The rise in women’s labour force participation in Mexico: Supply vs demand factors

Abstract

We estimate the relative importance of alternative labour supply and demand mechanisms in explaining the rise of female labour force participation over the last 55 years in Mexico. The growth of female labour force participation in Mexico between 1960 and 2015 followed an S-shape, with a considerable acceleration during the 1990s. Using decomposition methods and a shift-share design, we show that, put together, supply and demand factors can account for the rise of female labour force participation over the period, led by increases in women’s education and shifts in the occupational structure of the workforce. However, there is unexplained variation in the 1990s, when female labour force participation spiked.

The Distribution of the Gender Wage Gap: An Equilibrium Model

“…Using decadal census data corroborates these broad trends. It allows us to depict trends going back to 1960 (Panels (b) and (d) of Figure 1), see Bhalotra and Fernández (2021) for analysis of the longer time series. Differences in level and trend between the Census and ENIGH data are discussed in the Appendix Section A.1.…”

“…For example, part-time workers whose primary activity was studying are categorized as outside the labor force, leading to census estimates of LFP being lower. For analysis of the longer run trends in FLFP in Mexico seen in the decadal census plots, seeBhalotra and Fernández (2021).Between 1960 and 1990, the FLFP rate increased 11 percentage points, rising from 12 to 23 percent. It accelerated after 1990: between 1990 and 2010 the rate increased by 22 percentage points, reaching 45 percent in 2010.…”

Reshaping Norms: A New Way Forward

“…And some sectoral composition of employment demand is associated with a higher probability of women's overall employment than others. This can be related to the emergence or expansion of sectors that substitute home production, some of which may also create jobs for women (Dinkelman and Ngai 2022), as well as non-neutral technical change that favors female labor (Autor et al 2003;Bhalotra and Fernández 2021).…”

Women in Paid Employment: A Role for Public Policies and Social Norms in Guatemala

“…We closely relate to Bhalotra and Fernandez (2021). Exploring Mexican census data, they assess the role of different drivers of FLFP between 1960 and2015.…”

“…Bhalotra and Fernandez's (2021) propose as supply side drivers of FLFP: education, marital status, and fertility. Demand-side drivers include sector and occupational structure of employment at the municipality level.…”