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Open Access
Article
Publication date: 4 July 2022

Haydory Akbar Ahmed

This paper explores the evidence of a long-run co-movement between aggregate unemployment insurance spending and the labor force participation rate in the USA. The…

Abstract

Purpose

This paper explores the evidence of a long-run co-movement between aggregate unemployment insurance spending and the labor force participation rate in the USA. The unemployment insurance (UI) program tends to expand during an economic downturn and contract during an expansion. UI may incentivize unemployment and may also facilitate better matching in the labor market. Statistical evidence of the presence of a co-movement will thus shed new light on their dynamics.

Design/methodology/approach

This research applies time-series econometric approach using monthly data from 1959:1 to 2020:3 to test threshold cointegration and estimate a threshold vector error-correction (TVEC) model. The estimates from the TVEC model investigating the nature of short-run dynamics.

Findings

The Enders and Siklos (2001) test find evidence of threshold cointegration between the two indicating the presence of long-run co-movement. The estimates from the TVEC model investigating the nature of short-run dynamics find evidence that the growth in aggregate UI spending and the growth in labor force participation rate adjust simultaneously to maintain the long-run co-movement above the threshold in the short run. The author also observes the same short-run dynamics for the growth in aggregate UI spending and the growth in the labor force participation rate for females.

Research limitations/implications

This model is bi-variate by construction and does not address causality.

Practical implications

The author argues that the UI program positively impacts the female labor market outcomes, for example, better matching. This finding may explain the upward trend in the labor force participation rate for females in the USA.

Social implications

The research findings may justify the transfer programs for minority and immigrants.

Originality/value

This is first research that analyzes the UI programs impact on the labor force participation using a macroeconometric approach. To the best of the author's knowledge, this is the first study in this genre.

Open Access
Article
Publication date: 17 March 2022

Kesuh Jude Thaddeus, Dimna Bih, Njimukala Moses Nebong, Chi Aloysius Ngong, Eric Achiri Mongo, Akume Daniel Akume and Josaphat Uchechukwu Joe Onwumere

This paper aimed examining the contribution of female labour force participation rate on economic growth in the sub-Saharan Africa during the period of 1991–2019.

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Abstract

Purpose

This paper aimed examining the contribution of female labour force participation rate on economic growth in the sub-Saharan Africa during the period of 1991–2019.

Design/methodology/approach

The study employed a sample of 42 sub-Sahara African countries using annual data from the World Bank development indicators. The long-run causal effect of female labour force and economic growth was analysed using the Autoregressive Distributed Lag model and Granger causality test for causality and direction since the variables did not have the same order of integration.

Findings

The estimated results indicate that a long-run causal relationship exists between female labour force and economic growth in sub-Sahara Africa and the direction of causality is unidirectional running from economic growth to female labour force. The results also showed that female labour force participation rate negatively and significantly contributes to economic growth (GDP) is sub-Saharan Africa in the long run with an insignificantly negative contribution in the short run hence a liability.

Research limitations/implications

The author recommends the promotion of women's economic empowerment to encourage female labour force participation to increase economic growth in the entire sub-Saharan region.

Practical implications

This paper adds to existing literature by using more comprehensive and up to econometric analysis and variables. This paper also makes further recommendation on how female labour force participation can boost economic growth in sub-Saharan Africa (SSA).

Originality/value

This paper adds to existing literature by using more comprehensive and up to econometric analysis and variables. This paper also makes further recommendation on how female labour force participation can boost economic growth in SSA.

Details

Journal of Business and Socio-economic Development, vol. 2 no. 1
Type: Research Article
ISSN: 2635-1374

Keywords

Article
Publication date: 18 March 2022

Isiaka Akande Raifu and Oluwafemi Mathew Adeboje

The purpose of this study is to examine the existence of discouraged worker effect hypothesis and unemployment invariance hypothesis in Africa, including its five regional…

Abstract

Purpose

The purpose of this study is to examine the existence of discouraged worker effect hypothesis and unemployment invariance hypothesis in Africa, including its five regional groups. Specifically, the study tests the existence of co-integration between different categories of labour force participation and unemployment rate, total male and female labour force participation and the unemployment rate for age brackets 15–24, 15–64 and 15+, respectively.

Design/methodology/approach

The study uses the data of 52 countries in Africa which cover the period from 1991 to 2018. Three co-integration estimation techniques namely, the Kao co-integration test, Pedroni co-integration test and Westerlund co-integration test are used to validate the existence of co-integration between the labour force participation and unemployment rate. The dynamic ordinary least square is further used to explore the impact of the unemployment rate on labour force participation, while the pooled ordinary least squares (POLS) that accounts for individual country and time effects is employed for robustness check.

Findings

Except for Southern Africa, it is found that the discouraged worker effect hypothesis holds in Africa and the rest of its regions. This suggests that there is a long-run relationship between labour force participation rate and unemployment rate irrespective of age group and gender classifications. To some extent, the authors discover the existence of cross-sectional dependence in the panel. There is also an inverse relationship between labour force participation and the unemployment rate. This implies that when the unemployment rate is high, labour force participation tends to decline. The results are, however, sensitive to the choice of estimation method.

Research limitations/implications

The study is limited to the examination of linear co-integration between labour force participation and the unemployment rate in Africa and its five regions. The future study can investigate the possibility of a nonlinear or an asymmetric relationship between labour for participation and the unemployment rate.

Social implications

Thus, a policy framework that would generate employment creation is greatly required in Africa.

Originality/value

To the best of the authors’ knowledge, this is a pioneer work that addresses the issue of co-integration between labour force participation and unemployment rate for Africa and its five regions taking into consideration gender and age brackets of labour force participation and unemployment.

Details

African Journal of Economic and Management Studies, vol. 13 no. 2
Type: Research Article
ISSN: 2040-0705

Keywords

Article
Publication date: 1 November 1997

Beth Vanfossen and Frances Rothstein

The post‐World War ? period has been one of intense development activity throughout the world. Lesser developed countries have showed significant economic growth…

Abstract

The post‐World War ? period has been one of intense development activity throughout the world. Lesser developed countries have showed significant economic growth throughout this time‐span. Among the many consequences which are attributed to development, changes in gender relations are often mentioned. However, prior research has been unable to establish conclusively how economic development is related to gender inequality, particularly as this is referenced by women's participation in important economic activities. For example, some researchers have found that as development increases, women's participation in and return from the economy declines, others that it increases, and several have suggested it first declines then increases. Similar uncertainties exist about how an increasing emphasis on producing goods for export, and the often‐accompanying reliance on foreign investment, affects women's work. Recent research also suggests that the consequences of development are more diverse than previously thought. Recognition of the diversity requires greater specification of the links between developmental diversity and women's labor force participation.

Details

International Journal of Sociology and Social Policy, vol. 17 no. 11/12
Type: Research Article
ISSN: 0144-333X

Article
Publication date: 9 May 2016

A Bheemeshwar Reddy

The purpose of this paper is to analyse the labour force participation of older persons (aged 60 and above) in India from 1983 to 2011-2012. The paper also briefly reviews…

1104

Abstract

Purpose

The purpose of this paper is to analyse the labour force participation of older persons (aged 60 and above) in India from 1983 to 2011-2012. The paper also briefly reviews the conditions of work for the elderly and examines different socio-economic and demographic factors that are associated with labour force participation of elderly in India.

Design/methodology/approach

The author uses data from repeated cross-sectional rounds of Employment and Unemployment Surveys of National Sample Survey Office from 1983 to 2011-2012. The author uses probit regression model to identify the socio-economic and demographic variables that are associated with the labour participation of the elderly in India.

Findings

The results show that labour force participation rate of older persons in rural India remained almost stable between 1983 and 2011-2012, despite the rapid economic growth that India experienced during the same period. Further, the results show that among the elderly, those who belong to relatively poor socio-economic status are more likely to participate in the labour force. It is observed that large percentage of the elderly workforce are engaged in poorly paid jobs in the informal sector, either as casual workers or as self-employed in low-skilled or unskilled occupations.

Research limitations/implications

This paper is mostly descriptive in its analysis and it only points to the possible socio-economic and demographic determinants of elderly labour force participation in India.

Originality/value

Given that the studies on employment of elderly in India are scanty, this paper provides new evidence on changes in labour force participation of elderly over last three decades. Further, this study makes an attempts to understand who among the elderly most likely to participation in labour force in India.

Details

International Journal of Social Economics, vol. 43 no. 5
Type: Research Article
ISSN: 0306-8293

Keywords

Article
Publication date: 9 January 2009

Ambreen Fatima and Humera Sultana

Several studies have provided empirical evidence that female labor force participation rate exhibits a U‐shape during the process of economic development. The purpose of…

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Abstract

Purpose

Several studies have provided empirical evidence that female labor force participation rate exhibits a U‐shape during the process of economic development. The purpose of this paper is to explore the existence of U‐shape relationship in the case of Pakistan and if it does exist, what factors determine this U‐shape relationship?

Design/methodology/approach

For the estimation purpose data according to provinces and regions are pooled for three years. The model is estimated using a simple fixed effect test.

Findings

The results affirm the existence of U‐shaped relationship. Estimation of the pooled data attributed this U‐shape relationship with female education attainment, sectoral employment share, unemployment rate, wages and marital status. Results confirm that high rate of economic development is encouraging the female participation in the labor force by increasing the work opportunities for females. The females are taking full advantage of these increased opportunities by increasing their level of education attainment. Research limitations/implications – In testing the U‐shape hypothesis, household expenditure on fuel consumption representing level of economic development in the country is used as the data on GDP are not available at the provincial level.

Practical implications

This paper recommends that skill‐based education programmes should be promoted so that females could be absorbed in the formal labor market. It also recommends measures to decrease unemployment rates and improve labor market conditions.

Originality/value

The paper is first of its kind as it applied pooled data technique for the estimation of U‐shape relationship.

Details

International Journal of Social Economics, vol. 36 no. 1/2
Type: Research Article
ISSN: 0306-8293

Keywords

Article
Publication date: 6 July 2010

Toseef Azid, Rana Ejaz Ali Khan and Adnan M.S. Alamasi

The purpose of this paper is to highlight the factors that influence the decision of married women (in the age group of 16‐60 years) to participate in labor force activities.

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Abstract

Purpose

The purpose of this paper is to highlight the factors that influence the decision of married women (in the age group of 16‐60 years) to participate in labor force activities.

Design/methodology/approach

This is an empirical study employing the non‐linear maximum likelihood probability (probit) function on primary data (3,911 observations).

Findings

Besides other variables it has been observed that poverty remains an important determinant of female labor participation.

Research limitations/implications

On the basis of this paper, a socio‐economic policy can be formulated for a developing country like Pakistan.

Practical implications

A development policy (especially considering the gender aspects) can be formulated on the basis of this research for the enhancement of human resource development for a developing and an orthodox economy like Pakistan.

Originality/value

This paper is beneficial to researchers, policy makers, and social scientists for the enhancement of the level of social welfare and equity through its findings.

Details

International Journal of Social Economics, vol. 37 no. 8
Type: Research Article
ISSN: 0306-8293

Keywords

Article
Publication date: 8 May 2018

Lixin Cai

The purpose of this paper is to enhance the understanding of labour force participation behaviour of married Australian women, with a focus on identifying the sources of…

Abstract

Purpose

The purpose of this paper is to enhance the understanding of labour force participation behaviour of married Australian women, with a focus on identifying the sources of observed inter-temporal labour force participation persistence.

Design/methodology/approach

A dynamic Probit model is applied to the Household, Income and Labour Dynamics in Australia (HILDA) Survey, a national representative panel survey of Australian households. The model used accounts for observed and unobserved individual heterogeneity and serially correlated transitory shocks to labour supply.

Findings

The results show that both observed and unobserved individual heterogeneity contributes to observed inter-temporal persistence of labour force participation of married Australian women, but the persistence remains even after controlling for these factors. It is also found that failing to control for serially correlated unobserved transitory shocks would lead to underestimation of genuine state dependence of labour force participation; and that state dependence of labour force participation varies with age, education, health, immigration status and the number of children under the school age.

Originality/value

This study adds to the international literature on labour force dynamics of women by providing Australian empirical evidence and through a flexible modelling framework. The result that there exists genuine positive state dependence in married Australian women’s labour force participation suggests that policy intervention that increases married women’s labour supply would have a long-lasting effect.

Details

International Journal of Manpower, vol. 39 no. 2
Type: Research Article
ISSN: 0143-7720

Keywords

Article
Publication date: 11 May 2010

Margaret Maurer‐Fazio, James W. Hughes and Dandan Zhang

The purpose of the paper is to examine observed differences in China's ethnic majority and minority patterns of labor force participation and to decompose these…

Abstract

Purpose

The purpose of the paper is to examine observed differences in China's ethnic majority and minority patterns of labor force participation and to decompose these differences into treatment and endowment effects.

Design/methodology/approach

Data from the three most recent population censuses of China are employed to explore differences in the labor force participation rates of a number of China's important ethnic groups. Gender‐separated urban labor force participation rates are estimated using logit regressions, controlling for educational attainment, marital status, pre‐school and school‐age children, household size, age, and measures of local economic conditions. The focus is on the experience of six minority groups (Hui, Koreans, Manchu, Mongolians, Uygurs, and Zhuang) in comparison to the majority Han. The technique developed by Borooah and Iyer is adopted to decompose the differences in labor force participation rates between pairs of ethnic groups into treatment and endowment effects.

Findings

Sizeable differences are found between the labor force participation rates of prime‐age urban women of particular ethnic groups and the majority Han. Men's participation rates are very high (above 95 percent) and exhibit little difference between Han and ethnic minorities. For almost all pairwise comparisons between Han and ethnic women, it is found that differences in coefficients account for more than 100 percent of the Han‐ethnic difference in labor force participation. Differences in endowments often have substantial effects in reducing this positive Han margin in labor force participation. Roughly speaking, treatment of women's characteristics, whether in the market or socially, tend to increase the Han advantage in labor force participation. The levels of these characteristics on average tend to reduce this Han advantage.

Research limitations/implications

The paper analyses only one aspect of the economic status of China's ethnic minorities – labor force participation. It would be useful also to examine income, educational attainment, occupational attainment, and unemployment.

Originality/value

This paper contributes to and expands the scant literature on ethnicity in China's economic transition.

Details

International Journal of Manpower, vol. 31 no. 2
Type: Research Article
ISSN: 0143-7720

Keywords

Book part
Publication date: 14 July 2004

Elizabeth Becker and Cotton M. Lindsay

Three empirical regularities characterize markets for married workers: (1) productivity and leadership potential are predicted by intelligence; (2) assortative mating…

Abstract

Three empirical regularities characterize markets for married workers: (1) productivity and leadership potential are predicted by intelligence; (2) assortative mating based on intelligence characterizes marriages; and (3) labor force participation declines with spouse income more rapidly for married women than for married men. Taken together these characteristics imply that labor force participation will decline for women relative to their husbands as intelligence rises. These three observations suggest a nondiscriminatory explanation for the alleged under-representation of females among corporate leaders. They imply that the women who might be predicted to win the tournament for these positions often do not enter this competition. Instead they choose employment in full time household production. Both the three regularities and the implication concerning labor force participation are empirically examined. The findings of these tests are supportive on all counts.

Details

Accounting for Worker Well-Being
Type: Book
ISBN: 978-1-84950-273-3

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