Trade Liberalization, Female Labor Force Participation and Economic Growth

32 Pages Posted: 24 May 2008

See all articles by Philip U. Sauré

Philip U. Sauré

Johannes Gutenberg University Mainz - Gutenberg School of Management and Economics; CESifo (Center for Economic Studies and Ifo Institute)

Hosny Zoabi

New Economic School (NES)

Date Written: January 2008

Abstract

This research argues that the interaction between international trade and female labor force participation has played a significant role in the process of development. The main concern of our study is to show how differences in per household capital stocks, via international specialization, affect household choice of female labor force participation and fertility, and how these decisions, in turn, feed back and affect the accumulation of capital. Interestingly, and in contrast to conventional wisdom, our theory suggests that specialization in female's comparative advantage sectors expands these sectors but hinders female labor force participation, while specialization in male's comparative advantage sectors generates the mirror image. The reason is that men are assumed to have an advantage in the labor market and therefore are always formally employed. As a result, specialization of the economy in the female's comparative advantage sector drives men into this sector and female out of formal employment.

Keywords: Trade, Female labor force participation, Fertility, Economic Growth

JEL Classification: F10, F16, J13, J16

Suggested Citation

Sauré, Philip U. and Zoabi, Hosny, Trade Liberalization, Female Labor Force Participation and Economic Growth (January 2008). Available at SSRN: https://ssrn.com/abstract=1136753 or http://dx.doi.org/10.2139/ssrn.1136753

Philip U. Sauré

Johannes Gutenberg University Mainz - Gutenberg School of Management and Economics ( email )

Germany

CESifo (Center for Economic Studies and Ifo Institute) ( email )

Poschinger Str. 5
Munich, DE-81679
Germany

Hosny Zoabi (Contact Author)

New Economic School (NES) ( email )

100A Novaya Street
Moscow, Skolkovo 143026
Russia

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