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Abstract

The literature dealing with impacts of Bt cotton is growing. Nevertheless, the question remains about how this technology can contribute to employment generation of rural poor. Bt-related yield benefit may intensify production and enhance labor demand for harvesting. Building on farm survey data of 352 cotton farmers in the South Punjab of Pakistan and using double-hurdle model, Bt employments effects are analyzed. Estimates show that Bt adoption has increased the probability and demand for hired labor by 6% and 17%, respectively. Cotton picking is labor intensive and female dominated activity in Pakistan. Labor disaggregation by gender enunciates the employment effects of Bt cotton for rural women, who belong to the neglected group of the society. Hence, Bt technology can play a vital role to poverty alleviation if seed quality and credit constraints are properly addressed.

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