Abstract
Along with the low fertility rate and rapid population aging in Taiwan, native married women’s responsibilities of caring the elderly have increased dramatically over time. The government allows the migration of Foreign Domestic Workers (FDWs) to help to relieve the burden of native married women. As a result, the introduction of FDWs may encourage native married women to enter the labor market. The purpose of this thesis is to examine the effect of foreign domestic workers on native married women's labor force participation under the evolution of FDWs policy. We use the data from the Woman's Marriage, Fertility and Employment Survey (WMFES), and apply the probit model to estimate the employment decision of native married women. We use the FDWs density in each county to measure the effect of introducing the FDWs. Our findings show that when there is a clear and coherent policy direction on the migration of FDWs, the density of FDWs has a significantly positive effect on native married women’s labor force participation. In addition, we find that a higher density of FDWs do not change the labor force participation of highly educated married women. The impact is concentrated on native married women with a medium or low level of education.