HOW WAGES AFFECT THE BEHAVIORAL TENDENCY OF FEMALE LABOR FORCE PARTICIPATION

Abstract

Economic activities can’t be separated from consumption, people need to consume, therefore the circle of economic activities including production, consumption, and distribution will continue. In order to consume, one must have the ability to provide payment for their need, this includes food and other daily needs. Nowadays with the ever-changing number of resources and substitute item, the price of certain item keeps on increasing, everyday spent for daily need is getting higher by days, this condition is assumed to be the effect of increasing price, making the amount becoming less and less. This condition affected the behavior of household member, which in some household, the member depends on income only, the shift in modern society, allowing female to partake in economic activities, specifically working in various sector and specialization. This paper serves the purpose to explore about how wages could affect the behavioral tendency of female labor force participation, which require them to manage multiple task such as housework, and the job they currently occupy. The result of this paper implies that, in term of decision to work, this paper found two form motivation, which is by self-interest to fulfil personal needs due to insufficient wage for secondary needs, other were simply to fill in the lack of family living cost that they currently need every month.