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The Rise in Women’s Labor-Force Participation in Mexico—Supply vs. Demand Factors

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  • Sonia Bhalotra
  • Manuel Fernández

Abstract

This study estimates the relative importance of alternative supply and demand mechanisms in explaining the rise of female labor-force participation (FLFP) over the last 55 years in Mexico. The growth of FLFP in Mexico between 1960 and 2015 followed an S-shaped, with a considerable acceleration during the 1990s. Using descriptive decomposition methods and a shift-share design, the study shows that, put together, supply and demand factors can account for most of the rise of FLFP over the entire period, led by increases in women’s education, declining fertility, and shifts in the occupational structure of the workforce. However, there is unexplained variation in the 1990s, when FLFP spiked.

Suggested Citation

  • Sonia Bhalotra & Manuel Fernández, 2024. "The Rise in Women’s Labor-Force Participation in Mexico—Supply vs. Demand Factors," The World Bank Economic Review, World Bank, vol. 38(2), pages 319-350.
    • Handle: RePEc:oup:wbecrv:v:38:y:2024:i:2:p:319-350.
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    File URL: http://hdl.handle.net/10.1093/wber/lhad025
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    Cited by:

    1. Bhalotra, Sonia & Fernandez, Manuel & Wang, Fan, 2022. "The Distribution of the Gender Wage Gap: An Equilibrium Model," CEPR Discussion Papers 17253, C.E.P.R. Discussion Papers.
    2. Atwood, Alicia & Pearlman, Sarah, 2025. "The long term benefits of the measles vaccine in Mexico," Journal of Health Economics, Elsevier, vol. 101(C).
    3. Rui Zhou & Xinyue Yu & Tao Wang & Hao Feng & Shaoyang Zhao, 2025. "Does culture influence female labor force participation of ethnic minorities? Evidence from a large-scale survey on both sides of the ethnic boundary in China," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 12(1), pages 1-14, December.
    4. Ana Kujundzic & Janneke Pieters, 2025. "Consistent Segregation Metrics: Addressing Structural Variations in Global Labor Markets," Papers 2503.02763, arXiv.org.
    5. Gründler, Klaus & Potrafke, Niklas & Schmid, Ramona & Sturm, Jan-Egbert, 2026. "Globalization and gender equality," World Development, Elsevier, vol. 197(C).

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