Feminization U Curve: Structural Transformation Impact on Female Labour Force Participation in Asia

Hasibuana Laras Kinanti () and Evi Noor Afifah ()
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Hasibuana Laras Kinanti: Department of Economics, Faculty of Economics and Business, Universitas Gadjah Mada
Evi Noor Afifah: Department of Economics, Faculty of Economics and Business, Universitas Gadjah Mada

No 202308006, Gadjah Mada Economics Working Paper Series from Department of Economics, Faculty of Economics and Business, Universitas Gadjah Mada

Abstract: This research aims to observe the relationship between female labour force participation with economic development and to test Feminization U Curve (FEMU) hypothesis in Asian countries for the period 1990-2018. FEMU model is estimated with static model Fixed Effect as conducted in the initial research and elaborated with dynamic panel model Generalized Method of Moments (GMM). Overall, the static and dynamic model confirmed the U curve relationship between female labour force participation and economic development in accordance with FEMU hypothesis, thus female labour force participation decreases when the economy undergoes structural transformation from agricultural to industrial, and it will rise as the economy goes service sector. The hypothesis is also confirmed in the country-income categorized model. The U curve is more consistent in static model compared to the dynamic one. In addition to the structural changes that has been occurring, the dynamics of female labour force participation in Asia also can be explained with the decline in fertility rate and improvement of female tertiary education.

Keywords: Feminization U Curve; female labour force participation; economic development; GMM dynamic model (search for similar items in EconPapers)
JEL-codes: J01 J16 J21 L16 O11 (search for similar items in EconPapers)
Pages: 15 pages
Date: 2023-08
New Economics Papers: this item is included in nep-mac and nep-sea
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