Economic growth, disparity, and determinants of female labor force participation

Abstract

Purpose The purpose of this paper is to examine the themes of relationship between female labor force participation (FLFP) and economic growth, gender disparity in work participation; and to identify the factors which determine females to participate in labor market. The paper uses a framework incorporating a U-shaped relationship between FLFP and economic growth, gender wise wage disparity and economic, social, cultural and other factors which affects FLFP. Design/methodology/approach Thematically, the selected literature falls into three main categories: the relationship between FLFP and economic growth; disparity in work participation in terms of male and female wages; and drivers or determinants of FLFP which have been described using international documents and experiences of the different countries. The review closes by identifying gaps in the existing research base and by suggesting areas for inquiry that have been untouched and warrant further research. Findings The key findings emerging from this examination of literature show that the FLFP rate exhibits a U-shaped during the process of economic development. Also, there are evidences of gender pay disparity across the sectors which have been justified by documenting a large number of existing literatures. Demographic factors (including fertility, migration, marriages and child care), economic factors (including unemployment, per capita income, non-farm job and infrastructure) and other explanatory variables which include the regulatory context encompassing family and childcare policies, tax regimes, and presence of subsidized health-care for workers determine the FLFP. Practical implications This paper suggests that in order to bring equality in gender pay gap, there is a requirement of replacing the traditional value system. There is need to provide an environment in which women are encouraged and supported in their efforts, in which women have equitable access to resources and opportunities. Social implications This paper addresses the impact of education, culture and child care subsidies on female labor participation. They positively impact FLFP and such a link has not been sufficiently addressed in prior literature. Originality/value In contrast to previous studies which document a broad-based picture of female work participation, this type of research deals with the link between economic growth and female labor participation, gender wage disparity and determinants of it which has been largely unexplored so far.