A Case Study of Pakistan Determinants of Female Labour Force in South Asia Furthermore, there are differences in the wage rates received by men and women for the similar levels of education. So, the relation between education and LFP cannot be analyzed from a simple lens that this theory tries to encapsulate. There are many other factors into play. Hence, as there is no monetary value attached to the domestic work and that too at the cost of their leisure. On top of it, is the lack of well-paying jobs for women so they may decide to opt-out of the labour market under such circumstances. To conclude, the point of this regression was not to tell exact estimates for the model may suffer from methodical issues some of which are explained below, but it does provide valuable insights and provide a holistic picture of the determinants which either directly or indirectly affect the women’s LFP decision so that targeted interventions can be taken for women’s education and their LFP. 6.2. Limitations of the study One main concern in this study is the problem of biased estimates. The model used may have methodological issues arising from the endogeneity of the education variable. Though the empirical results discussed above indicate that higher education has a positive impact on women’s labour force participation in Pakistan. However, this does not imply a causal relationship between the two as there could be other unobserved factors(not included in the model) that could affect both variables. For instance, individuals who belong to well-off families with a good social network may end up with employment opportunities and gain higher education. The reverse causality could also be valid as employed people would have the financial resources to pay for their higher education. One way to deal with this endogeneity issue in the model is to use Instrumental Variable(IV) for the endogenous variable“education”. It is a standard method to take control of measurement errors which are common especially in surveys. Finding a valid IV is not as straightforward. Certain conditions must be satisfied for a valid IV. To be considered valid, any potential IV must affect the LFP only through education and not otherwise( An Introduction to Instrumental Variables, n.d.). There are several IVs that have been used in the literature. For instance, Kuepie et al.(2013) have used parents’ education as a potential IV. Other authors have used the number of schools(Duflo, 2001) changes in the compulsory schooling laws, child labour laws(Riddell& Song, 2011) to create instrumental variables for education in their study. Another 46