Economic development, structural change, and women’s labor force participation

Isis Gaddis and Stephan Klasen

Journal of Population Economics, 2014, vol. 27, issue 3, 639-681

Abstract: A sizable literature claims that female labor force participation (FLFP) follows a U-shaped trend as countries develop due to structural change, education, and fertility dynamics. We show that empirical support for this secular trend is feeble and depends on the data sources used, especially GDP estimates. The U also vanishes under dynamic panel estimations. Moreover, cross-country differences in levels of FLFP related to historical contingencies are more important than the muted U patterns found in some specifications. Given the large error margins in international GDP estimates and the sensitivity of the U relationship, we propose a more direct approach to explore the effect of structural change on FLFP using sector-specific growth rates. The results suggest that structural change affects FLFP consistent with a U pattern, but the effects are small. We conclude that the feminization U hypothesis as an overarching secular trend driving FLFP in the development process has little empirical support. Copyright Springer-Verlag Berlin Heidelberg 2014

Keywords: Female labor force participation; Economic development; Structural change; Panel; GMM; J16; J21; O15 (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (105)

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Related works:
Working Paper: Economic Development, Structural Change and Women’s Labor Force Participation A Reexamination of the Feminization U Hypothesis (2013)
Working Paper: Economic Development, Structural Change and Women’s Labor Force Participation A Reexamination of the Feminization U Hypothesis (2012)
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DOI: 10.1007/s00148-013-0488-2

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