Increase In Female Labor Force Participation Research Articles

Does the Internet Reduce Gender Gaps? The Case of Jordan

This article investigates the link between digital technologies and female labour outcomes in a country with one of the lowest female labour force participation (LFP) rates. It exploits the massive roll-out of mobile broadband technology in Jordan between 2010 and 2016 to identify the effect of internet adoption on LFP, internet job search, employment and unemployment. Using panel data at the individual level and an instrumental variable strategy, the article finds that internet adoption increases female LFP and that the effect is driven by women who were not married in 2010, who also experience declines in marriage and fertility rates in response to internet adoption. An increase in online job search explains some – but not all – of the total increase in female LFP. Only women who are older and have higher levels of education experience an increase in employment in response to gaining internet access. The internet reduces the prevalence of traditional social norms among married women, but this channel does not explain the increase in female LFP.

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.

Working for Change: the Effect of Female Labor Force Participation on Fertility

Though the negative correlation between fertility and development has been long acknowledged, it is challenging to estimate the causal effect of female labor force participation (FLFP) on fertility. We use a novel instrument for estimating this effect: washing machines prices -- a relevant instrument, as these appliances have been found to increase FLFP by liberating women’s time. We exploit the fall in prices resulting from trade reforms in Mexico to study FLFP’s effects on fertility. We find large effects on fertility and mothers’ age: increases in FLFP can explain at least 42% of the reduction in fertility experienced during this time.

Women’s earnings and household inequality in OECD countries, 1973–2013

This article shows that women’s rising earnings contributed to reducing inequality in household earnings, with respect to couples. We use data from the Luxembourg Income Study (LIS) on 1,148,762 coupled households, covering 18 OECD countries and the period from 1973 to 2013. In this period, women’s share of household earnings grew, spouses’ earnings became more strongly and positively correlated in various countries, and inequality in women’s earnings was reduced. Inequality in household earnings increased due to the rising correlation between spouses’ earnings, but was reduced more by the decline of inequality in women’s earnings. Had women’s earnings remained unchanged since the 1970s and 1980s, inequality in household earnings would have been higher around 2010 in all observed OECD countries. Household inequality was reduced least by trends in women’s earnings in countries with a long history of high female labor-force participation, such as Finland (3% reduction) and Sweden (5%), and most in countries that observed a stronger increase in female labor-force participation in recent decades such as Spain (31%) and the Netherlands (41%). As more countries are reaching a plateau in the growth of women’s employment and earnings, the potential for further stimulating women’s employment and earnings to counter both women’s and household inequality seems to be increasingly limited.

Isolating Causality between Gender and Corruption: An IV Approach

We address the persistent reverse causality problem in estimating the causal effect of female labor force participation (FLFP) on corruption. Employing plow usage as an instrumental variable, an increase in FLFP by one standard deviation is suggested to improve the Corruption Perceptions Index (CPI, ranging from zero to ten) by 0.52 points. This effect is stronger than a one standard deviation change of education levels, government size, or ethnic fractionalization.

Estimating a Dynamic Adverse-Selection Model: Labour-Force Experience and the Changing Gender Earnings Gap 1968–1997

This paper addresses two questions: What accounts for the gender gap in labour-market outcomes? What are the driving forces behind the changes in the gender labour-market outcomes over the period 1968–1997? It formulates a dynamic general equilibrium model of labour supply, occupational sorting, and human-capital accumulation in which gender discrimination and an earnings gap arise endogenously. It uses this model to quantify the driving forces behind the decline in the gender earnings gap and the increase in female labour-force participation, the proportion of women working in professional occupations, and hours worked. It finds that labour-market experience is the most important factor explaining the gender earnings gap. In addition, statistical discrimination accounts for a large fraction of the observed gender earnings gap and its decline. It also finds that a large increase in aggregate productivity in professional occupations plays a major role in the increase in female labourforce participation, number of hours worked, and the proportion of females working in professional occupations. Although of less importance, demographic changes account for a substantial part of the increase in female labour-force participation and hours worked, whereas home production technology shocks do not.

Technological Progress and Economic Transformation

Growth theory can go a long way toward accounting for phenomena linked with U.S. economic development. Some examples are: (i) the secular decline in fertility between 1800 and 1980, (ii) the decline in agricultural employment and the rise in skill since 1800, (iii) the demise of child labor starting around 1900, (iv) the increase in female labor-force participation from 1900 to 1980, (v) the baby boom from 1936 to 1972. Growth theory models are presented to address all of these facts. The analysis emphasizes the role of technological progress as a catalyst for economic transformation. This survey paper is in preparation for the Handbook of Economic Growth edited by Philippe Aghion and Steven Durlauf (North-Holland, Amsterdam).