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Female labor force participation rate Empirical Analysis

Author: MaJing
Tutor: LiHuiZhong
School: Fudan University
Course: Political Economics
Keywords: female labor force participation rate U-shape curve fixed effect model
CLC: F249.2;F224
Type: Master's thesis
Year: 2011
Downloads: 382
Quote: 0
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Abstract


During the past ten years, the female labor participation rate in developed countries experienced a significant increase, while China and other developing countries show-ed a downward trend in female labor force participation rate. This article attempts to give a reasonable explanation to the reduction in China’s FLFPR these years. With its per capita GDP below average in the world, China is now experiencing a particular stage of development, which is the main reason for its FLFPR to show a declining trend. Moreover, there are many factors that have impact on FLFPR, including the women’s own factors, family factors and social factors. This paper attempts to discuss the influence of family structure, social factors and national policies on female labor force participation rate, and then give an economic explanation, based on which reasonable suggestions are proposed for the policy makers.In this paper, two models were constructed. Model I tried to prove the existence of U-shape curve in China. It used the fixed effects model with mixed panel data in 30 provinces for 4 years to run the regression. The regression results show that the female labor force participation rate and per capita GDP in China shows a U-curve relationship. Besides, in this particular stage of development, the FLFPR in China is declining with the per capita GDP, which indicates that China is in the left side of the U-shape curve. All these evidences show that, along with the evolving economy, female labor force participation rate first decreased and then increased. The declining trend of FLFPR since the 1990s is normal along with China’s economic development and the increase in its per capita GDP. And we could expect an increase of FLFPR with the further development of China. Model II run the regression with the 1991, 1993,1997,2000,2004,2006 and 2009 CHNS data. It verifies the impact on female labor participation rate of the female worker herself, family and social factors and comes to a conclusion that age, income of husband, the husband’s working conditions, non-wage income have very significant impact on female labor force participation rate. Based on the regression results, we come to an economic explanation and some reasonable suggestions.Finally, we gave some reasonable comments and suggestions to the policy makers. In order to enhance the female labor force participation rate, we must give attention to not only the female worker itself, but also the family and social factors. On the one hand, we should vigorously develop education and improve women’s level of education and human capital accumulation, and actively promote equal employment of women by improving women’s own ability to enhance its competitive position on the labor market; on the other hand, we should continue to build a sound system of early childhood education and pension system in order to provide strong support for the women to join in the labor force.

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CLC: > Economic > Economic planning and management > Economic calculation, economic and mathematical methods > Economic and mathematical methods
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