This study has empirically investigated the impact of urbanization on
Female Labor Force Participation (FLFP) in Pakistan for the period
1982-2012 using Autoregressive distributive lag (ARDL) model and
Error Correction Model (ECM). Recent empirical literature provides
evidence that urbanization can affect FLFP in both ways positive and
negative depending on dominance of added worker effect or
discouraged worker effect. This study has used Augmented Dickey
Fuller (ADF) test to check stationarity of variables. On the basis of
results of ADF test, ARDL approach of cointegration was applied.
Cointegration results showed that urban growth and gendered wage
ratio negatively affect FLFP whereas GDPPC has positive effect.
Coefficient of lagged error correction term in ECM (-0.5927) was
negative and highly significant reconfirming co-integration and
showing 59.27% correction in deviation of actual series from long run
equilibrium in one year. The policy implication on the basis of
empirical findings of this study is that employment opportunities for
females in urban areas need to be accompanied with growing
urbanization in Pakistan