Against the Wind: Labor Force Participation of Women and Economic Instability in Iran

In the last three decades, Iranian women's educational attainment has continuously increased while their fertility rate has fallen rapidly. Yet in spite of these developments, which in many countries have a positive effect on women's labor force participation, female labor force participation (FLFP) rates have remained at low levels. This paper argues that despite its overall static trend, FLFP of some Iranian women responded to economic pressures induced by macroeconomic instabilities. Looking at the Iranian economic crisis of 1994–5, the study shows that, controlling for individual fixed effects, married women in rural areas and never-married women in urban areas increased their participation rate by as much as 38 percent. No change in hours worked was found for any group of women. The differences in responses and their underlying reasons have policy implications for many developing countries.     

Taxes and female labor supply

The Economic Recovery Tax Act of 1981 and the Tax Reform Act of 1986 changed the U.S. income tax structure in a dramatic fashion. In particular, these two reforms reduced the marginal tax rates for married households. In this paper I investigate what part of the rise in labor force participation of married women between 1980 to 1990 (a rise of 13 percentage points) can be accounted by the changes in taxes. I build an heterogeneous agent model populated by married households. Households differ by age and educational attainment levels of their members and decide whether the second earner, the wife, should participate in the labor market. I select parameter values so that the model economy is consistent with the 1980 U.S. economy in terms of income tax structure, wages (skill premium and gender gap), marital sorting (who is married with whom), and female labor force participation. Using counterfactual experiments I find that 20–24 percent of the rise in married female labor force participation is accounted for by the changes in the income tax structure. Changes in wages account for 62–64 percent, and changes in marital sorting account for 14–16 percent of the rise in the participation rate of married women.     

Women in the Rural and Industrial Labor Force in Nineteenth-Century Spain

Abstract

This contribution analyzes determinants of women's labor force participation (LFP) in northwest coastal Spain (Galicia) in the second half of the nineteenth century. The study uses census takers' notebooks from 1857 and 1870 in three municipalities with different economic structures: Nigrán, an agricultural municipality in southern Galicia on the estuary of Vigo, where women predominantly worked in agriculture; Bueu, an industrial town where 80 percent of women were employed in fish processing and related activities; and Coruña, Galicia's biggest city in 1857, where commerce and services were the main economic activities. The sample represents 2 percent of the region's population. The study focuses both on demand – how the local economic structure influenced the entrance of women into the labor market; and supply – how age, civil status, and number of children influenced women's LFP. The industrialization of coastal Galicia impelled women's high participation rates.     

Social Capital and Women’s Labor Force Participation in Chile

ABSTRACT

Using data from Chile, this study analyzes the relationship between different forms of social capital and women’s labor force participation, accounting for both endogeneity problems and differences among women of different economic strata. First, the results suggest that only some types of social capital are relevant for labor force participation: namely, networks with weaker yet far-reaching connections, including higher-status individuals. There are neither empirical nor theoretical reasons to believe that women have better access to such networks than men. Second, this type of social capital is only relevant for the economic integration of the richest women, failing to increase labor force participation among women of the other 80 percent of households. Thus, this study concludes that policies targeted at women’s economic integration based on the presumption that women have more social capital than men are deeply flawed.     

The association of pain with labor force participation,absenteeism, and presenteeism in Spain

Abstract

Objectives:

The aims of this paper are to generate estimates of the association between the severity and frequency of pain in Spain and (i) labor force participation and workforce status and (ii) patterns of absenteeism and presenteeism for the employed workforce.

Methods:

Data are from the internet-based 2010 National Health and Wellness Survey (NHWS). This survey covers both those who report experiencing pain in the last month as well as the no-pain population. An estimated 17.25% of adults in Spain report experiencing pain in the past month. A series of regression models are developed with the no-pain group as the reference category. The impact of pain, categorized by severity and frequency, is assessed within a labor supply framework for (i) labor force participation and (ii) absenteeism and presenteeism. Both binomial and multinomial logistic models are estimated.

Results:

The results demonstrate that severe and moderate pain has a significant, substantive, and negative association with labor force participation and, together with the experience of mild pain, a substantive impact on absenteeism and presenteeism within the employed workforce. Compared to no-pain controls, the strongest association is seen in the case of severe pain, notably severe daily pain and labor force participation (odds ratio 0.363; 95% CI: 0.206–0.637). The association of severe pain with labor force participation is also significant (odds ratio 0.356; 95% CI: 0.217–0.585). There is a clear gradient in the association of pain severity and frequency with labor force participation. The impact of pain is far greater than the potential impact of other health status measures (e.g., chronic comorbidities and BMI). Labor force participation is also adversely associated with pain experience. Persons reporting severe daily pain are far more likely not to be in the labor force (relative probabilities 0.339 vs 0.611). The experience of pain, notably severe and frequent pain, also outstrips the impact of other health status factors in absenteeism and presenteeism. In the former case, the odds ratio associated with severe daily pain is 16.216 (95% CI: 5.127–51.283), which contrasts to the odds ratio for the Charlson comorbidity index of 1.460 (95%CI: 1.279–1.666). Similar results hold for presenteeism. The contribution of moderate and mild pain to absenteeism and presenteeism is more marked than for labor force participation.

Conclusions:

The experience of pain, in particular severe daily pain, has a substantial negative impact both on labor force participation in Spain as well as reported absenteeism and presenteeism. As a measure of health status, it clearly has an impact that outstrips other health status measures. Whether or not pain is considered as a disease in its own right, the experience of chronic pain, as defined here, presents policy-makers with a major challenge. Programs to relieve the burden of pain in the community clearly have the potential for substantial benefits from societal, individual, and employer perspectives.     

The impact of pain on labor force participation,absenteeism and presenteeism in the European Union

Abstract

Objectives:

The aims of this paper are to generate estimates of the association between the experience and burden of pain, by severity and frequency, with (1) labor force participation and workforce status in five EU countries (the UK, France, Spain, Germany and Italy) and (2) patterns of absenteeism and presenteeism for the employed workforce.

Methods:

Data are from the internet-based 2008 National Health and Wellness Survey (NHWS). This survey covers both those who report experiencing pain in the last month as well as the no pain population. A series of regression models are developed with the no pain group as the reference category. The impact of pain, categorized by severity and frequency reported, is assessed within a labor supply framework for (1) labor force participation and (2) absenteeism and presenteeism. In the former case both binomial and multinomial logistic models are estimated; in the latter case ordered logit models are estimated.

Results:

The results demonstrate that, in the context of health status, the experience of frequent severe and moderate pain has a dominant, independent and negative association with labor force participation and employment status as well as absenteeism and presenteeism. The presence of severe daily pain is associated with a 20-point reduction in the probability of being employed full-time; with moderate daily pain associated with a 10-point reduction. The impact of pain is far greater than the potential impact of other health status measures (e.g., chronic comorbidities and BMI). The experience of pain, notably severe and frequent pain, also outstrips the impact of other health status factors in absenteeism and presenteeism.

Conclusions:

The experience of pain, in particular severe daily pain, has a substantial negative association with labor force participation in these five European countries as well as reported absenteeism and presenteeism. As a measure of health status, it clearly outweighs other health status measures. Whether or not pain is considered as a disease in its own right, the experience of chronic pain, as defined here, presents policy makers with a major challenge. Programs to relieve the burden of pain in the community clearly have the potential for substantial benefits from societal, individual and employer perspectives.     

The Economic Cost of Gender Gaps in Effective Labor: Africa's Missing Growth Reserve

This study analyzes the impact of the gender gap in effective labor – defined as the combined effect of the gender gaps in labor force participation and education – on economic output per worker. The results indicate that the gender gap in effective labor has a negative effect on the economic output per worker in African countries. A 1 percent increase in the gender gap in effective labor leads to a reduction in output per worker by 0.43–0.49 percent in Africa overall, 0.29–0.50 percent in Sub-Saharan Africa, and 0.26–0.32 percent in a wider group of countries from Africa and Asia. The total annual economic losses due to gender gaps in effective labor could be as high as US$255 billion for the African region. Results confirm that Africa is missing its full growth potential because a sizeable portion of its growth reserve – women – is not fully utilized.     

The Influence of Patriarchal Norms,Institutions, and Household Composition on Women's Employment in Twenty-Eight Muslim-Majority Countries

ABSTRACT

The low level of women's employment in Muslim-majority countries is often explained by patriarchy, while disregarding variation among and within these countries. Using a new theoretical framework, this study translates patriarchy as a concept to macro- and micro-level explanations of employment. It formulates and tests hypotheses for societal norms and institutions and household composition, including how the latter's effects are context dependent. The study analyzes data from surveys (1997–2008) for twenty-eight countries, 383 districts, and 250,410 women and finds that men's public dominance over women decreases women's employment. Presence of – in particular non-foster – children and elderly people at home withholds women from labor market entrance. However, presence of other women in the household stimulates labor market entrance. Absence of a partner, male household head, or other adult men pushes women into the labor market, and thus, for example, male breadwinners' absence has a weaker negative effect in contexts of male public dominance.     

Cultural Factors in Women's Labor Force Participation in Chile

Abstract

This article analyzes determinants of female participation in the Chilean labor force using classic determinants such as age, education, marital status, and number of children. The results indicate that the greater a woman's education level, the greater her labor participation; that older women participate more, though the rate of growth of this effect is decreasing; and the number of children that a woman has is negatively correlated to her decision to participate in the labor force. The article also examines machismo and other cultural values that influence female labor participation. The evidence suggests that the more the women have internalized machista and conservative cultural values, the less they participate in the labor market. Finally, the article concludes that the existence of these cultural factors as a group more than compensates for the positive effect of human capital variables and is statistically associated with low female labor participation in Chile.     

The Impact of Transportation Infrastructure on Women's Employment in India

ABSTRACT

Indian women's labor force participation is extremely low, and women are much less likely than men to work in the nonfarm sector. Earlier research has explained women's labor supply by individual characteristics, social institutions, and cultural norms, but not enough attention has been paid to the labor market opportunity structure that constrains women's labor market activities. Using data from the India Human Development Survey (IHDS) in 2004–05 and 2011–12, this study examines how village transportation infrastructure affects women's and men's agricultural and nonagricultural employment. Results from fixed-effect analysis show that access by paved or unpaved roads and frequent bus services increase the odds of nonagricultural employment among men and women. The effect of road access on nonfarm employment (relative to not working) is stronger among women than among men. Improved transportation infrastructure has a stronger positive effect on women's nonfarm employment in communities with more egalitarian gender norms.     

Occupational,Marital, and Life-Cycle Determinants of Women's Labor Force Participation in Mid Nineteenth-Century Rural France

Abstract

The French population census of 1851 is unique among France's nineteenth- and early twentieth-century censuses, as it is the only census to provide information on the market-oriented work of women and children within and outside the home. This study utilizes that information to analyze the demographic, structural, and economic determinants of women's labor force participation in a sample of rural communes in northern France. The data reveal an industrious population in which two-thirds to three-quarters of women in farm families engaged in market-oriented work. The data suggest that women were pushed rather than pulled into the rural labor force, and that poverty was the primary factor driving rural women's participation. The census data throw statistical light on the labor market participation rates of women and children in a preindustrial setting and are likely to produce major revisions in understandings of productivity growth in late nineteenth- and early twentieth-century France.     

Narrowing the gender digital divide in Pakistan: Mobile phone ownership and female labor force participation

The unprecedented growth in access to mobile phones and smartphones has opened up new possibilities in the way people live and work. However, women in developing countries are unable to take advantage of this growth due to certain factors and socio-cultural norms that give rise to the gender digital divide. In this study, using the nationally representative Pakistan Social and Living Standards Measurement Survey (2019–2020), we investigate the gender and rural–urban (female) digital divide in a country with one of the most considerable digital divides. Furthermore, we employ an instrumental variable approach to study the effect of mobile or smartphone ownership on female labor force participation. The results indicate that institutional and sociocultural norms explain most of the ownership gap of mobile or smartphones between men and women. The instrumental variable approach demonstrates that mobile or smartphone ownership increases the participation of women in the labor force. We also find that the differences between observable characteristics, especially literacy and education, explain the rural–urban digital divide among females. Considering the importance of mobile or smartphone ownership in facilitating women's labor supply decisions, providing women with digital tools and upskilling them has wider implications for their economic well-being.     

The labor-force participation of married women in the Soviet Union: a household cross-section analysis

Approximately 80% of women in the Soviet Union ages 15-54 years are employed outside the home. To identify the impact of demographic and economic variables on the high rate of labor force participation among Soviet women, data from an income survey of 1016 2-parent families of emigrants to Israel were analyzed. It was hypothesized that differences in participation rates among Soviet women correspond to differences in other sources of family income, wage rates and market conditions, level of education, and family household conditions, with response to changes in economic variables mediated by the role played by persuasion and social pressure in encouraging women to participate. Overall, 89.3% of the women in the sample were labor force participants. Nonparticipants were, as expected, from families with higher levels of other income. The personal qualifications of nonworking wives were considerably lower than those of working wives, with nonworking wives averaging 9.4 years of schooling compared with 13.2 years for working wives. Offered wages for working wives averaged 69 kopecks/hour in contrast to 40-50 kopecks/hour for nonworking women. A maximum-likelihood functional estimation of participation rates whoed significant coefficients for family income (negative), expected wages and education (positive), and residence in a large city (positive). The coefficients for residence in a medium-sized city, existence of a private plot, presence of nonworking men in the household, occupational status of the husband, and total number of children were insignificant. The supply of hours of work was backward-bending. The results suggest that Soviet women reach the decision to participate in the labor force through consideration of the same factors as their counterparts in nonsocialist countries. The analysis further indicates that, at present levels of fertility and exogenous conditions, the participation rate in the Soviet Union will not decrease. However, policies designed to raise the fertility level, including better facilities for children and more support for women who leave the labor force to raise young children, could ease labor force participation among soviet women.     

Off the Record: Reconstructing Women's Labor Force Participation in the European Past

Abstract

Conventional histories of women's labor force participation in Europe conceptualize the trends in terms of a U-shaped pattern. This contribution draws on historical research to challenge such an account. First, it demonstrates that the trough in participation is in part statistically manufactured by uncritical reliance on official sources that systematically undercount women workers. Second, it exploits nonstandard sources to construct alternative estimates of women's participation. Third, it analyzes the reconstructed rates to determine their congruence with neoclassical economics and modern empirical studies. Not all posited relationships time travel. Supply-side factors such as marital status and number and age of children are major determinants of modern women's decision to enter the labor force, yet appear less prominent in historical contexts. Instead, the demand for labor seems decisive. Finally, the U-shaped curve is not entirely a statistical artifact, but appears to evolve at higher levels of participation than usually suggested.     

Dilemmas of Social Reform (Poverty and Community Action in the United States)

During the last thirty years, one of the most remarkable trends in Western Europe and North America has been the increase in women’s labor force participation rates. However, there has been considerable variation among countries; rates in Southern European countries are markedly lower than in other regions. Standard welfare state regime typology is unable to explain this outcome. This paper tackles the issue by examining the institutional determinants of employment decisions in Spain. Family policies and tax policies greatly influence the labor force participation of women by either promoting or discouraging the employment of mothers. However, these policies do not affect women in the same way. Of particular importance is whether women can claim benefits on the basis of their citizenship, or whether their status as wives or mothers is the link to benefits. By pursuing this line of analysis, the paper explains the low female labor force participation in Spain, providing an important contribution to the welfare state regime literature.     

Gender Inequalities in Labor Market Outcomes of Informal Caregivers near Retirement Age in Urban China

ABSTRACT

This study examines the impacts of unpaid family care on labor supply and earnings of women and men near retirement age in urban China. Using the 2011 China Health and Retirement Longitudinal Study (CHARLS) and ordinary least squares (OLS) and instrumental variable approaches, it finds that grandchild care is negatively associated with both women's and men's labor force participation, while there are no effects for eldercare. For women caregivers, caring for grandchildren substantially lowers paid labor hours compared to noncaregivers. No significant relationships are found between eldercare and paid labor hours of women workers. For men workers, neither grandchild care nor eldercare is significantly associated with labor hours. The study also finds no statistically significant relationships between grandchild care and labor earnings for either women or men. Eldercare, however, is positively associated with the earnings of men workers.     

Long run trends in unemployment and labor force participation in urban China

Unemployment rates in countries across the world are strongly correlated with GDP. China is an unusual outlier from the pattern, whose official government statistics show abnormally low, and suspiciously stable, unemployment rates relative to its GDP. This paper reports estimates of China’s unemployment rate for its local urban Hukou population using a more reliable, nationally representative dataset for that population than in prior work, and which spans a longer period of history than in the past literature. The unemployment rates we calculate differ dramatically from those supplied in official data and are much more consistent with what is known about key historical developments in China’s labor market. The rate averaged 3.7% in 1988–1995, when the labor market was highly regulated and dominated by state-owned enterprises, but rose sharply during the period of mass layoff from 1995 to 2002, reaching an average of 9.5% in the subperiod from 2002 to 2009. The rates were even higher when demographic composition is held fixed. We can also calculate labor force participation rates, which are not available in official statistics at all. We find that they declined throughout the whole period, particularly in 1995–2002 when the unemployment rate increased most significantly. We also find that the impacts of these changes fell most heavily on the unskilled (women, those with less education, and younger individuals). Finally, estimates of unemployment and labor force participation rates are also provided for all urban residents, including migrants without local urban Hukou, and show the same patterns of change over time.     

Level the Playing Field to Bolster the Boardroom: Sports as a Springboard for Women's Labor Force Advancement in Asia

We promote women's participation in sports as part of a solution to better integrate women into the labor force of Asian economies. Women in Asia lag other regions in terms of labor force participation and membership in corporate leadership bodies; this is particularly acute in East Asia. Involvement in sport has been found to be associated with long‐term economic benefits for women internationally, including enhanced returns to education and labor outcomes. We propose a number of sports program‐related policies for Asian countries to consider in order to better integrate women into education, society, labor, and corporate boardrooms.     

‘‘Isn't it time you were finishing?’’: Women's Labor Force Participation and Childbearing in England, 1860–1920

Abstract

This contribution examines the relationship between women's labor force participation (LFP) and fertility in three industrial towns of nineteenth- and early twentieth-century England from a feminist economic perspective. The study augments existing statistical approaches to demographic history by discussing women's motivations. Women's LFP influenced their likelihood of family limitation (via effects on both age at marriage and marital fertility). Where women were most likely to be in paid work, they were most likely to limit family size. It is further argued that the diversity of LFP patterns is the principal explanation for the varied patterns of fertility decline in different parts of Britain.