Economic Determinants and Female Labour Force Participation: An Empirical Analysis of Pakistan

Abstract

Females labour force plays a crucial role in economic development by enhancing the development potential of a country. This paper investigates the effects of economic determinants on female labour force participation of Pakistan by employing ARDL, ECM approach and Granger Causality over the period of 1980-2010.The outcome of the study shows that favourable economic policies encourage female labour supply to participate in the economic and productive activities. The results support this phenomenon for both long and short run periods. This study suggested that the government should devise policies that promote females contribution in the formal sector of the economy. Moreover, cottage industries need to be promoted and informal sector needs restructuring by encouraging females.