Female Labour Force Participation: Past Trends and Main Determinants in OECD Countries

Abstract

This paper examines the determinants of female labour force participation in OECD countries, including a number of policy instruments such as the tax treatment of second earners (relative to single individuals), childcare subsidies, child benefits, paid maternity and parental leaves, and tax incentives to sharing market work between spouses. 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), stronger tax incentives to share market work between spouses, childcare subsidies, and paid maternity and parental leaves Unlike childcare subsidies, child benefits reduce female participation due to an income effect and their lump-sum character. Finally, female education, the general labour market conditions, and cultural attitudes ... Participation des femmes au marche du travail : Tendances passees et principaux determinants dans les pays de l'OCDE Cet article examine les determinants de la participation des femmes au marche du travail dans les pays de l’OCDE, incluant un certain nombre d’instruments de politique economique tels que le traitement fiscal du deuxieme revenu du foyer (par rapport a la taxation d’un individu celibataire), les subsides aux depenses de garde d’enfants, les allocations familiales, les conges de maternite et parentaux remuneres, ainsi que les incitants fiscaux a partager le travail remunere entre epoux. L’analyse econometrique utilise une base de donnees de panel couvrant 17 pays de l’OCDE sur la periode 1985-1999, et distingue entre taux de participation feminine a temps partiel et a temps complet. Elle revele que la participation feminine est stimulee par un traitement fiscal plus neutre du deuxieme revenu du foyer, de plus grands incitants fiscaux a partager le travail remunere entre epoux, les subsides aux depenses de garde d’enfants, et par les conges de maternite et parentaux ...