Modelling Gender Dimensions of the Impact of Economic Reforms on Time Allocation among Market Work,Household Work, and Leisure

Considering the existing system of gender inequality in Pakistan, the paper uses a SAM-based Computable General Equilibrium model to analyse gender dimensions of the impact of economic reforms on time allocation among different activities; market, household, and leisure. For this purpose, it develops a Gendered Social Accounting Matrix (GSAM), with market and household economies and disaggregated variables by gender. On the basis of the GSAM, the Gendered Computable General Equilibrium Model (GCGE) is developed. The Model is used to simulate the impact of economic reforms: trade liberalisation through tariff reduction in the absence/presence of compensatory measures, and fiscal measures such as reduction in fiscal deficit through (1) increased government revenue, (2) reduction in government expenditure, and reduction in subsidies. The results of the study indicate that trade liberalisation in the absence as well as in the presence of compensatory measures increase female paid employment. While fiscal adjustment reduces female paid employment, the rise in demand for female labour in the market leads to a drop in female leisure time, as household work does not change significantly. In exercises with fiscal adjustment, female paid employment drops but household work rises, as households substitute household-produced goods for market goods