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Preferences and the Puzzle of Female Labor Force Participation

Author

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  • Mahdi Majbouri

    (Babson College)

Abstract

Women in the Middle East have had significant achievements in the last four decades. Their educational attainment had continuously increased while their fertility rate declined. Nevertheless, their labor force participation has remained stubbornly low. This phenomenon is known as the puzzle of female labor force participation (FLFP) in the Middle East. In this study, I provide evidence on one of the most important but least studied hypotheses to explain this puzzle: the role of preferences in the household. Using discrete choice experiments, I solicit preferences of women and men toward three aspects of jobs: 1) full-time vs. part-time, 2) government sector vs. private sector, and 3) being in an all-female vs. mixed-gender work environment. I document that men, who have veto power over women’s decision to work, are willing to pay a 63% wage penalty if a job is in an all-female environment vs. a mixed-gender environment. They are willing to pay a 30% wage penalty if a job is full-time vs. part-time. But they are indifferent between a government sector or private sector job. Men also correctly predict what other men’s preferences are toward these job attributes. Women strongly prefer full-time jobs and are willing to pay a 38% wage penalty for them. Unlike men, they slightly prefer mixed-gender environments over all-female environments but are willing to pay a 5% wage penalty for government sector jobs. They also underestimate how much their husbands prefer all-female work environments over mixed-gender ones and overestimate how much their husbands like government sector jobs. The results show that because men have veto power over women’s decision to work and they strongly prefer all-female work environments, women will have very limited jobs to choose from, such as teaching in primary and middle schools. Hence, they will not participate in the labor market as much as women in other regions of the world.

Suggested Citation

  • Mahdi Majbouri, 2023. "Preferences and the Puzzle of Female Labor Force Participation," Working Papers 1675, Economic Research Forum, revised 20 Nov 2023.
  • Handle: RePEc:erg:wpaper:1675
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    References listed on IDEAS

    as
    1. Mona Said, 2015. "Wages and Inequality in the Egyptian Labor Market in an Era of Financial Crisis and Revolution," Working Papers 912, Economic Research Forum, revised May 2015.
    2. David Revelt & Kenneth Train, 1998. "Mixed Logit With Repeated Choices: Households' Choices Of Appliance Efficiency Level," The Review of Economics and Statistics, MIT Press, vol. 80(4), pages 647-657, November.
    3. World Bank, 2004. "Gender and Development in the Middle East and North Africa : Women in the Public Sphere," World Bank Publications - Books, The World Bank Group, number 15036, October.
    4. Nadereh Chamlou & Silvia Muzi & Hanane Ahmed, 2011. "Understanding the Determinants of Female Labor Force Participation in the Middle East and North Africa Region: The Role of Education and Social Norms in Amman," Working Papers 31, AlmaLaurea Inter-University Consortium.
    5. Shaimaa Yassin, 2013. "Structural Labor Market Transitions and Wage Dispersion in Egypt and Jordan," Working Papers 753, Economic Research Forum, revised May 2013.
    6. Daniel McFadden & Kenneth Train, 2000. "Mixed MNL models for discrete response," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 15(5), pages 447-470.
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    Cited by:

    1. Angelo Leogrande & Alberto Costantiello, 2023. "The Labor Force Participation Rate in the Context of ESG Models at World Level," Working Papers hal-04114330, HAL.
    2. repec:osf:socarx:ra5ux_v1 is not listed on IDEAS
    3. Shireen AlAzzawi & Vladimir Hlasny, 2025. "Occupational Segregation and the Gender Wage Gap in Egypt, 1998–2023," Working Papers 1773, Economic Research Forum, revised 20 Feb 2025.

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