The Impact of Female Labor Force Participation on Enhancing Human Development Throughout the Stages of Global Demographic Dividends

Chulan Lasantha Kukule Nawarathna
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Chulan Lasantha Kukule Nawarathna: Department of Social Statistics, University of Sri Jayewardenepura, Sri Lanka.

International Journal of Research and Innovation in Social Science, 2025, vol. 9, issue 4, 580-605

Abstract: The low female labor force participation rate (FLFPR) must increase to empower women and enhance the demographic dividend (DD) to promote human development. The United Nations Human Development Index serves as the fundamental measurement tool for assessing progress in human development, evaluating the three components of healthcare delivery, educational standards, and economic productivity. Research investigating the global impacts of the female labor force participation rate on the Human Development Index reveals its influence at different demographic dividend stages, from Pre-DD to Early-DD, Late-DD, and Post-DD, from 1990 to 2019. The female labor force participation rate exhibits a significant positive correlation with the Human Development Index at all phases of the demographic dividend period, according to results obtained from Driscoll-Kraay standard error regression and Dumitrescu–Hurlin causality testing. The female labor force participation rate shows an inverse U-shaped relationship with the Human Development Index in both the Pre-DD and Post-DD periods, yet demonstrates a U-shaped pattern in Early-DD and Late-DD across all regions and globally. The female labor force participation rate and the Human Development Index remain directly connected during every demographic dividend period. Population growth and per capita GDP have been confirmed to enhance the global Human Development Index while benefiting all phases of demographic dividend development. The observed evidence indicates that implementing appropriate policies to optimize female labor force participation is essential to access all advantages from demographic dividends. Through gender equity policies, policymakers can enhance human development in every aspect by strategically managing populations alongside economic improvements for women.

Date: 2025
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