The effects of corruption and inflation on women's labor force participation: A quantile regression approach

This study aims to investigate the effects of inflation and corruption on women’s labor force participation using data from 67 countries in 2022. While conducting this research, GDP and Gross Capital Formation, which is an indicator of investments, were also analysed, but since they were found to be statistically insignificant, the model was constructed by excluding these variables and the analysis continued. Findings reveal a negative impact of inflation and a positive impact of reduced corruption on female labor force participation. Moreover, the test of reverse causality reveals the effect of female labor force participation on corruption. Another important finding of the analysis is that the corruption index parameter is statistically significant, while inflation is insignificant. This shows that in countries with low female labor force participation, inflation is not the reason for the low rate. In addition to this finding, one of the important findings of the analysis is that the severity of the effect of corruption on women’s labor force participation rate increases as the quantile decreases. These results underscore the importance of anti-inflation and anti-corruption policies to promote gender equality in the workforce. Understanding the effects of economic variables like inflation and corruption on female labor force participation is crucial for implementing effective policy measures. This study distinguishes itself from the limited existing literature through some of its findings, making a significant contribution to the field.