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Quality & Quantity

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02.08.2018

Can economic development boost the active female labor force?

verfasst von: Chi-Wei Su, Zheng-Zheng Li, Ran Tao, Oana-Ramona Lobonţ

Erschienen in: Quality & Quantity | Ausgabe 2/2019

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Abstract

This study explores whether the female labor force participation rate (FLFPR) can promote economic development in Asian countries. We apply the method of bootstrap panel Granger causality in order to consider the cross-sectional dependency and heterogeneity to detect specific patterns of the interactive relationships between the two variables. The estimation results point out that the interaction patterns vary across countries, which is consistent with the U-shaped hypothesis. Specifically, when the economy develops, FLFPR declines in Vietnam and India, whereas economic development promotes the FLFPR in Korea, Malaysia, Singapore and Thailand. More specifically, when GDP per capita lies at a relatively low level, the income effect dominates the substitution effect, resulting into the FLFPR changing in opposite direction. Nevertheless, the substitution effect holds the dominant position when the GDP per capita reaches a high level. The increase of FLFPR is accompanied by economic development due to availability of more jobs and increasing level of education. Therefore, policy makers should formulate plans in order to benefit from the potential of the female labor force by stimulating economic development.

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According to the research by Kónya (2006), identifying the optimal lag length(s) benefits for robustness of results. For a relatively large panel, different equation and variable in lag structure would lead to a significant increase in computational burden. To overcome this problem, we allow maximal lags to vary across variables and estimate the system for each possible pair of lags, respectively. Specifically, we assume from 1 lag to 4 lags and then select the optimal lag length(s) by minimizing Schwarz Bayesian Criterion.

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Titel: Can economic development boost the active female labor force?
verfasst von: Chi-Wei Su
Zheng-Zheng Li
Ran Tao
Oana-Ramona Lobonţ
Publikationsdatum: 02.08.2018
Verlag: Springer Netherlands
Erschienen in: Quality & Quantity / Ausgabe 2/2019
Print ISSN: 0033-5177
Elektronische ISSN: 1573-7845
DOI: https://doi.org/10.1007/s11135-018-0800-z

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