This study examines the impact of female wages, unemployment, foreign remittances and globalization on female labour supply over the period from 1980 to 2010. We have applied the autoregressive distributive lag (ARDL) bounds testing to test whether cointegration exists between variables. Our results show that variables are integrated for a long-run relationship. Moreover, female wages attract female labour supply. Foreign remittances and globalization raise female labour supply, whereas unemployment lowers it. The relation between female wages and female labour supply is U-shaped. The causality analysis reveals that female wages, foreign remittances, globalization and unemployment Granger affect female labour supply.
AbbasA. (2013). Determinants of women’s labour supply in Bangladesh and Pakistan. Department of Economics, Master Thesis, Spring2013, 15 ECTS.
2.
AfzalM. (2006). The impact of globalization on economic growth of Pakistan. The Pakistan Development Review, 46(4), 723–734.
3.
Amuedo-DorantesC., & PozoS. (2005). International remittances and their employment implications in receiving areas. Preliminary draft of paper prepared for the 2005 SOLE/EALE conference meeting.
4.
ArifG.M., MuhammadF.K., & KhalidH.S. (2002). Labor market dynamics in Pakistan: Evidence from the longitudinal data. The Pakistan Development Review, 41(4), 701–720.
5.
Bahmani-OskooeeM., & NasirA.B.M. (2004). ARDL approach to test the productivity bias hypothesis. Review of Development Economics, 8(3), 483–488.
6.
BanerjeeA.V., & NewmanA.F. (1993). Occupational choice and the process of development. Journal of Political Economy, 101(2), 274–298.
7.
BannerjeeA., DoladoJ., & MestreR. (1998). Error-correction mechanism tests for co-integration in single equation framework. Journal of Time Series Analysis, 19(3), 267–283.
8.
BasuK., & VanP.H. (1998). The economics of child labor. American Economic Review, 88(3), 412–427.
9.
CanalesA. (2007). Remittances, development and poverty in Mexico: A critical view. In Zarate-HoyosG.A. (Ed.), New perspectives from remittances from Mexicans and Central American in the United States (Chapter 3). Germany: Kassel University Press.
10.
ChaudharyM.G., & KhanZ. (1987). Female labor force participation rates in rural Pakistan: Some fundamental explanations and policy implications. The Pakistan Development Review, 24(4), 687–696.
11.
DrinkwaterS., LevineP., & LottiE. (2003). The labour market effects of remittances. FLOWENLA Discussion Paper, 2003, No. 6, Hamburg Institute of International Economics.
12.
EjazM. (2011). The determinants of female labor force participation in Pakistan: An instrumental variable approach. CREB Working Paper No. 01-11, Lahore School of Economics, Lahore, Pakistan.
13.
EmilssonA. (2011). The impact of remittances on labor supply: The case of Jordon. Master thesis, NEKMOI, Lund University, 39.
14.
FaridiM.Z., & BasitA.B. (2011). Factors determining rural labour supply: A micro analysis. Pakistan Economic and Social Review, 49(1), 91–108.
15.
FunkhouserE. (1992). Mass emigration, remittances and economic adjustment: The case of El Salvador in the 1980s. In BorjasG. & FreemanR. (Eds), Immigration and workforce (Chapter 5). Chicago: University of Chicago Press.
16.
FunkhouserE. (2006). The effect of emigration on the labor market outcomes of the sender household: A longitudinal approach using data from Nicaragua. Well-Being and Social Policy, 2(2), 5–27.
17.
GillaniI., KhanF.M., & IqbalM. (1981). Labor migration from Pakistan to the Middle East and its impact on the domestic economy. Pakistan Institute of Development Economics, Islamabad, Research Report Series 126.
18.
GrangerC.W.J. (1969). Investigating causal relations by econometric models and cross-spectral methods. Econometrica, 37(3), 24–36.
19.
GubertF. (2002). Do migrants insure those who stay behind? Evidence from the Kayes area (Western Mali). Oxford Development Studies, 30(3), 267–287.
20.
JohansenS., & JuseliusK. (1990). Maximum likelihood estimation and inference on cointegration with applications to the demand for money. Oxford Bulletin of Economics and Statistics, 52(2), 169–210.
21.
KemalA.R. (1994). Structural adjustment, employment, income distribution and poverty. Pakistan Development Review, 33(4), 901–914.
22.
LayardR., BartonM., & ZabalzaA. (1980). Married women’s participation and hours. Economica, 47(185), 51–72.
23.
MaloneyT. (1986). Employment constraints and the labor supply of married women. Journal of Human Resources, 22(1), 51–61.
24.
MaloneyT.J. (1991). Unobserved variables and the elusive added worker effect. Economica, 58(230), 173–187.
25.
MathewA.T. (2012). Human resource occupation: Expanding competencies in Indian organizations. Global Business Review, 13(1), 69–88.
26.
MoghadamV.M. (1999). Gender and globalization: Female labor and women’s mobilization. Journal of World Systems Research, 5(2), 367–388.
27.
NarayanP.K. (2005). The saving and investment nexus for China: Evidence from co-integration tests. Applied Economics, 37(17), 1979–1990.
28.
PesaranM.H., & ShinY. (1999). An auto-regressive distributed lag modeling approach to co-integration analysis. In StromS. (Ed.), Econometrics and economic theory in the 20th century: The Ragnar Frisch centennial symposium (Chapter 11). Cambridge: Cambridge University Press.
29.
PesaranM.H., ShinY., & SmithR. (2001). Bounds testing approaches to the analysis of level relationships. Journal of Applied Econometrics, 16(3), 289–326.
30.
RodriguezE., & TiongsonE. (2001). Temporary migration overseas and household labor supply: Evidence from urban Philippines. International Migration Review, 35(3), 709–725.
31.
SabirM., & AftabZ. (2007). Dynamism in the gender wage gap: Evidence from Pakistan. The Pakistan Development Review, 46(4), 865–882.
32.
ShahbazM., & RahmanM.M. (2012). The dynamic of financial development, imports, foreign direct investment and economic growth: Cointegration and causality analysis in Pakistan. Global Business Review, 13(2), 201–219.
33.
SoomroA.H., KumbharM.I., SheikhS.A., & KhooharoA.A. (2012). Sustainable agricultural practices as perceived by farmers in Sindh province of Pakistan. Interdisciplinary Journal of Contemporary Research in Business, 3(1), 865–878.
34.
StandingG. (1989). Global feminization through flexible labor. World Development, 17(3), 1077–1095.
35.
StreetenP.F. (1999). Globalization threat or opportunity. 14th Annual General Meeting and Conference, 28–31January, PIDE, Pakistan.
36.
TanoD.K. (1993). The added worker effect: A causality test. Economics Letters, 43(1), 111–117.
37.
TiwariA.K., & ShahbazM. (2013). Modelling the relationship between whole sale price and consumer price indices: Cointegration and causality analysis for India. Global Business Review, 14(3), 397–411.
38.
ZivotE., & AndrewsW.K. (1992). Further evidence on the great crash, the oil-price shock and the unit root hypothesis. Journal of Business and Economic Statistics, 10(3), 251–270.
