The existing literature supports the view that higher female political representation (FPR) in a country increases labour force participation. On the other hand, there are theoretical justifications to believe that in the transition process of female labour force participation rate (FLFPR) across countries, there is a tendency of club convergence. Thus, this study has two purposes. First, it aims to provide empirical evidence of the club convergence pattern of FLFPR in Asian countries. Second, it explores the role of FPR behind the formation of such convergence clubs.
In the first step, we use time series data for each country under consideration to check club convergence through a nonlinear dynamic factor model. After obtaining the club classification of countries, we run ordered logit regression to identify the factors influencing club formation.
We find no evidence of overall convergence of FLFPR across Asia. Rather, there is the emergence of three clubs in the transition process, each showing a different level of convergence equilibrium. Higher FPR is associated with convergence towards a higher equilibrium level of FLFPR. Hence, we conclude that FPR is a key policy variable for increasing FLFPR.
This is the first study in the academic literature to demonstrate the club convergence pattern of FLFPR across Asian countries. It introduces a novel hypothesis that FPR influences convergence towards higher levels of FLFPR equilibrium. Thus, this study expands the debate beyond the direct effect of FPR on FLFPR.
