Economic Analysis of Moonlighting and Wage Rate Determination in Higher Education Institutions of Khyber Pakhtunkhwa

Abstract

This study is based on economic analysis of moonlighting and wage rate determination in higher education institutes of Khyber Pakhtunkhwa. The main objective was to investigate the determinants of moonlighting and moonlighting wage in public sector universities of Khyber Pakhtunkhwa. Multi-stage sampling was used. In the first stage, the population was stratified into rural, semi urban and urban universities. A simple random sample of nine universities was selected from each stratum using proportional allocation method. In stage two, each of the selected universities (primary sampling units) were further stratified according to the designation of the faculty and a sample of 656 faculty members was selected using simple random sampling with proportional allocation of units‟ selection. Logistic regression was used for analysis based on the incidence of moonlighting or not moonlighting while generalized linear modeling and ordinary least square was used for moonlighting wage rate determinants. Wage rate of second job, accumulative wage of more than one second jobs, employment status and cadre, hours of work at second job, location and marital status were found significant in its effect towards moonlighting. Moonlighting wage rate was found to be significantly affected by location, age, hours of work at second job, and job grades. The study found a reliable measure which divided moonlighting into occupation specific and non occupation specific motives. There was found no significant difference between the need fulfillment of those who moonlight and those who does not. Moonlighters were found more need deficient in security, esteem and actualization needs. It was recommended to align the salaries of the employees across locations and wages at primary job to be increased and focus on need fulfillment may be prioritized. Moonlighting may be encouraged as it leads the moonlighters to improve their academic performance. However it should not suffer their efficiency at their primary work place. Moonlighting should be taken by choice and not by chance to meet/feel minimum need fulfillment deficiency. In some institutions where employees cannot be recruited on regular basis, moonlighters can help perform such duties and contribute to organizations in terms of teaching and research. So it should be encouraged.