Ethnicity and Earnings: An Analysis of Data for Karachi

Pakistan is today, a case study in ethnic strife. Carved out of pre- Independence India in 1947, the country is home to five broad ethnic groups: Punjabis (the dominant segment of the population), Balochis, Pathans and Sindhis. Each has a distinctive culture and language. In spite of broad similarities stemming from a common religion (more than 98 percent of the population is Muslim), several factors combine to create dissension and discord. The fifth ethnic group in Pakistan are the Muhajirs (which literally translates to “Immigrants”) who migrated to Pakistan in large numbers from India in 1947. Most of them settled in Karachi. Pakistan’s largest city, a teeming port city with a current population of around 12 million. Charges of favouritism in the award of jobs abound, and the Muhajirs in particular allege that, not being “sons of the soil,” they are singled out for discriminatory treatment. Given that this is the case, it is surprising that no study has been carried out to ascertain if indeed, earnings differences originate from ethnic differences in Pakistan. This study attempts to examine this issue, and thus settle questions that have led to many a pitched argument.

Ethnicity and Earnings: An Analysis of Data for Karachi

Pakistan is today, a case study in ethnic strife. Carved out of pre- Independence India in 1947, the country is home to five broad ethnic groups: Punjabis (the dominant segment of the population), Balochis, Pathans and Sindhis. Each has a distinctive culture and language. In spite of broad similarities stemming from a common religion (more than 98 percent of the population is Muslim), several factors combine to create dissension and discord. The fifth ethnic group in Pakistan are the Muhajirs (which literally translates to “Immigrants”) who migrated to Pakistan in large numbers from India in 1947. Most of them settled in Karachi. Pakistan’s largest city, a teeming port city with a current population of around 12 million. Charges of favouritism in the award of jobs abound, and the Muhajirs in particular allege that, not being “sons of the soil,” they are singled out for discriminatory treatment. Given that this is the case, it is surprising that no study has been carried out to ascertain if indeed, earnings differences originate from ethnic differences in Pakistan. This study attempts to examine this issue, and thus settle questions that have led to many a pitched argument

An Analysis of the Male-Female Earnings Differential in Pakistan

Several articles have examined the status of women in developing countries. But while numerous studies have attempted to estimate the extent of wage discrimination against women in the west, few such studies have been conducted for Third World cOWltries. The only such published study for Pakistan appears to be Ashraf and Ashrafs (1993) examination of the gender earnings differential for Rawalpindi City. Given the very restricted sample (based on just one city in Pakistan) and the relatively dated data (from 1975) used in that study, a need clearly exists for a more comprehensive examination of earnings by gender. This article represents the first intensive look into male-female earnings differentials, not only for Pakistan as a whole, but for each of its four provinces individually as well. Gender earnings differentials have also been calculated for a number of industrial subgroups. Computations have been made for the years 1979 and 1985-86.1 This allows the trend in the gender earnings gap to be tracked over that period. Data from the Household Income and Expenditure Surveys are used in the estimations for both the Oaxaca (1973) model as well as the more recently developed Cotton (1988) and Neumark (1988) models. A new twist is the incorporation of correction for selectivity bias in the sample data which strengthens the methodological underpinnings of the model

Volatility at Karachi Stock Exchange

Frequent “crashes” of the stock market reported during the year 1994 suggest that the Karachi bourse is rapidly converting into a volatile market. This cannot be viewed as a positive sign for this developing market of South Asia. Though heavy fluctuations in stock prices are not an unusual phenomena and it has been observed at almost all big and small exchanges of the world. Focusing on the reasons for such fluctuations is instructive and likely to have important policy implications. Proponents of the efficient market hypothesis argue that changes in stock prices are mainly dependent on the arrival of information regarding the expected returns from the stock. However, Fama (1965), French (1980), and French and Rolls (1986) observed that volatility is to some extent caused by trading itself. Portfolio insurance schemes also have the potential to increase volatility. Brady Commission’s Report provides useful insights into the effect of portfolio insurance schemes. It is interesting to note that many analysts consider the so-called “crashes” of Karachi stock market as a deliberate move to bring down prices. An attempt is made in this study to examine the effect of trading on the volatility of stock prices at Karachi Stock Exchange (KSE). Findings of the study will help understand the mechanism of the rise and fall of stock prices at the Karachi bourse

Reichenbach Fuzzy Set of Transitivity

Fuzzy implicators are the basic ingredients of many applications. So it becomes essential to study the various features of an implicator before implementing it in any practical application. This paper discusses the properties of transitivity of a fuzzy relation on a given universe and measure of fuzzy transitivity defined in terms of the Reichenbach fuzzy implicator which is an s-implicator

The Effects of Unions on Wages: Findings from Pooled Data

Cross-section and time-series data from the Panel Study of Income Dynamics from 1967 to 1981 are pooled generating a data set large enough to allow calculation of union-nonunion wage differentials for as many as 260 subgroups in the population. No previous study has examined as many groups. The diversity of groups considered within the framework of a common model and identical variable definitions allows a more precise intergroup comparison of union wage effects than has been possible hitherto. Many of the earlier results in the literature are supported, while some fresh ones are found.Nonunion; Union; Wage