Determinants of the Low Female Labour Force Participation in India

Abstract

The low and declining female labour force participation rate in India despite strong growth over the past decade is puzzling and stands out among emerging markets. At the same time greater economic participation of women can be a source of inclusive growth, and wellbeing. Assessing determinants of the labour force participation of women in India can open important policy insights. This paper first describes key employment trends in India by gender. Then the potential determinants of female labour force participation are identified based on literature, basic statistics and econometric techniques. Given the large regional differences in India the analysis is also conducted by region and between rural and urban areas. In contrast to other BRIICs or OECD countries, education and incomes are negatively correlated with female labour for participation in India. Apart from lack of jobs, social and cultural factors keep women outside the labour force. Other determinants relate to infrastructure, access to finance, labour laws and rural employment programmes. This Working Paper relates to the 2014 OECD Economic Survey of India (www.oecd.org/eco/surveys/economic-survey-india.htm).

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