OIL OR ISLAM?: ASSESSING CAUSES FOR LOW FEMALE LABOR FORCE PARTICIPATION IN BENIN AND NIGERIA

Abstract

The two dominant and competing explanations for low female labor force participation (FLFP) in the Middle East and Africa are the structuralist and culturalist theories. Structuralists emphasize resource wealth and its distortive effects on the labor market, while culturalists argue Islamic gender norms better explain employment decisions. I directly adjudicate between these theories via a micro-level analysis of Benin and Nigeria. These countries share historical contexts (colonial rule) and religious compositions (northern Muslim and southern Christian regions), while varying on resource wealth (Benin oil-poor, Nigeria oil-rich). Linear models with fixed effects and an instrumental variables approach reveal that Muslim women and Muslim regions have consistently lower FLFP rates compared to non-Muslim counterparts. Oil-wealth has no significant effect on the outcome. The causal mechanism through which Islam decreases FLFP is attitude formation. A deliberative policy making approach in these countries would directly accommodate parties with diverse cultural values to create long lasting societal transformation.