Economic Development, Women Empowerment and U Shaped Labour Force Function : Time Series Evidence for Bangladesh

Humaira Husain
2016 Asian Economic and Financial Review  
This paper supports the validity of nonlinear quadratic U shaped function between female labor force participation rate and Economic Growth for Bangladesh over the period 1991 -2012. The result is robust when growth of per capita energy consumption is considered as a proxy indicator of economic development. In Bangladesh the rising portion of U curve is explained by women's active participation in manufacturing and service sector. Women are still economically active in the Agricultural sector
more » ... ricultural sector of the economy. Added worker effect dominates discouraged worker effect. Women join the labor force regardless their marital status. Female labor force participation has positive impact on economic growth. The contribution of this paper is to find the Quadratic U shaped labor supply function for women of Bangladesh Economy over the period 1991-2012. Women are mostly economically active in the manufacturing sector, along with service and agricultural sectors. This paper estimates the level of per capita GDP beyond which the U Curve bends upward. Time series evidence adheres to the notion that female labor force participation expedites Economic growth of Bangladesh.
doi:10.18488/journal.aefr/2016.6.12/102.12.719.728 fatcat:pdb54uuqnvhffixvv7hdhbj3f4