World Bank2013-03-242013-03-242006-09https://hdl.handle.net/10986/12865In an effort to improve employment outcomes and industrial productivity, the Government of Pakistan (GoP) has launched a dual-track reform process involving broad-based overhaul of labor laws and institutions, and expansion and reform of the Vocational and Technical Training (VTT) system. Labor market regulation and laws are useful economic and social institutions designed to protect workers from undesirable consequences of market failure such as arbitrary or discriminatory actions by employers. They also help stabilize employment and household incomes against aggregate business cycles and shocks. Labor regulation is also an important element of society's instruments for the provision of social security and the maintenance of health, safety, and environmental standards in economic activities. Labor regulation in Pakistan is excessive by international standards, as can be seen from data on a number of indicators of labor market flexibility. All things considered, Pakistani industry and workers will seem to be better off with a more flexible labor market. The report analyzes the existing labor laws and institutions, along with the new draft laws, from this point of view. It also provides a review of the current VTT system and changes for it.en-USCC BY 3.0 IGOACCOUNTINGADVERSE CONSEQUENCESAGE GROUPAGGREGATE DEMANDAVERAGE WAGEBASIC RIGHTSBUSINESS CYCLESCAREERSCASUAL WORKERSCHILD LABORCLERKSCOLLECTIVE BARGAININGCOMPETITIVE PRESSURESCONTRACT ENFORCEMENTCONTRACT LABORCONTRACTORCREATING JOBSDISMISSALECONOMIC GROWTHECONOMIC NEEDSECONOMICSEDUCATIONAL ATTAINMENTEMPLOYEEEMPLOYEE ASSOCIATIONSEMPLOYERSEMPLOYMENTEMPLOYMENT CONDITIONSEMPLOYMENT GENERATIONEMPLOYMENT GROWTHEMPLOYMENT GROWTH RATEEMPLOYMENT LEVELSEMPLOYMENT OPPORTUNITIESEMPLOYMENT OUTCOMESEMPLOYMENT PATTERNSEMPLOYMENT PROTECTION LEGISLATIONEMPLOYMENT RELATIONSHIPEMPLOYMENT RIGHTSEMPLOYMENT STABILITYEMPLOYMENT STATUSENTREPRENEURIAL SPIRITEXCESSIVE REGULATIONEXOGENOUS SHOCKSFACTOR MARKETSFEMALE EMPLOYMENTFEMALE LABORFEMALE LABOR FORCEFIRINGFIRING COSTSFIRM PRODUCTIVITYFORMAL LABOR MARKETGENERAL EQUILIBRIUMHIGH WAGEHIGH WAGE PREMIUMHIRINGHOUSEHOLD SURVEYHUMAN CAPITALHUMAN RESOURCEHUMAN RESOURCE DEVELOPMENTHUMAN RESOURCESINCOMEINCOME SUPPORTINDUSTRIAL LABORINFORMAL LABOR MARKETINFORMAL SECTORINNOVATIONINSURANCEINTERNATIONAL MARKETSISOLATIONJOB CREATIONJOB PLACEMENTJOB PLACEMENT SERVICESJOB SECURITYJOB SEEKERSJOB SKILLJOBLESS GROWTHJOBSKNOWLEDGE ECONOMYLABOR DEMANDLABOR DEMAND ELASTICITIESLABOR DEMAND ELASTICITYLABOR FORCELABOR FORCE PARTICIPATIONLABOR INPUTSLABOR INSPECTIONLABOR LAWLABOR LAWSLABOR LEGISLATIONLABOR MARKETLABOR MARKET FLEXIBILITYLABOR MARKET INDICATORSLABOR MARKET INSTITUTIONSLABOR MARKET OUTCOMESLABOR MARKET REFORMSLABOR MARKET REGULATIONLABOR MARKET RIGIDITYLABOR MARKET SEGMENTATIONLABOR MARKET SITUATIONLABOR MARKETSLABOR POLICYLABOR PRODUCTIVITYLABOR REGULATIONLABOR REGULATIONSLABOR REPRESENTATIVESLABOR SUPPLYLABOR UNIONLABOR UNIONSLABOURLABOUR FORCELABOUR FORCE GROWTHLABOUR REGULATIONLONG-TERM EMPLOYMENTLOW EMPLOYMENTMANPOWERMINIMUM WAGEMINIMUM WAGESMOTIVATIONNET JOB CREATIONOCCUPATIONOCCUPATIONAL HEALTHOCCUPATIONSON-THE-JOB TRAININGOPEN UNEMPLOYMENTOVERTIMEOVERTIME WORKPAYROLL TAXESPERMANENT EMPLOYMENTPERMANENT WORKERSPRESTIGEPRICE CONTROLSPRIVATE SECTORPRIVATE SERVICESPRODUCT MARKETPRODUCT MARKET REGULATIONPRODUCT MARKETSPRODUCTIVE ACTIVITIESPRODUCTIVE EMPLOYMENTPRODUCTIVITY GROWTHPRODUCTIVITY IMPROVEMENTSPRODUCTIVITY LEVELSPROFESSIONALSREAL WAGEREAL WAGESRECOMMENDATIONSREDUNDANCYRIGHT TO ORGANIZERURAL WORKERSSAFETYSAFETY NETSSAFETY STANDARDSSALARIED EMPLOYEESSALARIED WORKERSSERVICE PROVIDERSSEVERANCE PAYSEVERANCE PAY SCHEMESSEVERANCE PAYMENTSSKILL SHORTAGESSKILLED LABORSKILLS DEVELOPMENTSMALL BUSINESSSOCIAL PROTECTIONSOCIAL SECURITYSTAFFTECHNICAL ASSISTANCETEMPORARY EMPLOYMENTTEMPORARY WORKERTEMPORARY WORKERSTOTAL EMPLOYMENTTOTAL FACTOR PRODUCTIVITYTRADE UNIONSTRAINING INSTITUTIONSTRAINING PROGRAMTRAINING SERVICESUNDEREMPLOYMENTUNEMPLOYEDUNEMPLOYMENT PROBLEMUNION REPRESENTATIVESUNIONIZATIONURBAN EMPLOYMENTVOCATIONAL TRAININGWAGE DATAWAGE DETERMINATIONWAGE EMPLOYMENTWAGE GAINSWAGE GROWTHWAGE INCREASESWAGE RATEWAGE RATESWELL-FUNCTIONING LABOR MARKETWORK FORCEWORKERWORKER PRODUCTIVITYWORKERSWORKINGWORKING CAPITALWORKING CONDITIONWORKING CONDITIONSWORKING ENVIRONMENTWORKING HOURSWORKING POORWorld Bank10.1596/12865