Analyzing female labor force participation in Afghanistan: Panel data approach
PDF

Supplementary Files

Cover page

Keywords

Female labor force
Household size
Education
Minimum wage
Labor market
Panel data
Afghanistan.

How to Cite

HAKIMZAI, S. N. (2023). Analyzing female labor force participation in Afghanistan: Panel data approach. Turkish Economic Review, 9(4), 309–323. https://doi.org/10.1453/ter.v9i4.2386

Abstract

Abstract. In comparison to other countries, female labor force participation in Afghanistan is the lowest. Afghanistan currently has the lowest labor force participation rate in the world, at 16%. According to the 2015 UN Gender Inequality Index, women own only 5% of Afghan businesses. The aim of this paper is to examine female labor force participation in Afghanistan. This is the first study of women's labor force participation in Afghanistan. Data were obtained from a variety of official sources, including the Central and Statistical Organization of Afghanistan, the World Bank, the Ministry of Labor, and the Ministry of Women's Affairs. The dataset covers 20 provinces in the different time periods from 2016 to 2020. In a panel data approach, we used a fixed effects model and a generalized method of moments (GMM) to analyze the effect of minimum wage, female education, female age, mother age, household size, father's education level, and female labor skills (work experience) on female labor force participation. Our findings show that the minimum wage, female education, female age, father's education level, and female work skills (work experience) all have significant and positive effects on female labor force participation. However, the mother's age has no effect on women's labor-force participation. There is a strong, statistically significant, and negative relationship between household size and female labor force participation. These findings imply that the Afghan government should consider using minimum wages, education, working age, and work experience as policy tools to increase female labor force participation. Using a panel data approach, this study contributes to the literature in Afghanistan.

Keywords. Female labor force; Household size; Education; Minimum wage; Labor market; Panel data, Afghanistan.

JEL. J20; J21; P21.
https://doi.org/10.1453/ter.v9i4.2386
PDF

References

Abe, Y., & Oishi, A.S. (2008). A decomposition analysis of earnings inequality for wives in Japan, Graduate School of Economics & Business Administration Hokkaido University Discussion Paper Series, No.2008-200. [Retrieved from].

Ahmad, E., & Hafeez, A. (2007). Labour supply and earning functions of educated married women: A case study of northern Punjab, The Pakistan Development Review, 46(1), 45–62. doi. 10.30541/v46i1pp.45-62

Azizi, K. (2019). An econometric analysis of female labor supply in Afghanistan: Case study of Nangarhar Province. Institute of Development Research and Development Policy, No.0714-6.

Chen, B.-L., Hsu, M., Lai, C.-F. (2014). Labor force and relationship between long-run growth and unemployment. Journal of Macroeconomics, 50, 273-292. doi. 10.1016/j.jmacro.2016.10.004

Berber, M., Yılmaz, E.B. (2008). Türkiye’de kadın istihdamı: Ülke ve bölge düzeyinde sektörel analiz, İş Güç Endüstri İlişkileri ve İnsan Kaynakları Dergisi, 10(2), 2-16.

Kargi, B. (2014), Labor force participation rate and economic growth: Observations for Turkey. Universal Journal of Management and Social Sciences, 4(4), 46-54.

Central Statistic Organization of Afghanistan, (2017). CSO Year Book, published by CSO.

Desai, I., & Li, L., (2016). Female labor force participation in Afghanistan, Women in Post-Confict Governance, 34-39. [Retrieved from].

Doğan, B., & Akyüz, M. (2017). Female labor force participation rate and economic growth in the framework of Kuznets Curve: Evidence from Turkey, Review of Economic and Business Studies, 10(1), 33-54. doi. 10.1515/rebs-2017-0047

Ejaz, M. (2007). Determinants of female labor force participation in Pakistan: An empirical analysis of PSLM (2004-05) micro data. The Lahore Journal of Economics, Special Issue, 203- 235.

Gaddis, I., & Klasen, S. (2014). Economic development, structural change, and women’s labor force participation: A reexamination of the feminization U hypothesis. Journal of Population Economics, 27(3), 639-681. doi. 10.1007/s00148-013-0488-2

García-Escribano, M. (2004). Does spousal labor smooth fluctuations in husbands’ earnings? The role of liquidity constraints, IMF Working Paper, No.WP/04/20. [Retrieved from].

Goldin, C. (1994). The U-shaped female labor force function in economic development and economic history. NBER Working Paper Series, No.4707. doi. 10.3386/w4707

Hafeez, A., & Ahmed, E. (2002). Factors determining the labor force participation decision of educated married womenin in a district of Punjab. Pakistan Economic and Social Review, 40(1), 75-88.

Hussain, S. (2012). Growth effects and the determinants of female employment in Pakistan: a macro-and microeconomic analysis, UAMR Studies on Development and Global Governance, Vol.61. Logos Verlag Berlin.

Jaumotte, F. (2003). Female labour force participation: Past trends and main determinants in OECD countries, OECD Economics Department Working Papers, No.376. doi. 10.1787/18151973

Khan, R.E.A., & Khan, T. (2009). Labor force participation of married women in Punjab (Pakistan). Journal of Economic and Social Research, 11(2), 66-99.

Linacre, S. (2007). Labour force participation: An international comparison, Australian Social Trends, No.4102.0. [Retrieved from].

PeiZhi, W., & Ramzan, M. (2020). Do corporate governance structure and capital structure matter for the performance of the firms? An empirical testing with the contemplation of outliers. PLoS ONE, 15(2), 1-25. doi. 10.1371/journal.pone.0229157

Psacharopoulos, G., & Tzannatos, Z. (1989), Female labor force participation: An international perspective. The World Bank Research Observer, No.4, pp.187-193.

Odile, M. (2016), A Gender based investigation of the determinants of labor market outcomes in South African labor market. Unpublished Manuscript. [Retrieved from].

Olena, T., & Mosiychuk, T. (2014). Labour force availability as an economic development factor in post socialist countries, Economics & Sociology, 7(2), 64-79. doi. 10.14254/2071- 789X.2014/72/6

Paikar, G.R. (2018). Female labor force participation in Afghanistan: A case study from Mazar-e-Sharif city. Institute of Development Research and Development Policy, No.3-6.

Qaeem, A.Q. (2017). Female labor force participation and its influencing factors in the urban areas of Afghanistan - a case study of Herat City. Institute of Development Research and Development Policy, No2-6.0224.

Dixon-Mueller, R.B. (2013). Rural Women at Work: Strategies for development in South Asia, Routledge.

Bridgesa, S., Lawsonb, D., & Begum, S. (2011). Labor market outcomes in Bangladesh: The role of poverty and gender norms, European Journal of Development Research, 23(3), 459-487. doi. 10.1057/ejdr.2011.14

Tansel, A. (2002). Economic development and female labor force participation in Turkey: Time series evidence and cross-province estimates, ERC Working Papers in Economics, No. 01/05.

World Bank Development Data Group (2011). World development indicators. World Bank-free PDF.

Creative Commons License
This article licensed under Creative Commons Attribution-NonCommercial license (4.0)

Downloads

Download data is not yet available.