key topic

Female labor force participation

Female labor force participation is mainly driven by the value of women’s market wages versus the value of their non-market time. While women’s labor force participation has risen in many countries, rates remain quite low in some countries and regions. In some countries, such as the US, rates have plateaued since 1990. How can governments across the world encourage women’s labor force participation?

  • The labor market in Japan, 2000–2016

    Despite a plummeting working-age population, Japan has sustained its labor force size, thanks mostly to surging employment among women

    Daiji KawaguchiHiroaki Mori, September 2017
    As the third largest economy in the world and a precursor of global trends in population aging, Japan’s recent experiences provide important lessons regarding how demographic shifts affect the labor market and individuals’ economic well-being. On the whole, the labor market has shown a remarkable stability during the recent financial crisis, despite decades of economic stagnation and sluggish real wage growth. Rapid population aging, however, has brought substantial changes to individuals in the labor market, most notably among women, by augmenting labor demand in the healthcare services industry.
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  • Can diversity encourage entrepreneurship in transition economies?

    Harnessing the benefits of diversity is essential for encouraging entrepreneurship in the transition region

    Elena Nikolova, May 2017
    Entrepreneurship is an important lever for spurring transition in the economies of the former Soviet Union and Central and Eastern Europe. Utilizing diversity, in terms of religion or gender, can positively affect entrepreneurial development. Programs that encourage entrepreneurial initiatives (such as business start-ups) in culturally diverse localities should rank high on the policy agenda. Prompting women to start a business, along with female-friendly measures (including targeted legislation), can positively affect entrepreneurial behaviour and the performance of existing enterprises.
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  • Motherhood wage penalty may affect pronatalist policies

    If ignored, the motherhood wage penalty may threaten the effectiveness of policies targeting fertility

    Olena Y. Nizalova, May 2017
    The motherhood wage penalty denotes the difference in wages between mothers and women without children that is not explained by differences in human capital characteristics and labor market experience. As part of the gender pay gap, the motherhood wage penalty can represent a significant cost to being female and having children. If ignored, it may undermine policy initiatives aiming to increase fertility rates in post-socialist countries, such as the costly “baby bonus,” which is a government payment to new parents to assist with the costs of childrearing.
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  • Childcare expansion and mothers’ employment in post-socialist countries

    A range of other policies and changes are needed for childcare expansion to increase mothers’ labor supply

    Anna Lovász, December 2016
    In 2002, the EU set targets for expanding childcare coverage, but most of the post-socialist countries are behind schedule. While childcare expansion places a heavy financial burden on governments, low participation in the labor force by mothers, especially those with children under the age of three, implies a high potential impact. However, the effectiveness of childcare expansion may be limited by some common characteristics of these countries: family policies that do not support women’s labor market re-entry, few flexible work opportunities, and cultural norms about family and gender roles shaped by the institutional and economic legacy of socialism.
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  • Women’s labor force participation

    Family-friendly policies increase women’s labor force participation, benefiting them, their families, and society at large

    Anne E. Winkler, August 2016
    Female labor force participation is mainly driven by the value of women’s market wages versus the value of their non-market time. Labor force participation by women varies considerably across countries. To understand this international variation, one must further consider differences across countries in institutions, non-economic factors such as cultural norms, and public policies. Such differences provide important insights into what actions countries might take to further increase women’s participation in the labor market.
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  • Parental leave and maternal labor supply

    Parental leave increases the family–work balance, but may have negative impacts on mothers’ careers

    Astrid Kunze, July 2016
    Numerous studies have investigated whether the provision and generosity of parental leave affects the employment and career prospects of women. Parental leave systems typically provide either short unpaid leave mandated by the firm, as in the US, or more generous and universal leave mandated by the government, as in Canada and several European countries. Key economic policy questions include whether, at the macro level, female employment rates have increased due to parental leave policies; and, at the micro level, whether the probability of returning to work and career prospects have increased for mothers after childbirth.
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