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Modelling Gender Dimensions of the Impact of Economic Reforms in Pakistan

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Author Info
Rizwana Siddiqui

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Abstract

Recently, gender-aware computable general equilibrium models (CGE) have been developed to analyse the impact of trade liberalization, with focus on a gender-disaggregated analysis of the production side of the economy. However, these studies ignore the gender-specific consumption effects due to the paucity of gender disaggregated data. We introduce intra-household allocation for the first time in a CGE-framework. The data is arranged in a gender-aware social accounting matrix, which reveals the hidden work of women (market and non-market). This study analyses the gender dimensions of the impact of economic reforms using three types of poverty indicators - FGT, capability, and relative time poverty - calculated on the basis of the simulation results. The study mainly found out that both trade liberalization and cuts in government expenditure are pro-rich. Within poor households, both policies hurt women more than men. Despite declines in absolute poverty in both exercises, the gender composition of the poor population changes in the majority of households. In the trade liberalization exercise, poverty among women relative to men increases in poor households and decreases among the rich, leading to an overall increase in the relative poverty of women in Pakistan. However, in the fiscal adjustment exercise, the incidence of poverty remains constant. In both exercises, time poverty among women relative to men increases in rural areas and decreases in urban areas, leading to an increase in relative poverty among women in Pakistan. The poverty of capabilities among men and women increases in a similar way after trade liberalization when measured by the infant mortality rate, but it affects women more negatively when measured by the literacy rate. Cuts in government expenditure also increase capability poverty among women more than men in both regions and in Pakistan as a whole. The study concludes that prosperity (increase in income), as well as education, can help reduce the gender gap as poverty decreases in relatively rich households, whether it is measured in monetary terms, capability terms, or in terms of time-use.

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Paper provided by PEP-MPIA in its series Cahiers de recherche MPIA with number 2007-13.

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Date of creation: 2007
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Handle: RePEc:lvl:mpiacr:2007-13

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Related research
Keywords: Pakistan; Gender; CGE; Trade Policy; Public Policy; Time Allocation; Household Production and Intra-House Allocation; Poverty and Capability Development;

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Find related papers by JEL classification:
O53 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
C68 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming - - - Computable General Equilibrium Models
O24 - Economic Development, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy
J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
I32 - Health, Education, and Welfare - - Welfare and Poverty - - - Measurement and Analysis of Poverty

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Marcel Fafchamps & Agnes R. Quisumbing, 2000. "Social Roles, Human Capital, and the Intrahousehold Division of Labour: Evidence from Pakistan," Economics Series Working Papers 011, University of Oxford, Department of Economics. [Downloadable!]
    Other versions:
  2. Rizwana Siddiqui & A. R. Kemal, 2006. "Remittances, Trade Liberalisation, and Poverty in Pakistan: The Role of Excluded Variables in Poverty Change Analysis," PIDE-Working Papers 2006:1, Pakistan Institute of Development Economics. [Downloadable!]
    Other versions:
  3. Jeremy Lise & Shannon Seitz, 2004. "Consumption Inequality and Intra-Household Allocations," Working Papers 1019, Queen's University, Department of Economics. [Downloadable!]
    Other versions:
  4. Decaluwe, B. & Patry, A. & Savard, L. & Thorbecke, E., 1999. "Poverty Analysis Within a General Equilibrium Framework," Papers 9909, Laval - Recherche en Politique Economique.
    Other versions:
  5. Martin Browning & Pierre-André Chiappori & Arthur Lewbel, . "Estimating Consumption Economies of Scale, Adult Equivalence Scales, and Household Bargaining Power," CAM Working Papers 2003-12, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics, revised Dec 2003. [Downloadable!]
    Other versions:
  6. Haddad, Lawrence & Hoddinott, John & Alderman, Harold & DEC, 1994. "Intrahousehold resource allocation : an overview," Policy Research Working Paper Series 1255, The World Bank. [Downloadable!]
  7. John Cockburn & Bernard Decaluwe & Veronique Robichaud, 2007. "Trade liberalization and poverty - lessons from Asia and Africa," Publication STUDIES IN TRADE AND INVESTMENT, in: Mia Mikic (ed.), FUTURE TRADE RESEARCH AREAS THAT MATTER TO DEVELOPING COUNTRY POLICYMAKERS, chapter 4 Trade Policy Section, Trade and Investment Division, UNESCAP. [Downloadable!]
  8. White, Howard & Masset, Edoardo, 2002. "Child poverty in Vietnam: using adult equivalence scales to estimate income-poverty for different age groups," MPRA Paper 777, University Library of Munich, Germany. [Downloadable!]
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  9. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May. [Downloadable!] (restricted)
  10. Haddad, Lawrence & Kanbur, Ravi, 1990. "How Serious Is the Neglect of Intra-Household Inequality?," Economic Journal, Royal Economic Society, vol. 100(402), pages 866-81, September. [Downloadable!] (restricted)
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  11. Rehana Siddiqui & Rizwana Siddiqui & Zafar Iqbal, 1999. "The Impact of Tariff Reforms on Income Distribution in Pakistan: A CGE-based Analysis," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 38(4), pages 789-804. [Downloadable!]
  12. Fontana, Marzia & Wood, Adrian, 2000. "Modeling the Effects of Trade on Women, at Work and at Home," World Development, Elsevier, vol. 28(7), pages 1173-1190, July. [Downloadable!] (restricted)
  13. Rehana Siddiqui & Rizwana Siddiqui, 1998. "A Decomposition of Male-Female Earnings Differentials," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 37(4), pages 885-898. [Downloadable!]
  14. Siddiqui, Rizwana & Iqbal, Zafar, 1999. "TARIFF REDUCTION AND FUNCTIONAL INCOME DISTRIBUTION IN PAKISTAN: A CGE Analysis," MPRA Paper 6141, University Library of Munich, Germany. [Downloadable!]
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Cited by:
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  1. Maria Inés Terra & Marisa Bucheli & Carmen Estrades, 2008. "Trade Openness and Gender in Uruguay: a CGE Analysis," Cahiers de recherche MPIA 2008-16, PEP-MPIA. [Downloadable!]
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