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10387

Jurnal Ekonomi Pembangunan: Kajian Masalah Ekonomi dan Pembangunan, 21 (1), 2020, 32-39

Does Women’s Reproductive Health and Empowerment Affect

Female Labor Participation in ASEAN?

Salma Audiena Al Faziah, Izza Mafruhah, Julianus Johnny Sarungu

Faculty of Economics and Business, Universitas Sebelas Maret
Corresponding Author: [email protected]

Recieved: February 2020 | Revised: March 2020 | Accepted: April 2020

Abstract
This research aims to analyze the effect of women’s reproductive health and women’s empowerment
on female labor force participation (FLFP) in ASEAN countries. This type of research is quantitative
research with panel data types from 9 (nine) ASEAN countries during the period 2010-2017. The results
show that countries with high levels of women’s reproductive health and women’s empowerment also
have high levels of female labor participation.
Keywords: gender inequality, female labor participation, women’s reproductive health, women’s
empowerment, panel data analysis
JEL classification: A1, C5, J8
How to Cite: Al Faziah S. A., Mafruhah I., Sarungu J., J. (2020). Does Women’s Reproductive Health
and Empowerment Affect Female Labor Participation in ASEAN?. Jurnal Ekonomi Pembangunan:
Kajian Masalah Ekonomi dan Pembangunan, 21(1). 32-39. doi:https://doi.org/10.23917/jep.v21i1.10387
DOI: https://doi.org/10.23917/jep.v21i1.10387

1. Introduction of women as human resources, the effort to include

United Nations Development Programme women in the development process is not just mere
(UNDP) explained that Sustainable Development humanity, but it is an efficient action because
Goals or SDGs are a program to achieve a better without including women in the development
and more sustainable future for future generations. process means waste and negatively influences
One of the scopes in SDGs is gender. The SDGs the speed of economic growth. Trend of data on the
related to gender equality while also explaining FLFP in the ASEAN nine countries from 2010 to
that there are several key indicators of gender 2017 is found in Figure 1.1
mainstreaming including: 1) education; 2) political Figure 1.1 represents the trend of FLFP in
/ parliamentary participation; 3) reproductive ASEAN during 2010-2017. Indonesia and Laos
health; 4) labor force participation. These indicators are among the countries with relatively stable
are also elements forming a gender inequality fluctuations in the level of female labor force
index (GII). GII has three main dimensions, participation from year to year when compared
namely: reproductive health, empowerment, and to other countries. The countries with the highest
economic opportunities. (Gonzales, Jain-Chandra, level of female labor force participation rates from
Kochhar, Newiak, & Zeinullayev, 2016) 2010-2017 are Vietnam, Malaysia and Singapore.
Nowadays, FLFP (female labor force Meanwhile, groups of countries with a level of
participation) is not only demands equal rights but female labor force participation that tends to
also states that their functions have meaning for decline from 2010-2017 include: the Philippines,
the development of a country. Seeing the potential Myanmar, Thailand and Cambodia.

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Jurnal Ekonomi Pembangunan: Kajian Masalah Ekonomi dan Pembangunan, 21 (1), 2020, 32-39

Figure 1.1 Trend of FLFP in ASEAN countries from 2010-2017

Source: UNDP Data, 2018

Figure 1.2 United Nations Gender Inequality Index: Dimensions and Indicators.
Source: UNDP Human Development Report, 2011

Figure 1.3 Modification of GII: Dimensions and Indicators.

Source: Cai, L. (2010). Lv, Z., & Yang, R. (2018). Mishra, V., & Smyth, R. (2010). Tam, H. (2011)

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Jurnal Ekonomi Pembangunan: Kajian Masalah Ekonomi dan Pembangunan, 21 (1), 2020, 32-39

The country with the highest level of female main sample since their complete data sets were
labor force participation is Cambodia despite not available. The choice of sample selected for this
a decline from 2010-2017. The average level of analysis is primarily dictated by the availability
female labor force participation in Cambodia is of reliable data. The dependent variable in this
77.81%. Meanwhile, the country with the lowest analysis is FLFP (female labor force participation)
average female labor force participation rate which is obtained from the International Labor
is Malaysia but Malaysia has experienced an Office (ILO). FLPR is defined as the number of
increase in female labor force participation from female labor participants of age 15–64 divided by
year to year. The average level of female labor the total female population of the same age group
force participation in Malaysia is 48.18%. (15–64), and labor force participation is defined
UNDP Human Development Report explains as employed (paid and unpaid family workers)
that GII is measured based on the economic plus unemployed (actively seeking work).
dimension, the social dimension of empowerment This study uses a set of static panel
and the reproductive health dimension. The estimation models to examine the effect of various
economic dimension includes labor participation. independent variables to estimate female labor
The social dimensions of empowerment include: participation at the state-level. The static panel
educational attainment and one’s participation in estimation models are various ordinary least
parliament / politics. Meanwhile, the dimensions squares (OLS) models with different specification
of reproductive health include: mortality ratio (Salari & Javid, 2019). There are many
and fertility rate. GII also has the disadvantage independent variables that may impact on female
of combining indicators that compare men and labor participation so this study employs those
women with indicators that only relate to women. main variables, which are supported by previous
(Gonzales et al., 2016) studies (Cai, 2010; Lv & Yang, 2018; Mishra &
Figure 1.2 represents the framework of Smyth, 2010; Salari & Javid, 2019; Tam, 2011),
indicators and dimensions of the GII by combining and their data are available at the state-level.
indicators that compare men and women with The data of all variables are obtained from World
indicators that are only related to women. Bank Data and UNDP Data.
Therefore, we make modifications to the GII In this paper, consistent with previous
theoretical framework by separating variables studies (Cai, 2010; Lv & Yang, 2018; Mishra &
that are only related to women, can seen in Figure Smyth, 2010; Salari & Javid, 2019; Tam, 2011),
1.3 we apply the panel data estimation model.
Based on the description above, this research Therefore, this study uses the following static
is important in economic development because model to estimate FLFP across states.
gender equality in terms of health, education,
politic, especially in economy is one of the FLFP = f (FEA,WPR,CWM,WGP,AF,
sustainable development goals. MM,FLE) (1)

3. Research Method FLFPit = α+β1 FEAit+β2 WPRit+β3 CWM+

This study sets out to address the gap in β4 WGPit+ β5 AFit+β6 MMit+β7 FLEit+µit (2)
the literature by seeking to answer the research
question: whether women’s reproductive health There are unit differences and the magnitude
and women’s empowerment affect female labor of the independent variable in the equation so
participation? We use sample of ASEAN nine that a regression must be made with a logarithm-
countries with data covering the years from 2010 linear (log) model. Thus the base-line econometric
to 2017. Brunei Darussalam excluded from the model has the following form:

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Jurnal Ekonomi Pembangunan: Kajian Masalah Ekonomi dan Pembangunan, 21 (1), 2020, 32-39

LFLFPit = α+β1 LFEAit+β2 LWPRit+β3 LCWM i/t : Country/Year

+β4 LWGPit+β5 LAFit+β6 LMMit+β7 LFLEit
+µit (3) 4. Result And Discussion
4.1 Result
Notes: The main regression results are reported in
LFLFP : Log of female labor participation Table 2. Column 1 shows the results from simple
LFEA : Log of female education attaintment static random-effects specifications. WPR, WGP,
LWPR : Log of women’s parliament representation AF, and FLE has a positive and statistically
LCWM : Log of young married women significant effect on FLFP at the 10% level. Both
LWGP : Log of women’s income per capita the female education attaintment and young
LAF : Log of women’s fertility rates women marriage are negative and statistically
LMM : Log of maternal mortality ratio significant at the 10% level. As expected, high
LFLE : Log of women’s life expectancy women’s reproductive health and high level of
α : Parameter to be estimated women’s empowerment increase FLFP, whereas
β : Coefficient intercept/slope variable maternal mortality is statistically not
µ : Error terms significant.

Table 1. Panel Regression Estimation Model Results.

Variabel (1) (2) (3) (4)
LogFLFP
LogFEA Education -0.1997 0.2808 -0.1288
(0.000) (0.144) (0.083)
LogWPR Politic 0.0800 0.01358 0.0388
(0.000) (0.333) (0.011)
LogCWM Marriage -4.6923 -2.1643 -2.9290
(0.000) (0.001) (0.000)
LogWGP Income 0.8480 0.3761 0.3954
(0.000) (0.000) (0.000)
LogAF Fertility 0.2819 -0.1121 0.1127
(0.000) (0.200) (0,010)
LogMM Mortality 0.4970 -0.0620 0.0988
(0.000) (0.476) (0.208)
LogFLE Life Expectancy 9.3060 -3.4727 3.9690
(0.000) (0.143) (0,000)
Constant -47.9762 14.4268 -18.1058
0.000 0.158 0.001
Adj R-square 93% 41% 79%
Prob F-statistic 0.0000 0.0000 0.0000
Number of cross secion 9 9 9
Number of instruments 72
Breusch Pagan test p-value 0,0000
Hausman test p-value 0.4807
Notes: Here OLS regression models with different specifications. Figures under coefficient variable are t-values.
Breusch-Pagan test is a test used to determine which model is better to use between the common effect and
random effect meodels. Hausman test is a test used to determine which model is better to use between the fixed
effect and random effect models. Significant at 10%.

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Jurnal Ekonomi Pembangunan: Kajian Masalah Ekonomi dan Pembangunan, 21 (1), 2020, 32-39

Column (1) presents the results from common & Smyth, 2010) which states that there is a longer
effect model estimator has an Adj R-square value granger causal relationship between women’s
of 93% meaning that the independent variable is labor participation and the level of total fertility.
approved at 93% for the dependent variable, the It happens because high levels of youth fertility
remaining 7% is placed by other variables outside have an impact on low interest in education
the model. Column (2) presents the results from which then results in women entering the labor
fixed effect model estimator has an Adj R-square market with low skill levels, thereby increasing
value of 41% meaning that the independent educational inequality, economic participation,
variable is approved at 41% on the dependent and wage inequality between men and women.
variable, the remaining 59% is placed by other This relationship is reflected in higher levels of
variables outside the model. Column (3) presents inequality and higher poverty rates for countries
the results from random effect model estimator with high female fertility rates. (Gonzales et al.,
has an Adj R-square value of 79% meaning that 2016)
the independent variable is approved at 79% The effect of women’s life expectancy on FLFP
on the dependent variable, the remaining 21% based on statistical tests obtained a coefficient
is placed by other variables outside the model.. of 3.9690 indicating that every 1% increase in
Column (4) presents the results from the breusch women’s life expectancy would increase female
pagan test and hausman test. Breusch pagan test labor participation by 39.6% in ASEAN. This is
and hausman test show that the model follows in line with previous research (Cai, 2010) which
random effect. Based on random effect results, states that health has a positive and significant
the R-square of 79% means that 79% the variance effect on labor force participation for men and
of the FLFP variable can be generated by the women. It happens because if in a country
variance of independent variables in the model. providing supportive health facilities, equality
The remaining 21% explained by other variables to obtain equitable health services between men
outside the model. Prob F-statistic value and women, the life expectancy of women in a
indicate that the model used exists, meaning country is increasing. The increase in women’s
that the independent variables in the model life expectancy shown by health will in turn
simultaneously effect on FLFP. Prob t-value increase women’s opportunities to participate in
indicate that partially there is only one variable the workforce.
has no significant effect on FLFP namely The effect of young women marriage based
maternal mortality ratio, the other independent on statistical tests obtained a coefficient of -
variables have a significant effect on FLFP. 2.9290 showing that every 1% increase in young
women marriage would reduce female labor
4.2 Discussion participation rates by 29.2% in ASEAN. This is
Based on the results of this study, variables consistent with previous research (Ejaz et al.,
in the dimensions of women’s reproductive health 2009) which states that the age of married women
namely the women’s fertility rate, women’s life has a significant effect on female labor force
expectancy, and young women marriage effect on participation. It happens because the increased
FLFP according to previous studies (Cai, 2010; of FLFP who marry at a young age cannot be
Gonzales et al., 2016; Ejaz, Khan, & Khan, 2009) adequately explained without taking into account
The effect of women’s fertility rate on FLFP changing attitudes towards women who work
based on statistical tests obtained a coefficient outside the home. Attitude becomes an important
of 0.1127 showing that each 1% increase in determinant of women’s employment status. In
women’s fertility rate would increase female particular, this finding is consistent with the
labor participation by 1.1% in ASEAN countries. interpretation that husbands’ attitudes tend to be
This is consistent with previous research (Mishra unfavorable towards women in the labor market
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Jurnal Ekonomi Pembangunan: Kajian Masalah Ekonomi dan Pembangunan, 21 (1), 2020, 32-39

when they become accustomed to a wife who is a dominated by developing countries, in contrast
full-time housewife. to developed countries. Second, in ASEAN more
All variables in the dimensions of women’s (for the formal sector) is filled by male and for
empowerment namely women’s educational certain conditions (such as unskilled workers)
attainment, women’s political participation, are also preferred by male. Meanwhile, for
and women’s per capita income effect on FLFP women more absorbed in the informal sector.
according to previous research (Lv & Yang, Third, this finding indicates that the gender gap
2018; Sackey, 2005; Lechman & Kaur, 2015; in developing countries in ASEAN is still high.
Tam, 2011). The effect of women’s political participation
The effect of women’s educational on FLFP based on statistical tests obtained
attaintment on FLFP based on statistical tests a coefficient of 0.0388 shows that every 1%
obtained a coefficient of 0.1288 indicating that increase in women’s political participation
every 1% increase in women’s educational would increase FLFP by 0.3% in ASEAN. This
attainment would reduce female labor is consistent with previous research (Lv &
participation by 1.2% in ASEAN. This is Yang, 2018) showing the results that women’s
consistent with previous research (Sackey, 2005) participation in political policy increases FLFP.
showing the results that women’s education in It happens because when women are politically
both urban and rural areas; both the elementary empowered to mobilize their voices and influence,
and post-primary levels have a significant they may tend to take steps or regulations,
negative impact on women’s labor participation. such as the area of sex work discrimination, to
It happens because based on the percentage of guarantee women’s rights. This can contribute
female labor participation in ASEAN which is to increasing FLFP.

Figure 3. Map of FLFP Concentration Areas in ASEAN Countries

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Jurnal Ekonomi Pembangunan: Kajian Masalah Ekonomi dan Pembangunan, 21 (1), 2020, 32-39

The effect of women’s per capita income on panel data regression with selected model is
FLFP based on statistical tests it was obtained a random effect model, our results show that from
coefficient of 0.3954 shows that every 1% increase all independent variables considered there are
in women’s per capita income would increase only one variable that is not affect on FLFP,
the FLFP by 3.9% in ASEAN. This is consistent namely maternal mortality ratio. Generally, the
with previous research (Tam, 2011; Lechman & women’s parliament representation, women’s
Kaur, 2015) showing the results that income has per capita income, women’s fertility rates, and
a significant positive effect on the participation women’s life expectancy have positive effect on
of the female workforce. It happens because per FLFP,while female education attaintment and
capita income is a measure used to describe the young women marriage have negative effect on
standard of living. Someone who has a high income FLFP.
per capita generally has a high standard of living. The findings could be used by national policy
The income difference reflects the difference in makers to optimize their decisions regarding the
quality of life: a rich person (reflected by high three dimension of gender inequality index (GII)
income per capita) has a better quality of life including FLFP, women’s reproductive health
(reflected by, inter alia, life expectancy, health and women’s empowerment. From a policy point
level, and education level) compared to a poor of view, our estimation suggest that improving
person. Thus, income reflected by the standard women’s reproductive health and women’s
of living can determine a person’s decision to empowerment can promote female employment
participate or not participate in the workforce. opportunities.
Based on the panel data estimation, the
results can be displayed through mapping the 6. References
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 Does Women’s Reproductive
Health and Empowerment Affect
Female Labor Participation in
ASEAN
by Izza Mafruhah

Submission date: 29-Jun-2020 11:27AM (UTC+0700)

Submission ID: 1351153728
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