IDEAS home Printed from https://ideas.repec.org/p/eiq/eileqs/119.html

Vicious and virtuous cycles of female labour force participation in post-socialist Eastern Europe

Author

Listed:
  • Sonja Avlijas

Abstract

Female labour force participation (hereinafter FLFP) trends across Eastern Europe, which were very high during communism, started to diverge substantially following its collapse. Women did not appear to benefit from the changing labour market conditions in those transition countries that pursued industrial upgrading as their strategy of economic development. On the other hand, in some small transition economies, most notably the Baltic countries, women benefited substantially from increased employment opportunities in the knowledge-intensive public and private sector services. This article seeks to explain the observed variation in FLFP rates across the region by synthesising insights from macroeconomic and comparative political economy literature. It identifies four key relationships between industrial upgrading, educational expansion and the expansion of knowledge-intensive services and examines how these factors interacted and translated into specific FLFP outcomes. The article suggests that industrial upgrading, driven by foreign direct investment, created a vicious cycle for FLFP. First of all, the upgrading led to a defeminisation of manufacturing because female labour-intensive sectors were not upgraded. Furthermore, the upgrading absorbed the budgetary resources that could have been used for educational reform and general skills formation. This lack of educational reform impeded the development of knowledge-intensive services, which would have been more conducive to the generation of female employment. The virtuous cycle of FLFP, on the other hand, occurred in those Eastern European countries that turned to reforming their ed-ucational sector towards general skills and expansion of tertiary education, with the aim of transforming themselves into knowledge economies. Such a transformation required an active social investment oriented state and an expansion of knowledge-intensive public and private sector employment. This development path created a positive causal loop for FLFP. I test these propositions quantitatively on a sample of 13 Eastern European countries.

Suggested Citation

  • Sonja Avlijas, 2016. "Vicious and virtuous cycles of female labour force participation in post-socialist Eastern Europe," LEQS – LSE 'Europe in Question' Discussion Paper Series 119, European Institute, LSE.
  • Handle: RePEc:eiq:eileqs:119
    as

    Download full text from publisher

    File URL: http://www.lse.ac.uk/europeanInstitute/LEQS/LEQSPaper119.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Schultz, T. Paul, 1995. "Human Capital and Economic Development," 1994 Conference, August 22-29, 1994, Harare, Zimbabwe 183410, International Association of Agricultural Economists.
    2. Ana Hidalgo & Amparo Castelló-Climent, 2010. "Quality and Quantity of Education in the Process of Development," 2010 Meeting Papers 238, Society for Economic Dynamics.
    3. ., 2012. "A brief historical geography of capitalism," Chapters, in: A World in Emergence, chapter 1, pages 1-14, Edward Elgar Publishing.
    4. ., 2012. "Human capital and the urban hierarchy," Chapters, in: A World in Emergence, chapter 6, pages 79-94, Edward Elgar Publishing.
    5. repec:asi:ajoerj:2012:p:84-91 is not listed on IDEAS
    6. Thelen,Kathleen, 2014. "Varieties of Liberalization and the New Politics of Social Solidarity," Cambridge Books, Cambridge University Press, number 9781107053168.
    7. Isis Gaddis & Janneke Pieters, 2017. "The Gendered Labor Market Impacts of Trade Liberalization: Evidence from Brazil," Journal of Human Resources, University of Wisconsin Press, vol. 52(2), pages 457-490.
    8. Jalava, Jukka & Pohjola, Matti, 2002. "Economic growth in the New Economy: evidence from advanced economies," Information Economics and Policy, Elsevier, vol. 14(2), pages 189-210, June.
    9. Isis Gaddis & Stephan Klasen, 2014. "Economic development, structural change, and women’s labor force participation:," Journal of Population Economics, Springer;European Society for Population Economics, vol. 27(3), pages 639-681, July.
    10. Sheba Tejani & William Milberg, 2016. "Global Defeminization? Industrial Upgrading and Manufacturing Employment in Developing Countries," Feminist Economics, Taylor & Francis Journals, vol. 22(2), pages 24-54, April.
    11. Mellander, Charlotta & Florida, Richard, 2012. "The Rise of Skills: Human Capital, the Creative Class and Regional Development," Working Paper Series in Economics and Institutions of Innovation 266, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    12. Schnepf, Sylke Viola, 2006. "Gender equality in the labour market: Attitudes to women's work," HWWI Research Papers 1-4, Hamburg Institute of International Economics (HWWI).
    13. Thelen,Kathleen, 2014. "Varieties of Liberalization and the New Politics of Social Solidarity," Cambridge Books, Cambridge University Press, number 9781107679566.
    14. Prasad, Eswar, 2003. "What Determines the Reservation Wages of Unemployed Workers? New Evidence from German Micro Data," IZA Discussion Papers 694, IZA Network @ LISER.
    15. Beck, Nathaniel & Katz, Jonathan N., 1995. "What To Do (and Not to Do) with Time-Series Cross-Section Data," American Political Science Review, Cambridge University Press, vol. 89(3), pages 634-647, September.
    16. Anghel, Brindusa & de la Rica, Sara. & Dolado, Juan José, 2011. "The Effect of Public Sector Employment on Women’s Labour Martket Outcomes," Working Papers 2011-08, FEDEA.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Asadullah, Niaz & Wahhaj, Zaki, 2016. "Missing from the Market: Purdah Norm and Women's Paid Work Participation in Bangladesh," IZA Discussion Papers 10463, IZA Network @ LISER.
    2. Sher Verick, 2014. "Female labor force participation in developing countries," World of Labour, LISER, pages 1-87, September.
    3. David Weisstanner, 2017. "Dualization and inequality revisited: Temporary employment regulation and middle-class incomes," LIS Working papers 720, LIS Cross-National Data Center in Luxembourg.
    4. Manuel Santos Silva & Stephan Klasen, 2021. "Gender inequality as a barrier to economic growth: a review of the theoretical literature," Review of Economics of the Household, Springer, vol. 19(3), pages 581-614, September.
    5. Erten, Bilge & Metzger, Martina, 2019. "The real exchange rate, structural change, and female labor force participation," World Development, Elsevier, vol. 117(C), pages 296-312.
    6. Sher Verick, 2025. "Female labor force participation and development," World of Labour, LISER, pages 873-873, May.
    7. Chiara Benassi, 2016. "Liberalization Only at the Margins? Analysing the Growth of Temporary Work in German Core Manufacturing Sectors," British Journal of Industrial Relations, London School of Economics, vol. 54(3), pages 597-622, September.
    8. Brigitte Granville & Jaume Martorell Cruz & Martha Prevezer, 2015. "Elites, Thickets and Institutions: French Resistance versus German Adaptation to Economic Change, 1945-2015," Working Papers 63, Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research.
    9. Leone Leonida & Marianna Marra & Sergio Scicchitano & Antonio Giangreco & Marco Biagetti, 2020. "Estimating the Wage Premium to Supervision for Middle Managers in Different Contexts: Evidence from Germany and the UK," Work, Employment & Society, British Sociological Association, vol. 34(6), pages 1004-1026, December.
    10. Saskia Boumans, 2022. "Neoliberalisation of industrial relations: The ideational development of Dutch employers’ organisations between 1976 and 2019," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 43(4), pages 1610-1631, November.
    11. Young-hwan Byun, 2018. "The Type of Right-wing Government and the Decline of Middle-Income Strata in Industrialized Democracies," LIS Working papers 727, LIS Cross-National Data Center in Luxembourg.
    12. German Feierherd & Patricio Larroulet & Wei Long, & Nora Lustig, 2021. "The Pink Tide and Inequality in Latin America," Working Papers 2105, Tulane University, Department of Economics.
    13. Fenglin Zhang, 2026. "The labor theory of value in the era of artificial intelligence and digital platforms: challenges, innovations, and new mechanisms," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 13(1), pages 1-21, December.
    14. Liam Kneafsey & Aidan Regan, 2019. "The Role of the Media in Shaping Attitudes Toward Corporate Tax Avoidance: Experimental Evidence from Ireland," Working Papers 201904, Geary Institute, University College Dublin.
    15. Woll, Cornelia, 2015. "Politics in the interest of capital: A not-so-organized combat," MaxPo Discussion Paper Series 15/2, Max Planck Sciences Po Center on Coping with Instability in Market Societies (MaxPo).
    16. Jens Arnholtz, 2023. "The embedded flexibility of Nordic labor market models under pressure from EU‐induced dualization—The case of posted work in Denmark and Sweden," Regulation & Governance, John Wiley & Sons, vol. 17(2), pages 372-388, April.
    17. Michael A. Witt & Gregory Jackson, 2016. "Varieties of Capitalism and institutional comparative advantage: A test and reinterpretation," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 47(7), pages 778-806, September.
    18. Mina Baliamoune, 2020. "Trade and Women’s Wage Employment," Research papers & Policy papers on Trade Dynamics and Policies 2001, Policy Center for the New South.
    19. Maarten Keune, 2021. "Inequality between capital and labour and among wage-earners: the role of collective bargaining and trade unions," Transfer: European Review of Labour and Research, , vol. 27(1), pages 29-46, February.
    20. Anne Stevenot & Loris Guery & Geoffrey Wood & Chris Brewster, 2018. "Country of Origin Effects and New Financial Actors: Private Equity Investment and Work and Employment Practices of French Firms," British Journal of Industrial Relations, London School of Economics, vol. 56(4), pages 859-881, December.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eiq:eileqs:119. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Katjana Gattermann (email available below). General contact details of provider: https://edirc.repec.org/data/eilseuk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.