Determinants of female labor force participation in Afghanistan

Abstract

Introduction

Afghanistan‘s economy possesses some features that are hard to find in any other South Asian economy (for example, the age composition of Afghanistan). According to the Afghanistan Living Condition Survey (ALCS) 2014, nearly half of the country‘s population is less than 15 years old. The Fertility Rate in Afghanistan, although it is still very high at around 6, is showing a downward trend. This means that, while other South Asian countries are currently experiencing their demographic dividend, Afghanistan is yet to enter this phase. This gives Afghanistan a unique opportunity to prepare itself, so that it could better reap the benefit of its demographic dividend.

When considering the present condition of Afghanistan‘s economy, the future doesn‘t look promising. Afghanistan is trapped in a chronic employment crisis. The unemployment rate, according to the 2014 Afghanistan Living Condition Survey (ALCS) Round was about 22.6 per cent, which further increased to 23.9 per cent in 2017. Due to the very young population of Afghanistan, the dependency ratio is already very high (close to 100). To worsen the situation, the female labor force participation rate in Afghanistan is abysmally low. In this study, we look at the determinants of labour market participation decisions of women in Afghanistan. It also focuses on the social and economic determinants of female labor force participation decision, with major focus on education. Furthermore, we will try to identify the factors that ultimately lead to women being remuneratively employed, once they enter the labour force.