ECONOMIC AND DEMOGRAPHIC EFFECTS ON WORKING WOMEN IN LATIN-AMERICA

The paper uses historical census data and the latest household surveys to investigate the evolution of female employment in Latin America, t he effect of demographic factors on female labor force participation, and the reasons for the observed male-female gap in labor earnings. Th e findings show that, though women's labor force participation in Lati n America has indeed increased despite the adverse economic conditions of the last two decades, marriage and fertility still exercise a larg e negative effect on women's labor supply. On average in the 15 countr ies studied, marriage reduces the probability that a woman would work by half, and each child by a further 3 - 5%. These effects result in a ge-participation profiles that decrease with age although the economet ric analysis suggests that, as women get older, they have a ceteris pa ribus greater probability to seek employment. In all the countries stu died women are rewarded less than men and gender differences in human capital characteristics cannot account for the observed earnings diffe rential. The paper discusses the significance of the findings for pote ntial policies to assist women, especially in the areas of education a nd fertility, and also suggests the direction of further reserarch.