scholarly journals Female labour force participation and economic development

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.

2021 ◽  
Author(s):  
Dorian Tsolak ◽  
Marvin Bürmann ◽  
Martin Kroh

Objective: This article studies the intergenerational stability of employment in families of immigrants cross-nationally by investigating to what extent contextual differences between sending and receiving countries affect the transmission of labour force participation from mothers to daughters. Background: It is often argued that a low level of labour force participation among female immigrants reflects gender norms inherited from the sending country, or, alternatively, that it is indicative of obstacles to social mobility in the receiving country. We seek to add to the existing research on this topic by providing evidence of differences between sending and receiving countries that systematically affect the labour market behaviour of female immigrants. Method: We use individual-level data from the European Social Survey (ESS) for 35 receiving countries for a 14-year period (2004-2018) in combination with contextual data for 172 sending countries from 1960 to 2018. First, we provide an overview of employment rates and intergenerational employment stability for different combinations of sending and receiving contexts with respect to the labour force participation rates of female immigrants. Second, we corroborate our descriptive findings with multilevel models. Results: Our paper shows that there are changes in the levels of intergenerational employment stability among immigrants depending on the differences in the female labour force participation rates between the sending and the receiving countries. We find that when women migrate from countries with low female labour force participation rates to countries with high female labour force participation rates, their probability of participating in the labour force increases. However, we also find that the levels of intergenerational employment stability in this group are high. Conclusion: Intergenerational employment stability seems to be responsive to contextual differences between sending and receiving countries. We observe the highest levels of intergenerational stability in employment between mothers and daughters in families who migrated from countries with low female labour force participation rates to countries with high female labour force participation rates.


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.


2018 ◽  
Vol 4 (02) ◽  
Author(s):  
Megha Jain ◽  
Aishwarya Nagpal

Women’s employment is an imperative factor in their advancement towards economic independence yet there is relatively inadequate and mixed evidence on the relationship between economic growth and female labour force participation rates. This study examines the impact of economic growth on female workforce participation in South Asian Nations (SANs) from 2000-2015 within the outline of U-shaped hypothesis using panel data modelling. The impact of several key macro-economic variables on female labour force participation is also examined in different econometric model specifications. The effects of economic development, literacy, urbanization and different unemployment patterns on female labour force participation are found to be negative whereas Gini coefficient is found to be positive. The findings suggest that most of the SANs are still experiencing the downward portion of U-shaped (while India being close to attaining the tipping point sooner as compared to other nations) may be, due to being at the early stages of economic development. In the present scenario, policy interventions should handle a variety of issues, including reconstructing access to and significance of education and training programmes and boosting private sector development in industries and regions that would escalate job opportunities for women in developing countries.


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.


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.


2005 ◽  
Vol 37 (2) ◽  
pp. 367-384
Author(s):  
William D. Walsh

This paper analyzes the cyclical behavior of the labour force participation rates, adds a marital status dimension to the customary age categories generally used and includes seperate measures of the additionnal and of the discouraged worker effect.


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