State dependence of labour force participation of married Australian women

2018 ◽  
Vol 39 (2) ◽  
pp. 269-282 ◽  
Author(s):  
Lixin Cai
Keyword(s):  
Labour Supply ◽  
Labour Force ◽  
State Dependence ◽  
Probit Model ◽  
Labour Force Participation ◽  
Individual Heterogeneity ◽  
Content Type ◽  
Number Of Children ◽  
Modelling Framework ◽  
Transitory Shocks

Purpose The purpose of this paper is to enhance the understanding of labour force participation behaviour of married Australian women, with a focus on identifying the sources of observed inter-temporal labour force participation persistence. Design/methodology/approach A dynamic Probit model is applied to the Household, Income and Labour Dynamics in Australia (HILDA) Survey, a national representative panel survey of Australian households. The model used accounts for observed and unobserved individual heterogeneity and serially correlated transitory shocks to labour supply. Findings The results show that both observed and unobserved individual heterogeneity contributes to observed inter-temporal persistence of labour force participation of married Australian women, but the persistence remains even after controlling for these factors. It is also found that failing to control for serially correlated unobserved transitory shocks would lead to underestimation of genuine state dependence of labour force participation; and that state dependence of labour force participation varies with age, education, health, immigration status and the number of children under the school age. Originality/value This study adds to the international literature on labour force dynamics of women by providing Australian empirical evidence and through a flexible modelling framework. The result that there exists genuine positive state dependence in married Australian women’s labour force participation suggests that policy intervention that increases married women’s labour supply would have a long-lasting effect.

Labour supply dynamics at the extensive and intensive margins of the UK men and women

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Lixin Cai
Keyword(s):  
Labour Supply ◽  
Labour Force ◽  
State Dependence ◽  
Labour Force Participation ◽  
Tobit Model ◽  
The State ◽  
Individual Heterogeneity ◽  
Content Type ◽  
Extensive And Intensive Margins ◽  
The Uk

PurposeThe purpose of this study is to enhance understanding labour supply dynamics of the UK workers by examining whether and to what extent there is state dependence in the labour supply at both the extensive and intensive margins.Design/methodology/approachA dynamic two-tiered Tobit model is applied to the first seven waves of Understanding Society: the UK Household Longitudinal Study. The model used accounts for observed and unobserved individual heterogeneity and serially correlated transitory shocks to labour supply to draw inferences on state dependence.FindingsThe results show that both observed and unobserved individual heterogeneity contributes to observed inter-temporal persistence of the labour supply of the UK workers, and the persistence remains after these factors are controlled for, suggesting true state dependence at both the extensive and intensive margins of the labour supply. The study also finds that at both the margins, the state dependence of labour supply is larger for females than for males and that for both genders the state dependence is larger for people with low education, mature aged workers and people with long-standing illness or impairment. The results also show that estimates from a conventional Tobit model may produce misleading inferences regarding labour supply at the extensive and intensive margins.Originality/valueThis study adds to the international literature on labour supply dynamics by providing empirical evidence for both the extensive and intensive margins of labour supply, while previous studies tend to focus on the extensive margin of labour force participation only. Also, unlike earlier studies that often focus on females, this study compares labour supply dynamics between males and females. The study also compares the estimates from the more flexible two-tiered Tobit model with that from the conventional Tobit model.

scholarly journals Women’s participations in economic and NGO activities in Bangladesh

2016 ◽  
Vol 36 (7/8) ◽  
pp. 491-515 ◽  
Author(s):  
Hafiz T.A. Khan ◽  
Twyeafur Rahman
Keyword(s):  
Labour Market ◽  
Economic Crisis ◽  
Labour Force ◽  
Wealth Index ◽  
Labour Force Participation ◽  
Demographic And Health Surveys ◽  
Economic Activities ◽  
Data Set ◽  
Content Type ◽  
Number Of Children

Purpose – The purpose of this paper is to examine key factors affecting the economic involvement of women in Bangladesh and women’s involvement with non-governmental organisations (NGOs) particularly in microcredit operating in that country. Design/methodology/approach – The study uses nationally representative data set. Quantitative analysis was utilised to explore data contained in the Bangladesh Demographic and Health Surveys 2007 and 2011. Findings – The findings indicate that age, marital status, number of children living in the household, place of residence, geographical location, education, partner’s education and the wealth index are important factors in enabling women’s involvement in economic activities. In other words, the key findings emerged from the study are first, the low level of women’s economic activities in Bangladesh with a majority involved in farming, agriculture and poultry; second, those women involved in the labour market generally tended to come from poor backgrounds, have very little education, live in the Northwest geographical region and have a large family living in the same house; and finally, age, currently married, having a higher number of children, living in rural areas, from the Northwest region with almost no education and belonging to the poor wealth index quintile are found to be associated more with NGO activities in Bangladesh. Social implications – The findings indicate there are potential barriers that are preventing Bangladeshi women from engaging in the labour market that could reinforce the case for reshaping the government’s labour policies. The study reveals that the recent economic crisis has no significant impact on the women labour force participation as well their involvement in NGO activities in Bangladesh. It is generally understood that enhancing women’s economic participation and NGO activities has a positive impact at family, community and country levels. The study concludes that investing in women, particularly in creating employment opportunities including NGO sectors can help the country as a safeguard even during the economic crisis. It is anticipated that the findings will help policy-makers in enhancing female labour force participation as well as encouraging them to engage in NGO activities in Bangladesh. Originality/value – The research paper is original in terms of conceptual framework, research design and statistical analysis.

The dynamic relationships between the female labour force and the economic growth

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Durmuş Çağrı Yıldırım ◽  
Hilal Akinci
Keyword(s):  
Economic Growth ◽  
Labour Force ◽  
Participation Rate ◽  
Labour Force Participation ◽  
Female Labour Force Participation ◽  
Middle Income ◽  
Female Labour ◽  
Content Type ◽  
Middle Income Countries ◽  
Total Labour

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.

Structure and growth of employment: evidence from India KLEMS data

2019 ◽  
Vol 12 (2) ◽  
pp. 202-228
Author(s):  
Suresh Chand Aggarwal ◽  
Bishwanath Goldar
Keyword(s):  
Growth Rate ◽  
Employment Growth ◽  
Labour Force ◽  
Participation Rate ◽  
Labour Force Participation ◽  
Recent Period ◽  
Data Set ◽  
Labour Force Participation Rate ◽  
Content Type ◽  
Employment Elasticity

Purpose This study aims to analyze the structure and trend in employment in the Indian economy between 1980-8081 and 2015-2016. Design/methodology/approach Use of India KLEMS data set. Estimate growth rate of employment and discuss employment prospects using “Point” employment elasticity. Findings Whilst India’s GDP growth rate has been quite impressive since the reforms of 1991, the rate of employment growth, especially in the recent period of 2003-2015, has been quite slow (1 per cent) with low employment elasticity (0.1). The pattern of employment growth has also been imbalanced with slow rate of employment growth in manufacturing and rapid growth rate in the construction sector. India now also has low labour force participation rate and a large share of informal employment in the economy. Research limitations/implications The limitation is the lack of reliable data on employment for the recent period. Practical implications With overall low employment elasticity, India would have to explore sectors where more employment opportunities could be created. Social implications India has to create not only more jobs but also “good” jobs. Originality/value The India KLEMS data provide a time series for employment, which has been used in this paper to find “Point” elasticity instead of arc elasticity of employment and is an improvement over existing employment elasticity estimates.

Labour supply behaviour of married women in Toronto

2016 ◽  
Vol 43 (3) ◽  
pp. 418-431 ◽  
Author(s):  
Wasanthi Thenuwara ◽  
Bryan Morgan
Keyword(s):  
Labour Supply ◽  
Labour Force ◽  
Estimation Procedure ◽  
Married Women ◽  
Least Square ◽  
Step Method ◽  
Content Type ◽  
Supply Elasticity ◽  
Using Data ◽  
The Unemployed

Purpose – The purpose of this paper is to investigate the connection between labour supply and the wages of married women of different ages in Toronto using data from the 2010 Labour Force Survey of Canada. Design/methodology/approach – The authors employ three econometric techniques, ordinary least square, 2 stage least square and the Heckman two-step method to estimate the supply elasticities. The first two focus on the wage rate and hours conditional on the subjects being employed whereas the third method controls for sample selectivity bias by including the unemployed. Bootstrap test statistics are produced when the normality assumption for the error terms is found to be violated. Findings – The aggregate labour supply elasticity for married women in Toronto is estimated to be 0.053 which similar to value found for Canada for a whole in a previous study even though Toronto is much more diverse culturally than average. The labour supply elasticities for 25-34 year old and 35-44 year old married are estimated to be 0.108 and 0.079, respectively. The supply elasticity for married women aged 45-59 is not significantly different from 0. Originality/value – The paper shows that younger married women in Toronto are more responsive to an increase in wages than older women. The estimation procedure and the testing of the significance of coefficients are more rigorous than previous studies.

scholarly journals Impact of childhood and adulthood psychological health on labour force participation and exit in later life

2017 ◽  
Vol 47 (9) ◽  
pp. 1597-1608 ◽  
Author(s):  
C. Clark ◽  
M. Smuk ◽  
D. Lain ◽  
S. A. Stansfeld ◽  
E. Carr ◽  
...  
Keyword(s):  
Psychological Health ◽  
Externalizing Problems ◽  
Mental Health Problems ◽  
Labour Force ◽  
Later Life ◽  
Labour Force Participation ◽  
Internalizing And Externalizing Problems ◽  
Number Of Children ◽  
Increased Risk ◽  
Internalizing And Externalizing

BackgroundAdulthood psychological health predicts labour force activity but few studies have examined childhood psychological health. We hypothesized that childhood psychological ill-health would be associated with labour force exit at 55 years.MethodData were from the 55-year follow-up of the National Child Development Study (n = 9137). Labour force participation and exit (unemployment, retirement, permanent sickness, homemaking/other) were self-reported at 55 years. Internalizing and externalizing problems in childhood (7, 11 and 16 years) and malaise in adulthood (23, 33, 42, 50 years) were assessed. Education, social class, periods of unemployment, partnership separations, number of children, and homemaking activity were measured throughout adulthood.ResultsChildhood internalizing and externalizing problems were associated with unemployment, permanent sickness and homemaking/other at 55 years, after adjustment for adulthood psychological health and education: one or two reports of internalizing was associated with increased risk for unemployment [relative risk (RR) 1.59, 95% confidence interval (CI) 1.12–2.25; RR 2.37, 95% CI 1.48–3.79] and permanent sickness (RR 1.32, 95% CI 1.00–1.74; RR, 1.48, 95% CI 1.00–2.17); three reports of externalizing was associated with increased risk for unemployment (RR 2.26, 95% CI 1.01–5.04), permanent sickness (RR 2.63, 95% CI 1.46–4.73) and homemaking/other (RR 1.95, 95% CI 1.00–3.78).ConclusionsPsychological ill-health across the lifecourse, including during childhood, reduces the likelihood of working in older age. Support for those with mental health problems at different life stages and for those with limited connections to the labour market, including homemakers, is an essential dimension of attempts to extend working lives.

Female labour force participation: evidence from Ghana

2017 ◽  
Vol 44 (11) ◽  
pp. 1489-1505 ◽  
Author(s):  
Abena Yeboah Abraham ◽  
Fidelia Nana Akom Ohemeng ◽  
Williams Ohemeng
Keyword(s):  
Informal Sector ◽  
Rural Areas ◽  
Census Data ◽  
Labour Force ◽  
Labour Force Participation ◽  
Female Labour Force Participation ◽  
Formal Sector ◽  
Social Reforms ◽  
Female Labour ◽  
Content Type

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.

Lower workforce will impair global GDP trend growth

2015 ◽  
Keyword(s):  
Labour Force ◽  
Labour Force Participation ◽  
The United States ◽  
Transport Systems ◽  
Hysteresis Phenomenon ◽  
Job Seekers ◽  
Content Type ◽  
Us Economy ◽  
Discouraged Workers ◽  
The Impact

Subject Changing demography and socio-economic trends in the labour force. Significance Changes in immigration and societal factors are causing labour supply shifts in the EU and the United States. Alongside the debate over the state of the US economy, there has been discussion over the persistent decline in US labour force participation and the impact on the economy of discouraged workers, who may never go back to the labour force. The United Kingdom has experienced population gains and an acceleration in the birth rate due to net immigration over the last decade. Impacts A rising UK population will pressure an already tight housing market and transport systems. High social benefits paid to younger people while actively job-seeking will encourage registration, boosting the UK labour force. Higher cyclical unemployment might become structural through the 'hysteresis' phenomenon, as job seekers get discouraged.

scholarly journals Spousal effects on wages, labour supply and household production in Ghana

2021 ◽  
Vol 24 (1) ◽  
Author(s):  
Emmanuel Orkoh ◽  
Phillip F. Blaauw ◽  
Carike Claassen
Keyword(s):  
Labour Market ◽  
Labour Supply ◽  
Labour Force ◽  
Household Production ◽  
Labour Force Participation ◽  
Wage Premium ◽  
Living Standard ◽  
Limited Information ◽  
Men And Women ◽  
Hours Of Work

Background: The relationship between spousal wages and hours of work, including the phenomenon of a spousal premium or penalty, is well documented in the literature. However, there is limited information on the situation in developing countries where labour market rigidities and cultural norms are factors in the division of labour between husbands and wives.Aim: This article addresses the research gap by analysing spousal wages among couples and the cross-wage effect of spousal time allocation.Setting: Households in Ghana, where sociocultural norms largely influence the role of men and women constituted the context of the study.Methods: The instrumental variable Tobit estimation regression was used to analyse pooled data from three Ghana Living Standard Surveys.Results: The results reveal elements of a working spousal wage premium (due to positive selection rather than specialisation) for both men and women regardless of their ethnic affiliations. The analysis of the effect of wage on spousal hours of work also suggested complementarity in employment and household labour decisions between couples.Conclusion: Men’s and women’s participation in household production significantly improves each other’s labour market participation and labour supply. These results corroborate the evidence of a wage premium in the literature. We recommend that government should promote equitable wage rates in the labour market and prioritise policies such as paternal leave which could encourage men to participate in household production and indirectly promote women’s labour force participation.

scholarly journals Employment Expectations and Labour Force Participation in Canada

2005 ◽  
Vol 29 (2) ◽  
pp. 320-331
Author(s):  
Arthur Donner ◽  
Fred Lazar
Keyword(s):  
Labour Market ◽  
Labour Supply ◽  
Labour Force ◽  
Labour Force Participation ◽  
Traditional Model ◽  
Empirical Results ◽  
Short Run ◽  
Market Expectations

This paper incorporates a role for expectations in the short-run behavior of labour supply decision, presents a theory introducing labour market expectations as a variable influencing labour supply, and discusses the relative merits of the expectations model vis-à-vis the traditional model using the empirical results derived in this work.

Sign in / Sign up

Export Citation Format

Share Document