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The asymmetric cyclical behaviour of female labour force participation in Latin America

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  • Maridueña-Larrea, Ángel
  • Martín-Román, Ángel L.

Abstract

This study measures the responsiveness of female labour participation to changes in the economic cycle at the extensive margin in Latin America. The results provide new evidence regarding the cyclical behaviour of the female labour force participation, making it possible to determine which countries validate the traditional hypotheses of the added and discouraged worker. Another significant finding is that these effects vary during cycles of economic expansion and recession and become stronger when reaching a certain threshold. Therefore, contradictory hypotheses to the added and discouraged worker emerged, which is referred to as subtracted and encouraged workers, both of which are formally validated by examining these effects throughout the economic cycles.

Suggested Citation

  • Maridueña-Larrea, Ángel & Martín-Román, Ángel L., 2023. "The asymmetric cyclical behaviour of female labour force participation in Latin America," MPRA Paper 117408, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:117408
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    References listed on IDEAS

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    More about this item

    Keywords

    Added worker effect; discouraged worker effect; unemployment rate; labour force participation rate; economic cycle;
    All these keywords.

    JEL classification:

    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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