Labour Force Participation of Women: Empirical Evidence on The Role of Policy and Other Determinants in OECD Countries

Abstract

This paper examines the determinants of female labour force participation in OECD countries. The econometric analysis uses a panel data set covering 17 OECD countries over the period 1985-1999, and distinguishes between part-time and full-time female participation rates. It shows a positive impact on female participation of a more neutral tax treatment of second earners (relative to single individuals), childcare subsidies, and paid maternity and parental leave. On the other hand, child benefits reduce female participation due to an income effect and their lump-sum character. Female education, the general labour market conditions, and cultural attitudes remain major determinants of female participation. Simulations illustrate the potentially significant impact that some of the examined policies could exert on female participation ...