Section Days abstract book 2010.indd - RUB Research School ...

HSS_06
GROWTH EFFECTS AND THE DETERMINANTS OF
FEMALE EMPLOYMENT IN PAKISTAN: A MACRO-
AND MICROECONOMIC ANALYSES
Shafaq Hussain
International Development Studies, Institute for Development Research and Development
Policy (IEE); Ruhr-Universität Bochum, 44801 Bochum, Germany
e-mail: shafaq.hussain@rub.de
It is thought that human capital is the most important factor of production in today’s
economy. Improvement in human capital is crucial to achieving increases in GDP. Human
capital includes both male and female. The contribution of both is needed to improve the
economic condition of a country.
As per the Labor Force Survey of Pakistan 2003-04, women represent almost 49 percent of
the total population and working age group in Pakistan, but their participation in the economic
activity is very low at 11.2 percent. It is in fact, the lowest in the South Asian region. As a
result the gender gap in economic participation is highest in Pakistan amongst regional
countries. According to the World Bank data of 2008, the percentage of females actively
participating in the labor force in Pakistan was 21.2 percent in comparison to 31.2 percent in
Iran, 33.1 percent in India, 58.3 percent in Bangladesh, 63.2 percent in Nepal, 51.2 percent in
Bhutan and 67.5 percent in China. Even the most war trodden country Afghanistan, was
ahead of Pakistan by having a female participation rate of 33 percent. World Development
Indicators (2010)
The role of female education and employment in the economy of Pakistan is analyzed in the
light of the following research questions.
1. What are the effects that a country has to face if she ignores half of its population i.e.
females?
2. Human capital involves both male & female parts of population. How the, roughly
speaking, 50% of population i.e. females have contributed in the economic growth of a
developing country e.g. Pakistan?
3. What are the determinants of female labor supply in a developing economy?
The macroeconomic analysis is based on the Solow model of economic growth. A cross
section as well as panel estimations of the developing countries’ data is done, in order to find
out the effects of participation of female labor force on the economic growth of countries.
Whereas the microeconomic analysis is based on the field research data obtained from Dera
Ismail Khan District of Pakistan. The females and their household heads were interviewed
and the data was then analyzed through Logit regressions to find out the determinants of
female labor supply in a developing region in Pakistan.