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

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.

Author

Hasibuana Laras Kinanti
Evi Noor Afifah

Reseach Area

Asia

Research Topic

Labor Economics
Economics of Gender
Labor Force and Employment, Size, and Structure
Industrial Organization and Macroeconomics
Macroeconomic Analyses of Economic Development

Keywords

feminization U curve
female labour force participation
economic development
GMM dynamic model

Publication Type

Working Paper