Department of Economics and Statistics, Dr. Hasan Murad School of Management (HSM), University of Management and Technology Lahore, Pakistan
Abstract
Having to work in a sub optimal capacity is a socio economic problem which is apparently veiled but it is equally detrimental as having no work to do. This study intends to compare the demographic factors of Pakistan which determine underemployment and two sub components such as voluntary underemployment non-voluntary underemployment which lacked focus in past studies conducted in Pakistan. The present study filled this gap by measuring the different dimensions and the determinants of underemployment using the micro data from Labor Force Survey (2010-11). The estimates indicate that females, people living in rural areas and the province Khyber Pakhtunkhwa (KPK) have higher tendency to be voluntarily underemployed, head of households are less likely to be underemployed. Employees are less likely to be voluntary underemployed. Out of underemployed persons, only a small percentage of people have involuntary reasons for working less than 35 hours otherwise a high percentage of employed people have voluntary reasons. This shows the presence of voluntary underemployment at a very large extent in Pakistan
