Labor Participation of Arab Women: Estimates of the Fertility to Labor Supply Link

The paper has two objectives. The first is to review salient trends in the fertility of women, their education, formal and informal participation and status over the past two decades. The second is to examine at the micro level the determinants of labor participation for a set of Arab countries. A major focus of the analysis is the fertility-labor link. Do high fertility rates impede participation? What role does education play in each? Methodologically, the paper applies a two-step econometric model that consists of a Poisson maximum likelihood count equation and a dichotomous probit equation. The salient findings of the paper are: First, fertility and participation are inversely related and the link is strong in all Arab countries under review. Second, age at marriage, women's education, infant mortality and preference for male offspring are important determinants of fertility. Reduced infant mortality rate is associated with fertility reduction. Third, a rise in wage increases the opportunity cost of having children and therefore leads to a decrease in fertility. Fourth, increased resources at the household level reduce women's participation, ceteris paribus. Finally, education is an important pathway to effective engagement of Arab females in formal market activities.