Female Labor Force Participation in Five Selected Mena Countries: An Age-Period-Cohort Analysis (Algeria, Egypt, Jordan, Palestine and Tunisia)

Lassassi, Moundir and Tansel, Aysit (2020): Female Labor Force Participation in Five Selected Mena Countries: An Age-Period-Cohort Analysis (Algeria, Egypt, Jordan, Palestine and Tunisia).

Abstract

This paper considers the female labor force participation (FLFP) behavior over the past decade in five MENA countries namely, Algeria, Egypt, Jordan, Palestine and Tunisia. Low FLFP rates in these countries, as it is in other MENA countries, are well documented. We conduct synthetic panel analysis using age-period-cohort (APC) methodology and decompose FLFP rates into age, period and cohort effects. We present our results with Hanoch-Honig/Deaton-Paxson normalization and maximum entropy estimation approaches to the APC methodology in order to observe robustness of our results. We first study the aggregate FLFP and note the differentials in age, period and cohort effects across the countries we consider.The analysis is carried also out by rural/urban regional differentiation, marital status and educational attainment. Implications of our results for possible government policies to increase FLFP rates are discussed.

• Item Type: MPRA Paper
• Language: English
• Keywords: Female labor force participation, synthetic panel analysis, life-cycle profiles, period effects, cohort effects, MENA countries.
• Subjects: C - Mathematical and Quantitative Methods > C2 - Single Equation Models ; Single Variables > C23 - Panel Data Models ; Spatio-temporal Models; C - Mathematical and Quantitative Methods > C2 - Single Equation Models ; Single Variables > C25 - Discrete Regression and Qualitative Choice Models ; Discrete Regressors ; Proportions ; Probabilities; D - Microeconomics > D1 - Household Behavior and Family Economics; J - Labor and Demographic Economics > J2 - Demand and Supply of Labor; J - Labor and Demographic Economics > J2 - Demand and Supply of Labor > J21 - Labor Force and Employment, Size, and Structure

References

Abrahamsen, C.K. (2015) “Labor Supply over the life Cycles: An Age –Period-Cohort Analysis,” Master of Philosophy Thesis in Economics, Department of Economics, University of Oslo.

Al-Qudsi S. (1998) “Labor Participation of Arab Women: Estimates of the Fertility to Labor Supply Link,” Journal of Applied Economics, Vol. 30: 931-941.

Antman, F. and D. McKenzie (2007) “Poverty Traps and Nonlinear Income Dynamics with Measurement Error and Individual heterogeneity,” Journal of Development Studies, Vol. 43, No 6: 1057-1083.

Assaad, R. (2014) “Making Sense of Arab Labor Markets: The Enduring Legacy of Dualism,” IZA Journal of Labor & Development, Vol.3, No.1: 6.

Assaad, R., and El-Hamidi, F. (2009) « Women in the Egyptian Labor Market: An Analysis of Developments, 1988-2006, » in: R. Assaad (ed.) The Egyptian Labor Market Revisited, Cairo, Egypt: The American University in Cairo Press (pp. 117–156).

Assaad, R., C. Krafft and I. Selwaness (2017) “The Impact of Early Marriage on Women's Employment in the Middle East and North Africa,” Cairo, Egypt: Economic Research Forum (ERF) Working Paper No.1086.

Assaad, R., R. Hendy, M. Lassassi and S.Yassin (2020) “Explaining the MENA Paradox: Rising Educational Attainment, Yet Stagnant Female Labor Force Participation, Demographic Research - Volume 43

Balkan, B., Baskaya, Y.S. and Tümen, S. (2014) “Evaluating the Impact of the Post-2008 Employment Subsidy Program in Turkey,” Working Paper no. 1414, Ankara : Research and Monetary Policy Department, Central Bank of the Republic of Turkey.

Baudelot, C., Gollac, M. (1995) “Le Salaire du Trentenaire : Question d’âge Ou de Génération, ” Économie et Statistique, No.304-305: 17-36.

Blundell, R., A. Duncan and C. Meghir (1998) “Estimating Labor Supply Responses Using Tax reforms,” Econometrica, Vol 66, No 4: 827-861.

Boserup, E. (1970) Women’s Role in Economic Development, New York: St. Martin’s Press: 283.

Bourdallé G., Cases C. (1996) “Les taux d’activité des 25-60 ans : les effets de l’âge et de la génération, Économie et Statistiques, No. 300: 83-93.

Browning, M., I Crawford and M. Knoef (2012) “The Age-Period-Cohort Problem: Set Identification and Point Identification,” Institute for Fiscal Studies, CEMMAP Working Paper, CWP02/12.

Cagatay, N. and S. Ozler (1995) “Feminization of the Labor Force: The Effects of Long Term Development and Structural Adjustment,” World Development, Vol 23, No 11:1883-1894.

Chapman, K. A. (2015) "Economic Development and Female Labor Force participation in the Middle East and North Africa; a Test of the U-Shape Hypothesis," Gettysburg Economic Review Vol.8, No 1: 3-15.

Clark, R., Ramsbey, T. W., Adler, E. S., (1991) "Culture, Gender, and Labor Force Participation: A Cross National Study," Gender and Society Vol. 5, No.1: 47-66.

Conrad, k. (2004) "Probability Distributions and Maximum Entropy," Entropy, 6(452):10.

Crespo S, (2007) "Diversité des Formes de Transition Travail-Retraite Dans Une Cohorte de Canadiens âgés de 50 à 64 Ans," Cahiers Québécois de Démographie, Vol. 36, No. 1: 49-83.

Dasgupta, P. and B. Goldar (2005) “Female Labor Supply in Rural India: An Econometric Analysis,” Enclave, India: Institute of Economic Growth, Delhi University.

Deaton, A. and C. Paxson (1994) “Saving, Growth and Aging in Taiwan,” in: D. Wise (ed.) Studies in the Economics of Aging, Chicago: NBER and University of Chicago Press: 331–357.

Deborah S, (2001) “Démographie et Marché du Travail,” Statistique Canada No.75-001.

Devereux, P. (2007) “Small-Sample Bias in Synthetic Cohort Models of Labor Supply,” Journal of Applied Econometrics, Vol 22, No 4: 839-848.

Diwan, I. and I. Vartanova (2017) “The Effect of Patriarchal Culture on Women’s Labor Force Participation ,” Cairo, Egypt: Economic Research Forum (ERF) Working Paper No. 1110.

Duval-Hernández, R. and P.O. Romano (2009) “A Cohort Analysis of Labor Participation in Mexico, 1987-2009,” Institute of Labor Economics (IZA) Discussion Paper No. 4371.

Goldin, C. (1995) “The U-Shaped Female Labor Force Function in Economic Development and Economic History,” in: T.P. Schultz (ed.) Investment in Women’s Human Capital and Economic Development, Chicago: University of Chicago Press: (pp.61-90).

Haghighat-Sordellini E, (2009) “Determinants of Female Labor Force Participation: A Focus on Muslim Countries,” International Review of Sociology, Vol. 19, No 1: 103-125. Hanoch, G. and M. Honig (1985) “’True’ Age profiles of Earnings: Adjusting for Censoring and for Period and Cohort Effects,” Review of Economics and Statistics, Vol. 67, No 3: 383-394.

Herault, N. and G.R.J.Kalb (2020) « Understanding the Rising Trend in Female Labour Force Participation, »Life Course Centre Working Paper No. 2020-12, Available at SSRN: https://ssrn.com/abstract=3636580.

Hendy, R. (2015) « Women’s Participation in the Egyptian Labor Market 1998-2012, » in R. Assaad and C. Krafft (eds.), The Egyptian Labor Market in an Era of Revolution, Oxford: Oxford University Press (pp. 147–161).

Ingelhart, R., Norris P. (2003) Gender Equality and Cultural Change Around the World, Cambridge University Press.

Karto C. A. (2015) Labor Supply over the Life Cycle - An Age-Period-Cohort analysis, Universiteteti Oslo,(pp.25-26).

Mammen, K. and M. Paxson (2000) “Women’s Work and Economic Development,” Journal of Economic Perspectives, Vol. 14, No 4: 141-164.

Pencavel, J. (1998) “The Market Work Behavior and Wages for Women, 1975-1994,” Journal of Human Resources, Vol. 33, No 4: 771-804.

Psacharopoulos, G. and Z. Tzannatos (1989) “Female Labor Force Participation: An International Perspective,” The World Bank Research Observer, Vol. 4, No 2: 187-201.

Tansel, A. (1994) “Wage Employment and Earnings and Returns to Schooling for Men and Women in Turkey,” Economics of Education Review, Vol. 13: 305-320.

Tansel, A. (2001) “Economic Development and Female Labor Force Participation in Turkey: Time Series Evidence and Cross Province Estimates,” Cairo, Egypt: Economic Research Forum (ERF) Working Paper No: 200124.

Tansel, Aysit and Zeynel Abidin Özdemir (2018) "Unemployment Invariance Hypothesis, Added and Discouraged Worker Effects in Canada," International Journal of Manpower, Vol. 39, No 7: 929-936.

Tansel, A., H. I. Keskin and Z. A. Özdemir (2020)“ Public-Private Sector Wage Gap by Gender in Egypt: Evidence from Quantile Regression on Panel Data, 1998–2018, » World Development, Vol. 135 : November, 2020.

Tsani S., L.Paroussos, C. Fragiadakis, I Charalambidis and P. Capros (2013) " Female Labor Force Participation and Economic Growth in the South Mediterranean Countries,'" Economic Letters, Vol. 20, No. 2 : 323-328.

Tunali, I., M.G. Kirdar and M. Dayioglu (2019) “Female Labor Force Participation in Turkey: A Synthetic Cohort (Panel) Analysis, 1988-2013,” Cairo, Egypt: Economic Research Forum (ERF) Working Paper No. 1378.

Verme, P. (2014) " Economic Development and Female Labor Participation in the Middle East and North Africa: A test of the U-Shape Hypothesis," Policy Research Working Paper No, 6927. The World Bank.

World Bank (2013) Opening Doors Gender Equality and Development. Washington, DC: Middle East and North Africa Region. The World Bank.

World Bank (2020) World Bank Open Data, https://data.worldbank.org.

World Economic Forum (2018) The Global Gender Gap Report Geneva: World Economic Forum.

Yang, Y. (2010) “Cohort Analysis in Social Research: What’s New?” Presentation at the Upper Midwest Workshop on Population Studies, University of Minnesota.