LABOR PARTICIPATION OF ARAB WOMEN - ESTIMATES OF THE FERTILITY TO LABOR SUPPLY LINK

Research conducted in this paper has two objectives. First, to review recent aggregate trends in Arab female employment and its link to fert ility. Second, to apply a two-step econometric model to micro data set s of four Arab countries in order to estimate the impact of fertility and its correlates on the labour supply of Arab women. The model combi nes a Poisson fertility count function with a Probit binary function. We find that the two-step-modelling framework provides important insig hts about the fertility-participation link. The Poisson maximum likeli hood estimation demonstrates that age at marriage, women's education, infant mortality and preference for male offspring are important deter minants of fertility. In all countries examined, our findings confirm that fertility produces a strong negative influence on women's labour participation. Therefore, policies that are designed to influence part icipation will be more effective if consistent companion fertility pol icies are in place.