Youth Inactivity and Its Impact on the Labour Market: A District-Level Analysis in Pakistan

Muhammad Shahid Waheed

MPRA Paper from University Library of Munich, Germany

Abstract: The present study seeks to find out how gender, age, area of living, parent background in terms of educational level and occupation determine the probability of youth to be out of the labour market in different districts of Pakistan. We utilize data from the labour force survey 2021. The study investigates the relationship between the inactivity rate and the probability of being employed, revealing a significant negative association between them. The study calculates for each district a revised version of the Human Opportunity Index developed by the World Bank. Third, we compute the contribution of each factor to that index. The results show that dissimilarity has a marked influence in most of the districts, the highest dissimilarity is in district Panjgur, Lasbela, Sherani, Kachhi, Kharan, South Waziristan, and Buner, while the major challenges with getting the youth onto the labour market are still in Balochistan and KP districts even after taking dissimilarity of unchangeable background into account.

Keywords: youth; Inactivity; inequality of opportunity; employment; dissimilarity (search for similar items in EconPapers)
JEL-codes: J70 (search for similar items in EconPapers)
Date: 2023-11-07
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:126308

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