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Can Economic Pressure Overcome Social Norms? The Case of Female Labor Force Participation

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  • Ana Rute Cardoso
  • Louis-Philippe Morin

Abstract

We investigate the potential channels that drive female labor force participation to rise in response to unbalanced sex ratios, in the presence of strong social norms against female employment. One such channel is women's desired labor supply, operating through the marriage market, and the other is employers' de­ mand for female labor. If faced with a reduction in male workforce, do employers turn to women to fill in the gap? Do women enter traditionally male occupations and industries, so that segregation decreases? Does the gender pay gap decline? We exploit exogenous variation in sex ratios across cohorts and regions, by using instruments based on casualties from the Portuguese Colonial War and massive emigration in the 1960s combined with its historical regional patterns. We find that as the sex ratio declined, female participation increased, women entered tra­ traditionally male-dominated occupations and industries, and the gender pay gap declined. These findings are consistent with a demand shock. Our estimated impact of sex ratios on marriage market points to a muted supply channel. We complement the quantitative analysis with an archival case. Our findings help to explain an apparent puzzle, a decades-long high female participation in Portugal, as opposed to the other Southern European countries.

Suggested Citation

  • Ana Rute Cardoso & Louis-Philippe Morin, 2018. "Can Economic Pressure Overcome Social Norms? The Case of Female Labor Force Participation," Working Papers 1051, Barcelona School of Economics.
  • Handle: RePEc:bge:wpaper:1051
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    References listed on IDEAS

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    1. Easterlin, Richard A., 1981. "Why Isn't the Whole World Developed?," The Journal of Economic History, Cambridge University Press, vol. 41(1), pages 1-17, March.
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    Cited by:

    1. Lara Bohnet & Susana Peralta & João Pereira dos Santos, 2022. "Cousins from Overseas: The Labour Market Impact of a Major Forced Return Migration Shock," CESifo Working Paper Series 9971, CESifo.
    2. Juliane Hennecke, 2020. "Locus of Control and Female Labor Force Participation," Working Papers 2020-03, Auckland University of Technology, Department of Economics.
    3. Abel Brodeur & Lamis Kattan, 2022. "World War II, the Baby Boom, and Employment: County-Level Evidence," Journal of Labor Economics, University of Chicago Press, vol. 40(2), pages 437-471.
    4. Lara Bohnet & Susana Peralta & Joao Pereira dos Santos, 2021. "Cousins from overseas: the labour market impact of half a million Portuguese repatriates," NOVAFRICA Working Paper Series wp2114, Universidade Nova de Lisboa, Nova School of Business and Economics, NOVAFRICA.
    5. Barbara Boelmann & Anna Raute & Uta Schönberg, 2020. "Wind of Change? Cultural Determinants of Maternal Labor Supply," RF Berlin - CReAM Discussion Paper Series 2020, Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM).
    6. Lidia Farré & Cristina Felfe & Libertad González Luna & Patrick Schneider, 2022. "Changing gender norms across generations: Evidence from a paternity leave reform," Economics Working Papers 1812, Department of Economics and Business, Universitat Pompeu Fabra.
    7. Victor Gay, 2023. "The Intergenerational Transmission of World War I on Female Labour," The Economic Journal, Royal Economic Society, vol. 133(654), pages 2303-2333.
    8. Luciano Amaral & Bruno Lopes Marques & João Pereira dos Santos, 2022. "Measuring the carnation revolution: a synthetic control analysis of economic crisis in Portugal (1974-1992)," Nova SBE Working Paper Series wp641, Universidade Nova de Lisboa, Nova School of Business and Economics.
    9. Barbara Boelmann & Anna Raute & Uta Schönberg, 2021. "Wind of Change? Cultural Determinants of Maternal Labor Supply," ECONtribute Discussion Papers Series 090, University of Bonn and University of Cologne, Germany.
    10. Barbara Boelmann & Anna Christina Raute & Uta Schönberg, 2021. "Wind of Change? Cultural Determinants of Maternal Labor Supply," CESifo Working Paper Series 9094, CESifo.
    11. Barbara Boelmann & Anna Raute & Uta Schönberg, 2020. "Wind of Change? Cultural Determinants of Maternal Labor Supply," Working Papers 914, Queen Mary University of London, School of Economics and Finance.
    12. ASAI, Kentaro & KAMBAYASHI, Ryo, 2023. "The Consequences of Hometown Regiment : What Happened in Hometown When the Soldiers Never Returned?," Discussion Paper Series 743, Institute of Economic Research, Hitotsubashi University.
    13. Boelmann, Barbara & Raute, Anna & Schönberg, Uta, 2020. "Wind of Change? Cultural Determinants of Maternal Labor Supply," IAB-Discussion Paper 202030, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].

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    More about this item

    Keywords

    Labor demand; labor force participation; gender segregation; pay gap;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • N34 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Europe: 1913-
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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