Question

The relation between female labour force and economic development of s country

Answer 1

relationship between female labor force and economic

growth in 162 world countries over the period 1990-

2012. It was hypothesized that an analysis would reveal

a U-shaped relationship between female labor force participation

and economic growth. Th e analysis is run from two

diff erent perspectives – in the fi rst, the relationship is examined

for a sample encompassing 162 countries; and in the

second – the evidence is disaggregated and the relationship

is re-examined within four income-groups (low-income,

lower-middle-income, upper-middle-income and high-income).

To examine these relationships, data on female labor

force participation and per capita income are extracted

from the World Development Indicators 2013 database,

and the relationship is examined by deploying panel data

analysis assuming non-linearity between variables. Th e main

fi ndings support the hypothesis of the U-shaped relationship

between female labor force participation and economic

growth, however high cross-country variability on the fi eld

is reported. Moreover, the U-shaped feminization hypothesis

was not positively verifi ed in the case of low-income