Influence of Institutional Prerequisites on Earnings of Working Women in Khyber Pakhtunkhwa, Pakistan

Human welfare largely depends upon the earnings of individuals. Earnings reduce poverty, increase wealth, and accelerate economic development. Therefore, it is appropriate to thoroughly investigate the factors responsible for earnings. Various factors of earnings have been described and discussed in previous research work. The current study aims to examine the impact of institutional factors like job sector, harassment, status of the job, and job satisfaction on earnings of the working women in addition to the human capital variables using primary data directly collected from the respondents. Data were collected from 789 respondents in 2019 and in ten randomly selected districts of the Khyber Pakhtunkhwa (KP) province of Pakistan. The regression model was estimated by the Ordinary Least Squares (OLS) technique after fulfilling the assumptions of normality of residuals, heteroscedasticity, multicollinearity, and model specification tests. Regression results are in line with the previous research work showed that education and experience have a significant positive impact on the earnings of the working woman. Earnings of public sector employees exceeded private sector employees’ earnings. The status of the job revealed an insignificant impact on earnings. Job satisfaction and harassment also indicated an insignificant impact on earnings. It is concluded that institutional factors except the sector of the job have no influential impact on the earnings of working women in KP.