Factors Contributing to the Current Female Labor Force Participation Rate

“Gender Equality in China's Economic Transformation” was published October 2014 and was the collaborative efforts of UN Women, UN Systems in China and experts from Peking University and National Women’s University. It covers gender issues in the labor market during China’s economic transformation and the causes of gender disparity and inequality in three selected areas: employment opportunities, income and unpaid labor.

First, the market-oriented reform in China has undermined the state’s protection and support for women in the labor market. The emphasis of efficacy rather than fairness in the market without necessary regulations from the state, together with lack of governmental support in job protection and social welfare, lead to the discrimination against women in the labor market and gender-based occupational segregation.

Second, empirical studies in China showed that when the potential income gap between husband and wife widened, the one with the higher income would stay employed in the market whereas the one with lower income would engage in household production,especially among low-income families.

Third, when the government and employers withdrew from the responsibilities of social welfare and care provision, the accessibility and price of childcare resources affect many mothers’ decisions of participating in the labor force, traditionally more so than that of men.

Fourth, the women’s labor force participation rate is largely influenced by women’s educational attainment. Married women with the lowest educational attainment experienced the largest decline of labor force participation.

Fifth, women, especially those employed in the private sectors or employed informally, are usually forced to leave the labor market at childbearing as many private enterprises do not have any welfare on maternity leave, maternity subsidy, or job guarantee after the childbirth.