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A Dynamic Model of Female Labor Force Participation Rate and Human Capital Investment

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  • Radek Szulga

    (Carleton College, U.S.A.)

Abstract

This paper develops a dynamic model of human capital investment and labor participation. The main focus is on the fact that women's labor force participation rate is U-shaped over the course of development. We also analyze the behavior of the relative education levels of men and women, the education levels of women in the labor force and outside of it, and the magnitude and sign of income and wage effects. The underlying assumption of the model is the existence of economies of scope in the traditional sector of the economy. This creates a tradeoff between remaining in traditional production where farm work and child rearing can be undertaken simultaneously, and moving to modern production where income is potentially higher.

Suggested Citation

  • Radek Szulga, 2014. "A Dynamic Model of Female Labor Force Participation Rate and Human Capital Investment," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 39(3), pages 81-114, September.
    • Handle: RePEc:jed:journl:v:39:y:2014:i:3:p:81-114
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    Cited by:

    1. Daniel Aaronson & Rajeev Dehejia & Andrew Jordan & Cristian Pop-Eleches & Cyrus Samii & Karl Schulze, 2021. "The Effect of Fertility on Mothers’ Labor Supply over the Last Two Centuries [Semiparametric instrumental variables estimation of treatment response models]," The Economic Journal, Royal Economic Society, vol. 131(633), pages 1-32.
    2. Miss Catriona Purfield, 2006. "Mind the Gap—Is Economic Growth in India Leaving Some States Behind?," IMF Working Papers 2006/103, International Monetary Fund.

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    More about this item

    Keywords

    Female Labor Force Participation Rate; Human Capital; Economic Growth;
    All these keywords.

    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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