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- Title
Women's Labour Force Participation and the Distribution of Household Incomes: Evidence from Cross-National Data.
- Authors
Winegarden, C. R.
- Abstract
Final version received 18 November 1985. Accepted 26 February 1986. <BR> This study investigates the effects of women's labor force participation on household income inequality. The theoretical background is examined, an econometric model is specified and tested, and a simulation is performed. It is found that the direction and strength of the income distribution effects depend on the level of women's participation. Starting from low levels, a rise in their activity rates intensifies income inequality, but the disequalizing tendency diminishes as participation continues to increase, and is replaced by an equalizing process when high levels of participation are attained. <BR> This analysis of cross-national data has yielded substantial evidence pertaining to the effects of women's labor force participation on the inequality of household incomes. It will be noted that the results are consistent with the initial predictions, despite the various uncertainties previously discussed. The highlights can be summarized as follows. <BR> 1. The direct effects of female labor force participation on the distribution of household incomes follow a U-shaped pattern. Starting from low levels of participation, a rise in activity rates substantially increases income inequality. This disequalizing effect gradually diminishes as participation rises, up to an overall rate (for women aged 15-64) of slightly more than 40 per cent--the estimated turning point. Further gains in female activity rates operate in an equalizing direction with progressively greater impact. 2. The indirect results of increases in female participation rates, although small, are monotonically equalizing. Higher participation rates decrease fertility, which slows down the subsequent growth of the working-age population. This, in turn, reduces disparities in household income. 3. The net result of these direct and indirect effects--as shown by the simulation experiment--is that the initially large disequalizing...
- Subjects
WOMEN'S employment; LABOR supply; INCOME distribution; ECONOMETRIC models; WOMEN employees; INCOME
- Publication
Economica, 1987, Vol 54, Issue 214, p223
- ISSN
0013-0427
- Publication type
Article
- DOI
10.2307/2554392