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On the relationship between female labour force participation and fertility in G7 countries: evidence from panel cointegration and Granger causality

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  • 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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  • Vinod Mishra & Ingrid Nielsen & Russell Smyth, 2010. "On the relationship between female labour force participation and fertility in G7 countries: evidence from panel cointegration and Granger causality," Empirical Economics, Springer, vol. 38(2), pages 361-372, April.
    • Handle: RePEc:spr:empeco:v:38:y:2010:i:2:p:361-372
    DOI: 10.1007/s00181-009-0270-1
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    Cited by:

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    2. Akiko Sakanishi, 2020. "Spatial analysis of female labor force participation rates in Japan," International Journal of Economic Policy Studies, Springer, vol. 14(2), pages 351-361, August.
    3. Iregui-Bohórquez, Ana María & Melo-Becerra, Ligia Alba & Ramírez-Giraldo, María Teresa & Tribín-Uribe, Ana María & Zárate-Solano, Héctor M., 2024. "Unraveling the factors behind women’s empowerment in the labor market in Colombia," World Development, Elsevier, vol. 183(C).
    4. A.H.M. Shahid Shami & Tania Islam & Istihak Rayhan, 2019. "Investigating the Macroeconomic Factors That Determine a Female Worker to Participate in the Labor Force: Evidence from the South Asian Countries," Journal of Business, LAR Center Press, vol. 4(2), pages 12-18, February.
    5. Besamusca, Janna & Tijdens, Kea & Keune, Maarten & Steinmetz, Stephanie, 2015. "Working Women Worldwide. Age Effects in Female Labor Force Participation in 117 Countries," World Development, Elsevier, vol. 74(C), pages 123-141.
    6. Yu Shuangshuang & Wenzhong Zhu & Nafeesa Mughal & Sergio Ivan Vargas Aparcana & Iskandar Muda, 2023. "The impact of education and digitalization on female labour force participation in BRICS: an advanced panel data analysis," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-9, December.
    7. Deepika Sharma & Abhishek Kumar & Deepak Kumar Behera, 2020. "Female Labour Force Participation Across SAARC Countries Using Dynamic Panel Model," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 63(3), pages 677-687, September.
    8. de Jong, Eelke & Smits, Jeroen & Longwe, Abiba, 2017. "Estimating the Causal Effect of Fertility on Women’s Employment in Africa Using Twins," World Development, Elsevier, vol. 90(C), pages 360-368.
    9. Takashi Oshio, 2019. "Is a positive association between female employment and fertility still spurious in developed countries?," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 41(45), pages 1277-1288.
    10. 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;European Society for Population Economics, vol. 26(1), pages 109-145, January.
    11. Prema Basargekar & Pushpendra Singh, 2022. "An Intriguing Puzzle of Female Labour Force Participation: Comparative Study of Selected South Asian Countries," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 65(3), pages 881-895, September.
    12. Bellido, Héctor & Marcén, Miriam, 2011. "Divorce laws and fertility decisions," MPRA Paper 30243, University Library of Munich, Germany.
    13. Nicoletta Balbo & Francesco C. Billari & Melinda Mills, 2013. "Fertility in Advanced Societies: A Review of Research," European Journal of Population, Springer;European Association for Population Studies, vol. 29(1), pages 1-38, February.
    14. Yew Seng Law & Chung-Khain Wye, 2023. "The effects of fertility on female labour force participation in OECD countries: the role of education and health," Studies in Economics and Econometrics, Taylor & Francis Journals, vol. 47(3), pages 280-302, July.
    15. Akiko Sakanishi, 0. "Spatial analysis of female labor force participation rates in Japan," International Journal of Economic Policy Studies, Springer, vol. 0, pages 1-11.
    16. Seema Narayan & Tri Tung Nguyen & Xuan-Hoa Nghiem, 2021. "Does Economic Integration Increase Female Labour Force Participation? Labour Force Participation?," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 24(1), pages 1-34, March.

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    More about this item

    Keywords

    Fertility; Female labour force participation; Panel unit roots; Panel cointegration; G7 countries; C22; C52; J13;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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