Financial Crisis and FLFPR: Causal Links in Developing Economies

Abstract

The impact of exports across sectors, particularly in the post-crisis recovery period, on Female Labour Force Participation Rate (FLFPR) of a country has found mixed evidence. The literature has been focused mostly on industrialized countries with more robust government interventions and support mechanisms. This paper probes select export and business cycle factors affecting FLFPR in low-middle income countries using World Bank and World Trade Organization data for 39 countries. The analysis is done keeping the 2008 economic crisis as the central point of discussion. Three sectors - agriculture, industry, and services are considered for analysis and factors like initial endowments of women employment are considered for discussion. A clear structural shift in the FLFPR of these middle-income countries post the 2008 crisis is shown.