Economic cycle and deceleration of female labor force participation in Latin America

Abstract

We study the behavior of female labor force participation (LFP) over the business cycle by estimating fixed effects models at the country and population-group level, using data from harmonized national household surveys of 18 Latin American countries in the period 1987-2014. We find that female LFP follows a countercyclical pattern-especially in the case of married, with children and vulnerable women-which suggests the existence of an inverse added-worker effect. We argue that this factor may have contributed to the deceleration in female labor supply in Latin America that took place in the 2000s, a decade of unusual high economic growth.

How Cities Erode Gender Inequality: A New Theory and Evidence from Cambodia

“…Likewise in Zambia, worsening economic security triggered rising female employment (Evans, 2018). Across the world , female labour force participation is often counter-cyclical (Klasen, 2018:16;Serrano et al, 2018). The opportunity costs of women staying at home also increases with the growth of sectors seeking female workers: manufacturing, tourism, health-care, call-centres (Goldin, 2006;Kabeer and Mahmud, 2004;Klasen, 2018;McDowell, 2009).…”

The effect of women’s identity and emancipative values in female labor force participation: a comparison between Latin American and OECD countries.

“…Furthermore, coinciding with Serrano et al (2018), the countries' economic factors are at play, reflecting an income effect as expected in developing countries at the bottom of the U-shape (Goldin, 1994). On one hand, better economic conditions reduce the probability of participation in 2.7%, letting women withdraw from the labor market.…”

“…Desde finales de 1990 y principios del 2000, la región de América Latina experimentó el mayor crecimiento de participación laboral femenina en el mundo. Literatura reciente (Camou, 2015;Chioda, 2016;Klasen, 2018;Serrano, Gasparini, Marchionni, & Gluzmann, 2018) han concluido que las tendencias en el matrimonio y la fertilidad, crecimiento económico y la educación son determinantes importantes, pero concuerdan en la necesidad de analizar las preferencias de las mujeres y factores sociales elementos que contribuyen, también.…”

“…Authors (Camou, 2015;Chioda, 2016;Klasen, 2018;Serrano et al, 2018) agree that economic development, education, lower fertility rates, and economic policies such as childcare support, to be determinants of FLFP in LAC as U-shape theory studies found, but they do not consider them to be sufficient explanation for the countries in the region. Studies (Camou, 2015;Chioda, 2016;Gasparini, Marchionni, Badaracco, & Serrano, 2015;Klasen, 2018) coincide in the need of further investigation of the determinants of FLFP in LAC, and point to women preferences and social factors as opportunities of research.…”

“…Studies (Camou, 2015;Chioda, 2016;Gasparini, Marchionni, Badaracco, & Serrano, 2015;Klasen, 2018) coincide in the need of further investigation of the determinants of FLFP in LAC, and point to women preferences and social factors as opportunities of research. Serrano et al (2018) caution FLFP in LAC is reaching a ceiling that may result from women preferences and policy factors, as women delay their decision to participate in the labor market given the higher earnings of their spouses or the protection of new social programs.…”