Female labour force participation and economic growth in the South Mediterranean countries

We investigate the relationship between female labour force participation and economic growth in the South Mediterranean countries with a two-step methodology of econometric exercise and general equilibrium modelling. Econometric estimations on female labour participation confirm the U-shaped function and the presence of region-specific barriers. Estimations have been employed in a satellite manner to a general equilibrium model for the simulation of (i) changes in female labour force participation as a result of income developments and (ii) lowering of region-specific barriers to female labour force participation. The results suggest that while the first may lead to marginally lower economic growth, the second may have a considerable positive impact on growth.