The Role of Female Labour Supply in the Economic Assimilation of Migrant Women and Families in Pakistan: Evidence from Rural–Urban Migration

Abstract

This study investigates the role of female labour supply in the economic assimilation of migrant women and families in Pakistan, with a specific focus on rural–urban migration dynamics. Using a comprehensive panel econometric framework, the analysis applies multiple estimation techniques, including Fixed Effects (FE), Fully Modified OLS (FMOLS), Dynamic OLS (DOLS), Panel ARDL–PMG, Common Correlated Effects Mean Group (CCEMG), and Augmented Mean Group (AMG), to ensure robust and consistent long-run empirical results.The findings reveal that female labour supply plays a central and statistically significant role in enhancing economic assimilation. The results indicate that a 1% increase in female labour participation improves household economic assimilation by approximately 0.42–0.50 units in the long run, confirming that women’s economic engagement is a key structural determinant of migrant household integration in urban economies. Rural–urban migration is also found to positively contribute to household welfare by enabling income diversification and facilitating structural transformation from low-productivity rural livelihoods to more dynamic urban employment opportunities.Moreover, the study identifies institutional quality as a critical enabling and moderating factor. Stronger governance systems enhance the positive effects of female labour supply by reducing labour market barriers, discrimination, and inefficiencies, thereby promoting more inclusive economic outcomes. Panel cointegration results further confirm the existence of a stable long-run equilibrium relationship among female labour supply, migration, and economic assimilation, indicating persistent structural interdependence among these variables over time.Overall, the study extends the New Economics of Labour Migration by incorporating gendered labour dynamics into the assimilation process and contributes to gender and institutional economics by demonstrating that women’s labour participation and governance quality jointly drive inclusive economic integration. The findings highlight that sustainable economic assimilation in Pakistan requires integrated policy frameworks that promote female labour market participation, facilitate migrant integration, and strengthen institutional governance.

Keywords: Female labour supply, economic assimilation, rural–urban migration, institutional quality, panel data, Pakistan, gender economics.