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Female Labor Force Participation and economic growth: Accounting for the gender bonus

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  • Baerlocher, Diogo
  • Parente, Stephen L.
  • Rios-Neto, Eduardo

Abstract

Borrowing from the demographic dividend literature, this paper examines whether there is a gender bonus, namely an increase in the average living standard associated with increases in female labor force participation (FLFP) rates. Translating a per worker production function into a per capita one, it derives a linear dynamic model, the coefficient of which can be used to test for the existence of a gender bonus, and the reasons for this bonus. Using an international panel and applying a system GMM approach, it finds a positive and statistically significant effect of the growth of FLFP on economic growth and a positive but not statistically different from zero effect of the initial FLFP on economic growth. Importantly, we cannot reject the hypothesis that either of these effects is merely an accounting effect, namely a consequence of having more workers in the economy and more aggregate output. It finds no support for a secondary bonus through education or population growth.

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  • Baerlocher, Diogo & Parente, Stephen L. & Rios-Neto, Eduardo, 2021. "Female Labor Force Participation and economic growth: Accounting for the gender bonus," Economics Letters, Elsevier, vol. 200(C).
    • Handle: RePEc:eee:ecolet:v:200:y:2021:i:c:s0165176521000173
    DOI: 10.1016/j.econlet.2021.109740
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    2. Islam, Asif M. & Amin, Mohammad, 2023. "The gender labor productivity gap across informal firms," World Development, Elsevier, vol. 167(C).

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    More about this item

    Keywords

    Female Labor Force; Gender bonus; Economic growth;
    All these keywords.

    JEL classification:

    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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