VOL. 2, NO. 6, September 2013 ISSN 2307-2466
International Journal of Economics, Finance and Management
©2013. All rights reserved.
http://www.ejournalofbusiness.org
403
Determinants of Occupational Choice among Four
Provinces of the Pakistan
1
Muhammad Irfan,
2
Sofia Anwar,
3
Waqar Akram,
4
Saima Ramzan,
5
Irum Waqar
1
Research scholar of M.Phill Economics at G.C University Faisalabad, Punjab, Pakistan
2
Associate Professor at Department of Economics G.C University Faisalabad, Punjab, Pakistan
3
Associate Professor at Department of Business Administration, Institute of Business Administration Sukkur, Sindh, Pakistan
4
Research scholar of M.Phill Economics at G.C University Faisalabad, Punjab, Pakistan
5
Assistant Professor at Department of Business Administration, Institute of Business Administration Sukkur, Sindh, Pakistan
ABSTRACT
An occupation symbolizes the social and economic position of an individual in the society. Therefore it is important to
evaluate the structure of occupations and to emphasize the various determinants on the basis of which individuals make
their occupational choices. The current study emphasize on the main objectives like the socioeconomic factors of
occupational choice in Pakistan’s labor force market. Study sample of 69839 regular wage employees of age 16 years to
65years is taken from the Labor Force Survey 2009-10. The comparative analysis of occupational choice among provinces
of the Pakistan is examined. The multinomial logistic model is applied for the analysis of occupational choices in Pakistan
especially among four provinces. Age, Gender, Education, Training, Living time in the district of the employment and
marital status are considered as explanatory variables in the Multinomial logit model. This study helps us to understand the
reasons of the occupational choices among four provinces of the Pakistan.
Keywords: Occupational choice, Provinces of Pakistan, Pakistan labor force market, Multinomial logit model
1. INTRODUCTION
Occupational choice is a very serious issue
because not only the individual’s future life depends upon
it but also it participates in the development of a country.
Occupations can enrich the production of a specific
product, which may significantly participate in GDP of a
country [1]. Furthermore to control the unemployment
rate a country needs to highlight the occupations that are
less participating. Occupational choice was not a
dilemma, usually the profession of family head was
adopted by the offspring. The son of a landlord would
become a landlord and the son of a tenant would become
a tenant the son of cobbler would become a cobbler and
many other examples. With the awareness,
acknowledgment, modernization and industrialization the
demand for skilled labor force created in the market and
people gradually move towards the selecting the jobs or
professions [2].
Everyone is not fit for every occupation; peoples
differ to one another with respect to preferences, utility,
skills, productivity, strength, education, area of interest
etc. As economic theory also speaks that peoples are
different in productive capacity and opportunity cost
related to the labor supply. When we considered labor
services as a commodity in the labor market and labor is
definitely different in its distinctiveness, so it cannot be
measured as a homogenous service or commodity. These
different capabilities are the determinant of an individual
occupation selection. So individuals have to decide in
which occupation they want to go [3].
Therefore the choice of a profession or selecting
the career is a very important because the life of an
individual will remain associated with that occupation he
has chosen. If an individual fails to select the right
profession then he or she may have to face the number of
problems in whole the life that is why it is very important
to choose the right profession. Generally we have 28
professions in our dataset;
1
International Labor
Organization has categorized these 28 occupations into 9
major professions.
Many studies have been conducted on
occupational selection in Pakistan, this study addresses
that issues that were not focused before. Our research
provides an empirical evidence for occupational choice
across the country. This research will contribute to know
the determinants of occupational choice in each province
of the Pakistan. It also compares the socioeconomic
determinants of occupational choice among every
province of the Pakistan. The data from a Pakistan labor
force survey 2009-2010 is used for this study.
This research study has following objectives.
1.1 Objectives
• To find the social and economic determinants of
career selection / occupational choice.
• To compare the social and economic magnitudes
of occupational choice among the four provinces
of Pakistan.
1
Visit
http://www.ilo.org/wcmsp5/groups/public/@dgreports
/@stat/documents/meetingdocument/wcms_087943.pd
f