The Impact Of Illness On Labour Force Participation In Pakistan
Author: Ali Haider Lodhi

Poor health has substantial consequences on labour force participation, as health is a major determinant of income and productivity. With the continued presence of communicable diseases and the increasing rate of non-communicable diseases in Pakistan, this double burden of disease imposes severe consequences on individuals’ labour force participation. This study estimates and compares the impact of communicable and non-communicable diseases on labour force participation, identifies the determinants of the impact, and analyses the existing policy landscape targeting both diseases and their direct impact on labour force participation in Pakistan. Using the Household Integrated Economic Survey 2013-14 and Out-of-Pocket Health Expenditure Survey 2013-14 administered under the National Health Accounts, the multivariate analysis of the impact of illness on labour force participation shows that there is a significant relationship between illness and labour force participation. In particular, there is a positive relationship between communicable disease and labour force participation and there is a negative relationship between non-communicable disease and labour force participation. The study also examines the indirect impact of both diseases on labour force participation via sociodemographic variables. The results indicate that there is a significant relationship between age, age squared, gender, region, transfers received by the household, highest level of education and province, and labour force participation. In light of the results, the study assesses the existing policy landscape that targets communicable and non-communicable diseases and their direct impact on labour force participation in Pakistan. It analyses three key building blocks to provide a holistic view of the ecosystem surrounding both types of diseases and their impact on labour force participation including governance and policy frameworks, health financing and programmes targeted at communicable and non-communicable diseases. Policymakers can improve the health status of the population, thereby improving labour force participation, by adopting a multi-sectoral policy approach that is effective in reducing the incidence and consequences of both diseases. Supervisor:- Dr. Shujaat Farooq

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Supervisor: Shujaat Farooq

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