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Tracing out the U‐shape relationship between female labor force participation rate and economic development for Pakistan

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  • Ambreen Fatima
  • Humera Sultana

Abstract

Purpose - Several studies have provided empirical evidence that female labor force participation rate exhibits a U‐shape during the process of economic development. The purpose of this paper is to explore the existence of U‐shape relationship in the case of Pakistan and if it does exist, what factors determine this U‐shape relationship? Design/methodology/approach - For the estimation purpose data according to provinces and regions are pooled for three years. The model is estimated using a simple fixed effect test. Findings - The results affirm the existence of U‐shaped relationship. Estimation of the pooled data attributed this U‐shape relationship with female education attainment, sectoral employment share, unemployment rate, wages and marital status. Results confirm that high rate of economic development is encouraging the female participation in the labor force by increasing the work opportunities for females. The females are taking full advantage of these increased opportunities by increasing their level of education attainment.Research limitations/implications– In testing the U‐shape hypothesis, household expenditure on fuel consumption representing level of economic development in the country is used as the data on GDP are not available at the provincial level. Practical implications - This paper recommends that skill‐based education programmes should be promoted so that females could be absorbed in the formal labor market. It also recommends measures to decrease unemployment rates and improve labor market conditions. Originality/value - The paper is first of its kind as it applied pooled data technique for the estimation of U‐shape relationship.

Suggested Citation

  • Ambreen Fatima & Humera Sultana, 2009. "Tracing out the U‐shape relationship between female labor force participation rate and economic development for Pakistan," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 36(1/2), pages 182-198, January.
    • Handle: RePEc:eme:ijsepp:v:36:y:2009:i:1/2:p:182-198
    DOI: 10.1108/03068290910921253
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    References listed on IDEAS

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    1. Salim Chishti & Akhtar Lodhi & Shahnaz Rashid, 1989. "FEMALE LABOUR PARTICIPATION BEHAVIOUR: A Case Study of Karachi," Pakistan Journal of Applied Economics, Applied Economics Research Centre, vol. 8(2), pages 157-165.
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    Cited by:

    1. Buhari Dogan & Mürsel Akyüz, 2017. "Female Labor Force Participation Rate And Economic Growth In The Framework Of Kuznets Curve: Evidence From Turkey," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 19, pages 33-54, June.
    2. Amaia Altuzarra & Catalina Gálvez-Gálvez & Ana González-Flores, 2019. "Economic Development and Female Labour Force Participation: The Case of European Union Countries," Sustainability, MDPI, vol. 11(7), pages 1-18, April.
    3. repec:ilo:ilowps:486789 is not listed on IDEAS
    4. Parida, Jajati Keshari & Bhagavatula, Niharika, 2023. "The labour market dilemma of young urban women in India: An outcome of family welfare optimization," World Development Perspectives, Elsevier, vol. 32(C).
    5. Chaudhuri, Sanjukta, 2010. "Women's Empowerment in South Asia and Southeast Asia: A Comparative Analysis," MPRA Paper 19686, University Library of Munich, Germany.
    6. Martina Miotto, 2023. "Colonialism, Cash Crops and Women in Africa," CERGE-EI Working Papers wp750, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    7. Muhammed QASIM & Muhammed Abrar ul HAQ & Tarik HUSSEIN & Charagh ROSHAN, 2018. "Does Women Well-being Matter for Demand and Development of Children?," EKOIST Journal of Econometrics and Statistics, Istanbul University, Faculty of Economics, vol. 14(29), pages 169-197, December.
    8. Ajide Folorunsho M., 2021. "Financial Inclusion and Labour Market Participation of Women in Selected Countries in Africa," Economics and Culture, Sciendo, vol. 18(1), pages 15-31, June.
    9. Alessandra Costagliola, 2021. "Labor Participation and Gender Inequalities in India: Traditional Gender Norms in India and the Decline in the Labor Force Participation Rate (LFPR)," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 64(3), pages 531-542, September.
    10. Chaudhary, Ruchika. & Verick, Sher., 2014. "Female labour force participation in India and beyond," ILO Working Papers 994867893402676, International Labour Organization.
    11. Santosh Mehrotra & Jajati K. Parida, 2021. "Stalled Structural Change Brings an Employment Crisis in India," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 64(2), pages 281-308, June.
    12. Berga, Helen & Abdisa, Lamessa T., 2022. "Assessing Gender Gap in Wage and Self-Employment: Evidence from Ethiopia," Ethiopian Journal of Economics, Ethiopian Economics Association, vol. 31(01), April.
    13. International Labour Office., 2012. "Global employment trends for youth : 2012," Global Employment Trends Reports 994802013402676, International Labour Office, Economic and Labour Market Analysis Department.
    14. Mehrotra, Santosh & Parida, Jajati K., 2017. "Why is the Labour Force Participation of Women Declining in India?," World Development, Elsevier, vol. 98(C), pages 360-380.
    15. Seyit Kose & Sahabettin Gunes, 2018. "Educational Attainments And Labor Participation Of Females Across The Turkish Regions: A Panel Data Approach," Eurasian Journal of Economics and Finance, Eurasian Publications, vol. 6(1), pages 1-15.
    16. Antara Bhattacharyya & Sushil Kr. Haldar, 2020. "Does U Feminisation Work in Female Labour Force Participation Rate? India: A Case Study," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 63(1), pages 143-160, March.
    17. Mame Cheikh Anta Sall & Adriana Burlea-Schiopoiu, 2021. "An Analysis of the Effects of Public Investment on Labor Demand through the Channel of Economic Growth with a Focus on Socio-Professional Categories and Gender," JRFM, MDPI, vol. 14(12), pages 1-16, December.

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