Female labour force participation and economic growth in South Africa
Since the mid-90s female work compel investment has seen a stark increment (by 38%) boosting the general business levels. However, by global norms female labour force participation stays low and it is lower than for men averaging to a gap. Women’s work remains characterised by domestic and cultural divisions. This study establishes the long-run relationship between female labour force participation and economic growth and unemployment in South Africa by using time-series data collected from various data source for the period of 1980 to 2015 (yearly) and 2008 to 2016 (quarterly). Empirical studies form both developed and developing countries indicate different results and also indicating a U-shape relationship between female labour force participation and economic growth. This study adopted the Cointegration Vector Autoregressive and Vector Error Correction Model (multivariate equations) together with cointegration equations (FM-Ordinary Least Squares, Canonical Cointegrating Regression and Dynamic Ordinary Least Squares) to establish the long-run and shortrun relationships and the effect of economic growth and unemployment on the participation of women in the labour force. The estimate of yearly data shows that unemployment is positive and significantly influences the participation of women in the labour force in the long run. Economic growth exhibits the n-shape relationship with female labour force participation in the long run, hence, it indicates the opposite of what other researchers have found. The Vector Error Correction Model indicate insignificant effect of economic growth and unemployment on FLFP.
Labour Force, Economic Growth, Female labour
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