Female Labor Supply Research Articles

Effects of Vietnam’s two-child policy on fertility, son preference, and female labor supply

In 1988, facing a total fertility rate of over four births per woman, the Vietnamese government introduced a new policy that required parents to have no more than two children. Using data from the Vietnam Population and Housing Censuses from 1989, 1999, and 2009, I apply a differences-in-differences framework to assess the effects of this policy on family size, son preference, and maternal employment. I find that the policy decreased the probability that a woman has more than two children by 15 percentage points for younger women and by 7 percentage points for middle-aged women. The policy reduced the average number of living children by 0.2 births per woman. Low-education women and women in rural areas were more affected by the policy. The policy had no effects on mothers’ age at first birth and gender of mothers’ last birth. The reduction in fertility caused by the policy was associated with a 1.2 percentage point decrease in the proportion of sons in each family. The policy increased maternal employment by 1.3 percentage points. Instrumental variables estimates of the effects of fertility on maternal employment and child education suggest a negative relationship between the number of children and female labor supply and a trade-off between child quantity and child quality in Vietnam.

Discussion

Discussion

The “Family 500+” programme and female labour force participation in Poland. Demographic and economic determinants

The paper investigates the effect of child cash benefit “Family 500+” on the female labour supply in Poland, taking into account demographic and cyclical determinants. The study is based on the Labour Force Survey (LFS) and Polish Central Statistical Office quarterly data. The analyses cover the period of 2016–2018. The Labour Force Participation Rate (LFPR) is the measure of labour supply. The analysis uses a counterfactual method to determine the impact of demographic and behavioural changes on female labour supply. To identify the causes of the economic inactivity of women (adopted by LFS), decomposition of the growth rate of economically inactive women is applied. The effect of the business cycle on female labour supply is analysed using OLS recursive regression. The study found that the LFPR of women aged 25–44 decreased after 2015. This was related to the cash transfers under the “Family 500+” programme and the increasing number of economically inactive women by reason of “family and household responsibilities”. At the same time, changes in the demographic structure contributed positively to the LFPR of women aged 25–44, while the business cycle did not have a significant impact on it. OLS recursive regression showed that in the 25–44 age group, the introduction of “Family 500+” coincided with changes in the relationships between the LFPR, the percentage of the “discouraged”, economically inactive women by reason of “family responsibilities” and the unemployment rate.

The Relationship between Female Labor Force Participation and Violent Conflicts in South Asia

This paper explores the link between the prevalence of violent conflicts and extremely low female labor force participation rates (FLFPR) in South Asia. We merge Labor Force Surveys (LFSs) from Bangladesh, Sri-Lanka, India, and Pakistan to the Global Terrorism Database (GTD) to estimate the relationship between terrorist attacks and female labor supply. We exploit the availability of geographical level data on exposure to violence, comparing administrative units exposed to attacks with administrative units not exposed. We find that one additional attack reduces FLFP rates by about 0.008 percentage points, on average. Violence has less impact on male labor participation, thus widening the gender labor participation gap. Also, one extra wounded person or one extra killed person reduces FLFP rates by 0.0015 and 0.0048 percentage points on average, respectively. We test the added-worker effect theory - which posits that violence might increase FLFP as women try to make up for lost household income - and find mixed evidence: greater prevalence of attacks may encourage married women to exert more working hours, but when the environment gets more risky as number of dead and wounded people increase, all women work less hours. We also test the non-linearity of various violence effects, finding that violence decreases FLFP less where FLFP was already higher before the advent of violence, and that violence has a progressively greater impact on lowering FLFP where the number of attacks is higher.

Working Less to Take Care of Parents? Labor Market Effects of Family Long-Term Care in Four Latin American Countries

We use data from time-use surveys and the Mexican Health and Aging Study (MHAS) to analyze the relationship between family long-term care (LTC) and female labor supply in four Latin American countries. Time-use survey data from Chile, Colombia, Costa Rica and Mexico shows that: (i) women provide the vast majority of family LTC; (ii) consistently across countries, women who provide LTC are less likely to work, and those who do work less hours per week and have a double burden of work and LTC. Multivariate analysis of longitudinal MHAS data shows that, after accounting for both individual and time fixed effects, parents' need for LTC is associated with both a significant drop in the likelihood of working (by 2.42 percentage points) and a reduction in the number of hours worked among women ages 50–64 who remain employed (by 7.03%). This finding has important gender equality implications. Also, in a region that is aging faster than any other in the world, social trends make this family provision of LTC unsustainable, increasing the need for policy action.

The Impact of Unilateral Divorce in Mexico: Bargaining Power and Labor Supply

From 2008 to 2018, Mexican states introduced unilateral no-fault divorce. Using state-level variation in the timing and adoption of these divorce laws, we study how the legislation affected married women's labor supply. Our results suggest that married women did not increase their labor force participation. Among employed married women, hours worked increased, but the effect is not large enough to be observed in the full sample of women. We find suggestive evidence that social norms against female labor supply and lack of access to formal work may explain the limited labor supply response. Our results highlight the importance of the cultural context in studying the consequences of divorce legislation.

The 500+ Family Program and the objective of the Europe 2020 labour market area

There is huge controversy around the issue of the impact of the 500+ benefit program on the labour market in Poland, especially on the professional activity of women. The effects in this area are not only relevant for the country but also for the European Union as a whole, as they determine the achievement of the employment goal of the Europe 2020 strategy. It was, therefore, decided to examine this issue more closely. The main goal of the article is to investigate how the 500+ benefit affects the supply of female labour force and the achievement of the employment target of the Europe 2020 strategy. The specific objectives: (1) what were the goals of the Polish government in the area of the labour market at the beginning of the implementation of the EU strategy, and what goals are currently in the Strategy for Responsible Development (SOR)? (2) what were the dynamics of female labour supply compared to the changes in the labour market ? (3) what is the significance of the 500+ program for the trends in the labour market ? (4) what loss (if any) for the economy resulted from the reduction of women’s employment generated? The subject of the study is women’s labour supply/employment, and the subject of research is the Polish economy. To achieve the study goals, the desk research method, time series and indicator analysis, and GDP gaps were used. The research period is 2010-2019, with particular emphasis on the period after the introduction of the benefit in 2016. The research conducted shows that adverse changes in the labour force supply of women caused by the 500+ benefits, were offset by the return to the labour market of previously unemployed or inactive people. Thus, the strategic goal related to employment was achieved.

French do it better. The distributive effect of introducing French family fiscal policies in Italy

Italy has one of the lowest fertility rates in the world. A solution, often advocated to incentivize fertility, could be to reform the Italian fiscal system, taking inspiration from the French fiscal family treatment. This would imply introducing the quotient system, where taxation is not on an individual basis, as in Italy, but is applied to the family as a whole, and the cash benefits provided to families in France. The purpose of our paper is to assess the distributive effects of such a fiscal reform. We estimate these effects using MicroReg, a static microsimulation model that is able to predict the first-order effects of fiscal reforms. We show that a shift to the French income tax system would lead to decreased income inequality and a substantial tax reduction for households with three children, especially those with medium-high income. The new income tax would result in a substantial disincentive to female labor supply, albeit mitigated by greater progressivity in favor of low-income groups with children.

Gender Differences in Labour Supply in Australian Physicians

We study gender differences in labour supply among general practitioners, internists, surgeons and other specialists in Australia using the MABEL data from 2008 to 2017. Across all doctor types, we find no reduction in female labour supply due to marital status. For general practitioners, female physicians typically work fewer hours than male physicians and this difference extends to an average of one standard workday when parental duties are present. For internal specialists, in contrast, there is no compositional difference between female and male physicians. However, a similar average gender difference of one standard workday exists when internists have at least one dependent child. For surgical specialists, the magnitude of the gender gap due to parental status is markedly smaller at an average of a few hours per week. Furthermore, there is no reductions in hours by female surgeons and the difference is instead due to male surgeons’ increased labour supply. Finally, for specialists otherwise not classified into internal or surgical, we find patterns highly similar to general practitioners.

Is Female Labour Supply Household Phenomena in Indian Society?

Is Female Labour Supply Household Phenomena in Indian Society?

The Nexus Between Economic Globalization And Female Labor Force Participation

Female labor participation is now being considered as one of the main elements of development among policy makers, feminist, sociologists and economists. Female labor supply is an essential factor not only for economic development but also for socio-economic development of a nation. This paper empirically examines the nexus between economic globalization and female labor force participation (FLFP) for Pakistan from 1973 to 2014. Furthermore, this study also explores the role of economic stability through female’s unemployment rate, inflation rate and per capita income, and increase in productivity through human capital investment on female labor force. This study also finds out the impact of gender disparity on female labour force participation in Pakistan. For estimation of result, Autoregressive Distributive  Lag Model ARDL approach to co-integration has been applied which identifies co- integrating vector(s). After identification of co-integrating vector(s) ARDL model is  re-parameterized into ECM. The empirical finding proves a positive and significant relationship between economic globalization and FLFP in long run as well as in short run for Pakistan. Beyond labor laws, policy maker should focus on whether female will get new job opportunities and benefits of new markets especially for females when a country opens it economy. For this purpose, it is necessary to improve access to education for females and developing their skills by providing training program, promote children care centers, legal measures to reduce the burden of domestic chores, and encourage private sector development in different sectors especially in industries that may help to increase employment opportunities for females in Pakistan.

Economic Development and Female Labour Force Participation in Tamil Nadu: A Test of the ‘U’ Shape Hypothesis

This paper analyses the trends and pattern of women’s employment in the state of Tamil Nadu and its districts in order to find out the applicability of the “U” curve shape of female labour supply using NSSO and census data on employment for the period 1983 to 2018. Top five and bottom five districts on the basis of district level per capita income and female literacy are selected as sample districts. The results show that there has been a significant growth in GSDP of the state during 1983 and 2018, but there is no corresponding improvement in female work participation rates. Women’s employment has fallen particularly during the period 2011 and 2018 and rural areas have registered a greater withdrawal of women from workforce. The “U” curve hypothesis does not find empirical evidence and support in the case of Tamil Nadu. Strong negative effect of income and weak substitution effect of expansion of female education and lack of job opportunities have contributed towards an inverted “U” curve. If suitable measures are not taken to improve female labour market participation, then Tamil Nadu cannot harvest the benefits of demographic dividend.

Job Finding Rate and Female Labor Supply- A Heterogeneity Perspective

Background: In contemporary labor economics, the concept of job finding rate is central as it defines the job search and measures the employment potential of the labor market. Considering this fact, economists primarily count on measuring the flows of labor between the labor market states. The study is an endeavour to design a conceptual framework to determine female labor supply considering these labor market flows and job finding rate in Pakistan.
 Methodology: The study evaluates various search models and provides a comprehensive review of literature taking into consideration job finding rate and female labor supply. Electronic databases including Google Scholar & Medline were used. Articles, books, and conference proceedings were cited using keywords like Job Finding rate, female labor and labor market, etc. 
 Result: The study has introduced the perspective of heterogeneity to incorporate the composition effect and dispersion effect of the labor market. The framework of the study provides a hint for policy makers to consider the relevant flows for improvement in female employment in Pakistan.
 Conclusion: The main conclusion stresses on including the inactive group to link up the job finding rate with female labor supply. Not doing so would bias the imputed importance of factors shaping aggregate participation and unemployment rates.

Female Labour Force Participation in African Countries: An Empirical Analysis

This article investigates female labour force participation (FLFP) in a panel comprising 20 selected African countries across five sub-regional groupings, over the period 1990–2018. It analyses the determinants of demand and supply of FLFP, thereby contributing to the ongoing debate on the female labour participation in African countries. The study sources data from the World Bank Data Bank and uses seemingly unrelated regression as an estimation technique after confirming the stationarity of the time series properties of all variables and the static analysis of the models. The analysis suggests that the GDP growth rate and inequality are positive determinants of female labour demand, while wages, GDP per capita growth and poverty are negative determinants. It also shows evidence for an inverted U-shaped relationship between female labour supply and economic development in Africa, while education, fertility, GDP per capita growth, manufacturing growth rate and culture were contributing factors to this relationship. It is therefore suggested that policymakers in Africa should accelerate the process of formalising African economies to encourage an increase in female labour participation.

(Re)investigation of Rural Women’s Labour Supply in India: The Impact of Household Poverty Status—A Panel Data Analysis

This article examines the role of household poverty in shaping rural female labour supply using the unique panel dataset of India Human Development Survey. The results using Vella and Verbeek’s two-step panel estimation reveal the presence of a backward-sloping labour supply curve for rural women from below poverty line households, and an upward-sloping labour supply for rural women from above poverty line (APL) households. This implies the existence of ‘forced’ or ‘need-based’ participation among poor women and justifies why they work long hours in poorly paid hazardous jobs. The article also finds horizontal labour supply among agriculture wage workers and for Adivasi and Dalit rural women to some extent, reflecting limited job options, and surplus unskilled labour who are unable to demand higher wages for their labour supply. On the other hand, when categorised by occupation type, the downward-sloping labour supply for rural women from APL households indicates the dominance of the income effect over the substitution effect, and the socio-cultural factors that gain strength as income levels increase. JEL Classification: J220, R21, J16, R230, I32

Economic cycle and deceleration of female labor force participation in Latin America

We study the behavior of female labor force participation (LFP) over the business cycle by estimating fixed effects models at the country and population-group level, using data from harmonized national household surveys of 18 Latin American countries in the period 1987–2014. We find that female LFP follows a countercyclical pattern—especially in the case of married, with children and vulnerable women—which suggests the existence of an inverse added-worker effect. We argue that this factor may have contributed to the deceleration in female labor supply in Latin America that took place in the 2000s, a decade of unusual high economic growth.

The Nexus Between Economic Globalization And Female Labor Force Participation


 Female labor participation is now being considered as one of the main elements of development among policy makers, feminist, sociologists and economists. Female labor supply is an essential factor not only for economic development but also for socio-economic development of a nation. This paper empirically examines the nexus between economic globalization and female labor force participation (FLFP) for Pakistan from 1973 to 2014. Furthermore, this study also explores the role of economic stability through female’s unemployment rate, inflation rate and per capita income, and increase in productivity through human capital investment on female labor force. This study also finds out the impact of gender disparity on female labour force participation in Pakistan. For estimation of result, Autoregressive Distributive Lag Model ARDL approach to co-integration has been applied which identifies co- integrating vector(s). After identification of co-integrating vector(s) ARDL model is re-parameterized into ECM. The empirical finding proves a positive and significant relationship between economic globalization and FLFP in long run as well as in short run for Pakistan. Beyond labor laws, policy maker should focus on whether female will get new job opportunities and benefits of new markets especially for females when a country opens it economy. For this purpose, it is necessary to improve access to education for females and developing their skills by providing training program, promote children care centers, legal measures to reduce the burden of domestic chores, and encourage private sector development in different sectors especially in industries that may help to increase employment opportunities for females in Pakistan.

Women at work in Saudi Arabia: Impact of ICT diffusion and financial development

We investigate the determinants of female labor force participation in Saudi Arabia , where religion and natural resources play a significant role in defining the social and economic parameters. Using the autoregressive distributed lag (ARDL) bounds test, we provide evidence that the supply of female labor and increased cost of living promote female labor force participation; while diffusion of information communication technology (ICT), membership of Convention on the Elimination of all Forms of Discrimination against Women (CEDAW), oil resources, supply of foreign labor force, and the size of the government hinder it. We also show that financial development alters the negative impacts of ICT diffusion, CEDAW membership, and size of service economy on the female labor force participation.

Household asset wealth and female labor supply in MENA

Female labor force participation rates in the Middle East and North Africa are low compared to other world regions. This study contributes to the literature explaining this phenomenon in Egypt (1998, 2006, 2012), Jordan (2010, 2016) and Tunisia (2014) by referring to women’s unearned incomes, whether in the form of household wealth, the presence of male earners in the household, or total male monthly income. We estimate probability models of women’s labor force participation, for the entire sample and, recognizing the role of wealth, by household wealth quintile. We find that the higher the wealth index of a woman’s household, the less likely the woman is to participate in the labor force. This result holds even when the presence of a male wage worker in the household is accounted for, and when male income is included. The degree of regional wealth inequality also has bearing on women’s labor force participation, but the results differ between Egypt, on the one hand, and Jordan and Tunisia, on the other hand. The magnitudes of the substitution and income effects on women’s labor force participation vary by country and survey wave, and particularly between women in different wealth quintiles.

Schooling and Labor Market Impacts of Bolivia's Bono Juancito Pinto Program

Schooling and Labor Market Impacts of Bolivia's <i>Bono Juancito Pinto</i> Program