The Determinants of Female Labour Force Participation: The Case of Malaysia

The purpose of this study is to examine the determinants of Female Labour Force Participation in Malaysia. Economic progress is positively associated with female labour force involvement due to changes in occupational structure and more educational options, as well as increased household duties. This statement is popularised by the modernisation theorists. However, in the case of Malaysia, the female labour participation keeps portraying unstable pattern for the past few decades. Hence, it is important to investigate the determinants of female labour participation in Malaysia. This study employed several empirical tests to determine the determinants of female labour force participation and its relationship with economic growth in Malaysia. The data employed in this study was obtained from the Department of Statistics Malaysia (DOSM) and World Bank. The findings of this study suggest that Gross Domestic Products (GDP), Urban Population, and Fertility Rate have both short-run and long-run relationship with Female Labour Force Participation Rate. Considering the fact that all variables have significant short-run and long-run relationship with each other, this study recommend that the government should come up with policies to encourage women to participate in the economic activities