Effect of Female Education and Labor Force Ratio on Economic Development

Abstract

This study investigates the effects of women’s education and labor force ratio on the level of development in countries. We use a complete dataset covering 44 countries over the period 1990–2010. It comprises the following: education index, the ratio of girls to boys in primary and secondary education, income per capita, human development index, life expectancy at birth, population in the 0–14 and 15–64 age intervals, population over 64, number of seats held by women in parliaments, and female labor force ratio. We interpret this dataset using panel regression analysis, with the human development index as the depend ent variable. The variables are also subject to factor analysis and this results in three statistically significant factors—education and development, female labor force ratio, and population. We examine the rankings of factor scores for the countries covered and relevant to the issues in question. We then interpret their consequences. The countries are ranked using factor analysis and the results of the fixed effects model, which studies the changes that occurred between 1990 and 2010.