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Wait Unemployment

PIDE Working Papers
2007:20
Preference for Public Sector
Jobs and Wait Unemployment:
A Micro Data Analysis
Asma Hyder
Visiting Fellow
Pakistan Institute of Development Economics, Islamabad
PAKISTAN INSTITUTE OF DEVELOPMENT ECONOMICS
ISLAMABAD
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© Pakistan Institute of Development
Economics, 2007.
Pakistan Institute of Development Economics
Islamabad, Pakistan
E-mail: publications@pide.org.pk
Website: http://www.pide.org.pk
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Designed, composed, and finished at the Publications Division, PIDE.
C O N T E N T S
Page
Abstract v
Introduction 1
Some Background Issues 2
Data 2
Econometric Methodology 4
Empirical Results 6
Conclusions 9
Appendices 11
References 17
List of Tables
Appendix Table 1. Variable Descriptions 11
Appendix Table 2. Variable Summary Statistics 12
Appendix Table 3. Job Preference and Unemployment Duration Models 13
Appendix Table 4. OLS Wage Equation Estimates for Sectoral
Equations 14
Appendix Table 5. Public Sector Wage Differentials 15
Appendix Table 6. Multinomial Logit Results 16
4
ABSTRACT
This paper exploits responses on the stated preferences for public sector
jobs among a sample of unemployed in Pakistan to inform on the existence of
public sector job queues. The empirical approach allowed job preference to
influence unemployment duration. The potential wage advantage an
unemployed individual would enjoy in a public sector job was found to exert no
independent influence on the stated preference indicating that fringe benefits and
work conditions are perhaps more important considerations. The stated
preference for a public sector job was found to be...