Urban Informal Sector: How much Women are Struggling for Family Survival

Khan, Tasnim and Khan, Rana Ejaz Ali Khan (2006): Urban Informal Sector: How much Women are Struggling for Family Survival.

Abstract

Abstract: The paper analyzed the contribution of informally employed women (for the age group of 16-60 years) in their household budget. The urban informal sector absorbs the women workers largely. What are the determinants of their contribution in their household budgets to make survival of the families is the core of the study. Applying OLS model on 937 observations it is found that women as head of household, women’s education, and ownership of assets by woman have positive effect on contribution. The burden of the large family size, household poverty and loan availed by the household is shared by the informally employed women, as these variables positively affect their contribution. Age of the woman has a non-linear effect on woman’s contribution. First the contribution increases and then decreases by increase in age of the woman. Married women and women living in nuclear families contribute more to household budget. The household per capita income and number of children (5-15 years) in the household have shown negative effect on contribution of women in household budget. The household’s economic vulnerability due to unemployment of husband and lower productivity caused by lower education of husband is also largely shared by the urban informally employed women, i.e. they struggle more for family survival. However, number of adult males in the household decreases the volume of contribution of woman and burden on woman is relaxed.

• Item Type: MPRA Paper
• Language: English
• Keywords: Women, Household Economics, Labor Supply, Female Employment, Poverty.
• Subjects: J - Labor and Demographic Economics > J1 - Demographic Economics > J13 - Fertility ; Family Planning ; Child Care ; Children ; Youth; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O15 - Human Resources ; Human Development ; Income Distribution ; Migration; J - Labor and Demographic Economics > J2 - Demand and Supply of Labor > J22 - Time Allocation and Labor Supply; J - Labor and Demographic Economics > J1 - Demographic Economics > J16 - Economics of Gender ; Non-labor Discrimination

References

Abadian, S. (1996) “Women’s Autonomy and its Impact on Fertility”, World Development Review, 24(12):1793-1809.

ADB (2002) Poverty in Pakistan: Issues, Causes and International Perspective. Islamabad: Asian Development Bank (ADB), Resident Office.

Alderman, H. and S. Chistie (1991) “Simultaneous Determinants of Household and Market-Oriented Activities of Rural Women in Pakistan”, Research in Population Economics, 7:245-265.

Azid, T., M. Aslam and M. Omer (2001) “Poverty, Female Labor Force Participation, and Cottage Industry: A Case Study of Cloth Embroidery in Rural Multan”, Pakistan Development Review, 40(4):1105-18.

Becker, G. (1980) The Theory of the Allocation of Time, in Aliech Amsden (ed.) The Economics of Women and Work. Penguin Books, England.

Behrman, J. and M. Rosenzweig (1994) “Caveat Emptor: Cross-country Data on Education and Labor Force”, Journal of Development Economics, 44(1):147-72.

Bell, C. H. (1974) “Working Women’s Contribution to Family Income”, Eastern Economic Journal, 17:185-201. Benham, L. (1980) “Benefits of Women Education within Marriage”, Journal of Political Economy, 82(2): part II.

Borooah, V. and P. Mckee (1996) “How much Did Working Wives Contribute to Change in Income Inequality Between Couples in the UK”, Fiscal Studies, 17(1):59-78.

Buvinic, M. and G. Gupta (1993) Responding to Insecurity in the 1990s: Targeting Women-Headed and Women-Maintained Families in Developing Countries. London: London School of Economics.

Camps-Cura, E. (1998) “Transition in Women’s and Children’s Work Pattern and Implications for the Study of Family Income and Household Structure: A Case Study from the Catalan Textile Sector (1880-1925)”, The History of the Family, 3(2):137-153.

Cancian, M. S., Danziger and P. Gottschalk (1993) Working Wives and Family Income Inequality Among Married Couples, In S. Danziger and P. Gottschalk (eds.) Uneven Tides. Russel Sage Foundation, New York.

Cancian, M., S. Danziger and Gottschalk (1991a) The Changing Contribution of Men and Women to the Level and Distribution of Family Income, 1968-1988. Working Paper No.62. Jerome Levy Economics Institute of Bard College.

Cancian, M., S. Danziger and Gottschalk (1991b) Working Wives and the Distribution of Family Income, In S. Danziger and P. Gottschalk (eds.) Increasing Income Inequality: What Matters and What Does not. Russel Sage Foundation, New York.

Chanie, J. (1994) “Population Databases in Development”, Journal of Development Economics, 44(1):131-46.

Charmes, J. (1998) Women Working in the Informal Sector in Africa: New Methods and Data. United Nations Statistics Division. Gender and Development Program. UNDP.

Charmes, J. (2000) African Women in Food Processing: A Major, But Still Underestimated Sector of Their Contribution to the National Economy. Paper prepared for the International Development Research Center (IDRC).

Coady, D., X. Dai and L. Wang (2001) Community Programs and Women’s Participation: The Chinese Experience. Policy Research Working Paper 2622. The World Bank: East Asia and Pacific Region.

Danziger, S. (1980) “Do Working Wives Increase Family Income Inequality?” Journal of Human Resources, 15:444-451.

Doss, C. R. (1996) Women’s Bargaining Power in Household Economic Decisions: Evidence from Ghana. Staff Paper Series, Department of Applied Economics, College of Agricultural, Food, and Environmental Sciences, University of Minnesota.

Duncan, K. C., M. J. Prus and J. G. Scandy (1993) “Marital Status, Children and Women’s Labor Market Choices”, Journal of Socio-Economics, 22(3):277-288.

Eapen, M. (2004) Women and Work Mobility: Some Disquieting Evidences from the Indian Data. Paper Presented at a National Seminar on “Globalization and Women’s Work”. Organized by the V.V, Giri National Labour Institute, Noida Delhi on March 25-26, 2004.

Eapen, M. and P. Kodoth (2002) Family Structure, Women’ Education and Work: Re-examining the High Status of Women in Kerala. Working Paper No.341. Center for Development Studies, New Delhi.

Escriche, L., G. Olcina and R. Sanchez (2004) “Gender Discrimination and Intergenerational Transmission of Preferences”, Oxford Economic Papers, 56(4):85-511.

Fafchamps, M. and A. R. Quisumbing (2003) “Social Roles, Human Capital, and the Intra-household Division of Labor: Evidence from Pakistan”, Oxford Economic Papers, 55: 36-80.

FBS (2003) Pakistan Labor Force Survey 2001-2002. Islamabad: Federal Bureau of Statistics (FBS). Government of Pakistan.

Gonzalez, L. (2004) “Single Mothers and Work”, Socio-Economic Review, 2:285-313.

GOP (2004) Economic Survey 2003-04. Islamabad: Finance Division, Economic Advisor’s Wing. Government of Pakistan (GOP).

GOP (2006) Labor Protection Policy 2006. Ministry of Labor, Manpower, and Overseas Pakistanis, Government of Pakistan (GOP), Pakistan.

Hafeez, A. and E. Ahmed (2002) Factors Affecting Labor Force Participation Decision of Educated Married Women in a Punjabi District. Islamabad: Sustainable Development Policy Institute.

Hamid, S. (1991) “Determinants of the Supply of Women in the Labor Market: A Micro Analysis”, Pakistan Development Review, 345(4):755-766.

Hartog, J. and J. Theevwes (1986) “Participation and Hours of Work: Two Stages in the Life-Cycle of Married Women”, European Economic Review, 30(4):833-857. 28

Heckman, J. (1974) “Shadow Prices, Market Wages and Labor Supply”, Econometrica, 12:679-694.

Hoffmann, R. and E. T. Leone (2004) “The Effect of Women’s Labor Force Participation on Household Income Inequality in Brazil, 1981-2002”, Nova Economia, 14(2):35-58.

Iacovou, M. (2001) “Fertility and Female Labor Supply”, ISER Working Paper No.2001-19. The Institute of Social and Economic Research (ISER). University of Essex, U.K.

Illahi, N. and F. Grimard (2000) “Public Infrastructure and Private Costs: Water Supply and Time Allocation of Women in Rural Pakistan”, Economic Development and Cultural Change, 49(1): 45-75.

ILO (2002) Women and Men in the Informal Economy: A Statistical Picture. International Labor Office, Geneva.

Irfan, M. (1983) The Determinations of Female Labor Force Participation in Pakistan. Project Report No.5. Studies in Population, Labor Force and Migration, Pakistan Institute of Development Economics (PIDE), Islamabad.

Jones, L. E., R. E. Manuelli and E. R. Mcgrattan (2003) Why are Married Women Working So Much? Staff Report 317. Federal Reserve Bank of Minneapolis.

Karoly, L. A. (1991) The Trend in Inequality Among Families, Individuals and Workers in United States: A Twenty Five Years Perspective. In S. Danziger and P. Gottschalk (eds.) Increasing Income Inequality-What Matters and What Doesnot. Russel Sage Foundation, New York.

Kazi, S. and B. Raza (1991) “Duality of Female Employment in Pakistan”, The Pakistan Development Review, 30(4):733-743.

Kazi, S. and Z. A. Sathar (1986) “Productive and Reproductive Choices: Report of a Pilot Survey of Urban Working Women in Karachi”, The Pakistan Development Review, 25(1):593-606.

Khan, R. E. A. and T. Khan (2007) “Informally Employed Women: Their Characteristics and Contribution in Household Budget”, Journal of Applied Sciences, 7(14):1901-1907.

Khan, S. R., S. G. Khattak and S. Kazmi (2005) Hazardous Home Based Subcontracted Work: A Study of Multiple Tiered Exploitation. SDPI. Oxford University Press.

Khan, T. and R. E. A. Khan (2008) “Household Characteristics: How much They Affect Women’s Contribution in Household Budget”, Indian Journal of Labor Economics, (Forthcoming).

Khattak, S. and A. Sayeed (2000) Subcontracted Women Workers in the World Economy: The Case of Pakistan. SDPI Monograph Series No.15, Sustainable Development Policy Institute (SDPI), Islamabad.

Kozel, V. and H. Alderman (1990) Factors Determining Work Participation and Labour Supply Decisions in Pakistan’s Urban Areas. Paper presented at fifth annual general meeting of Pakistan Institute of Development Economics, Islamabad, January 4-6.

La Ferrara, E. (2002) “Self Help Groups and Income Generations in the Informal Settlements of Nairobi”, Journal of African Economies, 11 (1): 61-89.

Lodhi, A. and A. Harson (1996) “You are not Excused from Cooking: Peasants and the Gender Division of Labor in Pakistan”, Feminist Economics, 2(2):87-105.

Lokshin, M. L., E. Glinkaya and M. Garcia (2000) The Effect of Early Childhood Development Programs on Women’s Labour Force Participation and Older Children’s Schooling in Kenya. Policy Research Working Paper 2376. The World Bank.

Louat, F. et. al. (1993) “Welfare Implications of Female Headship in Jamaican Households”, LSMS Working Paper No. 96. The World Bank, Washington, D.C.

Machin, S. and J. Waldfogel (1994) The Decline of the Male Breadwinner. Discussion Paper No. 10. London School of Economics.

Mason, A. and J. Lampietti (1989) “Integrating Gender into Poverty Analysis in Concepts and Methods”, Working Paper. The World Bank, Washington, D.C.

McGrattan, R. E. and R. Rogerson (2004) “Changing in Hours Worked, 1950-2000”, Quarterly Review, 28(1):9-12.

Mehrotra, S. and M. Biggeri (2002) Social Protection in the Informal Economy: Home Based Women Workers and Outsourced Manufacturing in Asia. Innocenti Working Paper No. 97. Innocenti Research Centre, UNICEF, Florence.

MHDC (2000) Human Development in South Asia. Islamabad: Hahboob-ul-Haq Development Centre (MHDC).

Mohiuddin, Y. (1982) “Female Handicraft Workers: The Invisible Hands”, Pakistan and Gulf Economist, July 20-26:44-47.

Naqvi, Z. F. and L. Shahnaz (2002) “How Do Women Decide to Work in Pakistan”, Pakistan Development Review, 41(2):495-513.

Pangestu, M. and M. K. Hendytio (1997) “Survey Response from Women Workers in Indonesia’s Textile, Garment, and Footwear Industries”, Policy Research Working Paper. The World Bank, Washington, D.C.

Ramachandran, V. K., M. Swaminathan and V. Rawal (2001) How Have Hired Workers Fared? A Case Study of Women Workers from an Indian Village, 1977-1999. Working paper number 323. Indira Gandhi Institute of Development Research, Mumbai.

Ray, R. (2000) “Poverty and Expenditure Pattern of Households in Pakistan and South Africa: A comparative Study”, Journal of International Development, 12(2):241-56.

Rosenhouse, S. (1989) “Identifying the Poor: Is “Headship” a useful concept”, LSMS Working Paper No.58. The World Bank, Washington, D.C.

Sathar, Z. A. and S. Kazi (1989) “Female Employment and Fertility: Further Investigations of an Ambivalent Association”, Pakistan Development Review, 28(2):175-194.

Shaheed, F. and K. Mumtaz (1981) Invisible Workers: Piecework Laborer among Women in Lahore. B. K. M. Associates Lahore and Women's Division, Government of Pakistan, Islamabad.

Shaw, K. (2005) “Women’s Contribution to Productivity”, Regional Review, (1):45-48.

Srinivasan, P. and J. Dreze (1995) Widowhood and Poverty in Rural India. Bombay: Indra Gandhi Institute of Development Research.

Srinivasan, T. N. (1994) “Data Bases for Development Analysis: An Overview”, Journal of Development Economics, 44(1):3-28.

Sultana, N., H. Nazli and S. J. Malik (1994) “Determinants of Female Time Allocation in Selected Districts of Rural Pakistan”, Pakistan Development Review, 33(4):1141-1153.

Varley, A. (1996) “Women-headed Households: Some More Equal than Others?”, World Development, 24:505-520.

Wion, D. A. (1990) “Working Wives and Earnings Inequality Among Married Couples 1967-84” Review of Social Economy, 48:18-24. 31