Economic Development and Female Labor Force Participation in Bangladesh: A Test of the U-Shaped Hypothesis

Abstract

The study aims to explain the relationship between economic development measured by GDP per capita on PPP and female labor force participation rate (FLFPR) in Bangladesh. Using Time series data from (1991-2019), extracted from secondary data sources; the study develops three models to test the U-shape hypothesis. The study uses control variables such as Female Unemployment rate, Fertility rate, and Urbanization. The Ordinary Least Square Regression Analysis is used to run the regression by using Econometric Software STATA (version12.0). The regression result indicates that the Female unemployment rate has a positive impact on FLFPR. Fertility rate and Urbanization have a negative effect.  There is a significant impact of the quadratic GDP per capita PPP on FLFPR. The overall results of this paper suggest that a U-shape does not exist in Bangladesh. The research investigates an upward pattern in the female labor force participation rate by measuring the relationship between economic growth and female labor force participation rate in Bangladesh.