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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

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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Bibliographic 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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Web page: http://www.buseco.monash.edu.au/eco/
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Related research

Keywords: fertility; female labour force participation; panel unit roots; panel cointegration; G7 countries.;

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References

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  1. Daniela Del Boca, 2002. "Low Fertility and Labour Force Participation of Italian Women: Evidence and Interpretations," OECD Labour Market and Social Policy Occasional Papers 61, OECD Publishing.
  2. 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.
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  4. Paresh Kumar Narayan & Xiujian Peng, 2006. "An Econometric Analysis of the Determinants of Fertility for China, 1952-2000," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 4(2), pages 165-183.
  5. 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.
  6. Ahn, N. & Mira, P., 1999. "A Note on the Changing Relationship Between Fertility and Female Employment Rates in Developed Countries," Papers 9903, Centro de Estudios Monetarios Y Financieros-.
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  14. Masahiro Abe & Yoshio Higuchi & Jane Waldfogel, 1998. "Maternity Leave Policies and Womens Employment after Childbirth: Evidence from the United States, Britain and Japan," CASE Papers case03, Centre for Analysis of Social Exclusion, LSE.
  15. Narayan, Paresh Kumar & Peng, Xiujian, 2007. "Japan's fertility transition: Empirical evidence from the bounds testing approach to cointegration," Japan and the World Economy, Elsevier, vol. 19(2), pages 263-278, March.
  16. 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 & Francis Journals, vol. 38(5), pages 563-572.
  17. 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.
  18. Tomas Kögel, 2001. "Did the association between fertility and female employment within OECD countries really change its sign?," MPIDR Working Papers WP-2001-034, Max Planck Institute for Demographic Research, Rostock, Germany.
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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.

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