ENTREPRENEURSHIP AND HOUSEHOLD WEALTH: COMPARING EMPLOYERS AND SELF-EMPLOYED NON-AGRICULTURAL HOUSEHOLDS IN PAKISTAN

Abstract

This study examines whether all non-agricultural entrepreneurs benefit equally in terms of household wealth in Pakistan. Using nationally representative PSLM 2019-20 data and a large sample of 35,503 entrepreneurial households, the analysis compares self-employed households with those led by employers. A PCA-based household wealth index is used as the outcome, and a series of baseline and extended OLS models are estimated. The results show a clear and strong wealth premium for employer households. This advantage remains significant after controlling for region, province, gender, education, age, marital status and household size. The analysis also reveals meaningful regional and provincial heterogeneity, with stronger gains in urban areas, Punjab and Khyber Pakhtunkhwa. The findings highlight that entrepreneurship is not uniform. Higher-tier, employment-generating entrepreneurship delivers stronger economic returns and greater household security, pointing to the need for supportive, region-sensitive entrepreneurship policy.

Keywords: Entrepreneurship, Household Wealth, Employers vs Self-employed, Regional Heterogeneity, Pakistan.