The Dynamics of Women’s Labor in Developing Countries: Effects of Economic Growth, Digitalization and Institutional Factors

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This study inquired into the way socioeconomic, institutional, and digitalization aspects relate to women's participation in the labor force. Making use of the data from 28 developing nations gathered between 1997 and 2022, the Granger causality test and the fixed effect panel estimate method were utilized to examine the relationship between the variables. The analysis results certified that, at low quantiles, women's labor force participation and economic growth uphold a positive but statistically insignificant relationship. In the opposite direction, it was discovered that the impact of inflation on female labor force participation is negative at medium and high quantiles while it is statistically insignificant at low quantiles. Despite being proven to exert a positive influence on the participation of females in the labor force, the model's gross fixed capital accumulation has been determined to be statistically insignificant at very high quantiles. At every quantile degree, it was also detected that the number of women in parliament, the internet use, and urbanization all had a positive impact on female labor force participation. Granger causality studies, on the other side, manifested that there is a unidirectional causality from the internet usage, urbanization and the number of women in parliament to the female labor force. Nonetheless, the findings indicated that there is a bidirectional causality between inflation and the female labor force and a unidirectional causality from the female labor force to gross fixed capital accumulation. It was finally concluded that there is no evidence of a causal relationship between female labor force participation and economic growth.

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What's Up with the Decline in Female Labor Force Participation?
  • Oct 11, 2005
  • SSRN Electronic Journal
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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. …

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The Social Context of Women's Labor Force Participation: A Comparative Analysis
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Utilizing data from 61 societies, this inquiry focuses on women's labor force participation as a characteristic of the social structure. First, the analysis demonstrates that participation is positively related to economic development and divorce rate and negatively related to fertility and income inequality. While the effect of economic development is mediated by various aspects of familial composition, the most significant effect on female labor force participation is that of income inequality. In societies where inequality is high, women are less likely to join the labor force. The analysis goes on to demonstrate that female labor force participation has consequences for occupational discrimination. The odds that women can achieve high status and well-paid occupations decrease with the proportion of women in the labor force. The findings reported here suggest strongly that the integration of females into the labor force is determined by the shape of the stratification system. Such integration, however, results in occupational discrimination. The meaning and significance of the findings are discussed in the light of sociological theories.

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Female Labor Force Participation in Developing and Developed Countries-- Consideration of the Informal Sector
  • Aug 1, 1983
  • The Review of Economics and Statistics
  • M Anne Hill

T HE steady increase in the labor force participation of married women in the United States over the last few decades has stimulated considerable interest in the economic analysis of a woman's decision Pioneering work by Mincer (1962) and Cain (1966) has served as a theoretical and empirical foundation for numerous studies of female labor force participation. This research typically treats a woman's current labor force status (measured as a dummy variable for the individual and as a rate for the population) as a measure of labor supply which depends upon economic and demographic characteristics such as female earnings, male earnings, non-earnings income, schooling, work experience, age, number of children, and so on. (Notable examples are Bowen and Finegan (1969), Cogan (1975, 1978), Gronau (1973), Heckman (1974, 1980), and Schultz (1980).) While the associated theoretical models and statistical techniques have been refined considerably (especially by Lewis (1972), Ben-Porath (1973), and Heckman (1974, 1979)), the coefficients estimated using U.S. data have remained reasonably robust. Also, there is substantial agreement among micro-level and aggregate results. (See Cain (1966) and Bowen and Finegan (1969) for comparisons.) As this body of literature has grown, the economic models developed within it have been implemented analyze the labor force behavior of women in other countries. However, there is no consistent international pattern in the behavioral trends of the female labor force. Perhaps the most notable difference in the economic opportunities available women in many other countries is that they may work in the sector of the labor market. Women may be considered economically active and may be counted as being in the labor force as they produce goods at home for market sale, work on the family farm, or work in a small family-run business. The most convenient means of categorizing workers as being in the sector is by their employment status. Following Jaffe and Azumi (1960) we assume that women reported as self-employed or as family workers are engaged in the informal sector of the labor force. Almost all women in the U.S. labor force work as employees; only 6.6% worked as self-employed or family workers in 1978. Given Japan's advanced economic development, a surprisingly large fraction (38.4% in 1978) of its female labor force comprises self-employed and family workers.' Clearly, in the United States and countries with a similar distribution of the labor force by employment status, the labor force participation decision may be treated as the choice to work or not work. However, if individuals regard the decision enter the labor force as an employee as being distinct from the choice enter the labor force as a family worker, then economic models of labor force participation which treat these choices as identical will incorporate a specification bias. The labor force participation decision may differ between these two sectors for several reasons. First, the wage offers may differ by sector. Second, while entering the informal sector may be virtually frictionless, there may be fixed costs (among them commuting time and child care) associated with working in the formal sector. Third, family workers may face more flexible working schedules than paid employees; the latter group may be subject contractual working hours. In order treat the labor force decisions in coiuntiNes with significant informal sectors. this Received for publication March 16, 1981. Revision accepted for publication September 15, 1982. * Rutgers University. This paper is a revision of work begun with my doctoral dissertation. I would like thank H. Gregg Lewis and T. Dudley Wallace for their suggestions and Hideo Okamoto for providing the data set. I would also like thank David Crawford, Toshiaki Tachibanaki, two anonymous referees, and the participants of the Columbia Labor Workshop, the Japan Economic Seminar, and the Yale Labor and Population Workshop for their comments. Remaining errors are my own. This research was supported by a postdoctoral fellowship from the National Institutes of Health. Additional funding was provided by the William and Flora Hewlett Foundation grant the Yale Economic Demography Program. I Statistical Abstract of the U.S. and Japan Statistical Yearbook.

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Projection of the Output Cost Arising from Low Labour Force Participation of Women in North Cyprus
  • Oct 10, 2017
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  • Demet Beton-Kalmaz

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
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The Relationship between Women's Education with Women's Labor Participation and National Income: A Research on G20 Countries.
  • May 6, 2019
  • European Journal of Education Studies
  • Kasım Karakütük + 1 more

The purpose of this research is to reveal the relationship between women’s education, women's labor force participation and national income in G20 countries. The relationships between women's education, women's labor force participation and national income were analyzed by the panel data analysis method for the G20 countries for the period 1997-2018. Stability of series were tested by Fisher ADF and Fisher PP panel root tests and the series were determined to be I (1). Pedroni (2004) was used to test the existence of cointegration relationships between the series. The series were found to be cointegrated. The long- and short-term relationships of the series were analyzed by the Panel DOLS method and it is determined that the increase of female schooling level increase the female labor force participation rate, increase of female schooling level and female labor force participation rate increase the per capita (real) national income. A two-way causality relationship was found between the ratio of women in higher education and national income per person. In addition, two-way causality relations between women's labor force participation rates and schooling rates at all levels of women were determined. In the study, it is concluded that in G20 countries, women's schooling rate increases the women's participation in the labor market and increases of women's schooling rate and female employment increase the national income per capita in countries. Article visualizations:

  • Research Article
  • Cite Count Icon 5
  • 10.1016/j.ssresearch.2019.102398
Female labor force participation in the US: How is immigration shaping recent trends?
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  • Social Science Research
  • Patricia A Mcmanus + 1 more

Female labor force participation in the US: How is immigration shaping recent trends?

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