Journal Article

Economic development, structural change, and women's labor force participation: A reexamination of the feminization U hypothesis

Klasen, Stephan, Gaddis, Isis

2014

Overview

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.

• Publisher: Springer,Springer Berlin Heidelberg,Springer Nature B.V
• Subject: Changes / Contingencies / Demography / Developing countries / Economic activity / Economic change / Economic development / Economic growth / Economic models / Economic statistics / Economic theory / Economics / Economics and Finance / Education / Employment / Employment discrimination / Female employees / Feminization / Fertility / GDP / Generalized method of moments / Gross Domestic Product / Hypotheses / Labor Economics / Labor force / Labor force participation / Labor force participation rates / LDCs / Original Paper / Per capita / Population / Population Economics / Purchasing power parity / Secularism / Social Policy / Structural change / Studies / Trends / Value added / Women / Workforce / Working women / World Bank