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Labor Market Conditions-Female Labor Supply Nexus: The Role of Globalization in Pakistan

Mujahid, Noureen and Muhammad Shahbaz, Shabbir and Shahbaz, Muhammad (2014): Labor Market Conditions-Female Labor Supply Nexus: The Role of Globalization in Pakistan.

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Abstract

This study examines the impact of female wages, unemployment, foreign remittances and globalization on female labor supply over the period from 1980 to 2010. We have applied the ARDL bounds testing to test whether cointegration exists between variables. Our results show that variables are integrated for long run relationship. Moreover, female wages attract female labor supply. Foreign remittances and globalization raises female labor supply but unemployment declines it. The relation between female wages and female labor supply is U-shaped. The causality analysis reveals that female wage, foreign remittances, globalization and unemployment Granger cause female labor supply.

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