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The OECD countries have been experiencing fall in fertility and rise in female labour force participation. Based on panel regression analysis with interaction and mediation effect, this paper found that the negative impact of fertility on female labour force participation can be mitigated by the investment in education and health, with such investment having only a direct effect on female labour force participation without first influencing fertility. Female secondary school enrolment promotes female labour supply regardless of the level of education development. Therefore, policies on human capital investment and childrearing encouragement can be simultaneously implemented to promote female labour supply.

The effects of fertility on female labour force participation in OECD countries: the role of education and health