Female Labour Force Participation and Economic Development in African Least Developed Countries

Abstract

Purpose This research investigates the relationship between labour force participation of female and economic growth (U-shaped relationship) in 30 African least developed countries (LDCs). It investigates the factors determining female participation in African least developed countries. Design/Methodology/Approach The study used panel data from 1992-2017 derived from the World Development Indicators (WDI) and International Labour Organization (ILOSTAT). We employed the generalized method of moments (GMM) as the main methodology. In addition, pooled mean group estimations (PMG) and fixed effects models (FE) were estimated as references. Findings The results confirm the existence of the U-shape hypothesis. In addition, female secondary education, wage rate, and gross capital formation determine female labour force participation in African least developed countries. The results were consistent in all models used in this study. It shows that there is a U-shaped relationship between the female labor force participation and economic growth in African Least Developed Countries. Research Implications Our study is the first work which scrutinizes the relationship between female labour force participation and economic development in 30 African least developed countries. Our findings recommend that education skills be supported to be engaged in formal economic activities. Moreover, policy to promote investment and stabilize wage rates should be implemented.