Panel Data Analysis of the Effects of Female Labor Force Participation on Profit Rates

It is expected that increasing female labor force participation (FLFP) rate, due to the gender wage gap, reduces the unit labor costs, and therefore increases profit rates. Using a dataset of 130 countries for 1990-2019, this paper shows that while FLFP increases profit share in highincome countries...

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Bibliographic Details
Main Authors: Adem Yavuz Elveren, Cameron Davis, Josh Budd
Format: Article
Language:English
Published: Econometric Research Association 2022-09-01
Series:International Econometric Review
Subjects:
Online Access:https://dergipark.org.tr/tr/download/article-file/2674896
Description
Summary:It is expected that increasing female labor force participation (FLFP) rate, due to the gender wage gap, reduces the unit labor costs, and therefore increases profit rates. Using a dataset of 130 countries for 1990-2019, this paper shows that while FLFP increases profit share in highincome countries, it reduces in middle-income countries. However, for both middle- and highincome countries, FLFP cannot prevent the overall tendency in profit rates to decline caused by a consistent decline in output-capital ratio.
ISSN:1308-8793
1308-8815