Thesis submitted to the Lahore School of Economics in fulfillment of the requirements for the degree of MPhil Economics

Abstract

Female labour force participation rate (FLFP) is highlighted by the literature as a main determinant of women‟s empowerment. Despite extensive research, the concept of empowerment remains ambiguous and the definition varies across individuals and societies. Social interactions is a potential source of increasing empowerment via channels such as information sharing, lowering barriers, and improvement in collective action for social recognition, reduction in self-preoccupation and socio emotional support. Pakistan is a suitable context to study social empowerment of women as Pakistani women experience isolation and subordination due to strict rules of patriarchal culture. This study estimates the effect of FLFP on women‟s empowerment measured by their community participation on three different social levels (1) Family members (2) Friends and Neighbourhood (3) People of authority. A unique district level data set for the year 2017-2018 collected by the Punjab Bureau of Statistics (BOS) in collaboration with Pakistan Commission Statistics for Women (PCSW) is used for this purpose. The problem of endogeneity existing between employment status and community participation could make the results doubtful so an instrumental variable (IV) approach is implemented. District total livestock and poultry is used as a source of exogenous variation for estimating the impact of FLFP on community participation. We assume that a marginal increase in livestock and poultry in each district will not affect a woman‟s community participation but can increase her chances of employment in a rural setting where livestock and poultry operations are a woman‟s responsibility as their mobility is lesser and also suitable for them due to flexible timings. Coinciding with this and literature, the data set used in this paper shows that majority of the women are involved in livestock and poultry operations followed by crop operations including cotton picking. Hence as additional checks on the potential relationship, district cotton production and district FLFP rate are used as additional IVs. The results show a significant positive impact of FLFP on community engagement and a positive relationship has been deduced between FLFP and sense of community. The impact enlarges as we control for a woman‟s access to information and community technology and district level socio economic condition. This study enforced the importance of FLFP and social empowerment and may assist the developing authorities to execute effective strategies for gendered development in rural Punjab. Women‟s opinions and social behaviours are worthy of consideration while determining direction of community‟s development. This research calls for women‟s development by the means of creating more economic and social opportunities for women through focusing their education and access to ICT as these two consistently enhance the effect of employment on community participation.