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The Relationship Between Female Labour Force Participation And Fertility In G7 Countries: Evidence From Panel Cointegration And Granger Causality

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Author Info
Vinod Mishra
Ingrid Nielsen
Russell Smyth

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Abstract

This paper examines the relationship between the female labour force participation rate and total fertility rate for the G7 countries over the period 1960 to 2004 using panel unit root, panel cointegration, Granger causality and long-run structural estimation. The paper's main findings are that the female labour force participation rate and total fertility rate are cointegrated for the panel of G7 countries; that long-run Granger causality runs from the total fertility rate to the female labour force participation rate and that a 1-per cent increase in the total fertility rate results in a 0.4 per cent decrease in the female labour force participation rate for the G7 countries.

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File URL: http://www.buseco.monash.edu.au/eco/research/papers/2006/1306g7fertility.pdf
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Publisher Info
Paper provided by Monash University, Department of Economics in its series Monash Economics Working Papers with number 13/06.

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Length: 24 pages
Date of creation: 01 Jul 2006
Date of revision:
Handle: RePEc:mos:moswps:2006-13

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Postal: Department of Economics, Monash University, Victoria 3800, Australia
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Related research
Keywords: fertility; female labour force participation; panel unit roots; panel cointegration; G7 countries.;

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Find related papers by JEL classification:
C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions
C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation and Testing
J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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References listed on IDEAS
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  1. Henriette Engelhardt & Tomas Kögel & Alexia Prskawetz, 2001. "Fertility and women´s employment reconsidered: A macro-level time-series analysis for developed countries, 1960-2000," MPIDR Working Papers WP-2001-021, Max Planck Institute for Demographic Research, Rostock, Germany.
  2. M. Hashem Pesaran & Yongcheol Shin & Richard J. Smith, 2001. "Bounds testing approaches to the analysis of level relationships," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 16(3), pages 289-326. [Downloadable!]
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  4. Chevalier, A & Viitanen, T K, 2002. "The Causality between Female Labour Force Participation and the Availability of Childcare," Applied Economics Letters, Taylor and Francis Journals, vol. 9(14), pages 915-18, November. [Downloadable!] (restricted)
  5. Tomas Kögel, 2004. "Did the association between fertility and female employment within OECD countries really change its sign?," Journal of Population Economics, Springer, vol. 17(1), pages 45-65, February. [Downloadable!] (restricted)
    Other versions:
  6. Jushan Bai & Pierre Perron, 2003. "Computation and analysis of multiple structural change models," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 18(1), pages 1-22. [Downloadable!]
    Other versions:
  7. Del Boca, Daniela, 2002. "The Effect of Child Care and Part Time Opportunities on Participation and Fertility Decisions in Italy," IZA Discussion Papers 427, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  8. Kyung-So Im & Junsoo Lee & Margie Tieslau, 2005. "Panel LM Unit-root Tests with Level Shifts," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 67(3), pages 393-419, 06. [Downloadable!] (restricted)
  9. Joakim Westerlund, 2006. "Testing for Panel Cointegration with Multiple Structural Breaks," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 68(1), pages 101-132, 02. [Downloadable!] (restricted)
  10. Paresh Kumar Narayan & Russell Smyth, 2006. "Female labour force participation, fertility and infant mortality in Australia: some empirical evidence from Granger causality tests," Applied Economics, Taylor and Francis Journals, vol. 38(5), pages 563-572, March. [Downloadable!] (restricted)
  11. Gordon Cleveland & Morley Gunderson & Douglas Hyatt, 1996. "Child Care Costs and the Employment Decision of Women: Canadian Evidence," Canadian Journal of Economics, Canadian Economics Association, vol. 29(1), pages 132-51, February. [Downloadable!] (restricted)
  12. Robert McNown & Cristobal Ridao-Cano, 2005. "A time series model of fertility and female labour supply in the UK," Applied Economics, Taylor and Francis Journals, vol. 37(5), pages 521-532, March. [Downloadable!] (restricted)
  13. Lawrence M. Berger & Jane Waldfogel, 2004. "Maternity leave and the employment of new mothers in the United States," Journal of Population Economics, Springer, vol. 17(2), pages 331-349, 06. [Downloadable!] (restricted)
  14. Michael, Robert T, 1985. "Consequences of the Rise in Female Labor Force Participation Rates: Questions and Probes," Journal of Labor Economics, University of Chicago Press, vol. 3(1), pages S117-46, January. [Downloadable!] (restricted)
  15. Pedro Mira & Namkee Ahn, 2002. "A note on the changing relationship between fertility and female employment rates in developed countries," Journal of Population Economics, Springer, vol. 15(4), pages 667-682. [Downloadable!] (restricted)
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