A Simultaneous‐equations Model of Cross‐national Differentials in Fertility and Female Labourforce Participation Rates

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Abstract
A simultaneous‐equations model is specified to analyse cross‐country differentials in measures of aggregate fertility and female labourforce participation rates (GFR and FLPR respectively). Emphasis is placed on the impacts of changes in patterns of income distribution (as represented by quintile income shares) on GFR and FLPR and interaction between the two endogenous variables. The empirical results suggest that: (1) while income redistribution in favour of the poorest may be expected to reduce GFR, an even larger reduction in GFR may be expected when the income redistribution favours middle‐income households, (2) such a reduction in GFR may take place at the expense of a lower FLPR which is also found to be negatively affected by a ceteris paribus improvement in income distribution, and (3) an increase in FLPR in developing countries may not necessarily lower GFR possibly owing to compatibility of the mother and worker roles of married women.

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