The U-Shaped Female Labor Force Function in Economic Development and Economic History

The labor force participation rate of married women first declines and then rises as countries develop. Its U-shape is revealed both across the process of economic development and through the histories of currently advanced economies. The initial decline in the participation rate is due to the movement of production from the household, tmily farm, and small business to the wider market, and to a strong income effect But the income effect weakens and the substitution effect strengthens at some point. This paper explores why the change takes place and why the U-shape is traced ouL When women are poorly educated their only wage labor outside the home and family farm is in manual work, against which a strong social stigma exists.