Motivation
Women’s labor force participation in Pakistan remains among the lowest in South Asia, driven in part by severe mobility constraints. Cultural norms, safety concerns, and unreliable public transportation sharply limit women’s ability to access paid work, imposing large economic and productivity losses on households and the broader economy. Public transport is frequently unsafe for women, while private transport options are prohibitively expensive, effectively excluding many women from labor markets altogether. These constraints are compounded by a pronounced digital gender divide. Female adoption of mobile phones and digital platforms remains substantially lower than that of men [1], restricting women’s access to digitally mediated work opportunities, financial services, and market information. As a result, women are largely excluded from the rapidly growing gig economy—despite its potential to offer flexible, location-based income opportunities.
Objective
This study evaluates whether integrating women into Pakistan’s gig economy through digitally enabled rickshaw driving increases women’s economic empowerment, measured through income, financial independence, labor supply, and household-level outcomes. A central focus is identifying which financing models best support women’s sustained participation while minimizing financial risk—comparing standard fixed-repayment debt contracts with more flexible, income-contingent revenue-sharing arrangements.
To answer these questions, the research team will implement a randomized controlled trial with 1,000 women, assigned to either a debt-based financing contract, a revenue-sharing contract, or a control group receiving standard microfinance options. All treated participants will receive driving, safety, and digital training from Careem and the Punjab Police, along with access to Careem’s ride-hailing platform and its integrated safety features. The study combines high-frequency administrative data—including earnings, loan repayments, and GPS-based trip records—with longitudinal survey data to rigorously measure economic, social, and empowerment impacts.
Proposed impact
This study will generate policy-relevant evidence on how digital platforms and innovative financing can overcome mobility, safety, and financial barriers that limit women’s labor force participation in low-income settings. By testing scalable, asset-based entry into the gig economy, the project informs the design of gender-inclusive digital labor markets and microfinance products, particularly revenue-sharing models that reduce risk for debt-averse women. The findings will contribute to the literature on gendered constraints, digital connectivity, and the gig economy, while offering practical guidance to policymakers, MFIs, and ride-hailing platforms seeking to expand women’s economic participation, strengthen household welfare, and promote inclusive growth in Pakistan and similar contexts.
[1] Jeffrie, N., Bahia, K., Carboni, I., Lindsey, D., & Zagdanski, J. (2023). The Mobile Gender Gap Report 2023. GSMA.
Photo credit: Pam Traveler
