IDENTIFICATION OF FACTORS AFFECTING FEMALE LABOR FORCE PARTICIPATION BY PANEL VAR ANALYSIS: EVIDENCE FROM TURKEY

Abstract

Woman is one of the most important determinants of social development as she takes part in every stage of business life, gains her economic freedom, determines her own power, and being at the center of family life both as a wife and mother. In this study, in which the factors affecting female labor force participation in Turkey are determined. A panel data set was created by using the annual data of the 2nd level regions in Turkey for the period of 2014-2020 obtained from the website of the Turkish Statistical Institute (TUIK). The panel VAR analysis method  was used as the econometric method. According to the panel VAR model, one lag of women’s labor force participation rate and one lag of crude birth rate were statistically significant in explanining female labor force participation rate for Model 1. For Model 2, one lag of female labor force participation rate, one lag of crude birth rate, and one lag of female population ratio were found significant to explain the female divorce rate. It is very important for states and policy makers to support women in establishing a balance between work and family life with the necessary regulations, and thus women take a more active role in working life.