Investigating the Macroeconomic Factors That Determine a Female Worker to Participate in the Labor Force: Evidence from the South Asian Countries

A.H.M. Shahid Shami (), Tania Islam () and Istihak Rayhan ()
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A.H.M. Shahid Shami: Assistant Professor, Department of Economics, Jahangirnagar University, Bangladesh.
Tania Islam: Assistant Professor, Department of Economics, Bangabandhu Sheikh Mujibur Rahman Science and Technology University, Bangladesh.
Istihak Rayhan: Lecturer, Department of Economics, Bangabandhu Sheikh Mujibur Rahman Science and Technology University, Bangladesh.

Journal of Business, 2019, vol. 4, issue 2, 12-18

Abstract: Over the last four decades women work force participation rate increases significantly within the South Asian countries, while it remains stagnant or sometime declines into the developed countries. The study is for investigating the macroeconomic determinants that play the vital role in making the decision of whether a female will participate in the labor force or not. We take data of five south Asian countries named India, Nepal, Pakistan, Bangladesh and Sri Lanka. Data are taken for the range of 1990-2015. We perform some Lagrange Multiplier tests to mark out the cross-section effects, Hausman tests to select the appropriate model. We also check the cross-sectional dependence and estimate Panel Corrected Standard Error (PCSE) model to get unbiased coefficients of the estimators. Estimated results confirm that GNI per capita, square of per capita GNI, Education and Fertility rate are significant macroeconomic factors which have strong influence on the labor force participation decision of a female. Estimatedresults also confirms the validity of Kuznets curve in the labor force participation decision of a female. This findings will help the policymakers to take the right policy about labor market and enhance social welfare.

Keywords: Female labor force participation rate; South Asian Countries; Paneldata; Hausman test; PCSE model. (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (3)

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