Economic Effects On LFPR

Since the middle of last century, there is an obvious trend occurring in the labor market of many countries. The male labor force participation rate (MLFPR) has been decreasing while the female labor force participation rate (FLFPR) has been increasing, especially that of married women. Though inside the same economic body, facing the same macroeconomic environment and political background, the change of MLFPR and FLFPR shows a completely different situation. So what are the factors and how do they influence LFPR? These are what the paper goes for: through the analysis of the change of Taiwan LFPR, describe the participant condition of labor force of Taiwan, and reveal the different factors which influence separately the two genders'LFPR.The paper goes on the course of"literature review---explanation framework design ----data gathering---description---factor analysis". Basing on the summarization of the concerning classic theory and previous research, the paper brings up with its explanation framework. And, supporting by Taiwan area statistic data, the paper describes the characteristic and the changing trend of LFPR of Taiwan area。And then it builds up a econometric model to explain the LFPR changing trend, revealing the different influence of each determinant.The study shows that, education factor and economic factors including GDP per capita, employment rate and wage, have different influence to the two genders'LFPR in direction and extent.The study also shows that, the rise of wage decreases the MFLPR while increases the FLFPR. Employment rate has notable positive effect to both genders, but it influences female greater than male. Education has negative influence to male labor force supply and opposite effect to female supply. The GDP per capita influences the two gender's LFPR through wage changing indirectly.The features of this study are: 1. Basing on gender perspective to perform comparison, find out the different effects by factors to male and female; 2. Using two-step regression to find out the path, direction and extent of factors.