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Household Asset Wealth and Female Labor Supply in MENA

Author

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  • Shireen Al Azzawi

    (anta Clara University)

  • Vladimir Hlasny

Abstract

Female labor force participation rates in the Middle East and North Africa are low compared to other world regions. This study contributes to the literature explaining this phenomenon in Egypt, Jordan and Tunisia by referring to women’s unearned incomes, whether in the form of household wealth, the presence of male earners in the household, or expected wages in the labor market. We estimate probability models of women’s labor force participation, accounting for wealth indices based on households’ productive and non-productive assets. Recognizing the role of wealth, estimation is repeated by household wealth quintile. We find that the higher the wealth index of a woman’s household, the less likely the woman is to participate in the labor force. This result holds even when the presence of a male wage worker in the household is accounted for, and when own expected wages are included. Regional degree of wealth inequality has bearing on women’s labor force participation, but the results differ between Egypt, on the one hand, and Jordan and Tunisia, on the other hand. Overall, the magnitudes of the substitution and income effects of wages on women’s labor force participation vary by country and survey wave, and particularly between women in different wealth quintiles.

Suggested Citation

  • Shireen Al Azzawi & Vladimir Hlasny, 2018. "Household Asset Wealth and Female Labor Supply in MENA," Working Papers 1202, Economic Research Forum, revised 27 May 2018.
    • Handle: RePEc:erg:wpaper:1202
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    References listed on IDEAS

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    1. Michael Carter & Christopher Barrett, 2006. "The economics of poverty traps and persistent poverty: An asset-based approach," Journal of Development Studies, Taylor & Francis Journals, vol. 42(2), pages 178-199.
    2. Birdsall, Nancy & Londono, Juan Luis, 1997. "Asset Inequality Matters: An Assessment of the World Bank's Approach to Poverty Reduction," American Economic Review, American Economic Association, vol. 87(2), pages 32-37, May.
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    4. repec:cdl:ciders:qt3bh899fh is not listed on IDEAS
    5. Hlasny, Vladimir & AlAzzawi, Shireen, 2019. "Asset inequality in the MENA: The missing dimension?," The Quarterly Review of Economics and Finance, Elsevier, vol. 73(C), pages 44-55.
    6. Shireen Al Azzawi & Vladimir Hlasny, 2018. "Youth Vulnerability in Egypt and Jordan: Dimensions and Determinants," Working Papers 1275, Economic Research Forum, revised 26 Dec 2018.
    7. World Bank, 2015. "World Development Indicators 2015," World Bank Publications - Books, The World Bank Group, number 21634.
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    10. Hoda El Enbaby & Rami Galal, 2015. "Inequality of Opportunity in Individuals' Wages and Households' Assets in Egypt," Working Papers 942, Economic Research Forum, revised Sep 2015.
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    Cited by:

    1. Hlasny, Vladimir & AlAzzawi, Shireen, 2019. "Asset inequality in the MENA: The missing dimension?," The Quarterly Review of Economics and Finance, Elsevier, vol. 73(C), pages 44-55.
    2. Shireen AlAzzawi & Vladimir Hlasny, 2020. "Vulnerable employment of Egyptian, Jordanian, and Tunisian youth: Trends and determinants," WIDER Working Paper Series wp-2020-166, World Institute for Development Economic Research (UNU-WIDER).
    3. Vladimir Hlasny & Shireen AlAzzawi, 2020. "Return Migration and Earnings Mobility in Egypt, Jordan and Tunisia," Working Papers 562, ECINEQ, Society for the Study of Economic Inequality.

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    More about this item

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J70 - Labor and Demographic Economics - - Labor Discrimination - - - General
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • N35 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Asia including Middle East

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