Impact of Migration and Remittances on Labor Supply in Pakistan
Author: Kamran Khan

The study has used the PPHS-2010 to investigate how remittance flows affect the labor supply of left behind. Logit and Tobit models are used in the analysis. It is found that remittances are significantly and inversely related to overall labor force participation. This negative impact is more pronounced for the male labor than of female labor for force participation. Similarly, the negative impact of remittances is stronger in the labor supply of rural households than in urban areas. In the case of youth sample (15-29 years), remittances are found to be negatively associated with the supply of labor and all these findings are consistent with theory and literature. Education significantly enhances overall labor supply. Female participation in the labor market increases significantly when they have 10 or more years of schooling in their account. A model is also estimated for working hours of household members using the data of LFS 2010-11. It is found, by using OLS and Tobit models, that internal migration (in-migration) is positively related to working hours of household members. There is a need to educate remittances receiving households to invest money on business to engage their inactive adult members in economic activities. Supervisor:- Dr. G. M Arif

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Keywords : Labor Supply, Labor Supply-Pakistan, Migration, Migration and Remittances
Supervisor: Ghulam Muhammad Arif

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