Impact of Remittances on Female Labour Participation in Pakistan

Abstract

This study examines how international remittances relate to women’s labour force participation in Pakistan using nationally representative HIES/PSLM 2018–19 microdata, We estimate logistic models to compare women in remittance-receiving and non-receiving households and, among recipients, test whether remittance size matters. Women in receiving households are 6–11 percentage points less likely to work, after controls and location fixed effects. Within recipient households, the relationship is negative and monotonic: as monthly log remittances rise from 8 to 16, the predicted probability of participation falls from about 17 to 5 percent. The intensity effect is strongest in rural areas and Khyber Pakhtunkhwa, and is insignificant in urban areas, Punjab, and Sindh. Results are consistent with an income effect and household bargaining that shift time toward non-market activities. Because the analysis is cross-sectional, remaining endogeneity cannot be ruled out. The findings inform policies that tie remittance income to flexible, decent work options for women.