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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. Stephan Klasen & Janneke Pieters, 2015. "What Explains the Stagnation of Female Labor Force Participation in Urban India?," World Bank Economic Review, World Bank Group, vol. 29(3), pages 449-478.
    3. 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.
    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 & Manuel Santos Silva & Le Thi Ngoc Tu, 2018. "What Drives Female Labor Force Participation? Comparable Micro-level Evidence from Eight Developing and Emerging Economies," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 253, Courant Research Centre PEG.
    6. 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.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    female labor force; China; India; oaxaca-blinder decomposition;

    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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