Female Labor Force Participation
Female Labor Force Participation
Female Labor Force Participation
PARTICIPATION:
AN INTERNATIONAL
PERSPECTIVE
George Psacharopoulos and Zafiris Tzannatos
The labor force participation rate is, as the name suggests, the The Labor
ratio of two numbers. The numerator refers to the individuals who Force
are economically active—the labor force. This number includes those Participation
who are employed and those who are unemployed but seek work. Rate
The denominator consists of those who can work—those already in
the labor force plus the "inactive" population. The inactive popula-
© 1989 The International BankforReconstruction and Development /THE WORLD BANK lo/
tion excludes such "unemployable" persons as children, inmates of
institutions, the disabled, and the elderly.
Although easy to define, estimates of labor force participation
rates are controversial. In practice, the term "labor force" refers to
those engaged directly in paid employment. Thus important seg-
ments of the population contributing to the country's production
are excluded—such as those engaged in unpaid family work or
domestic activities. The problem becomes more important for
women whose activities fall by and large within these two catego-
ries. Although these activities are mostly economic, they are usually
excluded from the analysis either because they escape statistical
collections or because of cultural reluctance to admit them (El Shafei
1960, on the Middle East countries). In addition, national defini-
Interpretation
The obvious interpretation of labor force participation is the per-
centage of the population that works or is willing to work. This is
appropriate for studies concerned with the utilization of labor in the
economy (Rees 1957). So, if a country's female labor force partici-
pation rate is 50 percent, half the female population is working, the
other half not. But this does not mean that half the individuals are
always in the labor force and the rest never. It probably means that
Theory
Economists have tried to explain the labor force participation rate
by age, sex, race, and income groups and to describe trends over
time. According to the neoclassical school, individuals or household
members enter the labor market because they want more income,
Because most men are permanently in the labor force, estimates The Evidence
of labor reserves and projections of labor supply have focused on
women. Standing (1981) notes that "any generalization about fe-
male labor force participation is liable to be misleading since level,
patterns and trends vary widely between and within countries." A
way out of this difficulty is to try to go beyond a blanket economic
approach by identifying groups of countries that share some com-
mon social characteristics. In addition to the standard economic
variables, such as education, experience, wages, and incomes, em-
Education
The effect of education on women's participation in the labor
force is ambiguous. Do women decide to work before or after they
decide to acquire education? The answer may be that they decide
somewhere in between. Education and participation in the work
force both depend on and affect a country's economic and general
development. The higher the participation rate and the educational
level of workers, the higher is the country's potential total product.
Anker, R., and J. C. Knowles. 1977. Female Labor Force Participation in Kenya. References
Geneva: International Labour Office.
Ashenfelter, Orley, and Richard Layard, eds. 1986. Handbook of Labor Econom-