Abstract
The study aims to explain the relationship between economic development measured by GDP per capita on PPP and female labor force participation rate (FLFPR) in Bangladesh. Using Time series data from (1991-2019), extracted from secondary data sources; the study develops three models to test the U-shape hypothesis. The study uses control variables such as Female Unemployment rate, Fertility rate, and Urbanization. The Ordinary Least Square Regression Analysis is used to run the regression by using Econometric Software STATA (version12.0). The regression result indicates that the Female unemployment rate has a positive impact on FLFPR. Fertility rate and Urbanization have a negative effect. There is a significant impact of the quadratic GDP per capita PPP on FLFPR. The overall results of this paper suggest that a U-shape does not exist in Bangladesh. The research investigates an upward pattern in the female labor force participation rate by measuring the relationship between economic growth and female labor force participation rate in Bangladesh.
Highlights
The U-shaped hypothesis is a stylized explanation of the relationship between the female labor force participation rate and economic development regarding GDP per capita
EMPIRICAL FINDINGS BASED ON CORRELATION AND MULTIPLE REGRESSION ESTIMATES To verify the U shape hypothesis, we try to figure out the trade-off between economic development and female labor force participation rate in Bangladesh
1 examines the correlation between female labor force participation rate, female literacy rate, and female employment in three economic sectors in Bangladesh
Summary
The U-shaped hypothesis is a stylized explanation of the relationship between the female labor force participation rate and economic development regarding GDP per capita. Income Factor: According to the income hypothesis, women participate in the labor market to ensure their income insufficiency and strengthen their socioeconomic living standards
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