Gender in agriculture: Determinants of female labor supply decisions among rural households in the context of market imperfections in Pakistan

Abstract

AbstractWelfare of the household depends on the better understanding of time allocation among different sectors in response to changes in economic conditions. This article estimates labor supply of male and female of rural households regarding activities for own‐farm, agricultural‐wage, and nonfarm sector. The study utilizes the cross‐sectional data of 341 rural households of the Punjab, Pakistan through random sampling technique. In Pakistan, like other developing countries, gender‐based wage data are almost nonexistent, and functioning of labor market is imperfect. Therefore, reservation wages are calculated through production function analysis. Our results reveal that literacy rate, social status, and rural infrastructure are key determinants in the rural labor market. Hypothesis of separability in agricultural household models is tested by applying three tests. Separability hypothesis is rejected on the bases of results indicating the presence of imperfect labor market in rural settings of Pakistan. The findings suggest that policy makers should focus on educational opportunities, infrastructure development, and minimizing entry barriers in labor market, especially for females, regarded as socially backward class in order to raise economic conditions of rural dwellers in Pakistan.