sgnfcantly nfluences the female LFPR, but only f they work as an employee. The study also shows that household per capta ncome s correlated wth wage employment but self-employed women remaned unaffected. Hafeez and Ahmad (2002) explored varous factors whch affect the decson of educated marred women n partcpatng n the labor market. Naqv and Shahnaz (2002) made an attempt to explore the factors whch nfluence women s decson regardng work partcpaton and concluded that age and educaton were postvely related to decson makng and partcpaton n economc actvtes but marred women were less lkely to partcpate. Fard et al. (2009) estmated the factors whch nfluence the women s decson to jon the labor market. They concluded that educaton sgnfcantly affects women s work partcpaton. Rees and Shah, 1986; Georgells and Wall, 2004; Do Trang, 2008; Blau Davd, 1985; Le Anht, 2000; and Blanchflower and Oswald, 1988 provded very nformatve studes on the ssue of the self-employment. They concluded that educaton, health, experence famly background, martal status turned out to be very sgnfcant factors. Most of the studes revewed focus on the factors whch determne female labor force partcpaton. But the am of the present study s to dentfy dfferent soco-economc factors whch determne why women are self-employed. The mportance of the study becomes more powerful and ratonal that women s partcpaton as self-employed worker reduces publc sector burden and expands the prvate sector, busness sector by attractng more nvestment. Ultmately, ths thng rases the process of economc development. 3. Data Sources and Methodology 3.1. Data Sources In order to observe the factors whch nfluence the women s decson to be self-employed, we have chosen dstrct Bahawalpur as study area. Pakstan conssts of 4 provnces and FATA (Federally admnstrated area). Punjab s the largest and densely populated provnce of Pakstan. It conssts on 9 dvsons and 34 dstrcts. Bahawalpur dstrct s one of them and s stuated n the southern part of the Punjab. Bahawalpur s the largest dstrct of Punjab, coverng of an area of round about square km. Total populaton of the dstrct was mllon or n Almost 72.7 percent of the total populaton s lvng n rural areas whle the urban populaton s or 27.3 percent. Total females partcpaton n self employment s 29 percent, out of whch 38.2 percent are rural self employed and 18.6 percent are urban self employed (Note 1). Prmary source of data s used for analyss. Smple random samplng and stratfed samplng technques are employed to collect the data both from formal and nformal sectors. A total of 164 women n the age cohort of years are ntervewed randomly both from urban and rural areas accordng to the populaton dstrbuton. Our study ncludes human as well as non human captal related factors to see why women are self-employed. The study s based on an emprcal analyss. Women s decson regardng self-employment s analyzed at two stages. At the frst stage, we present a prelmnary analyss consderng mean, standard devaton, skewness, and kurtoss of the selected varables and also par wse correlaton s constructed to examne the exstence of multcollnearty. In the second stage of the analyss, the study report multvarate estmates of the self-employment model. The multvarate analyss of self-employment s structured n the framework of the conventonal theory of utlty maxmzaton (Becker 1965), by usng the maxmum lkelhood Logt model. Publshed by Canadan Center of Scence and Educaton 199

3 3.2. The self-employment model There are numerous macro and mcro-economc varables that decde whether women who desre to partcpate n economc actvtes beng salared employed or own account or self-employed worker (Note 2). Decson regardng labor supply s nfluenced by some of these factors and others requre decson. We start wth general functon. Y = f (X 1, X 2,, X n ) (1) Where Y ndcates the women s decson n the labor market as self-employed worker. Y s equal to 1, f women partcpate n economc actvtes as self-employed worker and equal to zero f the women prefer to wage/ salary employment. Followng Blundell (1987) an ndex functon, WSE may be defned as that t depends on a vector of explanatory varables Z. These factors make decson whether a woman should partcpate n self-employment actvtes or not. Hence the general model for self-employment s; WSE Z (2) * Where WSE s a latent varable that apprehends the propensty of women to be self-employed, Z s a vector of remarked or noted factors held to affect the propensty of women to be self-employed, s a vector of estmated coeffcents and s a random/ dsturbance error term. * If WSE Z 0 (3) The woman would obtan self-employment where as f: * WSE Z 0 (4) The woman would be wage/ salared employed. The vector Z pertans varables for age, experence, educaton, fnancal captal (Assets), martal status, number of dependents, number of chldren, husband salared, locaton and famly setup. Where as, WSE * s a latent varable whch s not drectly observable, only dchotomous varable WSE s remarked whch s defned as; WSE 1 f WSE 0 WSE 0 Otherwse. The probablty of fndng the women self-employment s; Pr ob ( WSE 1) Pr ob( Z ) = 1 F ( Z ) Where F s the cumulatve dstrbuton functon for zero and constant varance [.e. IN(0, σ 2 )]. *. It s assumed that * s normally dstrbuted wth mean In our analyss, the explaned varable s bnary or ndcator varable WSE. The nadequacy of lnear probablty model suggests that non-lnear specfcaton may be more approprate. Therefore, a Logt or Probt econometrc model s more useful and we use Logt model technque n our study. The Logt model hypotheszes the followng cumulatve probablty densty functon. 1 WSE (5) 1 Z e Where WSE s the probablty that a women partcpates n economc analyss as self-employed, e s the exponental value. s the row vector of parameters and Z s the column of the explanatory varables. Wth the Logt model the natural log of the odds rato of self-employment to wage/ salary employment, WSE ln( 1 WSE ) s expressed as a lnear functon of explanatory varables, such as; WSE ln( ) Z (6) 1 WSE Therefore, the estmated parameters are the Logt model regster the effect on the log odds of a lttle change n the ndependent varables. Partal effects of ndependent varables on the probablty of beng self-employed are descrbed by; 200 ISSN X E-ISSN

4 WSE WSE( 1 WSE) ˆ k (7) Zk Where Z k s the k th ndependent varable and k s ts related estmated parameter. Conventonally, the margnal effects are evaluated at the sample mean self-employment rate (See Greene, 1993). 3.3 Varables descrpton The self-employment model whch s specfed above s general model, can be utlzed as a gudng paradgm. Consderng the theoretcal ratonale, the operatonal model depends upon the factors whch are provded by the data. Generally, we have found n the past studes n the self-employment lterature (e.g., Rees and Shah, 1986, Borjas, 1987, Evans, 1989, de Wt, 1993, Bernhardt, 1994, Kdd, 1993) that self-employment s determned by both human captal and non-human captal varables whch are dscussed below. The justfcaton for ncludng these varables n the women self-employment model and ther expected relatonshps are nterpreted below Educaton Educaton s consdered a vtal factor n determnng self-employment actvtes. In the lterature of self-employment, t s observed that educatonal attanment s pleaded to apprehend a range of effects. On the one sde, educatonal attanment may be pondered as a source of workers manageral capablty and hence workers are more lkely to be self-employed. On the other sde, t s expected that educated workers are more nclned to salary or wage employment as the attanment of hgher level of educaton rses and hgher level of educaton reduces the lkelhood of self-employment. Therefore, we can not determne the effect of educatonal attanment n advance. So, t s not surprsng that varous studes have concluded mxed effects of educatonal attanment on self-employment. Kdd (1993) has concluded that tendency to be self-employed s not sgnfcantly nfluenced by the educatonal attanment. Further, accordng to Evans (1989) study, t s found that self-employment s nversely and sgnfcantly nfluenced by the level of educaton among mmgrants. In the present dscusson, we have traced out the mpact of educaton on self-employment n two ways. Frst, completed years of educaton are consdered as contnuous varable and secondly we have used varous level of educatonal attanment as dummy varable n the self-employment model Age/ Experence Age and experence are hghly correlated. Experence and age move n same drecton. The present study dscusses the mpact of both varables separately. There are two ways (approaches) to nterpret the labor market experence. These are stock(note 3) and flow (Note 4) approaches. Accordng to stock approach, aggregaton of work-related sklls of an ndvdual or worker s an ndcator of labor market experence. It s assumed that there s postve relatonshp between experence and labor markets partcpaton as self employed worker. Experence and stock of manageral capablty whch s attaned on the job tranngs are drectly related (Note 5) Hence t s expected that there s postve correlaton between self-employment and labor market experence (Note 6). Accordng to the flow approach, labor market experence that s related wth the age of worker can be contemplated as the rate at whch the aggregated stock of knowledge s attaned. In ths respect, as worker becomes aged, hs learnng ablty reduces because t would be tougher for the worker to have complete command over the new technology. As a result, the knowledge ncreases at decreasng rate. So the expected sgn of experence squared (EXP 2 ) s negatve and ndcates non-lnear relatonshp Martal Status In the lterature of economcs, t s assumed that marrage represents stablty. Thus t gves an approprate background for rsky self-employment. It s observed that marred couples are nterested to start ther own busness wth jont fnances just to maxmze famly proft. Therefore, a postve relatonshp s expected between martal status and self-employment Household Assets Presence of household assets nfluences the self-employment postvely. The study ncorporates all types of assets (e.g. Land holdngs, Lve-Stocks, Shops, Rented Homes, Personal homes, Bank deposts, Gold, Foregn currency account etc) to fnd out ther mpacts on self-employment. It s expected that presence of household s assets and self-employment are postvely related Famly Setup In the lght of prevous studes, t s observed that famly setup has mxed effect on women work partcpaton as self-employed worker. Here, the famly setup means whether a jont famly system or a nuclear famly system. Nuclear famly system s defned as such system whch ncludes only husband and wfe wth or wthout chldren whle jont famly system consders other members of the famly such as mother, father, brothers, ssters, grand father, grand mother, uncle and aunts. The major characterstcs of the jont famly system s that people lvng n combned famly havng common expendture especally ktchen. Publshed by Canadan Center of Scence and Educaton 201

5 3.3.6 Per Capta Income Households per Capta Income s an mportant economc ndcator whch measures the welfare and well-beng of the famly. Theoretcally, t s expected that women are less lkely to partcpate n the labor market beng self-employed worker, as per capta ncome of the famly s hgh or rsng Number of Dependents Theoretcally, t s expected that number of dependents and women s self-employment s nversely related. The ratonale behnd ths hypothess may be that women s nsde home actvtes may ncrease Husband Salared and Number of chldren From the revew of the varous studes regardng women s partcpaton n the labor market, t s noted that women whose husbands are workng and salared employed and have more chldren are expected to be self-employed Locaton Self-employment s also affected by the regon of resdence or locaton. The locaton s classfed as rural and urban area. Therefore, t s expected that women belong to rural area are more lkely to be nvolved n own busness actvtes lke workng on farm, rearng lve stock etc Operatonal Model The operatonal model for estmatng the women self-employment status s outlned n the followng equaton. In order to analyze the nfluence of dfferent varables on self-employment, two specfcatons are chosen for estmaton. The frst specfed model for women self-employment s gven below: WSE 0 1AGE 2EDC 3PCI 4PHA 5MAR 6 HSL 7FSP 8NDT 9LCN 10 NCH. (A) In the equaton of women self-employment model, the ndependent varables are Age, Completed years of educaton, Per Capta ncome, Presence of household Assets, Martal Status, Husband Salared, Famly Setup, number of dependents, locaton and number of chldren. In order to observe the nfluence of experence on women s self-employment, the study ncludes a contnuous varable experence n the self-employment model. Experence s obtaned by subtractng completed years of educaton and age of the women at the tme of entry nto the school from the completed age of the women..e. EXP = AGE Educaton 5. Further, we have ntroduced dfferent levels of educaton as bnary varables to analyze the contrbuton of educaton at each level n the women self-employment model. AGE and Completed years of educaton are omtted from the second equaton just to remove the effect of multcollnearty. 2 WSE 0 1EXP 2 EXP 3PED 4SED 5HED 6 PCI 7 PHA 8 MAR 9 HSL 10 FSP 11NDT 12 LCN 13 NCH.(B) The lst of the varables for Logstc estmates of the determnants of women self-employment s gven n the table Results and Dscussons 4.1 Prelmnary Analyss We have presented the prelmnary analyss of data by provdng the bref dscusson on the profle of respondents and nterpretng descrptve statstcs of the some selected varables. Correlatons among explanatory varables are also presented Respondents characterstcs Overall 164 women are ntervewed at random from formal as well as nformal sectors. Out of whch 106 or percent women belongs to rural area and 58 or percent women are lvng n urban area. Total percentage of women s partcpaton n self employment s percent n the present study. Further, t s concluded that percent self employed women belong to urban localty whle 25.0 percent self employed women lve n rural area Descrptve Statstcs Table 3 descrbes the basc statstcs of some selected varables. The average age of self-employed women s years wth varablty about mean s On the average, self-employed women s educaton n completed years s years. The average per capta ncome of the famly s rupees per month. The study ndcates that the number of chldren s 3.18 on the average. In addton, the descrptve analyss reports that 0.49 or 49 percent women have educaton up to prmary level (5 years of educaton) on the average and 0.17 or 17 percent respondents (women) have educaton up to secondary level (10 years of educaton). Smlarly on the average, 0.34 or 34 percent respondents have hgher degree n educaton (M.A/ M.Sc, professonal, M.Phl, Ph.D) Correlaton analyss We have presented the correlatons matrx of dfferent explanatory varables n the table 4 as prelmnary nvestgatons of the relatonshps. Ths correlaton matrx s used to examne the multcollnearty among the 202 ISSN X E-ISSN

6 varables. The explanatory varables, whose par wse correlaton s greater or equal to 0.83, show the exstence of multcollnearty. We have dropped those varables n the remanng analyss. From the table, t s obvous that age and experence are multcollnear. So we have used age and experence n separate equatons to have perfect estmaton. 4.2 Multvarate Estmates Tables 5 and 6 present the Logt estmates of the determnants of women self-employment model. Each table conssts of four columns. Frst column n each table descrbes the nature of the explanatory varables whle others remanng three columns dscuss the estmated parameters, ther asymptotc Z-statstc and margnal effects respectvely n each table. The margnal effects show the change n probablty of beng self-employment due to unt change n a gven explanatory varable after holdng all other varables as constant at ther mean. The present study uses two taled test of sgnfcance or Z-statstc for determnng the acceptance or rejecton of null hypothess to examne the relablty of the pont estmates. For ths purpose, we have used 1 percent, 5 percent or 10 percent level of sgnfcance. The ntercept terms n the both equatons of self-employment turns out to be negatve and statstcally hghly sgnfcant. Ths sgnfcant result ndcates that women s partcpaton beng self-employment may be nfluenced by omtted factors from the study. The values of McFadden R 2 n both the equatons are very low (.e and 0.39 ncreases postvely). Low level of R 2 s a typcal phenomenon n cross sectonal studes. However, the qualty of our estmates should not be gauged by ths low R 2. Overall performance of the self-employment model s judged by the hghly sgnfcant LR-statstc. Women s work partcpaton beng self-employed s nfluenced by age. We have found that probablty of self-employment rses wth age. The coeffcent of age s postve and sgnfcant. In the second equaton, we have used years of experence as a explanatory varable nstead of age n years. The coeffcent of experence (EXP) s postve and sgnfcant at 10 percent level of sgnfcance. The probablty of women s work partcpaton n the labor market as self-employed workers ncreases by 6 percentage ponts due to addtonal years of experence. The reason may be that self-employment or self-busness requres more experence, courage, skll and management qualtes. The negatve coeffcent of EXP 2 ndcates the non-lnearty relatonshp. Educaton plays a pvotal role n determnng the self-employment actvtes. We have ntroduced both the completed years of educaton and dfferent levels of educaton as explanatory varables n our self-employment model. In the frst equaton of self-employment model, we have observed that the coeffcent of completed years of educaton (EDC) s postve and hghly sgnfcant. The probablty of women s self-employment ncreases by 1.2 percentage ponts as a result of an ncrease of one year of educaton. The reason may be that self-employment actvtes need manageral skll, effcency, decson makng ablty and rsk facng actvtes of the worker, whch are acqured through more years of educaton. In the second equaton of self-employment model, the coeffcents of PED and SED are postve and statstcally sgnfcant at one percent level of sgnfcance. The reason may be that the low educated women are nclned to start up a busness because low level of educaton s not suffcent n securng permanent salared jobs. Our results are n lne wth the fndngs of verheul et. al (2006). In addton, we have noted n our study that the hgher educaton (HED) has a strong negatve and sgnfcant mpact on women s decson to be self-employed. The probablty of women s self-employment dmnshes by about 34 percentage ponts due to an ncrease of one unt n hgher educaton. The hghly educated women s prefer to be salared employed n Government and Sem-Government sectors because salared employment s a secured, rsk less and permanent source of ncome. Our study also supports verheul et. al (2006) s fndngs. Households per Capta ncome s another mportant factor whch nfluences women s partcpaton n the labor market as an own account worker. The women are less lkely to be self-employed by 1.2 percentage ponts because of an ncrease of one rupee n monthly per capta ncome. The presence of household assets has postve and sgnfcant mpact on self-employment. The results of the study has ponted out that marred women are less lkely to be self-employed. The marred women s probablty of beng self-employed workers drops by 2.9 and 3.5 percentage ponts n both equatons respectvely. But marred status has nsgnfcant mpact. The reason may be that a large number of women have started ther own busness lke embrodery, sewng, teachng the kds or tuton centre at home, and beauty parlor both n urban and rural areas. The coeffcent of the husband salared s postve and has sgnfcant mpact on women s work partcpaton. The nterpretaton may be that the women whose husbands are regular salared workers are more nclned to start ther own busness especally at home lke sewng clothes, embrodery or even rearng few anmals etc, just optmal utlzaton of tme smultaneously both n own busness actvtes and at home actvtes lke preparng meals. We have observed that famly setup (FSP) postvely nfluences self-employment. Women belongng to jont famly setup are more lkely to be self-employed. The study revealed that the number of dependents has strong negatve mpact on women s work partcpaton beng self-employed. The probablty of self-employment falls by about 5 percentage ponts n both equatons due to an addton of one dependent n the famly. The sgnfcant result ndcates that women responsbltes at home ncreased because of hgh dependency burden. The coeffcent of Publshed by Canadan Center of Scence and Educaton 203

7 locaton (LCN) s negatve and statstcally sgnfcant. It means that rural women are more lkely to be self-employed. The study has showed that the number of chldren rases the probablty of self-employed. 5. Concluson and Polcy Recommendatons The role of women s partcpaton n economc actvtes s consdered a vtal factor for growth and development. The women s labor market partcpaton has become an mportant ssue due to rsng trend n women s populaton growth and labor force. The present study s conducted to examne the varous soco-economc factors whch determne why women are self-employed. The fndngs of the study reveal that the age and experence have postve and sgnfcant nfluence on women s work partcpaton beng self-employed. It s explored from the study that women s partcpaton n self-employment actvtes s enhanced because of more years of educaton. When we consder varous levels of educaton, the fndngs are very nterestng. The low level of educaton motvates the women to start ther own busness but hghly educated women are not nclned to be self employed. Presence of household assets, number of chldren and husband salared postvely and sgnfcantly nfluence the women s self-employment. In addton, the study concludes that Per Capta ncome, number of dependents and locaton reduce the women s work partcpaton as self-employed worker. Our results are consstent wth the prevous studes as dscussed n the lterature. The research has concluded that there s short of formal jobs for women n study area especally and generally n Pakstan. Lack of educaton at hgher level and nconvenence n attanng hgher educaton for women s man cause of women s self employment. The jont famly system and larger sze of famly (more number of chldren) s another cause of women s nclnaton toward self employed actvtes (n case of under developed countres n Pakstan). Further, study explores that hgh per capta ncome of the famly reduces the women s partcpaton n self employment actvtes. But, low per capta s general phenomenon n poor countres generally and especally n Pakstan. Consderng the study s concluson, t s suggested that Government create formal jobs for women and also provde facltes n attanng hgher educaton by establshng more educatonal nsttuton especally health related and vocatonal tranng centers. There s a need to create awareness among the people to have a small sze of famly and ndependent famly structure (nuclear famly system). References A.M. Gll (1988). Choce of employment status and the wages of employees and the self-employed: some further evdence. Journal of appled econometrcs, 3, Amn, R., Robert, B. H. & Ypng L (1995). Poor women s partcpaton n credt based self-employment: The mpact on ther empowerment, fertlty, contraceptve use and fertlty desre n rural Bangladesh. The Pakstan Development Revew, 34(2). Becker, G. S. (1965). Theory of the Allocaton of Tme, Economc Journal, 76, Behrman, J. A., & Barbara I. W. (1984). Labor Force Partcpaton and Earnngs Determnants for Women n the Specal Condtons of Developng Countres. Journal of Development Economcs, 15, Blau, D. M. (1985). Self-employment and Self-Selecton n Developng country Labour markets. Southern Economc Journal, 52(2), Blundell, R. (1987). Specfcaton testng n Lmted and Dscrete dependent varable models. Journal of Econometrcs, 34(2). Borjas, G. (1987). The Self-employment of Immgrants. Journal of Human Resource, 21, D.G. Blanchflower & A.J.Oswald (1998). What makes an entrepreneur?. Journal of labour Economcs, 16, D.S. Evan & B. Jovanovc (1989). An estmated model of entrepreneural choce under lqudty constrants. Journal of Poltcal Economy, 79, D.S. Evans & L. S. Leghton (1989). Some emprcal aspect of entrepreneurshp. Amercan Economc Revew, 79, Do Th, Q. T. (2008). Determnants of Self-employment: The Case n Vetnam. CES Workng Paper No. 38. Fard, M. Z., Chaudhry, I. S. & Mumtaz, A. (2009). The soco economc and demographc determnants of women work partcpaton n Pakstan: Evdence from Bahawalpur Dstrct. A Research Journal of South Asan Studes, 24(2), G. de Wt (1993). Model of self-employment n a compettve market. Journal of Economc Surveys, 7, Georgells, Y. & Howard J. W. (2004). Gender Dfferences n Self-employment. Workng Paper Seres, Federal Reserve Bank of ST. Locus, MO Glen, S. & Guy, S. (1978). A note on economc actvty of women n Ngera. The Pakstan Development Revew, 17(2). Government of Pakstan (1999). Dstrct census report of Bahawalpur, Populaton Census Organzaton Statstcs Dvson, Islamabad. Govt. of Pakstan Economc Survey. ( ). Federal Bureau of Statstcs, Mnstry of Fnance, Islamabad. 204 ISSN X E-ISSN

8 Greene, W. H. (1993). Econometrc Analyss. New York, MacMllan Publshng Company. H. Rees & A. Shah (1986). An emprcal analyss of self-employment n the UK. Journal of Appled Econometrcs, 1, Hafeez, A., & Eatzaz A. (2002). Factors determnng the labour force Partcpaton decson of Educaton Marred Women n Pakstan. Sustanable Development Polcy Insttute. (Workng Paper Seres No. 174.) Hll, M. A. (1983). Female Labour Force partcpaton n Developed and Developng Countres: Consderaton of the Informal Sector. Revew of Economcs and Statstcs, 65, I. Bernhardt (1994). Comparatve advantage n self-employment and pad work. Canadan Journal of Economcs, 27, Irfan, M., Z. Khan, S. Mubashr A., M. Rafq & Masood A. (1983). The Determnants of Female Labor force Partcpaton n Pakstan, Islamabad. Pakstan Insttute of Development Economc, Studes n Populaton, Labor Force and Mgraton Project Report No 5. J.J. Heckman (1979). Sample selecton bas as a specfcaton error. Econometrca, 47, Le Anh T. (1999). Emprcal studes of self-employment. Journal of Economc Surveys, 13(4), Le Anh T. (1999b). Self-employment and earnngs among mmgrant n Australa. Internatonal Immgraton, 37, Le Anh T. (2000). The determnants of Immgrant Self-employment n Australa. Internatonal Mgraton Revew, 34(1), M. P. Kdd (1993). Immgrant wage dfferental and the role of self-employment n Australa. Australa Economc Papers, 32, Naqv Z. F. & Lubna S. (2002). How do women decde to work n Pakstan?. The Pakstan Development Revew, 41(4), Part II: Verheul I., Thurk R. and Grlo (2006). Determnants of Self employment preference and realzaton of women and men n Europe and the Unted states. SCALES Paper N Notes Note 1. Ths nformaton s taken from populaton census report of dstrct Bahawalpur (1999). Note 2. In the present study, self employment s defned as the stuaton n whch the workers (women) have started ther own busness both n rural and urban areas and also engaged n self made actvtes lke workng on farm and rearng lvestock n rural areas and also engaged n embrodery, sewng clothes, teachng the kds at home or tuton centers and havng beauty parlor or garments and cosmetcs shops. Note 3.See Evans (1989) Note 4.See Kdd (1993) Note 5. See A. T. Le (2000) Note 6.See Lucas (1978) Table 1. Crude Labor Force Partcpaton Rates * by Regon and Gender (n percentage) Year Total Urban Rural Both Male Female Both Male Female Both Male Female Source: Labor Force Surveys (varous ssues). *Labor force partcpaton s estmated on the bass of crude actvty rate (CAR) and refned actvtes rate (RAR) n Pakstan. The CAR s the percentage of labor force n total populaton where as refned labor force partcpaton s the rato of labor force 10 years and above to the total populaton. The labor force partcpaton rates n table 1 are estmated on the bass of crude actvty rate Publshed by Canadan Center of Scence and Educaton 205

9 Table 2. Lst of the Varables used n the self-employment equatons Varables Descrpton of varables Dependent varable WSE =1 f woman s partcpatng n economc actvtes as self-employment worker =0 otherwse Explanatory varables AGE Age of the woman (n years). EDC A contnuous varable defned as the completed years of educaton. EXP A contnuous varable defned as: Experence = Age Educaton 5 EXP 2 Square of Experence. PED = 1 f the woman educaton level s up to Prmary level = 0 otherwse SED = 1 f the woman educaton level s up to Secondary level =0 otherwse HED =1 f the woman educaton level s up to Hgher level =0 otherwse PCI A contnuous varable defned as Per Capta ncome of the famly n Pak. Rupees whch s attaned by dvdng total monthly famly ncome by the total number of famly. PHA =1 f the women have assets n any form =0 otherwse MAR =1 f the women are marred =0 otherwse HSL =1 f the woman s husband s salared person =0 otherwse FSP =1 f females belong to jont famly system =0 otherwse NDT Total number of dependents n the famly LCN =1 f the women are lvng n urban area =0 otherwse NCH Total number of chldren n the famly Table 3. Descrptve Statstcs of some selected varables Varables Mean Standard Devaton Skewness Kurtoss AGE EXP EXP EDC PED SED HED PCI PHA MAR HSL FSP NDP LCN NCH ISSN X E-ISSN

10 Table 4. Correlaton among explanatory varables Varables AGE EXP EXP EDC PED SED HED PCI PHA MAR HSL FSP NDT LCN NCH Table 5. Logstc Regresson Estmates Varables Coeffcents Z-statstc Margnal Effects C -3.55*** AGE 0.031* EDC 0.098** PCI * PHA 0.667*** MAR HSL 1.10* FSP NDT * LCN * NCH 0.443** Log Lkelhood Sample Sze 164 LR-Statstc (10 df) McFadden R Probablty (LR) *** Sgnfcant at 1% level of sgnfcance ** Sgnfcant at 5% level of sgnfcance * Sgnfcant at 10% level of sgnfcance Table 6. Logstc Regresson Estmates Varables Coeffcents Z-statstc Margnal Effects C -4.66*** EXP 0.48* EXP PED 3.15*** SED 3.08*** HED -2.71** PCI ** PHA 0.265*** MAR HSL 1.05* FSP NDT * LCN -1.18* NCH 0.528* Log Lkelhood Sample Sze 164 LR-Statstc (13 df) McFadden R Probablty (LR) *** Sgnfcant at 1% level of sgnfcance ** Sgnfcant at 5% level of sgnfcance * Sgnfcant at 10% level of sgnfcance Non formal educaton s consdered as base category Publshed by Canadan Center of Scence and Educaton 207