IDEAS home Printed from https://ideas.repec.org/a/rom/merase/v5y2020i1p136-146.html
   My bibliography  Save this article

Female Labor Force Participation Rate in Indonesia: An Empirical Evidence from Panel Data Approach

Author

Listed:
  • Gatot SASONGKO

    (Faculty of Economics and Business, Satya Wacana Christian University, Indonesia)

  • Bernard Edheney HURUTA

    (Faculty of Economics and Business, Satya Wacana Christian University, Indonesia Author-Name Andrian Dolfriandra HURUTA
    Faculty of Economics and Business, Satya Wacana Christian University, Indonesia)

Abstract

Economic development constantly faces various macroeconomic issues such as achieving inflation targets, creating job opportunities, increasing economic growth, solving unemployment problems, and flattening income distribution. This study aims at analyzing the impact of provincial minimum wages, economic growth, and education level on female labor force participation rate. We generated the data from Indonesia's Central Bureau of Statistics website. This study employs panel data that consists of the time-series data from 2014 to 2018 and cross-sectional data of 34 provinces in Indonesia. By using the fixed-effect econometric model, we demonstrate that the provincial minimum wage and education level have significantly positive effects on female labor force participation rate. However, economic growth has no significant effect on female labor force participation rate. These findings suggest that the Indonesian government needs to consider minimum wages, education, work age, and work experience as policy instruments to increase female labor force participation rate. This study contributes to the literature in Indonesia by using a panel data approach.

Suggested Citation

  • Gatot SASONGKO & Bernard Edheney HURUTA, 2020. "Female Labor Force Participation Rate in Indonesia: An Empirical Evidence from Panel Data Approach," Management and Economics Review, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 5(1), pages 136-146, June.
    • Handle: RePEc:rom:merase:v:5:y:2020:i:1:p:136-146
    as

    Download full text from publisher

    File URL: https://mer.ase.ro/files/2020-1/5-11.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Tam, Henry, 2011. "U-shaped female labor participation with economic development: Some panel data evidence," Economics Letters, Elsevier, vol. 110(2), pages 140-142, February.
    2. Niemi, Beth T & Lloyd, Cynthia B, 1981. "Female Labor Supply in the Context of Inflation," American Economic Review, American Economic Association, vol. 71(2), pages 70-75, May.
    3. Wang PeiZhi & Muhammad Ramzan, 2020. "Do corporate governance structure and capital structure matter for the performance of the firms? An empirical testing with the contemplation of outliers," PLOS ONE, Public Library of Science, vol. 15(2), pages 1-25, February.
    4. 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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Amjad Taha & Mucahit Aydin & Taiwo Temitope Lasisi & Festus Victor Bekun & Narayan Sethi, 2023. "Toward a sustainable growth path in Arab economies: an extension of classical growth model," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 9(1), pages 1-24, December.
    2. Yu Shuangshuang & Wenzhong Zhu & Nafeesa Mughal & Sergio Ivan Vargas Aparcana & Iskandar Muda, 2023. "The impact of education and digitalization on female labour force participation in BRICS: an advanced panel data analysis," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-9, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Paolo Verme, 2015. "Economic development and female labor participation in the Middle East and North Africa: a test of the U-shape hypothesis," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-21, December.
    2. Buhari Dogan & Mürsel Akyüz, 2017. "Female Labor Force Participation Rate And Economic Growth In The Framework Of Kuznets Curve: Evidence From Turkey," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 19, pages 33-54, June.
    3. Ursula-Christiane Ouaïmon & Yabin Zhang, 2019. "Women?s participation in the labor market and Economic Development: Evidence from ECCAS and ECOWAS Countries," International Journal of Economic Sciences, International Institute of Social and Economic Sciences, vol. 8(1), pages 94-105, June.
    4. Marianna Oliskevych & Iryna Lukianenko, 2020. "European unemployment nonlinear dynamics over the business cycles: Markov switching approach," Global Business and Economics Review, Inderscience Enterprises Ltd, vol. 22(4), pages 375-401.
    5. Chi-Wei Su & Zheng-Zheng Li & Ran Tao & Oana-Ramona Lobonţ, 2019. "Can economic development boost the active female labor force?," Quality & Quantity: International Journal of Methodology, Springer, vol. 53(2), pages 1021-1036, March.
    6. BILAN Yuriy & OMRAN Emad Attia Mohamed, 2022. "Female Labour Force Participation and the Economic Development in Egypt," European Journal of Interdisciplinary Studies, Bucharest Economic Academy, issue 01, March.
    7. repec:gdk:wpaper:21 is not listed on IDEAS
    8. John C. Anyanwu, 2013. "Characteristics and Macroeconomic Determinants of Youth Employment in Africa," African Development Review, African Development Bank, vol. 25(2), pages 107-129, June.
    9. Iryna Lukianenko & Marianna Oliskevych, 2017. "Evidence of Asymmetries and Nonlinearity of Unemployment and Labour Force Participation Rate in Ukraine," Prague Economic Papers, Prague University of Economics and Business, vol. 2017(5), pages 578-601.
    10. Guillaume Marois & Ekaterina Zhelenkova & Balhasan Ali, 2022. "Labour Force Projections in India Until 2060 and Implications for the Demographic Dividend," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 164(1), pages 477-497, November.
    11. Paolo Verme & Abdoul Gadiry Barry & Jamal Guennouni, 2016. "Female Labor Participation in the Arab World: Evidence from Panel Data in Morocco," LABOUR, CEIS, vol. 30(3), pages 258-284, September.
    12. Rim Berahab & Zineb Bouba & Pierre-Richard Agénor, 2017. "Egalité de genre, politiques publiques et croissance économique au Maroc," Books & Reports, Policy Center for the New South, number 13, December.
    13. repec:prg:jnlpep:v:preprint:id:633:p:1-24 is not listed on IDEAS
    14. Tiwari, Chhavi & Goli, Srinivas & Rammohan, Anu, 2021. "Reproductive Burden And Its Impact On Female Labour Market Outcomes In India: Evidence From Longitudinal Analyses," SocArXiv nhjvm, Center for Open Science.
    15. BILAN Yuriy & OMRAN Emad Attia Mohamed & BILAN Yuriy & OMRAN Emad Attia Mohamed, 2012. "Female Labour Force Participation and the Economic Development in Egypt," European Journal of Interdisciplinary Studies, Bucharest Economic Academy, issue 01, March.
    16. Lv, Zhike & Yang, Rudai, 2018. "Does women’s participation in politics increase female labor participation? Evidence from panel data analysis," Economics Letters, Elsevier, vol. 170(C), pages 35-38.
    17. Tatiana Dănescu & Ioan-Ovidiu Spătăcean & Maria-Alexandra Popa & Carmen-Gabriela Sîrbu, 2021. "The Impact of Corporate Governance Mechanism over Financial Performance: Evidence from Romania," Sustainability, MDPI, vol. 13(19), pages 1-14, September.
    18. Isis Gaddis & Stephan Klasen, 2014. "Economic development, structural change, and women’s labor force participation:," Journal of Population Economics, Springer;European Society for Population Economics, vol. 27(3), pages 639-681, July.
    19. Chhavi Tiwari & Srinivas Goli & Anu Rammohan, 2022. "Reproductive Burden and Its Impact on Female Labor Market Outcomes in India: Evidence from Longitudinal Analyses," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 41(6), pages 2493-2529, December.
    20. Gassmann, Franziska & Francois, Daphne & Zardo Trindade, Lorena, 2016. "Social welfare benefits and their impacts on labour market participation among men and women in Mongolia," MERIT Working Papers 2016-033, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    21. Moundir Lassassi & Aysit Tansel, 2020. "Female labor force participation in five selected MENA countries: An age-period-cohort analysis," Koç University-TUSIAD Economic Research Forum Working Papers 2018, Koc University-TUSIAD Economic Research Forum.
    22. Chaudhary, Ruchika. & Verick, Sher., 2014. "Female labour force participation in India and beyond," ILO Working Papers 994867893402676, International Labour Organization.

    More about this item

    Keywords

    female labor force participation rate; provincial minimum wage; economic growth; education level; panel data;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E29 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Other

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rom:merase:v:5:y:2020:i:1:p:136-146. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ciocoiu Nadia Carmen (email available below). General contact details of provider: https://edirc.repec.org/data/mnasero.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.