Female Labour Force Participation and Economic Growth in the South Mediterranean Countries: Structural Shifts in Causal Linkages

2020 ◽  
Vol 10 (10 (1)) ◽  
pp. 69-82
Author(s):  
Gülten DURSUN
2013 ◽  
Vol 120 (2) ◽  
pp. 323-328 ◽  
Author(s):  
Stella Tsani ◽  
Leonidas Paroussos ◽  
Costas Fragiadakis ◽  
Ioannis Charalambidis ◽  
Pantelis Capros

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.


2010 ◽  
Vol 37 (3-4) ◽  
pp. 497 ◽  
Author(s):  
Frank Trovato

Historically, birth rates in Alberta have followed closely the trajectory of change experienced by the other Canadian provinces. Its total fertility rate fell during the low point of the 1930s; it increased during the post-War baby boom in the 1950s and sixties, and thereafter fell to subreplacement levels beginning in the mid 1970s. In recent years, especially since the early 2000s, the birth rate in Alberta has unexpectedly increased, such that by 2007, it had reached 1.90 children per woman - not far from the 2.1 level needed for generational replacement in the long term. During this same period both national and provincial fertility rates fluctuated at levels below those of Alberta (except Saskatchewan and Manitoba, whose rates have been higher). In this study, I examine the historical pattern of fertility change in Alberta, noting similarities and differences with the other provinces. I then look at the association of selected macro level factors (marriage, unemployment, wages, female labour force participation) with change in total and parity-specific birth rates between 1997 and 2007, a period of unprecedented economic growth in Alberta. The statistical results show that although marriage is not significantly correlated with change in fertility rates, male and female wages and female labour force participation all show associations consistent with a procyclical interpretation of fertility change - that is, periods of economic growth are conducive to fertility increase whereas bad economic times are associated with reduced fertility.


Author(s):  
Han Hwa Goh ◽  
Vishalini Macharagai ◽  
Siew Bee Thai ◽  
Boon Heng Teh ◽  
Tze San Ong

Malaysia, a fast-growing developing country in Asia, has envisioned Shared Prosperity Vision 2030 to become a developed economy with high income via sustainable and inclusive economic growth by the year 2030. To accomplish this vision, female labour participation is needed as the female population constitutes almost half of Malaysia’s total population. However, female labour participation rate is way lower than Malaysia’s overall labour force participation rate.The relatively low female labour participation rate can be a barrier to Malaysia’s economic development and thus the realization of its goal of a high income nation.Therefore, this paper makes an attempt to examine empirically the long-run causal association among female labour force participation, economic growth, education, and fertility rate. The interrelationships among the variables are examined using the bounds test and Toda-Yamamoto granger non-causality methodology. The result of the study indicates a strong evidence of long-run relationship among the variables. Besides, we have found a significant inverted-U-shaped association linking the female labour force participation to the economic growth in Malaysia. The results of Granger causality tests further confirm that there is a strong evidence of bidirectional causality from education to economic growth as well as female labour participation. Besides, the results also show significant unidirectional causality from female labour force participation and fertility to economic growth.


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.


2020 ◽  
Vol 64 (4) ◽  
pp. 444-458
Author(s):  
Aduralere Oyelade ◽  
◽  
Onome Oghenetega ◽  
Favour Eforuoku ◽  
◽  
...  

The study investigated the impact of labour force participation rate and its implications on food security, fertility rate and economic growth in the West African Monetary Zone (WAMZ). Using data from 6 countries over the period of 1990 tо 2016 and pool autoregressive dіstrіbutеd lаg (PАRDL) bоunds tеstіng рrосеdurе was employed. The result from the study showed that female labour force participation and health expenditure per capita determine food security and male labour force participation, female labour force participation, gross capita formation, health education per capita and enrolment in secondary education are the variables that determine fertility rate, while male labour force participation, female labour force participation, health expenditure per capita and enrolment in secondary education affect GDP per capita. The study recommended that policies should be directed toward increasing female labour force participation which will compliment male labour force participation as well as increase decent and productive work opportunities for female workers which will promote GDP per capita, leading to reduction in fertility rate and promote food security among member countries. Furthermore, family-friendly policies will further encourage females to participate in the labour market. Therefore, more efforts should be made to promote female labour force participation as the entire WAMZ countries will benefit from the growth and welfare improvement that it will generate. WAMZ countries governments need build their capacity through investment in health and education in order to enhance productivity of the labour force which will lead to economic growth, reduction in fertility rate as well as promote food security. This study has contributed empirically and theoretically to the body of knowledge. The scope covered also makes the study uniquely robust and different from previous ones.


2012 ◽  
Vol 51 (4II) ◽  
pp. 565-586 ◽  
Author(s):  
Nooreen Mujahid ◽  
Naeem Uz Zafar Naeem Uz Zafar

Economic literature shows significant attention towards the role played by female labour force in the economic development of nations. The structural changes of economies from agriculture to industrial and services sector reduce the female labour force participation in case of developing nations. The activities of female labour force increases in the later stage of economic development due to increase in education and dynamics of economic activity. As the size of the economy expands females have easier and better access of jobs thus are encouraged to become economically active, it leads to increase female participation in the productive activities. The participation of female labour force is desirable for both equity and efficiency reasons. The equity aspect shows that the women’s participation in the labour market ultimately improves their relative economic position, increase the overall economic efficiency by enhancing the development potential of the country. Moreover, the increasing integration of women in the economy helps in reducing gender disparities in education, improving maternal health, increasing sectoral share of female employment in different sectors of the economy, demonstrating the hidden contribution of women as unpaid family worker especially in agriculture sector. According to the modernisation theorists, economic development is positively associated with female labour force participation through change in the occupational structure and increase in educational opportunities along with the household responsibilities. The modernisation process is linked with increased demand for labour, a general social acceptance of women’s education and employment as well as lower fertility [Heckman (1980); Standing (1981); Bauer and Shin (1987)]. A body of theoretical and empirical literature provides evidence that female labour force participation has a positive and strong relationship with economic growth [Tansel (2002) and Fatima and Sultana (2009)].


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.


2017 ◽  
Vol 19 (2) ◽  
pp. 17-30
Author(s):  
Demet Beton-Kalmaz

The relationship between gender inequality and economic growth has become one of the most interesting and debated issues both in the academic literature and the policy arena. The aim of this study is to investigate how gender inequalities in the labour force participation (LFP) in North Cyprus undermine the per capita output of the country. Thus, the study is designed to estimate the simulation of a possible increase in per capita GDP based on 2011 data generated by the catch up of north female labour force participation rates to the south for the year 2011. Different age categories for female labour force are considered for the measurement. The age categories distributed within the working age population including female labour force population between the ages 15 and over. The age categories are divided into 5 groups as including the female participants between the age from 15 to 24, 25 to 34, 35 to 44, 45 to 54, and 55 and over. Data used is obtained from the State Planning Organization (SPO) of North Cyprus government for North Cyprus and from the World Bank database for South Cyprus. The North Cyprus labour force participation rates are adjusted to the south as suggested by Bryant et. al. (2004). Parallel to the previous literature, it is found that female labour force participation (FLFP) rate has a positive impact on GDP in North Cyprus. There would have been a 4% higher per capita GDP with the catch up of north to south FLFP rate which might be a substantial contribution towards decreasing the income gap between north and south.


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