The asymmetric cyclical behaviour of female labour force participation in Latin America

Ángel Maridueña-Larrea and Ángel Martín-Román ()

MPRA Paper from University Library of Munich, Germany

Abstract: This study measures the responsiveness of female labour participation to changes in the economic cycle at the extensive margin in Latin America. The results provide new evidence regarding the cyclical behaviour of the female labour force participation, making it possible to determine which countries validate the traditional hypotheses of the added and discouraged worker. Another significant finding is that these effects vary during cycles of economic expansion and recession and become stronger when reaching a certain threshold. Therefore, contradictory hypotheses to the added and discouraged worker emerged, which is referred to as subtracted and encouraged workers, both of which are formally validated by examining these effects throughout the economic cycles.

Keywords: Added worker effect; discouraged worker effect; unemployment rate; labour force participation rate; economic cycle (search for similar items in EconPapers)
JEL-codes: C10 E24 J21 J64 J68 (search for similar items in EconPapers)
Date: 2023
New Economics Papers: this item is included in nep-lab
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:117408

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