Modeling Gender Effects of Pakistan's Trade Liberalization

This study uses a computable general equilibrium (CGE) model specially constructed for investigating gender dimensions of the effects of trade liberalization in Pakistan in both production and consumption. The model employs various indicators to measure the gendered impacts, including income poverty (Foster-Greer-Thorbecke [FGT] Indices), time poverty (leisure), capability poverty (literacy and infant mortality), and welfare (Equivalent Variation [EV]). The simulation results show that revenue-neutral trade liberalization in Pakistan increased women's employment in unskilled jobs and increased women's real wage income more than men's for all types of labor, but kept the division of labor biased against women. The study finds that Pakistan's trade liberalization adversely affected women in relatively poor households by increasing their workload, deteriorating capabilities, and increasing relative income poverty. However, the effects remained gender neutral or favored women in the richest group of households.