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Economic Development, Structural Change and Women’s Labor Force Participation A Reexamination of the Feminization U Hypothesis

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  • Isis Gaddis

    (University of Göttingen, Department of Economics)

  • Stephan Klasen

    (University of Göttingen, Department of Economics)

Abstract

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 underlying GDP estimates. The U also tends to vanish under dynamic panel estimations. Moreover, cross-country differences in levels of FLFP related to historical contingencies are much 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 Urelationship 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-shaped 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.

Suggested Citation

  • Isis Gaddis & Stephan Klasen, 2013. "Economic Development, Structural Change and Women’s Labor Force Participation A Reexamination of the Feminization U Hypothesis," Working Papers 1302, New School for Social Research, Department of Economics.
    • Handle: RePEc:new:wpaper:1302
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    More about this item

    Keywords

    Female Labor Force Participation; Economic Development; Structural Change; Panel; GMM;
    All these keywords.

    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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