Determinants Of Labor Force Participation Research Articles

What drives labor force participation rate variability? The case of West Virginia

This study examines the dynamics of labor force participation rates across counties in West Virginia to better understand local labor market integration and the factors influencing fluctuations in participation. Drawing on county-level data from January 1990 to July 2020, the research employs a dynamic factor model to decompose labor force participation rates into latent factors at the state, metropolitan/non-metropolitan, and county levels. The findings reveal a general lack of labor market integration across West Virginia, highlighting potential opportunities for growth through enhanced integration. Further analysis using panel data models identifies key determinants of labor force participation, including personal income, education, infrastructure, and the prominence of industries such as agriculture and natural gas. The results underscore the necessity for targeted county-level policies to bolster employment and promote economic expansion within the state.

Do Drivers of Labor Force Participation Differ for Male and Female in the Rural and Urban Labor Markets in India?

The labor force participation rate of women in India has decreased despite economic growth, which has limited the advancement of their rights unlike in most other countries. This paper examines the determinants of labor force participation by gender in rural and urban areas using a probit model with data from the India Human Development Survey (IHDS) for 2011–2012 to analyze the factors that restrict workforce participation. The estimation results are presented below. First, the marital status of males, both rural and urban, has a significant impact on their participation in the workforce due to family support. In contrast, females face multiple restrictions based on marital, caste and religion, demonstrating that sociocultural factors have limited their participation regardless of regional factors. Second, in rural areas, the educational years of female workers negatively affect labor participation, but the constraints of marriage are weaker than in urban areas. Women in lower castes participate more in the rural labor force, which is interpreted as a result of their livelihood in the industrial structure consisting of agriculture. On the other hand, the caste system negatively affects female participation in urban areas. Finally, these results indicate that the low-labor participation of females is the result of a complicated process influenced by various factors, including regional effects and patriarchal cultural values in India. Therefore, it is necessary to provide employment opportunities and encourage economic incentives for more women to enter the labor market spontaneously, considering regional effects in policies, in order for women to emerge as one group of social leaders.

The labour market entry of immigrant women in Germany: disentangling the determinants of labour force participation

ABSTRACT The labour market entry of immigrants is key to their integration, but also one of the stages where disadvantage arises. In seeking to understand this disadvantage, much of the existing research does not acknowledge the gender-specific dynamics at play and for immigrant women, this often means that their labour force participation (LFP) is overlooked. Thus, this study seeks to investigate the LFP decision in its own right, exposing the gender-specific nature of this stage of labour market integration and its determinants, including labour market resources, like education and language skills, and motivations, like childcare pressures, gender role attitudes and personality traits. Relying on data from the Recent Immigration Processes and Early Integration Trajectories in Germany (ENTRA) survey of recently-arrived immigrants, I investigate the LFP of women from four different origin groups – Poland, Italy, Syria and Turkey. The results highlight that, unlike immigrant men, for immigrant women, the LFP decision is much more salient, and both labour market resources as well as motivations are decisive determinants. Nonetheless, even after accounting for these factors, Turkish and Syrian women still show persistently lower LFP compared to immigrant women from European origins. Moreover, childcare responsibilities are identified as a crucial female-specific barrier.

Determinants of Labour Force Participation in Nigeria: The Role of Expansion in Tertiary Education and Internet

The aim of this study is to examine the determinants of labour force participation in Nigeria. The Fully Modified OLS was used to investigate the relationship between labour force participation rate and, life expectancy rate, trade openness, education (% secondary), education (% tertiary), labour tax wedge, dummy variable for era of expansion tertiary education in Nigeria, ratio of service to industry, and number of internet users from 1990 to 2021. The series were tested for the stationarity with ADF and the results showed that all the series were stationary at first difference. The Johansen cointegration technique was employed to examine the existence of long run relationship among the series and the result showed the existence of six cointegration equation among the series. The findings of the study showed that life expectancy rate, internet, and the interaction of tertiary education, dummy variable for the expansion of tertiary education in Nigeria and internet contribute significantly to labour force participation in Nigeria. The authors concluded that expansion in tertiary education combined with access to internet is a necessity for labour force participation in Nigeria. The authors therefore recommended that there should be improvement in social infrastructure as to enhance good living conditions among the population; thereby, increase their lifespan. In addition, the recent investment in ICT should be sustained in order to ensure that great numbers of Nigerians, especially students have access to internet. Lastly, the government can liberalise the economy to give room for foreign investors’ involvement in manufacturing of ICT infrastructure and accessories.

Determinants of Labour Force Participation in the Philippines

This empirical study identifies the main determinants of labour force participation in the Philippines. The results demonstrate that the decision to participate in the labour force is influenced by location, sex, age, marital status and educational level. The rural man, single individual, who is older and possesses a higher educational level is more likely to participate in the labour force. Furthermore, difference in labour force participation rates between the rural and urban areas is due primarily to differences in behavioural responses to variables explaining participation (the coefficient effect) and not so much to differences in sub-population characteristics.

Determinants of Labor Force Participation and Wages in Thailand: What is the Role of the Informal Sector?*

There has been a perennial debate on why the informal economy exists and grows in developing countries around the world. The present study focuses on the case of Thailand, one of the countries with the highest share of informal activities, to clarify whether its informal workers participate in the informal sector voluntarily or involuntarily. The confirmation matters for the design of government policies and public welfare. We separated the study into two levels. First, at the national level, we used the finite mixture model to examine the 2010 Population and Housing Census and estimate the wage equations for formal, voluntary informal and involuntary informal workers. Second, we focused on a local area for the case of Chiang Mai city, where we surveyed a sample of 393 informal business owners to understand their decision to participate in the informal sector. From both levels of study, we found heterogeneity among the informal workers, who could be classified into voluntary and involuntary groups. While those in the voluntary group stay in the informal sector because workers prefer time flexibility, those in the involuntary group stay because of family burdens. Both levels of data also showed that the Thai informal sector is dominated by the voluntary group (>70 percent).

THE EFFECTS OF ILL-HEALTH AND DISABILITIES ON LABOUR FORCE PARTICIPATION AMONG NIGERIAN HOUSEHOLDS

Nigeria has demeaning health statistics together with declining labour supply despite the large population size. This paper investigated the effect of illness, disability and other socio-demographic factors on labour force participation among Nigerian households. This study is cross-sectional in which secondary data from the General Household Survey (2015/2016) was used for the analysis. A representative sample of 4,200 household heads was used for the analyses. Both predictive and descriptive analyses were undertaken. Binary logistic regression was used to investigate predictors of labour force participation among the household heads. The data revealed that 52.1% of respondents were engaged in labour force. Controlling for other variables, the various forms of disabilities, ill-health, body injury, gender and educational attainment were significant determinants of labour force participation. The result provokes the need for policymakers to articulate policies that improve access to healthcare through the expansion of health insurance coverage. The study concluded that self-assessed health and education attainment influence labour force participation. Policies should be used to expand educational opportunities and improve access to healthcare services in Nigeria. To improve access to healthcare, the Nigeria government should increase the ownership of health insurance policy by broadening the coverage of the formal health insurance and encouraging community-based health insurance in the informal and rural sectors.

What Drives Female Labour Force Participation? Comparable Micro-level Evidence from Eight Developing and Emerging Economies

We investigate the micro-level determinants of labour force participation of urban married women in eight low- and middle-income economies: Bolivia, Brazil, India, Indonesia, Jordan, South Africa, Tanzania, and Vietnam. In order to understand what drives changes and differences in participation rates since the early 2000s, we build a unified empirical framework that allows for comparative analyses across time and space. We find that the returns to the characteristics of women and their families differ substantially across countries, and this explains most of the between-country differences in participation rates. Overall, the economic, social, and institutional constraints that shape women’s labour force participation remain largely country-specific. Nonetheless, rising education levels and declining fertility consistently increased participation rates, while rising household incomes contributed negatively in relatively poorer countries, suggesting that a substantial share of women work out of economic necessity.

What Drives Female Labor Force Participation? Comparable Micro-Level Evidence from Eight Developing and Emerging Economies

We investigate the micro-level determinants of labor force participation of urban married women in eight low- and middle-income economies: Bolivia, Brazil, India, Indonesia, Jordan, South Africa, Tanzania, and Vietnam. In order to understand what drives changes and differences in participation rates since the early 2000s, we build a unified empirical framework that allows for comparative analyses across time and space. We find that the coefficients of women's characteristics differ substantially across countries, and this explains most of the between-country differences in participation rates. In particular, the relationship between a woman's education and her participation in the labor force varies from being positive and linear (Brazil and South Africa) to being U- or J-shaped (India, Jordan, and Indonesia), or a mixture of both (Bolivia, Vietnam, and Tanzania). Overall, the economic, social, and institutional constraints that shape women's labor force participation remain largely country-specific. Nonetheless, rising education levels and declining fertility consistently increased participation rates, while rising household incomes contributed negatively in relatively poorer countries, suggesting that a substantial share of women work out of economic necessity.

The Determinants of Labor Force Participation of Women In Turkey: A Binary Logit Analysis

Compared to many developed and developing countries, the labor force participation of women in Turkey is very low. More interestingly, the rate of the labor force participation of women had declined from the 1980s to 2008 although it had increased in many countries. This paper examines the major determinants of the labor force participation of women in Turkey by using binary logit model on the World Values Survey of 2007. It finds that high level of education, high level of income, and being chief wage earner in the household have a positive impact on the labor force participation of women in Turkey. While the ageing of women has a positive impact until the age of mid-30s, its effect is negative after the age of mid-30s. Marriage and the increasing number of children have also negative impacts on the labor force participation women.

Effect of household modern appliances on labour force participation of women in Nigeria's informal sector

This study identifies major determinants of labour force participation among women in Nigeria, with specific emphasis on ownership of modern household appliances. The study uses primary data, which was obtained through structured questionnaires administered on 400 adult women. Data were analysed using logit regression model. The results show that post-secondary education, religion and ownership of power generating set with washing machine had negative significant influence in the determination of female labour force participation in the informal sector. Furthermore, spouses' occupation in the informal sector and ownership of gas cooker had positive significant influence in the determination of their participation in the informal sector. Overall, the results suggest that as more women make use of modern household appliances, they will participate less in informal activities. Thus, improved participation in formal employment might be furthered by ownership of functional household appliances.

The Empirical Study on Determinants of Labor Force Participation on Social Service and Quality of Social Service Work: Focusing on personal factors and regional factors

The Empirical Study on Determinants of Labor Force Participation on Social Service and Quality of Social Service Work: Focusing on personal factors and regional factors

Determinants of Labor Force Participation of Older People in Vietnam

As the proportion of the older population (those aged 60 and over) keeps increasing quickly in Vietnam, issues related to older individuals’ labor market behavior have drawn a great deal of public attention. This paper aims to identify the determinants of the Vietnamese older people’s decision to be active in the labor force. We used data from the Vietnam Aging Survey (VNAS) in 2011 - the first-ever nationally representative survey on older people - which comprised 2,789 respondents. We employed probit models and other statistical methods in order to ensure the validity of the results. The paper demonstrated that various individual factors (such as age and health status) and household-related factors (such as area of living) significantly contributed to older people’s decision about participating in the labor force. More interestingly, the effects of the above factors were statistically and significantly different for males and females and those living in urban and rural areas. To reach ‘active ageing’ in terms of work and income security, Vietnam should have some immediate and long-term solutions so to encourage the participation of older people in the labor force and improve their health and living conditions.

Labor Force Activity after 60: Recent Trends in the Scandinavian Countries with Germany as a Benchmark

In most OECD member countries labor force attachment has increased in recent years in the 60+ group. Focus in the paper is on the development in this area in Denmark, Norway and Sweden since the 1990s. The development in the same period in the German labor market is included as a frame of reference. Main emphasis is given to the development in two distinct age groups, i.e. people in the first half of the 60s of which many are eligible for early retirement programs and people older than 65 mostly eligible for social security retirement programs. For these two age groups the actual development in labor force participation is described based on register data and on labor force surveys along with indicators of cohort relevant changes in education and health. Focus in the paper includes also the gender aspect to accommodate stronger cohort effects for women than for men. The impact on labor force participation from individual education and from self-assessed health is analyzed based on available micro data. Policy reforms and changes in the retirement area have been enacted since the mid-1990s in the included countries and more sweeping reforms are enacted or under review for the years ahead. We include a brief survey of policy changes in the Scandinavian countries and Germany as other determinants of labor force participation in the 60 and older group.

What Determines Labour Force Participation of Tanzanian Women?

This paper estimates the determinants of labour force participation of Tanzanian women. It employs data from the 2006 Integrated Labour Force Survey. The key determinants found are: children (they both reduce and increase the odds of participation); age (it increases the odds of participation); marital status of women (it decreases and increases the odds of participation); education level (it increases the odds of participation); the education level of a woman’s spouse (it increases the odds of participation); the employment status of a woman’s spouse (it increases the odds of participation if spouses are in self-employment, but it reduces the odds of participation for other statuses); household income (higher incomes increase the odds of participation, but it reduces the odds of participation for women in lower incomes); and location (it increases the odds of participation for women living in urban areas but reduces the odds of participation for rural women). These findings have implications that can help to increase the participation of women in the labour force. Firstly, education (both for women and their spouses) remains a sure way of increasing the participation of women in the labour market by imparting and enhancing skills for more effective participation in the labour market. Secondly, child-minding programmes for women who are in their childbearing years are important so that having children does not constrain women’s participation in the labour force.

Static Model of Labour Force Participation: Survey of Married Women in Zimbabwe

The study sought to ascertain and measure the determinants of labour force participation of married women in Zimbabwe. The focus was on the activeness of married women in paid, permanent work. The study utilized and collected data from a sample of 514 married women from varying socio-economic backgrounds. A binomial logit model was implemented as the regression model to test the probability of labour market participation by the target group. The results showed that age, education attainment, work experience, geographical location, religious denomination and the amount of non-labour income earned were significant determinants of the decision to work by married women. It was noted conclusively that none of the factors above influenced LFP strongly enough to warrant the low levels of formally and permanently employed married women. It was suggested that economy-wide policies to improve general employment levels be implemented. DOI: 10.5901/mjss.2014.v5n23p406

Labor Force Participation of Married Female: The Case of Russia

Women make up a little over half the world’s population, but their contribution to the labor force is far below its potential, with serious macroeconomic consequences. Despite a recent progress, labor markets across the globe remain divided along gender lines, and female LFP remains lower than the participation of their male counterparts. This paper assessed the determinants of labor force participation of married woman in Russia, using data obtained from Russian Longitudinal Monitoring Survey (RLMS) conducted in 2011 and 2012. The study used two-step Heckman selection model whose major function was to give unbiased estimators of the parameters of the wage function, which could serve to estimate parameters of a structural equation of participation.On the first stage, the consistent wage estimate for working and non-working segments of the sample is derived. On the second stage, the unbiased wage estimate is included to the main (structural) participation equation and the elasticities of different socio-demographic, economic and other individual characteristics are estimated. Two types of proxies (the presence of children and household income characteristics) that affect the married female’s opportunity cost of working but do not generate sample selection mechanisms were used in order to overcome the identification problem in the first-stage wage equation.The estimated semi-elasticity of married female participation to wage is about 0.24, which implies that for every one percent increase in offered wage, the LFP of women on average will grow by 0.24 percent in Russian Federation. The findings of the study also indicate that such factors as gender, age, the presence of dependent children, educational attainment, location and the religious affiliation are the significant determinants of the LFP of the married female in Russia. The income of the other household members and race of the respondent, on the other hand, proved to be insignificant determinants of labor supply. As a result, the empirical evidence provided by this project can be useful in future assessments of current social security and employment policies implemented in transition economies.

Labour force participation across Europe: a cohort-based analysis

We use a cohort-based model to analyse the determinants of labour force participation in six European economies, focusing on age and cohort effects as factors explaining differences in participation behaviour across countries. Cohort effects are particularly relevant for women with those born in the late 1960s and early 1970s more likely to participate over the life-cycle. Our results suggest that cohort effects can be interpreted as evolving social norms or preferences towards participating in the labour market according to Fernandez (NBER working paper no. 13373, 2007). We find substantial variation in the estimated age and cohort effects across European countries: cohort effects can account for a substantial part of the recent increase in participation in Spain, the Netherlands and Germany, and a positive, but smaller part of in the increase in participation of the UK, Italy and France. Looking forward, positive cohort effects could help counteract the downward impact of population ageing on participation.

The determinants of labour force participation and employment in Chile

Chile's labour force participation is low in comparison with Organization for Economic Co-operation and Development (OECD) and Latin American countries on average, especially among females and youths. This article estimates the main determinants of labour supply and employment for prime-age individuals and youths using data from the National Household Survey (CASEN) for 1990, 1996 and 2003. Educational attainment is found to be a powerful predictor of labour supply and employability for both males and females. The number of young children in the household is a strong deterrent to female participation, both for prime-age and young women. Changes in labour supply and employment during 1990 and 2003 are decomposed using the probit estimations. The results suggest that structural changes in the economy were the main determinants of changes in participation among prime-age individuals, but the converse is true for changes in employment, which depended predominantly on shifts in individual characteristics.

Labour Force Participation in the Euro Area - A Cohort Based Analysis

We use a cohort based model to analyse determinants of labour force participation for disaggregated groups of workers in the euro area and the five largest euro area countries. The model captures age and cohort effects as indicators of (unobserved) determinants of participation behaviour. We use these effects and observed determinants to construct trends and projections of labour supply. Our results suggest that age and cohort effects can account for a substantial part of the recent increase in participation. Cohort effects are particularly relevant for women with those born in the late 1960s and early 1970s more likely to participate over the life-cycle. There is substantial variation in the estimated age and cohort effects across countries. Looking forward, positive cohort effects for women are not large enough to compensate for the downward impact of population ageing on participation rates in the euro area. JEL Classification: J11, J21