Impact of Women’s Retirement on Their Daughter-in-Law’s Employment in Pakistan

In this study, we employ a fuzzy regression discontinuity design and cross-pooled Multiple Indicator Cluster Survey (MICS) data from 2011 and 2014 to investigate the impact of a mother-in-law’s retirement on her daughter-in-law’s employment decisions, using the mother-in-law’s retirement age as a cutoff. The research addresses low female labor force participation in developing countries, primarily due to childcare responsibilities. We hypothesize that grandmothers can either alleviate or worsen this burden, affecting the female labor force participation. Contrary to findings from developed nations that focus on childcare availability and costs, this study examines household dynamics in Pakistan. The results show that a retired mother-in-law has a significantly negative impact on the daughter-in-law’s employment, especially among rural, less educated, and lower-income women. These findings suggest the need for affordable formal childcare and healthcare services for senior citizens to support female labor force participation. This research provides policymakers with valuable insights for improving women’s employment rates in Pakistan. JEL Codes: J16, J22, J24.