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Feminization U Curve: Structural Transformation Impact on Female Labour Force Participation in Asia

Author

Listed:
  • Hasibuana Laras Kinanti

    (Department of Economics, Faculty of Economics and Business, Universitas Gadjah Mada)

  • Evi Noor Afifah

    (Department of Economics, Faculty of Economics and Business, Universitas Gadjah Mada)

Abstract

This research aims to observe the relationship between female labour force participation with economic development and to test Feminization U Curve (FEMU) hypothesis in Asian countries for the period 1990-2018. FEMU model is estimated with static model Fixed Effect as conducted in the initial research and elaborated with dynamic panel model Generalized Method of Moments (GMM). Overall, the static and dynamic model confirmed the U curve relationship between female labour force participation and economic development in accordance with FEMU hypothesis, thus female labour force participation decreases when the economy undergoes structural transformation from agricultural to industrial, and it will rise as the economy goes service sector. The hypothesis is also confirmed in the country-income categorized model. The U curve is more consistent in static model compared to the dynamic one. In addition to the structural changes that has been occurring, the dynamics of female labour force participation in Asia also can be explained with the decline in fertility rate and improvement of female tertiary education.

Suggested Citation

  • Hasibuana Laras Kinanti & Evi Noor Afifah, 2023. "Feminization U Curve: Structural Transformation Impact on Female Labour Force Participation in Asia," Gadjah Mada Economics Working Paper Series 202308006, Department of Economics, Faculty of Economics and Business, Universitas Gadjah Mada.
    • Handle: RePEc:gme:wpaper:202308006
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    References listed on IDEAS

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    JEL classification:

    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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