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Female Labor Market Participation and Socioeconomic Development: Disentangling the U-Shaped Hypothesis

Author

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  • Kasrin, Zein
  • Smolny, Werner

Abstract

The U-shaped hypothesis of the relation between economic development and female labor market participation has been a main framework for analyzing female labor market patterns. However, it mixes up two dimensions of development: the increase in income level and the development of social norms from traditional to modern. We disentangle the U-shaped hypothesis by explicitly accounting for social norms within the socioeconomic development process. This allows for a richer analysis of female labor market participation in countries which have developed more in one of the development dimensions rather than the other. To demonstrate, Saudi Arabia is a rich and traditional country while many countries in Eastern Europe are relatively poor and modern. We hypothesize implications of these ‘rather one-sided’ development scenarios on female labor market participation outcomes. We then test this framework on a regional level for Egypt and Germany and find family formation to be much more detrimental for female employment in the rich and traditional regions.

Suggested Citation

  • Kasrin, Zein & Smolny, Werner, 2019. "Female Labor Market Participation and Socioeconomic Development: Disentangling the U-Shaped Hypothesis," MPRA Paper 95561, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:95561
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    References listed on IDEAS

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    More about this item

    Keywords

    Female Labor Market Participation; Socioeconomic Development; Social Norms; Germany; Egypt;
    All these keywords.

    JEL classification:

    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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