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The Trend in Female Labour Force Participation: What Can Be Expected for the Future?

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Author Info
Rob Euwals () (CPB, Netspar and IZA)
Marike Knoef () (Tilburg University, Netspar and CentERdata)
Daniel van Vuuren () (CPB and Netspar)

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Abstract

During the 1980s and 1990s, the Netherlands experienced a strong increase in the labour force participation of women. This study investigates the increase of participation over the successive generations of women, and produces an educated guess for future participation. For this purpose, we estimate a binary age-period-cohort model for the generations born between 1925 and 1986, using data from the Dutch Labour Force Survey 1992-2004. The results indicate that the increasing level of education, the diminishing negative effect of children, and unobserved cohort effects have played an important role. According to our estimates, the increase in unobserved cohort effects has stopped since the generation born in 1955. This result is in line with results of studies on social norms and attitudes towards the combination of female employment and family responsibilities, which show a similar pattern over the successive generations. We observe that future participation growth importantly depends on the evolvement of attitudes towards the combination of paid work and children. We have therefore constructed two alternative future scenarios, the first with constant norms with respect to this factor, and the second with a further evolvement. It is estimated that the remaining growth will compensate for about one third of the structural fiscal deficit caused by population ageing in the Netherlands.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3225.

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Length: 51 pages
Date of creation: Dec 2007
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Handle: RePEc:iza:izadps:dp3225

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Related research
Keywords: female labour force participation age-period-cohort-analysis future development

Find related papers by JEL classification:
J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends and Forecasts
J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

This paper has been announced in the following NEP Reports:

References listed on IDEAS
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    Other versions:
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    Other versions:
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  15. Tachibanaki, Toshiaki & Sakurai, Kojiro, 1991. "Labour supply and unemployment in Japan," European Economic Review, Elsevier, vol. 35(8), pages 1575-1587, December. [Downloadable!] (restricted)
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