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Female labor force participation and total fertility rates in the OECD: New evidence from panel cointegration and Granger causality testing

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  • Mishra, Vinod
  • Smyth, Russell

Abstract

This article examines the relationship between the female labor force participation rate and the total fertility rate for 28 OECD countries using panel unit root, panel cointegration, Granger causality and long-run structural estimation. The article finds that there is either unidirectional long-run Granger causality running from female labor force participation to the total fertility rate or bi-directional Granger causality between the two variables depending on how the female labor force participation rate is measured and the time period. In each case it is found that there is an inverse relationship between the female labor force participation rate and total fertility rate. This result supports the role incompatibility hypothesis that states there is a negative relationship between these variables because of the strain of performing the roles of both employee and mother.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Economics and Business.

Volume (Year): 62 (2010)
Issue (Month): 1 (January)
Pages: 48-64

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Handle: RePEc:eee:jebusi:v:62:y:2010:i:1:p:48-64

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Web page: http://www.elsevier.com/locate/jeconbus

Related research

Keywords: Fertility Female labor force participation Panel unit roots Panel cointegration OECD countries;

References

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  2. Gustavsson, Magnus & Osterholm, Par, 2006. "The informational value of unemployment statistics: A note on the time series properties of participation rates," Economics Letters, Elsevier, vol. 92(3), pages 428-433, September.
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Citations

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Cited by:
  1. Paraskevi Salamaliki & Ioannis Venetis & Nicholas Giannakopoulos, 2013. "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, Springer, vol. 26(1), pages 109-145, January.
  2. Bellido, Héctor & Marcén, Miriam, 2011. "Divorce laws and fertility decisions," MPRA Paper 30243, University Library of Munich, Germany.
  3. Lee, Grace H.Y. & Lee, Sing Ping, 2014. "Childcare availability, fertility and female labor force participation in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 32(C), pages 71-85.
  4. Ewa Lechman, 2014. "Female labor force participation and economic growth– re-examination of U-shaped curve," GUT FME Working Paper Series A 21, Faculty of Management and Economics, Gdansk University of Technology.
  5. Hafner, Kurt A. & Mayer-Foulkes, David, 2013. "Fertility, economic growth, and human development causal determinants of the developed lifestyle," Journal of Macroeconomics, Elsevier, vol. 38(PA), pages 107-120.
  6. Florian Noseleit, 2014. "The impact of childcare enrollment on women’s selection into self-employment," Working Papers 2014/15, Maastricht School of Management.
  7. Tsani, Stella & Paroussos, Leonidas & Fragiadakis, Costas & Charalambidis, Ioannis & Capros, Pantelis, 2013. "Female labour force participation and economic growth in the South Mediterranean countries," Economics Letters, Elsevier, vol. 120(2), pages 323-328.
  8. Verena Tobsch, 2013. "Betreuung von Schulkindern: ein weiterer Schlüssel zur Aktivierung ungenutzter Arbeitskräftepotenziale?," SOEPpapers on Multidisciplinary Panel Data Research 573, DIW Berlin, The German Socio-Economic Panel (SOEP).
  9. He, Xiaobo & Zhu, Rong, 2013. "Fertility and Female Labor Force Participation: Causal Evidence from Urban China," MPRA Paper 44552, University Library of Munich, Germany.

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