Labour Market Conditions–Female Labour Supply Nexus: The Role of Globalization in Pakistan

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.