Unemployment is one of the most important problems of Pakistan’s economy. The Study investigates whether the Beveridge Curve- the empirical relationship between vacancy and unemployment rate offers a potential instrument to characterize the unemployment in the considered economy. The present topic become popular among academicians particularly after the seminal work of Nobel laureate Christopher Pissarides “On Vacancies (2010)” and recently it has been realized that such analysis can be helpful for understanding of characteristics of unemployment, however it is debatable whether macroeconomic fluctuations helps to explain the nature of this relationship. The study is the first in its nature that explain the relationship between vacancies and unemployment for a developing country like Pakistan, further the paper introduced two shock variable, unemployment composition pool and cyclical variables to examine if they have any significant impact on long run unemployment rate. 

The study presents the comparison for two different economies; rural Malawi and rural Pakistan by using cross sectional data drawn from ‘MDICP’ and ‘PSLM’ for the year 2007-08. The mainobjective of the study is to analyze the factors that determine the female behavior towards employment during their child-bearing age (15-45). We also extend our analysis toward womenparticipation on-farm and off-farm economic activities. The Probit model is used to examine the effects of various personal demographic along with social demographic determinants on femaleparticipation in economic activities. The focus of the study is to analyze that how these factors determine the women decision to participate on-farm or off-farm economic activities for bothcountries under consideration. The main findings of the study show that these demographic and individual characteristics influence women participation in both countries. The coefficient of age is positive and significant for female decision to participate in economic activity for bothcountries. The Study’s findings indicate that wealth has a negative influence on female decision to work either on-farm or off-farm activity in Pakistan. All the coefficients of education positively influence the Malawian women participation in any economic activity while in case of Pakistan results indicate that a rise in education level beyond secondary level of education increased the probability of females to active in labor market whereas less educated females are discouraged from entering in labor market. Married Malawian women are economically more active though the case is opposite for Pakistan.