Abstract
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.
Highlights
The relationship between female labor force participation (FLFP) and female total fertility (FTFR) got considerable attention from the researchers of economics and demography
Model based on correlation presume a one period proportional stationary framework, whereas the effect of female total fertility rate (FTFR) and FLFP on each other is unlikely to be immediate and this reality have led to FLFP and FTFR to be model led in a dynamic manner and as an autoregressive procedure
The results suggested that the majority of the variables confirms the panel cointegration in case of FLFP as dependent variable, whereas, none of the variable is cointegrated in case of FTFR as the dependent variable
Summary
The relationship between female labor force participation (FLFP) and female total fertility (FTFR) got considerable attention from the researchers of economics and demography. The study of Kenjoh (2005) investigates that among the OECD countries only Scandinavian countries are showing that majority females worked continuously over the life More recently, this situation has started to change and there are other OECD countries where women are working continuously throughout their lives or with only a short interruption at the time of childbirth. The nexus of female labor force participation rate (FLFP) and the female total fertility rate (FTFR) is a general problem for the developed and less develop economies. The existing studies only discussed the correlation between female labor force participation and total fertility rate. For the purpose to confirm causality study apply unique combination of econometric approaches in three different directions
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