Thursday, 6 September 2012

Poverty





                      
Zahoor Hussain Javed*,   **Aysha Asif
 * Assistant Professor, ** M.Phil Scholar Department of Economics, GC University, Faisalabad,
 Email: zahoorhj64@yahoo.com

Cell# 0092-3006501785
Fax # 0092-41-9200671




Abstract:
The study investigates relationship between poverty and role of feminine headed families. The binary Logistic regression and mean techniques are used to find the factors that influence the level of poverty.  Even though, mean variables analysis shows that total monthly income and consumption of the family are insignificant but there is no differentiation sandwiched between means of both variables of guy headed families and feminine headed families. Total value of assets own by family for feminine headed families and guy headed families are significant and there difference between means of both variables of guy headed families and feminine headed families.  In addition, the consequences of binary logistic regression model demonstrate that education has the accurate predictable sign but is not significant. The probabilities of the household show that poverty increase with boost of family size and consumption expenditures and decrease with increase of income and employment. Furthermore study explores that there is negative and significant relation between head of family and poverty. Feminine headed families are more liable toward poverty than guy headed families, this is so because feminine head                                                    families support more dependants and have better propensity to kids compared to another sort of families.
Key words: Feminine family, headship, poverty, Faisalabad, Pakistan

Introduction:
            This research investigates that women are poor as compare to men, owing to raise of feminine headed families, inequality of sexual characteristics, and restriction to access of land ownership, restriction to get education and in other productive activities. Furthermore, the raise of involvement of women in the in formalized economomics activities, create conflicts among the families and other relatives. Consequently, well-being of females is affected negatively and they sustain poor (Chant 1997; Bridge 2001; Moghadam, 2005).
Globally, it is acknowledged that feminine heads of families are on the increase and higher poverty rates among these families (Buvinic et. aI., 1978; Folbre, 1991; Fields and Casper, 2001). The greater parts of the women are faced the problems of poverty and they can not settle down their problems individually. In the Asia over the past two decades, the poverty among women has been increased at large scale in spite of economic pay back by developing countries. The same level of nutrition, satisfactions, pleasure, health, education, employment and access to productive resources are not enjoyed by women as men do. The policies regarding alleviation of poverty and infrastructures programmes are repeatedly formulated on the foundation of the household as the unit of assessment; therefore, the analysis of poverty in feminine headed families focuses on the household level, rather than the individual level. Thus feminine headed families do not exclude the men living in these families (Fuwa 1999; Judithand Lloyd 1992; Quisumbing et al. 1995).
In Pakistan, the information regarding poverty of women is quite inadequate and not much explores the status about feminine-headed families. Pakistan is generally a patriarchal society. Nonetheless, feminine headship has also acquired some visibility, apparently, as a residual category.  In Pakistan percentage distribution of families by gender headship is 6.4% feminine headed and 93.6% guy headed in the year of 2006-07 and 9% feminine headed families and 91% guy headed families in the year of 2007-8[1].  Total labour force participation is 70.2% from which 70.2% men and 22.8% women in the year of 2007-08. Total 8.14 million people in Punjab employed from which 7.20 million guys and only 0.94 million feminine are employed[2].  Total 56.6 % respondents had no personal income from which 33.3 % are guys and 78.7 % are feminine; in Punjab total 62.2% respondents had no personal income from which 37.5% were guys and 84.9% were feminine.[3]
Few research questions regarding feminine headed families and guy headed families are constructed as.
H1= what are the reasons for the pervasiveness of feminine headed families;
H2 = what are the reasons of the poverty of families; 
H3 = Why feminine headed families are poor then gentleman headed families;
H4 = are feminine headed families poorer because their low level of education, occupation, income, physical infrastructures, dependence ratio or any other reason.
The answers of these research questions are examined the status of poverty in feminine headed families and   guy headed families.
In this research investigation feminine headed families are defined as those feminine of families where no adult guys are present owing to separation, disconnection, immigration, non exodus or widow or any other grounds and facts.  This research defines head of families in economic rather than cultural terms. That is why a person is regard as head of families if he or she has major economic responsibility for his family because use of the typical UN description describes the unacceptable consequences that there are no feminine heads of families among married women at all. More clearly, the four types of economic household tasks, which qualifies women as head of the families. They are described as below:
 Category 1. In this type feminine has the full economic responsibility for her family due to non availability of adult guy members;
Category 2. Only the women in the family are wage earner;     
Category 3.  In the family feminine earnings is more than that of any other guy or feminine;     
Category 4. Wages of every one feminine in the family go over the joint earnings of all guys in the family. (Mohiuddin. Y, 1989)
The foremost purpose of this paper is to find that; either there is any remarkable relation between feminine headed families and poverty or not.
Review of Literature:
 Feminine headed families have been a foremost unit of analysis in the literature. The research investigates that guy-headed household are rich as compare to feminine-headed families.
This is so because guy-headed families as superior access to employment and having higher earning capabilities, by professional segregation, sexual characteristics, wages discrepancy and job oppturtunities.   Moreover, females have a greater tendency to encompass children as well as the burden of more dependents to support. (Roosenhouse1989, ILO 1996, Bridge1997, Fuwa1999). Previous study in this regard depicts that women more or less everywhere are deprived relative to men in their access to resources, credit, employment, and education. These disadvantages are primarily caused by their low qualifications which lead them to be segregated into unskilled and low paid job as well as lower economic status. Additionally, the heads of feminine-headed household in certain categories, namely, widowed, separated or divorced are unable to provide significant economic support to their household and therefore it is more difficult to attain the identical height of wellbeing as achieved in guy-headed families Consequently, it is often supposed that feminine-headed families are poorer than guy-headed families, (Folbre, 1991; United Nations, 1996; World Bank, 2001; Busapathumrong, 2006; Joshi, 2004).  Poverty: both in terms of returns and everyday expenditure have amplified in Pakistan. The frequency of poverty has increased amongst the feminine headed families as match up to to guy headed families The foremost grounds for present boost in poverty  owing to slight assembly of human capital, less approach to manual labor market and resources, injustice inside and outside dwelling, socio-cultural manners, and egotism of macroeconomic strategies to sexual characteristics issues. This research investigates that education above the primary level is significantly influenced worth, returns and reduced poverty level of the family. The results of logit regression model demonstrate that poverty is considerably associated with the schooling, level of employment, asset possession and professional selection Siddiqui, and Hamid, (2003).
As mentioned above, most studies concluded that feminine headed families are poor when compare with guy-headed families. Nevertheless, some studies shows that feminine headed families are not at all times worse off than guy headed families. For instance, a study in Vietnam found that feminine-headed families are not worse off economically than guy-headed families. The case of Vietnam suggests that feminine headship families are not the poorest families (Loi, 1996).
Appleton (1996) suggested that feminine-headed families in Uganda are less poor than guy-headed counterparts. Senada and Sergio (2007) investigate feminine-headed families are more susceptible to poverty in Bosnia and Herzegovina. Using yearly per capita consumption expenditure measure of poverty, they do not find any support for this claim.  Employing probit and logit estimations, the results from the analysis provide evidence that the relationship between feminine headed families and poverty depends on the choice of poverty measure. Specifically, poverty measures based on the housing condition and the wealth catalog show that feminine-headed families are less poor than guy-headed families. However, based on the standard of living index measure of poverty, feminine-headed families are marginally poorer than their guy-headed counterparts. Overall, the results do not provide evidence to support the claim that feminine-headed families are any poorer than guy-headed families and that they require special assistance (Ram Prasad, 2009). The various studies show that there is significant and positive association between feminine headed families and poverty (Buvinic and Gupta 1997 cited in Bridge 1995; Fuwa 1999; Joshi 2004). The results reported in study reveal that poverty, both in terms of POPI or and returns/spending, have augmented in Pakistan. The occurrence of poverty is also higher among the feminine headed families as compared to guy headed families (Siddiqui.R and Shahnaz .H, 2003). It is suggested that the high frequency of poverty in feminine headed families is occurred because of: these families have lesser returns, or lesser number of earners who earns wages than guy headed families. Furthermore, the feminine headed families have large number of children which cause to raises poverty ( Barros, Fox and Mendonca, 1997; Wood, 2000; Snyder and McLaughlin, 2004). Chaudhry (2003) and Awan et al. (2008). The results of the Awan et. al. (2008) give you an idea about that education is negatively linked with poverty and probability of poverty of employed person decreased significantly with the increase in education attainment. It is found that professional education reduced the chances of falling below poverty line by 99 percent as compared to primary education. He also concluded that feminines are more deprived and facing hardship in pulling themselves out of poverty as compare to men due to their unequal education and employment status.
Chaudhry (2003) measured education variable with the help of education codes. Education codes were in the farm of 0, 5 and 10 where 0 was assigned to illiterate members, 5 for educated up to secondary level and 10 up to college university level. Sum of these points was divided by the household size. This may lead to measurement bias. There existed a wide gap between illiteracy and secondary education. It would be better to approximate education in educational years. However, findings revealed that education codes were also negatively related with poverty.



Data and Methodology:
            The central point of this study is to detect the association between poverty and role of feminine headed families. Owing to lack of resources like money and valuable resources, the investigation of research is focused only and only to District Faisalabad. Regarding the nature of study primary data source is utilized. There are five Thesils in District Faisalabad, which is based on five Thesils. From these tehsils, two Tehsil namely Faisalabad and Tehsil Jaranwala are selected for investigation. Data is collected by simple random method. A complete interview agenda is organized to attain its objectives and goals. The randomly data is collected by survey of household of 80 feminine headed and guy headed families from recommended thesils. The investigator gets interview of every one of the respondents personally. The researcher togetherness information of all households as a whole, such as personal profile, education, marital status, family size, occupation, health facilities, employment, family income, consumption, status of house, and saving activities. In this regards Logistic Regression Analysis technique is used to find the required results.

   Level of age of the family head, sexual characteristics of the family head, schooling, and dependency ratio, level of family income and level of family spending are taken as exogenous variables. The level of age of family head is calculated on year's basis.  The family head's sexual characteristics is determined   as qualitative variable that is gender (guy = 1, feminine = 0).  Education is taken in form two dummies. Endogenous and earners variables are calculated on basis of the number of persons who earn in a family.
In the framework of logistic regression assessment, endogenous variables have the value of zero for not deprived families and 1 for deprived families.  As a result, O.L.S. cannot use to estimate the analysis of parameters thus; the maximum likelihood method is used for estimation. Conventionally, qualitative models are used to detect the results: They are based on: (1) logit technique (b) probability approach (c) probit approach. The Linear probability approach provides heteroscedasticity trouble and there is no assurance that probability will lie sandwiched between 0 and 1. The most significant thing is that in this representation probability is linearly associated with exogenous variables. Logit and probit techniques are used to shun from this problem. In these techniques probability remained between 0 and 1.  However, probability is not linearly associated with exogenous variables. Probit model is more sensitive for normality assumption whereas logit model supposes that it has logistic sharing. In nut shell, logit technique is employed in the this research to get required results_(Javed.et.al, 2011).
The Logistic Model:
The logistic model relates the independent variable, X, to the rolling mean of the dependent variable   Y. The formula may be written as;
Y = e c  +  d X / 1+ e c  +  d
or
Y =  1/ 1+ e - c  +  d X
  Where P is the probability of a 1, the mean of Y), e is the base of the natural logarithm c and d are called the parameters. The value of c provides Y when X is zero and d shows adjustment when one unit changes take place in X and b weights in logistic regression. Because the relation between X and Y is nonlinear, therefore d does not have a clear-cut explanation in this model.
In logistic regression, the dependent variable is a logit, which is the natural log of the odds, that is,
Ln (odds) = logit ( Y) = Log( Y/1-Y)
So a logit is a log of odds and odds are a function of P, the probability of a 1. In logistic regression, it can be found out
Logit (Y) = c + dX
logit(P) = a + bX,
This is supposed to be linear, that is, the logit is guessed to be linearly related to X,. As a result there is an ordinary regression hidden in there. Nevertheless, in theory ordinary regression with logits as   dependent variable,  
Ln (Y/1-Y) = c + d X
Y/ 1-Y =  e c  +  d X
 Y = e c  +  d X/ 1 + e c  +  d X
The simple probability is this unattractive equation. If log logits are linearly related to X, then the relation between X and Y is nonlinear (Gujarati, 2004).
Results and Discussion:

Table 1 revealed the test for comparison of means of total income of the family per month (Rs.), consumption of the family per month (Rs.), worth of property possess by family (Rs.),  gold 's worth hold by family (Rs.), vehicle's worth possess by family (Rs.), equipment's worth  own by family (Rs.) for feminine headed families and guy headed families.

Table 1: Comparison of Means of Selected Variables for Female Headed Families and Male- Headed Families.
Variables
Mean
t-stat
Sig.
Monthly income of the family (Rs.)
 feminine headed
15590.00
-1.991**

.051
      Guy headed
24442.50
 Consumption of the family per month(Rs.)
 feminine headed
13476.00
-1.457
.150
       Guy headed
16355.00
 Property worth possessby family (Rs.)
 feminine headed
605800.00
1.497
.139
      Guy headed
377500.00
 Worth of gold possess by family(Rs.)
 feminine headed
40590.00
-2.525***
.014
       Guy headed
127050.00
Worth of vehicle possess by family(Rs.)
 feminine headed
37640.00
-2.025**
.047
      Guy headed
147950.08
Total worth of piece of equipments possess by family(Rs.)
 feminine headed
28656.00
-2.118**
.038
      Guy headed
46005.00
  ***=1 percent level of significance, **=5 percent level of significance*=10 percent level of significance

Test of  Hypothesis: 

Assumption No.1
Ho = There is no difference of means of family’s monthly income for guy headed families against feminine headed families
H1 = There is difference of means of family’s monthly income for guy headed families versus feminine headed families
The proposition is examined through the family’s monthly income of the family heads. It is found that the mean value of monthly income of the family of feminine headed families is higher and significant, so there is significant difference between means family’s total monthly income of feminine headed and guy headed families.
Assumption No.2
Ho = There is no difference of means of monthly consumption expenditure of guy headed families against feminine headed families.
H1 = There is difference of means of monthly consumption expenditure of guy headed families against feminine headed families.
The proposition is examined through the monthly consumption expenditure of the heads. It is found that the mean value of monthly consumption of the family of guy headed families is higher than female headed families but not significant, so there is no difference between means of total monthly family consumption expenditure of guy headed and feminine headed families.
Assumption No.3
Ho = There is no difference of means of total family’s worth of property of feminine headed families against guy headed families.
H1 = There is difference of means of total family’s worth of property of feminine headed families against guy headed families.
The proposition is tested through the total family’s worth of property of the heads. It is found that the mean of total value of property own by family of the family of feminine headed families is higher and insignificant, so there is no difference between means of total value of property own by family of feminine headed and guy headed families.
Assumption No.4
Ho = There is no difference of means of total family’s worth of gold of guy headed families against feminine headed families.
H1 = There is difference of means of total family’s worth of gold of feminine headed families versus guy headed families.
The proposition is tested through the total family’s worth of gold of the heads. It is found that the mean of total value of property own by family of guy headed families is higher and significant, so there is difference between means of value of gold own by family of feminine headed and guy headed families.
Assumption No.5
Ho = There is no difference of means of total family’s worth of automobile equipments of guy headed families versus feminine headed families.
H1 = There is difference of means of total family’s worth of automobile equipments of guy headed families against feminine headed families.
The hypothesis is tested through the total family’s worth of automobile equipments of the heads. It is investigated that gay headed families have higher mean  of total value of automobiles equipments than female headed families and significant, so there is difference exist between means of total worth of automobiles equipments own by family of guy headed and feminine headed families.
Assumption No.6
Ho = There is no difference of means of whole family’s worth of appliances of guy headed families against feminine headed families.
H1 = There is difference of means of total family’s worth of appliances of feminine headed families against guy headed families.
The proposition is tested through the means of total value of price of equipments hold by family of the heads. It is found that the mean of total family’s electrical devices value of guy headed families is higher and significant, so there is difference between means total family’s worth of appliances of guy headed and feminine headed families.

Binary  Logistic  Regression  Analysis:
 The results of Logistic Regression in the regard of the Poverty are presented for feminine and guy-headed families in Table 2.
The exogenous variables are:
X1= Head of the family's age (in years)
X2 = Head of the family's education (in years);
X3 = Level family income
X4 = Level of consumption
 X5 =Location (=town, 0 = otherwise)
X6 = Level of family size
 X7 = status of headship (= 1 if guy headed, 0 = otherwise).

Table 2: Determinants of Poverty: A family Analysis
                     Results of Binary Logistic Regression Analysis
Variables
Coefficients
S.E
Sig.
Exp(B)
Age
0.056
0.051
0.274
1.057
Education
- 0.014
0.095
 0.884
 0.986
Place
-0.948
1.064
0.373
0.388
Log of Family Income
-26.72**
8.713
0.002
0
Log of consumption
   23.759***
8.317
0.005
2.08E+10
Family Size
1.86***
0.554
0.001
6.427
Headship
2.539**
1.203
0.035
12.667
 Endogenous Variable = assumed the value of 1 if poor and 0 otherwise.
 ***Indicates that the coefficients were significant at 1 percent level.
 **Indicates that the coefficients were significant at 5 percent level.
 * Indicates that the coefficients were significant at 10 percent level.

Endogenous variable has the value of 1 for a family who lives below poverty line and 0 otherwise.  In this research family head’s age of the family head’s sexual characteristics, the family head’s education level, size of family, returns of family and spending of family are used as exogenous variables. Outcomes indicated that family returns, spending, education, dependency ratio and headship status are significant in determination of poverty. The research analysis reports show that schooling and family returns are negatively related with the probability of poverty.
There is negative relationship between dependency ratio and poverty as the dependency ratio increase the poverty decreases. There was negative relationship between volume of family returns and poverty as family returns increase the poverty decrease. This study shows positive relationship between level of consumption of the family and poverty. As well as monthly consumption of the family increases the probability of poverty also increases.  
Education attainment of the household head asserted negative relationship with the probability of poverty. Probability of poverty among sampled families decreased with the increase in educational years of household heads. Thus poverty is less in a household where the head completes primary education or above than in one where he or she is illiterate. The results of this study match up with the findings of
The variable age possessed the correct expected sign but is not significant. In many families there was more than 1 earner so age of the household head may not matter so much.
It was concluded that families with guy head, educated heads, higher dependency ratio, sufficient family income and controlled consumption were less likely to be poor.






Conclusion:
            The study is based on feminine headed families and their association with poverty. Compare mean analysis and logistic model are used to detect the association. Compare mean is used for difference variables to compare their means. Significance level is checked by T-test. The factors that affect the probability of poverty are tested by the binary the logistic regression. In compare mean analysis the family’s whole monthly returns (Rs.), the family’s whole monthly consumption (Rs.) are insignificant and there is no disparity between means of both variables of feminine headed families and guy headed families. Family’s total value of property (Rs.), family’s whole worth of gold (Rs.), family’s whole worth of automobile equipments (Rs.),  family’s whole worth of electronics equipments (Rs.) for  feminine headed families and guy headed families were significant and there is  disparity exist between means of both variables of guy headed families and  feminine headed families. 
  The outcome of binary logistic model demonstrated that the level of age and level of education variables have the accurate predictable sign but these are not significant. In abundant families there is more than 1 earner. The probabilities of the family on the subject of the poverty increase with size of family, and level of consumption. The probability of the family regarding with the decrease of poverty is associated with augment of income and employment. There is negative and significant relation between worth of head of household and poverty. Feminine headed families are extra vulnerable in the direction of poverty than guy headed families. Feminine headed families are not as good as because they prop up more dependants, i.e. have a upper ratio of unemployed persons and a larger propensity to have children. Furthermore, feminine heads have fewer assets, inferior access to remunerative jobs a lower earning capacity possibly caused by occupational isolation, gender earnings discrepancy and unemployment, and productive resources than guy-headed ones.

















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[1] Source: Pakistan Social and Living Standards Measurement Survey (PSLM) 2006-07 and 2007-08.
[2] Labour Force Survey, FBS. 2006-.7 and 2007-08.
[3] Source: Time Use Survey 2007, FBS.

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