Globalization and Wage Differential in the Case of Pakistan

Abstract

This paper has examined that the relationship of the wage differential and globalization in the case of Pakistan. The wage differential and globalization and rural urban population are the selected variables to check the impact of globalization on the wage differential. The Augmented Dickey Fuller test and unit root test is used for analytical the stationarity of the variables. Autoregressive distributed lag (ARDL) model is used to scrutinizing the co-integration among the variables of the model. The results of the model show that the globalization has a positive or significant relationship with the wage differential, the estimated results show that the rural population is positive or significant results. The urban population creates a negative or significant result of this model. The wage structure over the period of time has calculated.