Projection of the Output Cost Arising from Low Labour Force Participation of Women in North Cyprus
The relationship between gender inequality and economic growth has become one of the most interesting and debated issues both in the academic literature and the policy arena. The aim of this study is to investigate how gender inequalities in the labour force participation (LFP) in North Cyprus undermine the per capita output of the country. Thus, the study is designed to estimate the simulation of a possible increase in per capita GDP based on 2011 data generated by the catch up of north female labour force participation rates to the south for the year 2011. Different age categories for female labour force are considered for the measurement. The age categories distributed within the working age population including female labour force population between the ages 15 and over. The age categories are divided into 5 groups as including the female participants between the age from 15 to 24, 25 to 34, 35 to 44, 45 to 54, and 55 and over. Data used is obtained from the State Planning Organization (SPO) of North Cyprus government for North Cyprus and from the World Bank database for South Cyprus. The North Cyprus labour force participation rates are adjusted to the south as suggested by Bryant et. al. (2004). Parallel to the previous literature, it is found that female labour force participation (FLFP) rate has a positive impact on GDP in North Cyprus. There would have been a 4% higher per capita GDP with the catch up of north to south FLFP rate which might be a substantial contribution towards decreasing the income gap between north and south.
- Research Article
13
- 10.15640/jeds.v3n1a2
- Jan 1, 2015
- Journal of Economics and Development Studies
The present study attempts to ascertain the relationship between inadequate sanitation facilities and two key measures of the economic well-being of women in India: literacy rates and labor force participation rates. A two-stage regression model and correlation analysis are employed. All data is district-level for the year 2011. Results from a simple correlation analysis suggest that there is a positive correlation between latrine availability and female literacy rate but a negative correlation between latrines and the female labor force participation rate. Results from a twostage analysis, however, indicates that latrine availability is positively related to both female labor force participation and female literacy rates. These results suggest that the availability of latrines positively impacts the economic well-being of women. This is one of the first studies that examines the relationships between latrine availability and female labor force participation and literacy rates in India, and this is one of the few studies on this topic to use district-level data. Hence, these results are significant and suggest that the government of India should invest more in proper sanitation facilities for all of its citizens. These types of investments would greatly improve the economic lives of India’s women.
- Research Article
203
- 10.1086/451811
- Apr 1, 1990
- Economic Development and Cultural Change
This paper describes how the composition of the labor force changes with economic development. It considers recent trends in women's labor force participation and the type of jobs held in various sectors as national per capita income increases. The paper notes that women are more likely to work in the family or informal labor market if the labor costs to firms exceed the opportunity costs of female labor to family enterprises. Firms are at a relative disadvantage compared with families in the employment of less experienced and less skilled labor, presumably because their labor costs are affected by such regulations as minimum wage, social insurance premiums and limits on firing. In Asia and Africa, an increase in the proportion of employment in firms within the major sectors accounts for most of the rapid growth in women's overall share of wage employment. In Latin America, however, growth in the proportion of firm employment has been slower than elsewhere, and the share of women in wage employment has even fallen overall in several countries. It is not unreasonable to assume that women have lost more than men from market regulations and distortions, but little research has addressed this proposition. If it is true, however, these interventions in the labor market may be responsible for slowing women's transition from nonmarket and family work to firm employment. This in turn may affect the rate and structure of economic growth.
- Research Article
- 10.51244/ijrsi.2024.1110048
- Jan 1, 2024
- International Journal of Research and Scientific Innovation
This work investigated the impact of labour force participation on economic growth in Nigeria for the period 1990 to 2021 using annual time series data on real gross domestic product (RGDP), male labour force participation rate (MLFPR) and female labour force participation rate (FLFPR). The objectives are to examine the impact of male labour force participation rate (MLFPR) and female labour force participation rate (FLFPR) on economic growth in Nigeria and to ascertain the causality relationship between male labour force participation rate, female labour force participation rate, and economic growth in Nigeria using ARDL Bounds Testing methodology. The result indicated that male labour force participation rate (MLFPR) and female labour force participation rate (FLFPR) had statistically significant impact on economic growth in Nigeria in the short run. The result also revealed that, in the long run, male labour force participation rate (MLFPR) and female labour force participation rate (FLFPR) had statistically insignificant impact on economic growth in Nigeria. A uni-directional causality relationship is found between male labour force participation rate (MLFPR) and economic growth (RGDP) in Nigeria over the period covered with the causality running from economic growth to male labour force participation rate. The result further indicated that there is no significant causality relationship between female labour force participation rate (FLFPR) and economic growth in Nigeria over the period covered. The study therefore recommended that government should design active policy for male and female participation in labour force and seriously empower women to participate in labour force in Nigeria.
- Research Article
8
- 10.2139/ssrn.2265487
- May 16, 2013
- SSRN Electronic Journal
Following the financial crisis of 2008, transition countries experienced an increase in female labor force participation rates and a decrease in male labor force participation rates, in part because male-dominated sectors were hit the hardest. These developments have prompted many to argue that women have been spared the full-blown effects of the crisis. In this paper, we critically evaluate this claim by investigating the extent to which the increase in the female labor force participation rate may have reflected a distress labor supply response to the crisis. We use the data on the 28 countries of the transition region assessed in the 2010 Life in Transition Survey. We find the presence of the female added effect, driven by married 45- to 54-year-old women with no children in the household. This effect is the strongest among the region's middle-income countries. Among men, a negative relationship between labor force participation and household-specific income shocks is indicated. Unlike the differences in the response to household-specific income shocks, the labor supply response to a weaker macroeconomic environment is negative for both men and women—hinting at the presence of the worker effect, which cuts across gender lines. We conclude that the decrease in men's labor force participation observed during this crisis is likely a combined result of the initial sectoral contraction and the subsequent impact of the discouraged effect. For women, on the other hand, the added effect appears to outweigh the discouraged effect, contributing to an increase in their labor force participation rate. Our findings highlight the presence of heterogeneity in the way in which household-specific shocks, as opposed to economy-wide conditions, affect both female and male labor force participation rates.
- Research Article
14
- 10.24818/ejis.2022.01
- Jun 30, 2022
- European Journal of Interdisciplinary Studies
Economic literature highlights the vital role that women can play in enhancing the economic development of nations. However, there is still gender inequality in developing countries, especially in education and labour market participation. Although women represent nearly half of the population in Egypt, their labour force participation rate is still very low compared to men. This paper's primary goal is to investigate the short and long-run associations between female labour force participation and Egypt's GDP growth rate. The study used annual time series data from 1990-2019, where the vector error correction model (VECM) was employed. The study found that female labour force participation and the gross fixed capital formation growth rate can enhance the GDP growth rate in the long run. Nevertheless, there is no statistically significant relationship in the short run. This paper's main recommendations are that the Egyptian government needs to implement policies that encourage women's labour force participation and decrease gender inequality. These policies could be changes in legislation, modernization of social norms, Job flexibility, and increasing access to childcare. Moreover, they need to focus on both the demand and supply sides of the quality of female labour force participation by matching the women’s education with the creation of suitable jobs.
- Research Article
8
- 10.5539/mas.v9n8p29
- Jul 6, 2015
- Modern Applied Science
The principal objective of this paper is to investigate the dilemma between the female labour force participation rate and total fertility rate for the ASEAN-6 countries from the period 1995 to 2013 using panel cointegration and long-run structural estimation. The cointegration results confirm that the female labour force participation rate and total fertility rate are cointegrated for the panel of ASEAN-6 countries. Whereas, long-run Granger causality authenticate the causality run from the total fertility rate to the female labour force participation rate. Moreover, the results show that 1percent increase in the total fertility rate cause in a 0.44 percent decrease in the female labour force participation rate for the ASEAN-6 countries. The TFR highest negative effect observed in Indonesia and smallest observed in Thailand. The results of fully modify ordinary least square confirm the long run panel relationship between female labour force and total fertility rate.
- Research Article
- 10.31150/ajebm.v7i9.2918
- Sep 12, 2024
- American Journal of Economics and Business Management
The literature on the role of industrialization in labour force participation in Nigeria is quite scanty. Besides, there is significant disparity between male and female labour force participation rates in the country. To this end, this study investigated the impact of industrial sector performance on labour force participation in Nigeria. The total industrial sector output was disaggregated into the outputs of the various components of the Nigerian industrial sector namely; manufacturing, mining and quarrying, utility and construction sectors. Total labour force participation rate was equally disaggregated into male and female labour force participation rates. Annual time-series data for the period 1981 to 2022 were used for the study. The Augmented Dickey-Fuller (ADF) unit root test, Johansen cointegration test, error correction model (ECM), and Granger causality test were the econometric techniques used in analysing the data. The findings from the study revealed that manufacturing sector, and mining and quarrying sector outputs have significant positive impact on male labour force participation rate; construction sector output has insignificant positive impact on male labour force participation rate while utility sector output has insignificant negative impact on male labour force participation rate. On the other hand, manufacturing sector, and mining and quarrying sector outputs have significant negative impact on female labour participation rate while utility and construction sectors’ outputs have insignificant positive impact on female labour force participation rate. The main conclusion from the study is that while the total industrial sector performance largely encourages male labour force participation, it largely discourages female labour force participation in Nigeria
- Research Article
8
- 10.2139/ssrn.814009
- Oct 11, 2005
- SSRN Electronic Journal
Working Paper 2005-18 August 2005 Abstract: This paper determines that the weaker positive pull of education into the labor market and weaker labor market conditions are the observed factors that contributed the most to the decline in the labor force participation rate (LFPR) between 2000 and 2004 among women ages 25-54. As is typical, however, unobserved factors contributed more than any single or combination of observed factors. Furthermore, if the unemployment rate rebounded to its level in 2000, the LFPR would still be 1.4 percentage points lower than it was in 2000. JEL classification: J22, J11 Key words: female labor force participation, labor supply, labor force participation over the business cycle What's Up With the Decline in Female Labor Force Participation? I. Introduction and Background Since the late 1940s the percent of the male population participating in the labor force has been on a steady decline, while female labor force participation has been steadily increasing. Figure 1 illustrates these long-term trends. The decline in male labor force participation has been attributed to a variety of factors. The institution of Social Security in 1935; its expansion to include disability insurance and Medicaid; and the Revenue Act of 1942, which granted tax incentives for firms to establish private pension plans, have been found to have contributed significantly to the decline (for example, see Burtless and Moffitt 1984, Helmuth Cremer, et al. 2004, Gruber 2000, and Lumsdaine, et al. 1997). These policies provided both greater incentives to claim a work-inhibiting disability and to retire earlier from the labor market. Another explanation offered to explain the decline of male labor force participation among all age groups is the increase in female labor force participation. With labor supply decisions often made in a household (husband-wife) setting, the increase in family income from more wives working provides an income effect incentive for husbands to decrease their labor supply. [FIGURE 1 OMITTED] The rise in female labor force participation has several explanations, as well. A major determinant of the increase in labor force participation are the biotechnological advancements that have provided women greater control over and timing of child bearing decisions since the 1940s (see Bailey 2004). This greater flexibility, along with advancements in household technologies (such as the introduction of the dishwasher and microwave oven) have afforded women greater freedom and time to increase their educational attainment, providing yet another reason to devote more time to the labor market (see Goldin 1995). Further, changing social attitudes about the role of women and the appropriateness of women (and wives) to work have increased the job opportunities and, thus, the incentives for women to enter the labor market (see Rindfuss et al. 1996). While the on-going decline in male labor force participation and the long-lived rise in female labor force participation have received much attention over the years, there has been a more recent change in the trend of labor force participation among women since 2000 that begs further scrutiny. Figure 2 plots the change in labor force participation rates between 2000 and 2004 for women across age categories. The figure shows that the decline in labor force participation has occurred across all age groups, except those 55 and older. While the 16-19 and 55+ age groups deserve their own analyses, this paper focuses on the change in labor force participation of those women who comprise the bulk of the female labor force, those 25-54 years of age. (1) These women made up 69% of the female labor force in 2004. [FIGURE 2 OMITTED] The importance of identifying the source of the unprecedented decline in female labor force participation lies in the value of knowing whether the decline is the beginning of a new trend or whether it is temporary and likely to reverse itself. …
- Research Article
- 10.18255/2412-6519-2022-1-70-85
- Mar 25, 2022
- Socialʹnye i gumanitarnye znania
The influence of economic growth on the Total Fertility Rate (TFR) has been widely discussed and demonstrated in many research papers. The labor force participation rate and the unemployment rate as economic indicators play an important role in the TFR dynamics. Different studies have shown that fluctuations in female and male labor force participation rates have either positive or negative impacts on the TFR. In this study, we aim to investigate if there is any positive or negative correlation between female and male labor participation rates and the TFR in Iran. We applied time-series analysis for the period 1991-2019. We used secondary data from official bodies such as Iran’s Ministry of Cooperatives Labor and Social Welfare, the World Bank data, the International Bank for Reconstruction and Development, the International Development Association, the Statistical Center of Iran, and the United Nations Department of Economic and Social Affairs Population Dynamics to explain the trends in labor force participation rates, unemployment rates, and the TFR. We also applied Pearson correlation analysis and regression analysis to measure the strength and direction of these relationships. The results of the study show that the female labor force participation rate has a negative correlation (r = -0.783, sig. = 0.000), and the male labor force participation rate has a positive correlation with the TFR (r = 0.827, sig. = 0.000). Men’s unemployment seems to have a negative correlation (r = -0.366, sig. = 0.050), and women’s unemployment seems to have no correlation with the TFR. Considering the economic problems in Iran, more women will enter the labor market in the nearest future, therefore they postpone their marriage and the TFR will continue to decline.
- Research Article
69
- 10.1177/0256090915598264
- Sep 1, 2015
- Vikalpa: The Journal for Decision Makers
As an economy transforms from an agricultural economy to an industrial economy, a decline in participation of female labour force is observed. This is attributed to the shift from family-based production to large-scale production in industrial units. The womenfolk being mostly illiterate or with low levels of education face shortage of work in the home turf and have inhibitions in working as manual labour in the non-agricultural sector. But with an increase in family income and improvement in the education level of females, more and more females start entering the labour force, especially into non-manual or serviceoriented jobs. That is why the participation of females in the labour force in comparison with the economic growth is supposed to be U-shaped (Goldin, 1994). This article examines how the experience has been in India especially among rural females who account for the major share of the rural population. For developing countries, average patterns of women’s labour force participation are more mixed, ranging from as low as 21 per cent in the Middle East and North African region to as high as 71 per cent in the East Asian and Pacific region in 2010. The gender gaps in labour force participation are also highest in the Middle East and North African and South Asian regions, where men’s participation rates exceed women’s rates by over 50 percentage points. 1 The labour force participation rate (LFPR) in India is around 40 per cent, but gender-wise, for females it is only 22.5 per cent. 2 The gap in male–female labour force participation is such that the LFPR for rural females of the age group over 15 years is only 35.8 per cent, while for rural males it is more than double at 81.3 per cent. 3 This is quite baffling in a country with a huge demographic dividend of the working population. Studies undertaken to analyse this trend of low and declining female LFPR (FLFPR) has attributed it to education and income effect (Rangarajan, Kaul, & Seema, 2011; Vinoj, 2013). In a culturally diverse country like India, socio-cultural aspects also have a say in the economic participation of the women. India’s policies on liberalization, privatization and globalization initiated in the early nineties and more than two decades of reform-induced economic growth have driven the economy to a double-digit growth. This article examines how the participation of the female labour force has
- Research Article
44
- 10.1016/j.socscimed.2017.11.014
- Nov 10, 2017
- Social Science & Medicine
The current study aims to illustrate male to female suicide rate ratios in the world and explore the correlations between female labour force participation rates (FLPR) and suicide rates of both genders. Further, whether the relationship of FLPR and suicide rates vary according to the human capabilities of a given country are examined.Using suicide data obtained from the World Health Organization Statistical Information System, suicide gender ratios of 70 countries are illustrated. Based on the level of Human Development Index (HDI) and FLPR, the Bayesian Information Criteria (BIC) was used to determine the optimal number of clusters of those countries. Graphic illustrations of FLPR and gender-specific suicide rates, stratified by each cluster were presented, and Pearson's correlation coefficients calculated.Three clusters are identified, there was no correlation between FLPR and suicide rates in the first cluster where both the HDI and FLPR were the highest (Male: r = 0.29, P = 0.45; Female: r = 0.01, P = 0.97); whereas in Cluster 2, higher level of FLPR corresponded to lower suicide rates in both genders, although the statistical significance was only found in females (Male: r = −0.32, P = 0.15; Female: r = −0.48, P = 0.03). In Cluster 3 countries where HDI/FLPR were relatively lower, increased FLPR was associated with higher suicide rates for both genders (Male: r = 0.32, P = 0.04; Female: r = 0.32, P = 0.05).The relationship between egalitarian gender norms and suicide rates varies according to national context. A greater egalitarian gender norms may benefit both genders, but more so for women in countries equipped with better human capabilities. Although the beneficial effect may reach a plateau in countries with the highest HDI/FLPR; whereas in countries with relatively lower HDI/FLPR, increased FLPR were associated with higher suicide rates.
- Research Article
108
- 10.1016/j.jeconbus.2009.07.006
- Aug 8, 2009
- Journal of Economics and Business
Female labor force participation and total fertility rates in the OECD: New evidence from panel cointegration and Granger causality testing
- Research Article
39
- 10.1007/s12546-016-9166-z
- Mar 25, 2016
- Journal of Population Research
In recent decades, while female labour force participation rates in South Korea have increased, the country’s total fertility rates have declined dramatically. This study explores the association between women’s labour force participation and second birth rates in South Korea over the period 1980–2006. An event-history analysis is applied to longitudinal data from waves 1–10 of the Korea Labour and Income Panel Study. The study shows that post-birth labour force participation significantly reduced women’s propensity for having a second child, whereas non-employment after first birth was associated with an increased propensity. Women with highly educated husbands had a higher likelihood of enlarging the family. Further, the second birth trend in Korea fluctuated in tandem with the country’s institutional and socio-economic development. The childbearing propensity of homemakers was especially sensitive to the business cycle.
- Research Article
3
- 10.1177/09737030221074557
- Feb 8, 2022
- Indian Journal of Human Development
In India, since the 1970s, there is a declining trend in the female labour force participation. Given the fast economic growth, declining fertility rate and rising women’s educational enrolment in the past few decades, this decline is puzzling. Assam is not an exception to this trend of declining female labour force participation rate (LFPR). This study is an attempt to analyse the patterns and determinants of female LFPR in Assam during the period from 2004 to 2011. The analyses are based on National Sample Survey Office (NSSO) unit-level data of three rounds of employment and unemployment surveys. This article probes female LFPR across age cohorts, education, economic groups, social groups, status, etc. Probit regression models are used on the latest available data. An important result of the article is, status concerns measured by caste interacted with land possession impede the labour force participation of women.
- Research Article
3
- 10.1007/bf03405760
- Jan 1, 2015
- International Journal of Economic Policy Studies
This paper investigates the determinants of Japanese regional differences in female labor force participation rates. There is little regional difference in the labor force participation rates of unmarried women. In contrast, for married females, regional disparities are noticeable. Japanese female labor force participation rates show an age-specific pattern, with a big fall in participation around childbearing ages of the thirties. However, this age-specific pattern is more pronounced in some regions than in others. This study examines the factors that affect labor force participation of married women of working ages 15–64, using regional panel data. From the empirical analysis, we learn that the proportion of nuclear families has a significant negative association with married female participation rates. We find a strong relationship between family status and the labor force participation rates of married women. These findings are of great relevance to the design of policies aimed at improving the balance between work and childcare for married women, especially in the urban areas where the proportion of married women living with parents is relatively low. This is because married women of nuclear families have greater difficulty allocating their time between paid work and household chores. Policies that would significantly increase Japan’s female labor force participation must focus on the married women of childraising ages specifically in urban areas.