Cointegration and causality between fertility and female labor participation in Taiwan: A multivariate approach

Applying Hsiao's version of Granger causality, this paper uncovers no causality from fertility to female labor participation and fails to find the expected relationship that female labor participation negatively predicts fertility in Taiwan. This indicates that working women in Taiwan do not necessarily have fewer children. The finding of this study contradicts the results obtained when using the conventional regression method which finds bidirectional relationship between fertility and female labor participation. In addition, this study detects that education exerts a great influence on female labor participation but not on fertility.