Determinants of female labor force participation in Eecuador from the perspective of economic crises

Abstract

Female labor force participation in the context of economic crises is a critical issue in Ecuador. The impact of the 2000 dollarization, the 2008 financial crisis (the Great Recession), and the COVID-19 pandemic on female labor participation has been analyzed. The research question focuses on how economic crises have affected women’s ability to integrate and remain in the labor force, considering factors such as fertility, education, and unemployment. A panel data econometric model is employed to examine variables like fertility rate, unemployment, and secondary school enrollment between 1990 and 2022. The results indicate that dollarization had the most significant negative impact, followed by the pandemic, while the 2008 crisis was less substantial. The fertility rate showed that a one percentage point increase led to a 2.24% decrease in female labor participation, limiting women’s employment opportunities. On the other hand, female unemployment indicated that a one percentage point increase reduced female labor participation by 0.14%. However, in Ecuador, secondary school enrollment rates were not significant in relation to female labor participation. It is concluded that policies need to be implemented to remove structural barriers and improve women’s economic resilience during times of crisis.