Firstly- it's one hell of a paragraph to read. Couldn't we split it up a bit?
orthodoxy believed factors- I'd reword this- orthodox factors?
showed influence- showed an influence
lack in- of
concentrated on a few demographic groups- in
exceptionally low female participation- nothing to do with the language, but doesn't this contradict the point about a dramatic increase in female supply? (I'm not an economist so I could be talking rubbish)
in work either full-time or don’t work at all.- women in work either work full-time...
(Algan/Cahuc 2005:2)- your referencing is inconsistent- here you give a page reference, earlier you didn't
networks in Spain plays- network plays, or networks play
lower level of independency- independence?
low female employment rate which undermines the country’s average- low female employment rate, which undermines the country’s average,
Along the lines of- this sentence doesn't read that well as the opening goes on for so long- you could shorten it a bit by saying With the principle...
by individuals- by individuals,