An Analysis of Urban Household Earning Determinants: A Case Study of District Multan

Abstract

The present study examined urban earning determinants in the district of Multan. For this purpose, primary cross-sectional data was collected from District Multan urban areas. Data was collected from district Multan through a structured questionnaire in which 385 respondents from urban areas were interviewed randomly. This study was analyzed through Elementary and Econometric analysis. The strict MEF was calculated by busing variables like education, experience and experience square. It was found that education and experience have a positive effect on earning while experience square negatively affected earning. Extended Mincerian Earning Function was calculating by using taking variables like education, experience, experience square, age, age square, spouse participation, migration, employment, and marital status. Education, experience, age, spouse participation, marital status, and migration positively effect on earnings while experience square, age square, and employment sector negatively affect earnings. The pairwise correlation analysis indicated a moderate problem of collinearity. Overall variables like (education, experience, age, migration, and spouse participation) have a higher impact on earnings in urban areas. The study suggests that the emphasis should be on improvement of education by investing in human capital as a result the quality of education, skill development, and the spread of knowledge can be improved which in turn can increases household earnings.