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

Year 2022, Volume: 14 Issue: 3, 97 - 106, 02.03.2023

Adem Yavuz Elveren Cameron Davis Josh Budd

https://doi.org/10.33818/ier.1181027

Abstract

Using a novel dataset, this brief note investigates the effect of female labor force participation (FLFP) on three important variables, profit shares, profit rates, and capital-output ratio, covering a very large set of countries (i.e., 130) over a recent time period of 1990-2019. This paper shows that while FLFP increases profit share in high-income countries, it reduces in middle-income countries. However, for both middle- and high-income countries, FLFP cannot prevent the overall tendency in profit rates to decline caused by a consistent decline in output-capital ratio.

Keywords

female labor force participation, profits, profit rate

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