Impact of Family Background, Nepotism and Cronyism on Women Employment Status in Pakistan

Abstract

Female labor force participation is widely discussed issue in all over the world. Previous literature shows that women employment was mainly affected by family background but the current research shows that women employment is also affected by some external factors such as nepotism and cronyism. Results are revealing that though nepotism and cronyism has negative affect on economic progress but it has positive impact on women employment. Binary logit model has been used to find the impact of different factors. The results showed that the education of household has positive and significant relationship with job status. According to the results all variables of family background has strong impact on women employment. In private sector, the number of family members and nepotism has positive impact on employment status, because family firms appoint their relatives on references basis. Significant and positive impact of political affiliation revealed that the cronyism has also positive relation with employment.