Intra-household bargaining power and female labor force participation

The paper examines the relationship between women's Intra-Household Bargaining Power (IHBP) and Female Labor Force Participation (FLFP) in urban areas of Indonesia. In observing the IHBP and FLFP's relationship, I control women's characteristics and household composition. The Indonesia Demographic and Health Survey in 2017 is the primary data source for this research. I use 4346 eligible observations of women aged 15-49 who currently reside in urban areas and live with their husbands. This data is then analyzed with logit regression due to the binary dependent variable of FLFP. Four indicators of IHBP: large household purchase, women's healthcare, family visit, and husband's earnings are the independent variables. Consistent with previous literature, large household purchase, women's healthcare, and family visit show a positive correlation between IHBP and FLFP. In other words, a lower IHBP is significantly associated with a lower probability of FLFP. However, the husband's earnings show a contrasting result in which a lower women's IHBP is associated with a higher probability of FLFP.