Individual Married Female Labor Participation: An Application of Parametric & Non-Parametric Econometric Analysis

Iranian female participation rate in the labor market of Iran in the recent decade shows a increasing trend which amounted from 8% in 1999 to 18% in 2005.Using parametric and non-parametric econometrics methods, in this research we aim to study the behavior of individual married females labor participation. Our dataset consist of the annually budget survey of 2006 which is reported by statistical center of Iran. Our findings from parametric analysis show that the number of kids less than 6-years old, non-labor income and husband’s monthly income are the main determinants of women’s participation in the labor market, and they affect negatively the probability of labor participation. Moreover, the effect of age is positive but decrearsing, however individula’s education level increases the probability. Number of children older than 6-years is not a significant explanatory variable in the model. On the other hand, results of the non-parametric model are in some extent different. Findings indicate that individual labor participation have identical pattern for all of females. Namely; reaction of individuals to explanatory variables are in the same directions. Number of kids (less or greater than 6) are the leading force for market participation in both the rural and urban areas.
JEL Classifications: J13, C25 and C14