The Impact Assessment of Female Entrepreneurship on Household Income: An Empirical Analysis Based on Heckman Selection Model for Pakistan
Keywords:
Informal Labour Market, Household Finance, Wage Differentials, Employment Effect, JEL Code: J46, J31, G5, H31Abstract
Household enterprises provide employment opportunities, especially for females that not only enhance their entrepreneurial abilities but also generate substantial income. This income generation brings forth strength, confidence self-reliance, and empowerment that have a trickle-down effect on the economy. Household enterprises referred to as micro and small enterprises have played a significant role in socioeconomic development especially in removing financial constraints, improving self-confidence, and growing and realizing their potential through empowerment. The majority of female household enterprises found in the informal sector are the major source of income for poor households. Dual household responsibility time constraints and social-cultural norms hinder females from entering the labour force therefore household enterprises provide opportunities and well-being to the family. This research paper aims to analyze the impact of female entrepreneurship on household income. For this purpose of estimation used Pakistan Social Living Measurement Survey/Household Integrated Economic Survey data by the technique of Heckman-Selection Model throughout 2018-2019. The results show that female-owned enterprises play a pivotal role in socioeconomic development and are a major source of employment and income for poor households.
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