Globalization and Working Environment Nexus: Evidence From Pakistan

Abstract

This study investigates the impact of globalization (defined as phasing-out of the multifiber arrangements [MFA]/agreement on textile and clothing [ATC]) on working conditions of textile and apparel workers in general and female workers in particular in Pakistan. We found that the impact of the elimination of the MFA/ATC on workers of the textile and apparel sector is negative and statistically insignificant. The working conditions of workers in the textile and apparel sector are not different relative to other sectors. The working conditions of females deteriorated as a result of the phasing out of the MFA/ATC in relation to the male working environment and compared with other industries. Our findings are robust in the sense that the direction of the impact remains the same and statistically significant even after performing sensitivity analysis. We also controlled for provincial heterogeneity, and the results showed minor correction in magnitude but remain negative and statistically significant. We also addressed treatment selection bias by performing propensity score analysis and found similar results.