Email this article 1.jpg){kind=logo}
Fertility and Female Labor Force Participation in Asian Countries; Panel ARDL Approach
Abstract
Fertility has a close relationship with female labor force participation and is predicted to be the prominent factor affecting female labor force participation in rich and emerging countries. The decline in fertility worldwide, accompanied by increased female education, is assumed to increase female labor force participation. The increase in the female labor force participation rate can improve economic incentives for the country. Therefore, this study estimates the effect of fertility and female education on female labor force participation in cross-country panel datasets from 39 Asian countries, using panel ARDL analysis from 1990-2018. This study also examines the panel causality between the variables employing Dumitrescu and Hurlin’s (2012) Granger non-causality test. According to the Hausman test, among the three models in panel ARDL, DFE is the preferred model compared to the PMG and MG. The results revealed that fertility was negatively significant on female labor participation in the short run but not in the long run. In contrast, female education was positively significant on female labor participation in the long run but not in the short run. Meanwhile, the panel causality showed a bidirectional relationship between female labor participation and fertility, female labor participation and education, and fertility and female education.
Keywords
Full Text:
PDFReferences
Aaronson, D., Dehejia, R., Jordan, A., Pop-Eleches, C., Samii, C., & Schulze, K. (2017). The effect of fertility on mothers’ labor supply over the last two centuries. NBER Working Paper 23717. https://doi.org/10.3386/w23717
Abbas, A. (2013). Determinants of women’s labor supply in Bangladesh and Pakistan. Master Thesis. Umea Universitet.
Andrabi, T., Das, J., & Khwaja, A.I. (2012). What did you do all day?: maternal education and child outcomes. Journal of Human Resources 47(4), 873-912. Retrieved from https://www.muse.jhu.edu/article/488615
Anggaraini, N., & Setyari, N. (2020). The impact of working mothers’ bargaining power on their children's human capital in Indonesia. Jurnal Ekonomi & Studi Pembangunan, 21(2), 235-248. https://doi.org/10.18196/jesp.21.2.5044
Asian Development Bank. (2016). Female labor force participation in Asia: key trends, constraints, and opportunities. Retrieved from https://www.adb.org/sites/default/files/publication/209666/female-labor-force-participation-asia.pdf
Azimi, E. (2015). The effect of children on female labor force participation in urban Iran. IZA Journal of Labor & Development, 4(1). https://doi.org/10.1186/s40175-015-0030-x
Barro, R. J., & Lee, J. W. (2013). A new data set of educational attainment in the world, 1950–2010. Journal of Development Economics, 104, 184–198. https://doi.org/10.1016/j.jdeveco.2012.10.001
Becker, G. S. (1964). Human capital: a theoretical and empirical analysis with special reference to education, (1st Edition). Cambridge: National Bureau of Economic Research.
Becker, G. S. (1975). Human capital: a theoretical and empirical analysis with special reference to education, (2nd Edition). Cambridge: National Bureau of Economic Research.
Becker, G. S. (1985). Human capital, effort, and the sexual division of labor. Journal of Labor Economics, 3(1, Part 2), S33–S58. https://doi.org/10.1086/298075
Bloom, D. E., Canning, D., Fink, G., & Finlay, J. E. (2009). Fertility, female labor force participation, and the demographic dividend. Journal of Economic Growth, 14(2), 79–101. https://doi.org/10.1007/s10887-009-9039-9
Cameron, L. A., Malcolm Dowling, J., & Worswick, C. (2001). Education and labor market participation of women in Asia: Evidence from five countries. Economic Development and Cultural Change, 49(3), 459–477. https://doi.org/10.1086/452511
Chamlou, N., Muzi, S., & Ahmed, H. (2011). Understanding the determinants of female labor force participation in the Middle East and North Africa Region: the role of education and social norms in Amman. Almalaurea Working Papers No. 31. Retrieved from http://www.almalaurea.it/universita/pubblicazioni/wp
Cheng, B. S. (1999). Cointegration and causality between fertility and female labor participation in Taiwan: A multivariate approach. Atlantic Economic Journal, 27(4), 422–434. https://doi.org/10.1007/bf02298338
Chevalier, A., & Viitanen, T. K. (2002). The causality between female labour force participation and the availability of childcare. Applied Economics Letters, 9(14), 915–918. https://doi.org/10.1080/13504850210138469
Cho, Y. (2006). An analysis of women's fertility and labor supply: implications for family policies. International Conference on Declining Fertility in East and Southeast Asian Countries. PIE and COE/RES, Hitotsubashi University. Retrieved from https://cis.ier.hit-u.ac.jp/Common/pdf/dp/2006/dp290.pdf
Del Boca, D., & Locatelli, M. (2006). The determinants of motherhood and work status: a survey. Institute of Labor Economics (IZA) Discussion Papers 2414. Retrieved from https://d-nb.info/993085393/34
Demetriades, P., & Hook Law, S. (2006). Finance, institutions and economic development. International Journal of Finance & Economics, 11(3), 245–260. https://doi.org/10.1002/ijfe.296
Dumitrescu, E.-I., & Hurlin, C. (2012). Testing for Granger non-causality in heterogeneous panels. Economic Modelling, 29(4), 1450–1460. https://doi.org/10.1016/j.econmod.2012.02.014
Eckstein, Z., & Lifshitz, O. (2011). Dynamic female labor supply. Econometrica, 79(6), 1675–1726. https://doi.org/10.3982/ecta8803
Engelhardt, A., Pfeifer, J.-B., Heistermann, M., Niemitz, C., van Hooff, J. A. R. A. M., & Hodges, J. K. (2004). Assessment of female reproductive status by male longtailed macaques, Macaca fascicularis, under natural conditions. Animal Behaviour, 67(5), 915–924. https://doi.org/10.1016/j.anbehav.2003.09.006
Eun, K.-S. (2007). Lowest-low fertility in the Republic of Korea: Causes, consequences and policy responses. Asia-Pacific Population Journal, 22(2), 51–72. https://doi.org/10.18356/742d2082-en
Hafeez, A., & Ahmed, E. (2002). Sustainable Development Policy Institute. Working Paper, No 74; 2002. Retrieved from http://arks.princeton.edu/ark:/88435/dsp01zp38wg01p
Heath, R., & Jayachandran, S. (2016). The causes and consequences of increased female education and labor force participation in developing countries. NBER Working Paper Series. https://doi.org/10.3386/w22766
Hupkau, C., & Leturcq, M. (2017) Fertility and mothers’ labor supply: new evidence usingtime-to-conception. CEP Discussion Paper (CEPDP1463). Retrieved from http://eprints.lse.ac.uk/id/eprint/69045
Kao, C. (1999). Spurious regression and residual-based tests for cointegration in panel data. Journal of Econometrics, 90(1), 1–44. https://doi.org/10.1016/s0304-4076(98)00023-2
Kim, J., & Aassve, A. (2006). Fertility and its consequence on family labor supply. IZA Discussion Paper No. 2162. Retrieved from https://ftp.iza.org/dp2162.pdf
Liew, V.K-S. (2004). Which lag length selection criteria should we employ? Economics Bulletin, 3(33), 1-9. Retrieved from http://www.economicsbulletin.com/2004/volume3/EB-04C20021A.pdf
Lim, F.Y.B. (2017). The effects of education and fertility on female labour force participation in Malaysia. Doctor of Philosophy Thesis. University of Wollongong.
Lim, L.L. (2002). Female labor force participation. United Nations. Retrieved from https://www.un.org/development/desa/pd/sites/www.un.org.development.desa.pd/files/unpd_egm_200203_backgroundpaper_female_labour-force_participation_lim.pdf
Mishra, V., & Smyth, R. (2010). Female labor force participation and total fertility rates in the OECD: New evidence from panel cointegration and Granger causality testing. Journal of Economics and Business, 62(1), 48–64. https://doi.org/10.1016/j.jeconbus.2009.07.006
Nakagaki, Y. (2018). Fertility, female labor participation and income in East Asia. International Journal of Development Issues, 17(1), 69–86. https://doi.org/10.1108/ijdi-06-2017-0106
Nam, S. (1991). Determinants of female labor force participation: a study Seoul, South Korea, 1970-19801. Sociological Forum, 6(4), 641-659. Retrieved from https://ur.booksc.eu/book/28632543/17cbaf
Narayan, P. K., & Smyth, R. (2006). Female labour force participation, fertility and infant mortality in Australia: some empirical evidence from Granger causality tests. Applied Economics, 38(5), 563–572. https://doi.org/10.1080/00036840500118838
Pedroni, P. (1999). Critical values for cointegration tests in heterogeneous panels with multiple regressors. Oxford Bulletin of Economics and Statistics, 61(S1), 653–670. https://doi.org/10.1111/1468-0084.0610s1653
Pesaran, M. H., Shin, Y., & Smith, R. P. (1999). Pooled mean group estimation of dynamic heterogeneous panels. Journal of the American Statistical Association, 94(446), 621–634. Retrieved from https://www.jstor.org/stable/2670182
Roser, M. (2014). Fertility Rate. Published online at Our World in Data. Retrieved from: https://ourworldindata.org/fertility-rate
Salamaliki, P. K., Venetis, I. A., & Giannakopoulos, N. (2012). The causal relationship between female labor supply and fertility in the USA: updated evidence via a time series multi-horizon approach. Journal of Population Economics, 26(1), 109–145. https://doi.org/10.1007/s00148-012-0418-8
Schultz, T. W. (1961). Investment in human capital. The American Economic Review, 51(1), 1–17. http://www.jstor.org/stable/1818907
Shittu, W. O., & Abdullah, N. (2019). Fertility, education, and female labour participation. International Journal of Social Economics, 46(1), 66–82. https://doi.org/10.1108/ijse-11-2017-0559
Skadsen, C. (2017). Fertility and female labor force participation: the role of legal access to contraceptives. Stevenson Center for Community and Economic Development to Stevenson Center for Community and Economic Development—Student Research. 29. Retrieved from https://ir.library.illinoisstate.edu/scced/29
Solomon, B., & Kimmel, J. (2009). Testing the inverseness of fertility and labor supply: the case of Ethiopia. Institute for the Study of Labor (IZA) Discussion Papers, No. 3949. Retrieved from http://nbn-resolving.de/urn:nbn:de:101:1-20090209192
Subramaniam, T., Loganathan, N., Yerushalmi, E., Devadason, E. S., & Majid, M. (2016). Determinants of infant mortality in older ASEAN economies. Social Indicators Research, 136(1), 397–415. https://doi.org/10.1007/s11205-016-1526-8
The World Bank. (2019). Data on Fertility Rate (TFR) and female labor force participation (FLFP) from 1990-2018. Retrieved from https://www.worldbank.org/en/home
Tiefenthaler, J. (1997). Fertility and family time allocation in the Philippines. Population and Development Review, 23(2), 377–397. https://doi.org/10.2307/2137550
Tsani, S., Paroussos, L., Fragiadakis, C., Charalambidis, I., & Capros, P. (2013). Female labour force participation and economic growth in the South Mediterranean countries. Economics Letters, 120(2), 323–328. https://doi.org/10.1016/j.econlet.2013.04.043
Ulku, H. (2004). R&D, innovation, and economic growth: an empirical analysis. International Monetary Fund Working Papers, WP/04/185, pp. 2-35. Retrieved from https://scholar.google.com/scholar?q=Ulku,%20H.%20.%20RD,%20Innovation,%20and%20Economic%20Growth:%20An%20Empirical%20Analysis,%20International%20Monetary%20Fund%20Working%20Papers,%20WP04185,%20pp.%202-35
DOI: https://doi.org/10.18196/jesp.v22i2.11142
Refbacks
- There are currently no refbacks.
Copyright (c) 2021 Nawalin Nazah, Jarita Duasa, Muhammad Irwan Arifin
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Office:
Redaksi JESP UMY, Gedung E2 Lantai 2, Fakultas Ekonomi dan Bisnis, Universitas Muhammadiyah Yogyakarta
Jalan Brawijaya, Tamantirto, Kasihan, Bantul, Daerah Istimewa Yogyakarta 55183
Telp: (0274) 387656 ext.184
Fax: (0274) 387646
Email: jesp@umy.ac.id
Jurnal Ekonomi & Studi Pembangunan (JESP) is licensed under Creative Commons Attribution-ShareAlike 4.0 International.