An Analysis of Occupational Choice in Pakistan: A Multinomial Approach

Abstract

Occupational choice plays an important role in determining earnings and success in the labour market. In the social structure of Pakistan, an occupation reflects the socio-economic status of the individual. In this backdrop, the paper looks at the occupational structure and analyses how different characteristics help individuals to access jobs of their choice. The main issue discussed in the paper is how men and women have a different occupation distribution. Estimates are based on a multinomial log model of occupation choices for men and women, using the Pakistan Integrated Household Survey (PIHS) 2001-02 data. The empirical results show that individuals with high educational achievements choose high-ranking jobs. It is also noted that gender has a role in the labour market and males are sorted out in high-paying occupation. Occupational choice is influenced more by the human capital variables than by the individual characteristics. Among human capital variables, education has the strongest impact in the selection of an occupation of choice.