Globalization-Female Labour Participation Nexus in Pakistan: A Dynamic Analysis.

Abstract

Background: The process of globalization is defined as a process of integration with the globe through trade, foreign investment, and the transfer of technology and migration from one region to another. There is a need to investigate whether increasing dependency and interconnectedness among various regions can bring any advantage for female labor while opening a new venue or creating hurdles. The main objective of this study is to empirically investigate the impact of globalization on female labor participation using time series data. This study also considers the impact of the economic situation, education, and health on the female labour supply in Pakistan.

Methodology: Female labour force participation rate is a dependent variable, whereas; Globalization Index, Economic Misery Index, school enrolment ratio, fertility rate, and GDP growth are independent variables. The ARDL bound testing approach has been used for data analysis to estimate the model. The time series data was collected from secondary data from 1973 to 2019.

Results: The study's finding proves globalization's negative and significant impact on female labour participation in Pakistan. The increasing trend of globalization is not supporting domestic employment opportunities for females. Rather, it pushed females back from the labor market due to the demand for more skilled labor and the replacing human labor with technology. Moreover, the lack of education and health facilities and the worse economic situation have overturned globalization's positive effects on females. 

Conclusion: Based on the study's findings, it is suggested to improve female skills through investment in different education, training, and skills development programs to cope with the imminent challenges of globalization on females in Pakistan. Even though researchers have highlighted the impact of globalization on female labour, however; it has not been investigated comprehensively in the context of Pakistan. This study aims to fill this gap by investigating the impact of globalization on females, considering the Economic Misery Index, school enrolment ratio, fertility rate, and GDP growth.