The Gendered Impact of Trade Liberalization on Informal Employment in Pakistan: A Sectoral Perspective

Authors

  • Madiha Mumtaz University of Sargodha Pakistan
  • Zahid Ullah Khan University of Sargodha Pakistan
  • Jabbar Ul-Haq University of Sargodha, Pakistan
  • Ahmed Raza Cheema University of Sargodha Pakistan

Keywords:

Informal employment, Trade Liberalization, Manufacturing Industry, Gendered impact, Informality.

Abstract

This study examines the impact of trade liberalization on gendered informal employment using micro-level data from the manufacturing sector of Pakistan. Using the two-stage least-squares estimation (TSLS) technique the valuable impact of trade openness on informal employment of gender is investigated. The results show that trade liberalization boost gender parity in informal employment. We find positive liaison between trade liberalization and informal employment in Pakistan. These findings are robust and insensitive to the insertion of other control variables. Therefore, government should promote trade liberalizing policies to achieve gender parity in employment.

References

Adhikari, R., & Yamamoto, Y. (2007). The textile and clothing Industry: Adjusting to the post-quota world. Industrial Development for the 21st Century: sustainable development perspectives, 183-234.

Aleman-Castilla, B. (2006). The effect of trade liberalization on informality and wages: evidence from Mexico: Centre for Economic Performance, London School of Economics and Political ….

Aslam, N., Ul-Haq, J., Cheema, A. R., & Visas, H. (2022). Does trade liberalization increase the formal-informal wage-gap in Pakistan? Edelweiss Applied Science and Technology, 6(1). https://doi.org/10.55214/25768484.v6i1.303

Attanasio, Goldberg, P. K., & Pavcnik, N. (2004). Trade reforms and wage inequality in Colombia Macroeconomic Policies and Poverty Reduction (pp. 229-266): Routledge.

Attanasio, O., Goldberg, P. K., & Pavcnik, N. (2005). Trade reforms and wage inequality in Colombia Macroeconomic Policies and Poverty Reduction (pp. 229-266): Routledge.

Ben Yahmed, S., & Bombarda, P. (2018). Gender, informal employment and trade liberalization in Mexico. The World Bank Economic Review, 34(2), 259-283.

Berik, G. (2000). Mature export-led growth and gender wage inequality in Taiwan. Feminist Economics, 6(3), 1-26.

Bosch, M., Goni, E., & Maloney, W. F. (2007). The determinants of rising informality in Brazil: Evidence from gross worker flows. World Bank Policy Research Working Paper(4375).

Caspersz, D. (2001). The Power to Choose: Bangladeshi Women and Labour Market Decisions in London and Dhaka by Naila Kabeer, London: Verso, 2000, 464 pp., isbn 1-85984-804-4. Relations Industrielles/Industrial Relations, 56(1), 217-219.

Chant, S., & Pedwell, C. (2008). Women, gender and the informal economy: An assessment of ILO research and suggested ways forward.

Chen, Z., Ul-Haq, J., Zafar, N. U., & Visas, H. (2024). The impact of trade reforms on industry wage premia in Pakistan: A sectoral perspective. Asian Economic and Financial Review, 14(7), 497–512. https://doi.org/10.55493/5002.v14i7.5085

Chen, Z., Ul-Haq, J., Visas, H., & Cheema, A. R. (2019). Globalization and working environment nexus: Evidence from Pakistan. SAGE Open, 9(2), 2158244019852474.

Cheema, A. R., Saleem, A., Haq, J. U., & Shehzadi, B. (2022). Estimating Gender Wage Gap and Its Decomposition in Pakistan. Journal of Quantitative Methods, 6(2).

David, H. L. (2007). A guide to measures of trade openness and policy. Retrieved February, 22, 2013.

El-Ghamrawy, T. (2014). The Impact of Trade Openness on Employment and Wages in Egypt’s Manufacturing Sector. The Egyptian Center for Economic Studies, Working Paper(176).

Fatema, F., Li, Z., & Islam, M. M. (2017). Trade liberalization and gender inequality in emerging economies-from the perspective of sustainable development goals. Asian Economic and Financial Review, 7(11), 1075-1092.

Haisken-DeNew, J. P., & Schmidt, C. M. (1997). Interindustry and interregion differentials: Mechanics and interpretation. Review of economics and Statistics, 79(3), 516-521.

Jameel, M. A. relationship between trade liberalization and skilled unskilled wage-gap nexus: evidence from Pakistan

Khan, M., & Ashraf, A. (2012). Informal employment in Pakistan: the growing challenge for decent work. Elixir journal of Management, 42(1), 6433-6446.

Khanum, S., Ul-Haq, J., Hye, Q. M. A., & Cheema, A. R. (2024). Does trade liberalization increase child labor in rural Pakistan? A rural perspective. Edelweiss Applied Science and Technology, 8(1). https://doi.org/10.55214/25768484.v8i1.414

Kucera, D., & Roncolato, L. (2011). Trade liberalization, employment and inequality in India and South Africa. International Labour Review, 150(1‐2), 1-41.

La Porta, R., & Shleifer, A. (2014). Informality and development. Journal of economic perspectives, 28(3), 109-126.

Leamer, E. E., & Levinsohn, J. (1995). International trade theory: the evidence. Handbook of international economics, 3, 1339-1394.

Papyrakis, E., Covarrubias, A., & Verschoor, A. (2012). Gender and trade aspects of labour markets. Journal of Development Studies, 48(1), 81-98.

Pieters, J. (2018). Trade liberalization and gender inequality. IZA World of Labor.

Robbins, D., & Gindling, T. H. (1999). Trade liberalization and the relative wages for more‐skilled workers in Costa Rica. Review of Development Economics, 3(2), 140-154.

Saqfalhait, N., Spetan, K. A., Awad-Warrad, T., & Alomari, M. W. (2023). Trade liberalization and women empowerment in the Arab countries. International Journal of Gender and Entrepreneurship(ahead-of-print).

Stallings, B., & Peres, W. (2010). Growth, employment, and equity: The impact of the economic reforms in Latin America and the Caribbean: Brookings Institution Press.

Standing, G. (1999). Global feminization through flexible labor: A theme revisited. World development, 27(3), 583-602.

ul-Haq et al. (2023 ). Unleashing the potential: Exploring the relationship between trade liberalization and female labor force participation in Pakistan. Volume 17, Issue 2, 60-68, 2023, 9.

Ul-Haq, J. (2016). Trade Liberalization, Wages and Work Environment Nexus: Evidences from Pakistan. Beijing: School of International Trade and Economics, University of International Business and Economics.

Ul-Haq, J., Ashraf, I., Cheema, A. R., Hye, Q. M. A., & Visas, H. (2023). The relationship between trade liberalization and gender disparity in education: Evidence from Pakistan. Nurture, 17(3), 180-193.

Ul-Haq, J., Khanum, S., & Imran, K. (2021). Skill-biased Impact of Trade Liberalization on Employment in the manufacturing sector of Pakistan. Global Economics Review, VI, 212-226.

Ul-Haq, J., Nazeer, N., & Khanum, S. (2021). Trade Liberalization and Child Labour: Empirical Evidence from Manufacturing Sector of Pakistan. Competitive Social Science Research Journal, 2(4), 88-98.

Ul-Haq, J., Nazeer, N., & Rahim, N. (2022). Does Trade Liberalization Reduce Gender Wage Gap in the Manufacturing Sector of Pakistan? Competitive Social Science Research Journal, 3(1), 119-130.

Ul-Haq, J., Wajid, F., Visas, H., Cheema, A. R., & Abbas, S. (2022). THE NEXUS between TRADE LIBERALIZATION and POVERTY: A DISAGGREGATED ANALYSIS. Asian Economic and Financial Review, 12(4). https://doi.org/10.55493/5002.v12i4.4481

Umer, F. (2014). Impact of trade openness on economic growth of Pakistan: An ARDL approach. Journal of Business & Economic Policy, 1(1), 2014.

Ventura-Dias, V. (2010). Beyond Barriers: The Gender Implications of Trade Liberalization in Latin America.

Wamboye, E. F., & Seguino, S. (2015). Gender effects of trade openness in sub-Saharan Africa. Feminist Economics, 21(3), 82-113.

WATCH, W. (2011). Gender Equality & Trade Policy. Resource Paper: United Nations Inter-Agency Network on Women and Gender Equality.[Online ….

Williams, C. C. (2014). Out of the shadows: a classification of economies by the size and character of their informal sector. Work, employment and society, 28(5), 735-753.

Wu, M., Ul-Haq, J., Zafar, N. U., Sun, H., & Jiang, J. (2019). Trade liberalization and informality nexus: Evidence from Pakistan. The Journal of International Trade & Economic Development, 28(6), 732-754.

Published

2024-07-20

How to Cite

Madiha Mumtaz, Zahid Ullah Khan, Jabbar Ul-Haq, & Ahmed Raza Cheema. (2024). The Gendered Impact of Trade Liberalization on Informal Employment in Pakistan: A Sectoral Perspective. IBT- JOURNAL OF BUSINESS STUDIES, 20(1), 108–123. Retrieved from https://ojs.ilmauniversity.edu.pk/index.php/ibtjbs/article/view/201