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Accounting for Differences in Female Labor Force Participation between China and India

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  • Azam, Mehtabul

    (Oklahoma State University)

  • Han, Luyi

    (Oklahoma State University)

Abstract

Although, the male labor force participation rate is comparable in China and India, female labor force participation rate remains very low in India. In this paper, we examine the factors responsible for the difference in female labor force participation rate between the two countries by carrying out decomposition exercise at three points of time covering two decades. We find that the differences in female labor force participation rate are not explained by the differences in characteristics across the two countries in each of the three year studied. The differences in returns to these characteristics explain most of the differences in participation rate.

Suggested Citation

  • Azam, Mehtabul & Han, Luyi, 2019. "Accounting for Differences in Female Labor Force Participation between China and India," IZA Discussion Papers 12681, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp12681
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    References listed on IDEAS

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    1. Hare, Denise, 2016. "What accounts for the decline in labor force participation among married women in urban China, 1991–2011?," China Economic Review, Elsevier, vol. 38(C), pages 251-266.
    2. Fortin, Nicole & Lemieux, Thomas & Firpo, Sergio, 2011. "Decomposition Methods in Economics," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 1, pages 1-102, Elsevier.
    3. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
    4. Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
    5. Stephan Klasen & Janneke Pieters, 2015. "What Explains the Stagnation of Female Labor Force Participation in Urban India?," The World Bank Economic Review, World Bank, vol. 29(3), pages 449-478.
    6. Stephan Klasen & TU THI NGOC Le & Janneke Pieters & Manuel Santos Silva, 2021. "What Drives Female Labour Force Participation? Comparable Micro-level Evidence from Eight Developing and Emerging Economies," Journal of Development Studies, Taylor & Francis Journals, vol. 57(3), pages 417-442, March.
    7. Barry Bosworth & Susan M. Collins, 2008. "Accounting for Growth: Comparing China and India," Journal of Economic Perspectives, American Economic Association, vol. 22(1), pages 45-66, Winter.
    8. Myeong-Su Yun, 2005. "A Simple Solution to the Identification Problem in Detailed Wage Decompositions," Economic Inquiry, Western Economic Association International, vol. 43(4), pages 766-772, October.
    9. Farzana Afridi & Taryn Dinkelman & Kanika Mahajan, 2018. "Why are fewer married women joining the work force in rural India? A decomposition analysis over two decades," Journal of Population Economics, Springer;European Society for Population Economics, vol. 31(3), pages 783-818, July.
    10. Ben Jann, 2008. "The Blinder–Oaxaca decomposition for linear regression models," Stata Journal, StataCorp LP, vol. 8(4), pages 453-479, December.
    11. Olivier Bargain & Sumon Kumar Bhaumik & Manisha Chakrabarty & Zhong Zhao, 2009. "Earnings Differences Between Chinese And Indian Wage Earners, 1987–2004," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 55(s1), pages 562-587, July.
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    Cited by:

    1. Evans David K. & Akmal Maryam & Jakiela Pamela, 2021. "Gender gaps in education: The long view," IZA Journal of Development and Migration, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 12(1), pages 1-27, January.

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    More about this item

    Keywords

    oaxaca-blinder decomposition; India; China; female labor force;
    All these keywords.

    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J82 - Labor and Demographic Economics - - Labor Standards - - - Labor Force Composition

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