Womens Labor Force Participation and Economic Development

University:
University of Cambridge
Course:
0455 IGCSE | Economics
Academic year:

2024
Views:

410

Pages:

1
Author:

Drake A. C.

Women’s Labor Force Participation and Economic Development: A Complex Relationship Explored This text discusses how economic development can impact women’s participation in the labor force. It starts by explaining that women’s labor supply decisions depend on two main factors: the opportunity cost of their time, which is influenced by wages and income that is not earned by the woman herself, such as her husband’s earnings or family income. The text explores how economic development can affect women’s labor force participation. If women’s income from sources other than their own work increases (e.g., due to higher male earnings), it can lead to reduced labor force participation among women. However, if women’s wages rise, especially in comparison to men’s, it may encourage more women to join or stay in the labor force. The timing of improvements in men’s and women’s opportunities during development is highlighted as a crucial factor. If men’s opportunities improve significantly before women’s wages catch up, it can lead to a temporary decline in women’s labor force participation. As countries develop further and women’s education levels rise, they may re-enter the labor force in higher-paying, mainly whitecollar jobs. The text also discusses how social norms and barriers can influence women’s labor force participation. In some cases, societal norms may discourage married women from taking blue-collar jobs, while unmarried women may have more flexibility in this regard. Norms may reflect women’s preferences, but they can also stigmatize husbands whose wives work in blue-collar positions, reinforcing the expectation that men should provide for their families. In summary, the text suggests a U-shaped relationship between women’s labor force participation and economic development. In very poor countries, female labor force participation is high, primarily in family enterprises. Early development can temporarily reduce women’s labor force participation due to increased opportunities for men and social barriers. However, as development continues, women may re-enter the labor force in better-paying white-collar jobs. The text also raises the concept of “female marginalization,” where reductions in labor force participation and exclusion from formal sector jobs might not necessarily lead to lower well-being for women, especially if household resources are allocated differently within families. Non-unitary household models are mentioned as an alternative perspective to understand the impact of development on women’s well-being.