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Regional Female Labour Force Participation: An Empirical Application with Spatial Effects

In: The Labour Market Impact of the EU Enlargement. A New Regional Geography of Europe?

Author

Listed:
  • Martin Falk

    (WIFO, Austria)

  • Thomas Leoni

    (WIFO, Austria)

Abstract
The female labour force participation rate (LFPR) displays a high degree of variation across regions. Our paper contributes to an understanding of regional determinants of female labour supply by looking at Austria’s 121 political districts. As predicted by theory, the aggregate wage level has a positive impact on female LFPRs. We also find that a decrease in the gender wage gap increases the female participation ratio. Population density is positively associated with the female participation rate. This indicates that densely populated areas provide a larger and better array of employment opportunities for female workers. Furthermore, child-care provision for young children is significant and positive. Our model, based on a reduced-form equation, is tested for robustness using various specifications and extended with a spatial econometrics approach. We find that estimated relationships between traditional regional labour supply determinants are sensitive to the inclusion of spatial effects. The spatial parameter is negative, indicating that regions with high participation levels are surrounded by areas with significantly lower participation levels.

Suggested Citation

  • Martin Falk & Thomas Leoni, 2010. "Regional Female Labour Force Participation: An Empirical Application with Spatial Effects," AIEL Series in Labour Economics, in: Floro Ernesto Caroleo & Francesco Pastore (ed.), The Labour Market Impact of the EU Enlargement. A New Regional Geography of Europe?, edition 1, chapter 12, pages 309-326, AIEL - Associazione Italiana Economisti del Lavoro.
    • Handle: RePEc:ail:chapts:04-12
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    File URL: http://link.springer.com/chapter/10.1007/978-3-7908-2164-2_12
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    Cited by:

    1. Ulrike Huemer & Julia Bock-Schappelwein & Ulrike Famira-Mühlberger & Hedwig Lutz & Christine Mayrhuber, 2017. "Österreich 2025 – Arbeitszeitverteilung in Österreich. Analyse und Optionen aus Sicht der Arbeitnehmerinnen und Arbeitnehmer," WIFO Studies, WIFO, number 59285.
    2. Solmaria Halleck Vega & J. Paul Elhorst, 2017. "Regional labour force participation across the European Union: a time–space recursive modelling approach with endogenous regressors," Spatial Economic Analysis, Taylor & Francis Journals, vol. 12(2-3), pages 138-160, July.

    More about this item

    Keywords

    labour force participation rate; gender wage gap; spatial econometrics.;
    All these keywords.

    JEL classification:

    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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