Female Labor Force Participation Rate Research Articles

Female labor force participation and fertility differentials

AbstractUS women, on average, had approximately two children in both the 1930s and in the 1970s, yet the fertility distribution in the 1930s was less concentrated. This implies change in reproductive behavior, which cannot be captured by models focusing on average fertility. To explain these changes, I have developed a model that makes a distinction between sons and daughters. In this model, the female labor force participation rate is the probability of each girl becoming an employed woman. This endogenizes the empirically observed difference in the propensity for an all-girl household to have another child compared to an all-boy household, generating large fertility differentials at low participation rates. Higher participation rates raise the expected return from an additional child, as well as the expected return from existing daughters. The first effect tends to increase fertility, while the second effect, for relatively concave utility functions, tends to decrease it, so that the distribution of completed fertilities becomes more concentrated.

How does female labor force participation impact on housing values?

Female labor force participation (FLFP) and household wealth are two main topics of interests to economists for long time. The objective of this study is to investigate the response of housing values, household wealth, to female labor force participation using panel level data in the U.S. states. We develop static and dynamic estimation models using state-level data in the U.S. from 2005 to 2013. The results show the FLFP rate and per capita income have a strong positive effect on housing values, while the number of units per capita has a negative effect on housing values in the state. We find that a 10% increase in FLFP will result in an increase of about 12.5% on housing values. Additionally, increasing per capita income by 10% on average will cause housing values to rise by 9%, however, a 10% rise in the number of units per capita will decrease housing values by 30%. The results assist economists and policy makers in assessing policies to optimize decisions in labor market and housing market.

Growth, health and gender imbalance: evidence from India

ABSTRACT In an examination of the relationships between imbalanced gender ratios and the growth–health–poverty nexus, a simultaneous equation model (based on panel data) identifies an adverse impact of poor health conditions on the gender ratio. Better health services and health outcomes can raise the survival rate of girl children and women, while a higher gender ratio (a greater presence of women) is associated with an increased survival rate of girl children. Economic growth alone is not sufficient to curb gender inequality, but the female labour force participation rate does have favourable effects on the gender ratio, indicating the wide social and economic implications of women’s access to resources.

Credit market competition and the gender gap in labor force participation: Evidence from local markets

We exploit the exogenous variation in regional credit market competition brought on by banking deregulation to study the evolution of the gender gap in labor force participation in local US markets. We find that intrastate deregulation increased substantially female labor force participation rates, owing to three separate mechanisms: an increase in the rates of net job creation by private firms, an expansion of services-producing sectors, and an increase in the share of jobs requiring female-specific skills. This effect is robust to controlling for a range of socio-economic developments, as well as for a US-wide gender-specific trend. Overall, intrastate deregulation reduced the gender gap in labor force participation by at least 7.5%.

The Transmission of Work Centrality within the Family in a Cross-Regional Perspective

Young adults’ work values evolve as they are socialized into education and work. We study a core concept of work values, work centrality, and distinguish between an extrinsic dimension, that is, the relative importance of work; and an intrinsic dimension, that is, nonfinancial employment commitment. Using data collected by the CUPESSE project on two generations of families in nine European countries, we explore the congruence of work values between parents and adolescents and the effect of the regional-level social and economic context on young adults’ work values. We find, first, that parental influence is the most robust determinant of extrinsic and intrinsic work centrality in adolescents. Second, the relative importance of work to young women varies across regions, but the variation is explained in part by female labor force participation rates in those regions. Third, differing patterns of extrinsic and intrinsic work centrality across European regions are explained, in part, by gender, education, and subjective financial satisfaction.

The real exchange rate, structural change, and female labor force participation

While a large literature examines the role of fiscal policy in reducing gender gaps in labor market outcomes, scant evidence exists for the role of monetary and exchange rate policies in doing so. Recent studies have shown that targeting an undervalued real exchange rate stimulates economic growth by expanding tradable sector output. We examine whether such growth reduces gender gaps in labor force participation by improving labor market opportunities for women. Using a comprehensive cross-country dataset from 1960 to 2015 for a maximum of 103 countries, we test whether there is a robust relationship between currency undervaluation and female labor force participation. We find that countries that maintain an undervalued real exchange rate realize an increase in female labor force participation, and a corresponding decline in the difference between male and female labor force participation rates. This finding is particularly pertinent for developing countries and is robust to various specification checks as well as different estimation techniques. We also provide suggestive evidence that the operative channel is an expansion of female employment in manufacturing and industrial sectors. Our findings have important policy implications, particularly for countries in earlier stages of their development. Our results indicate that the positive effect of undervaluation on female labor force participation is stronger in developing countries, implying that there may be opportunities for interventions to target a more undervalued real exchange rate in these countries. Hence, competitive exchange rate policies matter not only for raising long-term growth potential, but also for reducing longstanding gender disparities in labor force participation.

Deindustrialization, labour and violence in El Salvador

This study explores how deindustrialization is influencing the labour market in El Salvador. The variables under analysis are disaggregated by sex in order to permit an analysis of the differences in the ways that women and men react to deindustrialization. The results indicate that deindustrialization has led to a decline in quality employment and an upswing in self-employment, at the same time that the female labour force participation rate has risen and the male participation rate has fallen. This all occurred in parallel with the economic measures introduced in the 1990s and reflects the role that women have assumed in order to safeguard the well-being of their families. Deindustrialization has also been associated with increasing violence, since it paves the way for an increase in poor-quality jobs. This article concludes by underscoring the importance of reinstating tariff protections and supporting a reindustrialization process, together with regional integration, gender equality and education.

Enhance or depress? The effect of trade on active females in the labour market

The objective of this study is to provide evidence for the existence of threshold effects in trade openness, which affects the female labour force participation rate (FLFPR) in Asian countries. The authors employ the proportion of export, import and total trade volume to gross domestic product to denote export and import dependency and trade openness, respectively. The panel threshold regression results indicate that there exists an optimal value in the correlation between trade openness and FLFPR below which an increase in trade openness will enhance the FLFPR; an adverse relationship exists when trade openness exceeds the threshold value. This relationship is attributed to the trade-off between the cost reduction effect and the technology channel. Furthermore, the authors further categorise trade openness into export and import dependency. The findings reveal that export dependency also has a single threshold effect on FLFPR, while import dependency exerts a negative effect on FLFPR regardless of threshold effect. Therefore, the government could promote female participation in the labour force by regulating the export policy.

Accounting for Differences in Female Labor Force Participation between China and India

Although, the male labor force participation rate is comparable in China and India, female labor force participation rate remains very low in India. In this paper, we examine the factors responsible for the difference in female labor force participation rate between the two countries by carrying out decomposition exercise at three points of time covering two decades. We find that the differences in female labor force participation rate are not explained by the differences in characteristics across the two countries in each of the three year studied. The differences in returns to these characteristics explain most of the differences in participation rate.

Accounting for Differences in Female Labor Force Participation between China and India

Although, the male labor force participation rate is comparable in China and India, female labor force participation rate remains very low in India. In this paper, we examine the factors responsible for the difference in female labor force participation rate between the two countries by carrying out decomposition exercise at three points of time covering two decades. We find that the differences in female labor force participation rate are not explained by the differences in characteristics across the two countries in each of the three year studied. The differences in returns to these characteristics explain most of the differences in participation rate.

Female Labour Force Participation (FLFP) and its Significance in Economic Growth of India: An Overview

During the last 25–30 years, India is experiencing rapid economic growth with minimal ups and downs. The country has also attained structural changes, increased the higher level of education attainment, declining trend of fertility rate and rapid urbanization. However, there has been 23 per cent of decline in the female labour force participation rate. This paper explores with few questions using state-level employment data spanning the last twenty five years, 1983–84 to 2009–10. Several cross-country and within-country studies suggest female labour force participation tends to decline initially with economic development, plateaus at a certain stage of development before rising again. The results of the study also suggest that growth by itself is not sufficient to increase women's economic activity, but the dynamics of growth matter. These findings are especially important to help design policies to improve women's labour force participation rate so that India can take complete advantage of its demographic dividend.

Globalisation and Female Economic Participation in Sub-Saharan Africa

This study assesses the relationship between globalisation and the economic participation of women (EPW) in 47 Sub-Saharan African countries for the period 1990-2013. EPW is measured with the female labour force participation and employment rates. The empirical evidence is based on Panel-corrected Standard Errors and Fixed Effects regressions. The findings show that the positive effect of the overall globalisation index on EPW is dampened by its political component and driven by its economic and social components, with a higher positive magnitude from the former or economic globalisation. For the most part, the findings are robust to the control for several structural and institutional characteristics. An extended analysis by unbundling globalisation shows that the positive incidence of social globalisation is driven by information flow (compared to personal contact and cultural proximity) while the positive effect of economic globalisation is driven by actual flows (relative to restrictions). Policy implications are discussed with some emphasis on how to elevate women’s social status and potentially reduce their victimisation to male dominance.

How Social Security’s Earning Test, Age and Education Affect Female Labor Supply

This paper investigates the impact of a major Social Security policy change on the labor force participation rates of elderly females, both married and single, and of various races and ethnicities. Historically, social security benefits were reduced if labor income exceeded a certain level. The employment tax ranged from a $1 reduction for each $1 earned to a $1 reduction for each $3 earned. Prior to 2000, the age at which this reduction was no longer applied, varied between 70 and 75. However, in 2000 the age was lowered to what the Social Security Administration calls the normal retirement age which ranges between 65 and 67 depending on the date the person was born. Such a major change provided fertile ground for economic research. Studies have proliferated on the impact of the regime change on the labor force participation rates of elderly males. However, little work has been conducted regarding the impact of this policy change on female labor force participation rates. This study shows that after the employment tax was eliminated for those reaching their normal retirement age, the labor-force participation rates of single, divorced, separated and widowed women in the targeted age range usually increased. The estimates indicate the labor-force participation rates of married women in the affected age range fell with the elimination of the employment tax.

Low Female Labor Force Participation in Pakistan: Causes and Factors

Pakistan has the lowest Female Labour Force Participation (FLFP) rate in the South Asian region. The study has used the latest round of Labor Force Survey 2014-15 and analyzed the individual and household factors that are associated with low FLFP in Pakistan. This study finds that there is less probability for urban women to take part in labor force activities. At national and regional level higher secondary and above levels of education have positive and significant relationship with FLFP whereas the situation is different for the four provinces of Pakistan. In case of Punjab province graduation and above levels of education are positively affiliated with FLFP, in Sind province higher secondary and above levels of education are positively associated with FLFP, in KPK province, matric and above levels of education are positively influencing FLFP decisions and in Baluchistan province primary and above levels of education are positively influencing women's decisions to participate in labor force activities. Women living in joint family systems, non-migrated, recipient of technical or vocational trainings are also more likely to participate in labor force activities. The study provides useful insights for policy makers to formulate appropriate policies to increase FLFP rate in Pakistan.

Pengaruh Fertilitas Terhadap Partisipasi Tenaga Kerja Perempuan

Indonesia, like other countries in the world, is experiencing a downward trend in the total fertility rate and an increasing trend in the female labor force participation rate. This study looks at the effect of female fertility on job supply in Indonesia by using IFLS data and the instrumental variable (IV) estimation technique first introduced by Angrist and Evans (1996; 1998) conducted in the United States. This study shows how parental preferences are related to different sexes of children as identification of fertility towards women's participation in the labor market. The results of this study indicate that fertility with the approach of the number of children owned and then instrumented by looking at the sex of the child resulted in a decrease in the supply of female labor. The magnitude of the effect on the working age group is that there is a decrease in work participation of around 52-54 percent and a decrease in overall work hours of around 23 hours / week.

Can economic development boost the active female labor force?

This study explores whether the female labor force participation rate (FLFPR) can promote economic development in Asian countries. We apply the method of bootstrap panel Granger causality in order to consider the cross-sectional dependency and heterogeneity to detect specific patterns of the interactive relationships between the two variables. The estimation results point out that the interaction patterns vary across countries, which is consistent with the U-shaped hypothesis. Specifically, when the economy develops, FLFPR declines in Vietnam and India, whereas economic development promotes the FLFPR in Korea, Malaysia, Singapore and Thailand. More specifically, when GDP per capita lies at a relatively low level, the income effect dominates the substitution effect, resulting into the FLFPR changing in opposite direction. Nevertheless, the substitution effect holds the dominant position when the GDP per capita reaches a high level. The increase of FLFPR is accompanied by economic development due to availability of more jobs and increasing level of education. Therefore, policy makers should formulate plans in order to benefit from the potential of the female labor force by stimulating economic development.

#GirlPower: Women's Political Empowerment and Female Entrepreneurship

This study investigates how political empowerment of women leads to more women entrepreneurs. Drawing on psychology and sociology, this study identifies the nuanced relationship between political empowerment of women and female entrepreneurship through exploring two important moderators: perceived capabilities and labor force participation of women. In so doing, this article deepens our understanding of factors relevant to female entrepreneurship. Using a reliable measure of female political empowerment and a country level panel data, we find that female political empowerment is positively associated with female entrepreneurship. Our results also suggest that female labor force participation rate curvilinearly moderate this relationship. We also leverage a novel semi-parametric method to paint a nuanced picture of the relationship between politics, gender and entrepreneurship.

The impacts of workers' remittances on human capital and labor supply in developing countries

This study investigates the impacts of workers' remittances on human capital and labor supply by using data for 122 developing countries from 1990 to 2015. This topic has not been explored thoroughly at the aggregate level, mainly due to endogeneity of remittances and the difficulty in finding instruments to resolve this issue. To address the endogeneity of remittances, I estimate bilateral remittances and use them to create weighted indicators of remittance-sending countries. These weighted indicators are used as instruments for remittance inflow to remittance-receiving countries. Results obtained in this study indicate that remittances raise per capita health expenditures and reduce undernourishment prevalence, depth of food deficit, prevalence of stunting, and child mortality rate. Remittances also raise school enrollment, school completion rate, and private school enrollment. Although there is no difference in the impact of remittances on the health outcome of boys and girls, remittances improve the educational outcome of girls more than the educational outcome of boys. Further, remittances decrease the female labor force participation rate but do not affect the male labor force participation rate.

The Impacts of Workers' Remittances on Human Capital and Labor Supply in Developing Countries

This study investigates the impacts of workers' remittances on human capital and labor supply by using data for 122 developing countries from 1990 to 2015. This topic has not been explored thoroughly at the aggregate level, mainly due to endogeneity of remittances and the difficulty in finding instruments to resolve this issue. To address the endogeneity of remittances, I estimate bilateral remittances and use them to create weighted indicators of remittance-sending countries. These weighted indicators are used as instruments for remittance inflow to remittance-receiving countries. Results obtained in this study indicate that remittances raise per capita health expenditures and reduce undernourishment prevalence, depth of food deficit, prevalence of stunting, and child mortality rate. Remittances also raise school enrollment, school completion rate, and private school enrollment. Although there is no difference in the impact of remittances on the health outcome of boys and girls, remittances improve the educational outcome of girls more than the educational outcome of boys. Further, remittances decrease the female labor force participation rate but do not affect the male labor force participation rate.

CAUSALITY BETWEEN FEMALE FERTILITY AND FEMALE LABOUR FORCE PARTICIPATION IN ASEAN-5

Researches on whether female fertility determines labour force participation or vice versa have reached mixed results. A high participation of females in the labour market can limit the family size, and conversely, low female fertility can free up their time and increase their participation in the labour market. As such, this paper sets out to answer the question of “What causes what?” Having established the existence of cointegration for Malaysia, Singapore, Thailand, the Philippines and Indonesia (hereafter ASEAN-5) using time-series data for the 1980 to 2012 period and also for a panel for the ASEAN-5 countries, we found the presence of bidirectional causality between female fertility and female labour force participation. Other studies (Mishra & Smyth, 2010; Salamaliki, Venetis, & Giannakopoulos, 2013) concur with this results. We therefore conclude that for the ASEAN-5 countries to increase female labour force participation rate and offset fertility declines, there should be supportive policies in the form of more flexible labour market arrangements, better access to childcare and increased maternity benefits.Keywords: female fertility, female labour force participation, causality