Economic Development and Female Labor Participation in the Middle East and North Africa : A Test of the U-Shape Hypothesis
The Middle East and North Africa region is known for having low female labor market participation rates as compared with its level of economic development. A possible explanation is that these countries find themselves at the turning point of the U...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2014/06/19686510/economic-development-female-labor-participation-middle-east-north-africa-test-u-shape-hypothesis http://hdl.handle.net/10986/18783 |
| Summary: | The Middle East and North Africa region
is known for having low female labor market participation
rates as compared with its level of economic development. A
possible explanation is that these countries find themselves
at the turning point of the U-shape hypothesis when
countries transition from declining to rising female
participation rates. This paper tests the U-shape hypothesis
in countries in the Middle East and North Africa. It finds
that the region has outperformed other world regions in
terms of the main drivers of the U-shape hypothesis,
including gross domestic product per capita, economic
transformation away from the agricultural sector, female
education, and fertility rates. These facts are consistent
with nonparametric evidence that shows countries in the
region are distributed over a U-shaped curve. However,
parametric tests of the hypothesis point in a different
direction. The region shows an inverted U-shape overall and
great heterogeneity across countries and age cohorts that
defies any law on the relation between gross domestic
product and female participation rate. The explanation
behind these findings may be economic and cultural. Jobless
growth and the lack of growth in employment sectors such as
manufacturing and services, which proved critical for female
employment in other countries, weaken labor demand and
strengthen the role of institutions that may discourage
female participation, such as marriage, legislation, and
gender norms. |
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