It is expected that increasing female labor force participation (FLFP) rate, due to the gender wage gap, reduces the unit labor costs, and therefore increases profit rates. Using a dataset of 130 countries for 1990-2019, this paper shows that while FLFP increases profit share in highincome countries, it reduces in middle-income countries. However, for both middle- and highincome countries, FLFP cannot prevent the overall tendency in profit rates to decline caused by a consistent decline in output-capital ratio.
Keywords: Female labor force participation, profit rate, profit share, output-capital ratio
JEL Classifications: B54, C01, E24.
DOI #: 10.33818/ier.1181027
Article Full Text
All articles in this volume
1 Adem Yavuz Elveren, Associate Professor of Economics, İzmir University of Economics, İzmir, Turkey & Fitchburg State University, MA, USA 01420, (aelveren@ficthburgstate.edu), Tel: +90 232 4888545.
2 Cameron Davis, Fitchburg State University, MA, USA 01420, (cdavis36@student.ficthburgstate.edu), Tel: +1 978 6653000.
3 Josh Budd, University of Massachusetts at Amherst, MA, USA 01003, (jbudd@umass.edu), Tel: +1 413 5450111.