Open AccessImpact of Freedom of Choice on Income: An Evidence from Pakistan
Author(s) -
Humaira Mumtaz,
Muhammad Asif Malik,
Haroon Javaid,
Asad ur Rehman Naseer
Publication year - 2019
Publication title -
journal of economic impact
Language(s) - English
Resource type - Journals
eISSN - 2664-9764
pISSN - 2664-9756
DOI - 10.52223/jei0102195
Subject(s) - loneliness , economic freedom , freedom of choice , variables , world values survey , value (mathematics) , demographic economics , variable (mathematics) , economics , psychology , social psychology , mathematics , mathematical analysis , statistics , market economy
People make hundreds of economic decisions each day, from what they will eat or even to decide career move. Research advocates that human behavior is strongly affected by freedom given to him and those blocks avoid them to act in accordance to their interests. The current study under hand is an attempt to explore the impact of freedom of choice on household incomes. Study consumed World Value Survey data for the years 2012-2014 for Pakistan. A simple Linear Regression analysis was used to measure the psychological behaviors on decisions which further affects the income of households in Pakistan (N=1200 where Punjab=604, Sindh=278, KPK=168 and Balochistan=150 ). Here Income of an individual is taken as dependent variable and Socio-economic variables (Freedom of choice, Mistrust, Risk aversion, Creativity, Loneliness, Age, Gender, Employment level, No. of children) were taken as independent variables. Study revealed that freedom has a positive impact on income of an individual. It is also concluded by the research that persons with higher level of perceived decision freedom tend to be more resilient and ultimately finds best ways to increase his income level.