A variety of explanations have addressed the phenomenon of secular change in married women's employment in rapidly industrializing countries. These include theoretical frameworks that emphasize female labor supply, the conditions of labor demand, patriarchal values, the international division of labor, and the effects of exportled industrialization. This article examines two societies (South Korea and Taiwan) that showed considerable similarity in female labor supply conditions, female labor force participation, and cultural values 20 years ago but have since diverged in dramatic and puzzling ways. Using aggregate and microlevel data, this article shows that the emergent differences in married women's employment are best explained by the intersection of labor supply (similar in the two cases) and demand (markedly different). The article highlights the impact of government policy and foreign loan investment in shaping the nature of labor demand during rapid export-led industrialization in both countries.
