Can globalisation promote female labour force participation?

2020 ◽  
Vol 19 (3) ◽  
pp. 303-322
Author(s):  
Harpal Sangha ◽  
Robert Riegler

Purpose This study aims to analyse whether globalisation, i.e. informational and economic globalisation, promoted or impeded female labour force participation (FLFP) in South Asia. Design/methodology/approach The KOF Globalisation Index is used alongside a fixed effect panel data Discroll–Kraay estimator to control for unobserved factors and achieve robust standard errors. The sample covers all South Asian countries for the period 1999–2015. Findings Globalisation does not advocate the “feminisation of employment”; in fact, the impact is negative. This is driven by the economic dimension of globalisation, particularly for younger women. However, this impact is mitigated by informational globalisation that affects FLFP positively, especially for women aged 35 years and older. Practical implications Without support of the right governmental policies, there is a danger of globalisation creating new obstacles for women to enter the labour market. Originality/value This paper adds to the existing literature by using the more comprehensive KOF globalisation measure to identify the overall effect of globalisation on FLFP in South Asia, being the first study to analyse the impact of informational alongside economic globalisation, and investigating whether globalisation affects the labour force participation rate of various female age cohorts differently.

2021 ◽  
Vol 6 (3) ◽  
pp. 259-271
Author(s):  
Khai Ying Eng ◽  
Chee-Hong Law ◽  
Yiing Jia Loke

This paper examines the relationship between financial access and economic empowerment among females, i.e., female labour force participation by testing a panel data of 51 countries ranging from 2004 to 2016. The number of bank branches and automated teller machines, both in thousand square feet and a hundred thousand adults, are applied as financial access indicators. The estimation method employed is the dynamic panel system generalized method of moment estimators. The control variables in the equation are the life expectancy, gross domestic product per capita, and female education enrolment. The results showed that bank branches have more noticeable impacts than automated teller machines in affecting the female labour force participation rate, implying that bank branches' services have a more substantial influence on women empowerment than automated teller machines. Furthermore, financial access indicators show a negative association with female labour force participation, probably due to female discrimination in financial access or the income effect caused by better financial access. Another possible reason is that the development policies could have bypassed women, as indicated by previous studies. To overcome this situation, governments could improve their financial service to ensure that financial access benefits women empowerment, including exploring the microfinance and special loans for female borrowers.


Author(s):  
Syeda Anam Hassan ◽  
Nazish Rafaz

Education is an essential factor of economic growth and a fundamental right of every person. No country can attain sustainable economic growth without substantial investment in education. Education improves technical capabilities of exploring new ideas and innovations. It improves the quality of life and leads to collective benefits to individuals and societies. In this study, we investigate the impact of female education on the economic growth of Pakistan by adopting the methodology of the simple Ordinary Least Squares regression with time spanning from 1990 to 2016. OLS regression results show that 1% increase in female education, female labour force participation, education expenditure and fertility rate causes 96% increase in GDP of Pakistan. Female education has a significant and positive impact on economic growth. Female education has a positive relationship with female labour force participation rate. The female labour force is dramatically increasing the economic growth. The policy recommendation is that government should allocate more of its budget on education and make efforts for improvement of the quality of education at different levels. The fertility rate has a negative relationship with female education and economic growth. Female education can reduce fertility rate and play a magnificent role in economic growth of Pakistan.


2018 ◽  
Vol 39 (7) ◽  
pp. 896-912 ◽  
Author(s):  
Misbah Tanveer Choudhry ◽  
Paul Elhorst

Purpose The purpose of this paper is to present a theoretical model, which is aggregated across individuals to analyse the labour force participation rate, and empirical results to provide evidence of a U-shaped relationship between women’s labour force participation and economic development. Design/methodology/approach The U-shaped relationship is investigated by employing a panel data approach of 40 countries around the world over the period 1960–2005. It is investigated whether the labour force behaviour of women in different age groups can be lumped together by considering ten different age groups. Findings The paper finds evidence in favour of the U-shaped relationship. For every age group and explanatory variable in the model, a particular point is found where the regime of falling participation rates changes into a regime of rising participation rates. Research limitations/implications To evaluate this relationship, microeconomic analysis with primary data can also provide significant insights. Social implications Every country can narrow the gap between the labour participation rates of men and women in the long term. Fertility decline, shifts of employment to services, part-time work, increased opportunities in education, and the capital-to-labour ratio as a measure for economic development are the key determinants. Originality/value In addition to the U-shaped relationship, considerable research has been carried out on demographic transition. This paper brings these two strands of literature together, by econometrically investigating the impact of demographic transition on female labour force participation given its U-shaped relation with economic development, i.e., turning points for different explanatory variables are calculated and their implications for economic growth are discussed.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Senthil Arasu Balasubramanian ◽  
Thenmozhi Kuppusamy

PurposeThe purpose of this paper is to analyse the impact of female labour force participation (FLFP) in the access and usage of formal financial services by women.Design/methodology/approachThe study uses cross-country data from 107 countries. The study uses multivariate regression (OLS) to explain the impact of FLFP on the financial inclusion variables. The study also accounted for different groups of country-level control variables. Instrumental variables regression is also used in the study to consider for endogeneity issues.FindingsThe results show that FLFP has significant influence on all of the financial inclusion variables used in the study. The role of financial literacy is prominent in determining women's access to sophisticated financial services such as debit card and credit card. Improving financial infrastructure of an economy facilitates greater access to formal account by womenPractical implicationsFrom policymakers’ perspective, women should be motivated to enter labour market for better financial inclusion.Social implicationsMore opportunities for women to enter formal employment encourages female participation in labour market and benefits women and the economy.Originality/valueThis paper is the first of its kind to study the influence of FLFP on indicators of financial inclusion of women. The study extended the scope of access to financial services by considering access to bank account, debit card and credit card. The study also analysed use of financial services through digital platforms by women.


2019 ◽  
Vol 41 (4) ◽  
pp. 375-390
Author(s):  
Jing-Ping Li ◽  
Zheng-Zheng Li ◽  
Ran Tao ◽  
Chi Wei Su

Purpose The purpose of this paper is to investigate the non-linear threshold effects between trade openness and female labours to participate in the labour markets. Design/methodology/approach The authors consider data for nine Asian countries from 1990 to 2016 period and perform the panel threshold regression method. Findings Empirical results indicate that the threshold value is occurred. With the increase of trade openess, the female labour force participation rate shows a trend of rising first and then declining. Furthermore, exports also have an asymmetric threshold effect on female labour force participation, which is partly in accordance with the discrimination model (Becker, 1957). On the other hand, imports dependency will hinder female labour force participation regardless of a threshold effect. The authors obtain similar results when the authors consider the female employment rate as substitution. Practical implications Specifically, increased trade openness may contribute positively or negatively towards overall female labour force participation rate (FLFPR), attributed to the relative importance of these opposing effects. Thus, when the cost reduction effect, resulting from intensified competitive pressure and comparative advantages would enhance the participation rate, the technology channel operates in the opposite direction. Therefore, from the perspective of female employment, trade openness is not the more the better. Originality/value This study innovatively discusses the non-linear correlation between trade openness and FLFPR and distinguishes the different contributions from exports and imports. The advanced threshold regression model assumes the existence of threshold value from trade to female employment. Thereby, targeted policies for the government should be applied to promote active female in the labour market.


Author(s):  
Prakash Kengnal ◽  
Asha Bullappa

Background: The empirical work on fertility determinants widely discusses the role of socio-economic factors like female labour force participation rate, urban population and per capita gross national income in determining fertility rates. The India’s high fertility rate began to decline gradually after late 1950s and continued to fall since then. India achieved almost 31 per cent decline in fertility rate from 1990 to 2012. The objective was to examine the relationship between fertility rate, urbanization, female labour force participation rate and per capita gross national income for India.Methods: This study covers the sample period from 1990-2012. Moreover, the direction of causality between fertility rate, urbanization, female labour force participation rate and per capita gross national income in India using Granger Causality test within the Vector Error-Correction Model (VECM) are examined.Results: As a summary of the empirical results, we found that fertility rate, urbanization, female labour force participation rate and per capita gross national income in India are co-integrated and there is unidirectional Granger Causality between the four variables in long and short-run.Conclusions: The growth in urban population, female labour force participation rate and per capita gross national income are responsible for the decrease in fertility rate in India.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Durmuş Çağrı Yıldırım ◽  
Hilal Akinci

PurposeIn this study, the relationship between female labour force participation rate and economic growth is investigated in middle-income countries. The study covers the period of 2001–2016 by employing a dynamic panel approach. Pooled Ordinary Least Square and Fixed Effects model estimations are calculated as a decision criterion to select proper GMM Method. The outcomes indicate that the proper estimation technique, which is a System-GMM model, evidences the U Feminisation Theory for the middle-income countries while controlling all other factors.Design/methodology/approachThe novelty of this study is that the research not only employs both difference and system generalised method of moments (GMM) estimators but also includes main explanatory variables such as education, fertility, and total labour force rate. The study provides an opportunity to review the U-shape nexus between the female labour force and economic growth while controlling education, fertility and total labour participation rate.FindingsThe estimation implies that middle-income countries support a U-shaped relationship. The fertility rate does not impact on the female labour force, and education and total labour force level have a positive influence on women's participation in the labour market.Research limitations/implicationsThis study used data that include the period of 2001–2016 for middle-income countries. So, further studies can use different periods of data or different countries.Practical implicationsThe authors emphasise the importance of economic growth for female labour force for middle-income countries. Thus, a country intending to increase female labour force should also focus on its economic growth. As the study points out, middle-income countries staying under the minimum threshold, $4698.15 (per capita), should priorities their economic improvement policies to reach their female labour force participation goal. Those countries also should be prepared for a female labour force participation declining phase until they reach the turning point income level.Social implicationsFurthermore, education is one of the critical determinants that have an impact on FLFPR. The equal opportunity for both genders to engage in education should be considered as a policy. If females do not have an equal chance to enrolment in education, it may influence the policy of increasing female labour force adversely. Fertility rate appears no more statistically significant in our study. Moreover, today, there are some countries they practise equality between genders by providing equally extended parental leave, which may be a promising policy for gender equality in the labour force and may worth a try.Originality/valueSome previous studies may suffer model mistakes due to lack of consideration the endogeneity problem and bias issue of the results as suggested by Tam (2011). Moreover, previous studies tend to choose either studying U-feminisation as excluding other variables or studying determinants of female labour force participation rate as excluding U-feminisation theory. There is not any panel data study acknowledging both concepts by using recent data to the best knowledge of the authors. Thus, the novelty of this study is that the research not only employs both difference and system generalised method of moments (GMM) estimators but also includes main explanatory variables such as education, fertility, and total labour force rate. The study provides an opportunity to review the U-shape nexus between the female labour force and economic growth while controlling education, fertility and total labour participation rate.


2017 ◽  
Vol 44 (11) ◽  
pp. 1489-1505 ◽  
Author(s):  
Abena Yeboah Abraham ◽  
Fidelia Nana Akom Ohemeng ◽  
Williams Ohemeng

Purpose The purpose of this paper is to examine female labour force participation (FLFP) and their employment choice between the formal and informal sectors after several institutional and social reforms such as Millennium Development Goal 3 aimed at promoting gender equality and empowerment of women by 2015, using data from Ghana’s 2010 Population and Housing Census. Design/methodology/approach In this paper, logit regression and multinomial logit techniques were employed. Findings The results show that FLFP has declined marginally from the 2005 figures; education remains the important factor in determining women’s participation in the formal sector. Strikingly 91 per cent of the FLFP is engaged in the informal sector of the Ghanaian economy, a sector with a very low contribution per head. Practical implications Interventions such as encouraging female education and retraining of self-employed females to improve upon their efficiency ought to be pursued vigorously; whiles developing rural areas for females to get equal labour opportunities and many others aimed at enhancing the efficiency and by inference earning per head of the informal sector is highly recommended. Originality/value The literature on the FLFP is thin in Ghana. The current study uses a census data unlike the previous studies and as such employed a huge sample size that reflects the reality in Ghana. The study contributed immensely to policy having established that 91 per cent of the female labour force is engaged in the informal sectors of the economy, and therefore any intervention targeting at reducing poverty and meeting the MDG 3 should be targeted at the informal sector of the Ghanaian economy.


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