Female Labor Force Participation and Dependency Ratios in Border States

Abstract

Researchers have identified some of the factors affecting female labor force participation (FLFP) as: economic dependency, income inequality, family structure, and fertility, among others. This paper will study the impact of dependency ratios on female labor force participation in the US Border States with Mexico (Texas, New Mexico, Arizona, and California). We use dependency ratios to measure the role of females’ as economic producers and active members of the labor force. The most important finding was that changes in population age structure, affects the female labor force participation rate in the Border States. By following Kelley's approach on dependency ratios, we found that children have a negative effect on the female labor force participation rate. The constant care and attention required by children seems to impede females’ participation in the labor force. However, the elderly population was found to have a positive effect on female labor force participation rate, which could suggest that the elder's involvement in the household promotes female economic activity.