Employment Diversification Patterns in Pakistan: Empirical Assessment Revisited

Abstract

Employment diversification depicts a dynamic socio-economic process where domestic workers widen the range of employment sources. Whereas, the prospect is usually based on a mix of Part-time and Full-time employment. Employment decisions significantly derive from the economic incentives such as wage differentials and the growth rates in different sub-sectors of economic activity. Research at hand summarizes and analyses Employment Diversification Patterns in Pakistan and the motives behind the labor shift. Time series data has been collected from various sources for 1990-2018. The Seemingly unrelated regression model has been applied for empirical estimations. The current analysis of employment pattern diversification concluded that part-time and full-time wages rates have a significant impact on the part and full-time employment in different sub-sectors of economic growth. Variation in wage rates in one sub-sector varies the employment level in different sectors. The estimates elaborated the significant rise in part-time employment these sub-sectors. Moreover, the dynamic interrelation between part-time and full-time employment is examined in the Agriculture, Construction, Electricity, Manufacturing, Wholesale and Retail Trade, Transport, Storage and Communication. These estimates show the quick adjustment of part-time employment within and across the sectors. Policies are needed to enhance labor mobility as one wants to diversify the employment one can do it to enhance the economic productivity.