A different outcome for unemployment and labour force participation: the discouraged female worker by male unemployment

Abstract

ABSTRACT This study analyzes the link between labour force participation and unemployment over the long term in Belgium. Evaluating a long-term relationship is crucial because the unemployment rate is frequently used in both empirical study and policy. ARDL co-integration analyses are all performed for young age groups, aggregate, gender-specific series. The results show that there is no evidence to support an additional worker effect for any gender category. For the female labour force aged 15 to 24, the discouraging female worker effect by male unemployment is discovered. This situation could be caused by constraints like having to take care of children and household chores, getting paid less for doing the same work, and the prevalence of men in organizational hierarchies. Women may therefore think that it will be more difficult for them to find employment than for men, who typically have better opportunities. Therefore, women may believe that their own job search has become more challenging if the male unemployment rate rises. Politicians should consider this effect, which will cause the rate of unemployment among women to be underestimated during recessions and overestimated during expansions in the economy. In addition, it is important to encourage young women to join the labour force when the rate of unemployment for men increases.