DOES UNPAID CARE WORK CONSTRAIN FEMALE LABOR FORCE PARTICIPATION IN PAKISTAN?

Abstract

This paper examines the relationship between unpaid caregiving work and women's labour force participation in Pakistan using data from the 2024-25 Labour Force Survey. Baseline models show a negative relationship, but adjusting for endogeneity with a two-stage residual-inclusion model reveals a positive relationship. Women, especially in urban areas, benefit from flexible, home-based work, allowing them to balance caregiving and employment. However, structural challenges in rural areas hinder participation. The study suggests that conventional models may overstate the impact of unpaid care on work and advocates for gender-responsive policies that integrate caregiving support with labour market opportunities.