India’s socio-economic advancement hinges significantly on the effective utilisation of its human resources, with particular emphasis on the participation of women in the workforce. However, a concerning trend in the country is the declining participation of married women in the labour market, which stands in stark contrast to its rapid economic growth.
This editorial analysis examines the factors affecting married women’s participation in the workforce, with a focus on the age group of 25-29 and the overarching influence of marital status, education, and employment sector on their decision to work.
Furthermore, it highlights potential solutions, starting with enhancing the availability of quality day-care services, creating a supportive work environment, and increasing accessibility to safe transportation and part-time job opportunities.
Women’s Role in the Labor Market
- Women participating in the labour market can increase economic prospects and improve household decision-making.
- A lower rate of women’s participation in the labour force can affect their bargaining power within and between households. This can also impact the nation’s overall economic growth.
- Claudia Goldin, winner of this year’s Economics Nobel, noted significant variances in roles and pay between men and women.
- Goldin’s work focuses on understanding women’s outcomes in the labour market.
- She offers a detailed view of women’s economic history and sheds light on gender disparities in the workforce.
- Her research highlights the factors contributing to these gaps in history and the ongoing inequalities in modern times.
Global Female Labor Force Engagement
- Worldwide, women’s involvement in the labour force is low.
- As per World Bank’s 2022 analysis, the global female labour force participation rate (LFPR) was 47.3%.
- Despite economic advancements worldwide, developing countries still observe a consistent drop in female LFPR.
- A stark decrease is evident in India’s female LFPR, which has dipped from 28% in 1990 to 24% in 2022.
- This decline impacts women’s growth potential and restricts their ability to fully exploit their capabilities.
- A considerable gap in labour market engagement persists, based on gender.
LFPR Of Adult Women Exhibits A U-Shaped Pattern
- The LFPR of women, especially adult women, declines initially with economic growth.
- This decline is due to the shift of jobs from homes, farms, and small businesses to the wider market.
- There is a strong income effect that initially reduces LFPR, but over time, this effect weakens, and a substitution effect comes into play.
- Economist Goldin (1994) terms this as a U-shaped pattern in the Labor Force Participation Rate (LFPR) for adult women as economic growth progresses.
- Initially, the participation rate drops as production moves from homes, family farms, and small businesses to larger markets. This decrease is attributed to a strong income effect.
- As economic growth continues, the income effect diminishes, and the substitution effect becomes more prevalent.
The Role Of Marriage In Women’s LFPR
- Marriage significantly impacts the LFPR of women.
- After getting married, women tend to participate less in the labour market.
- This reduction in participation can be attributed to limited educational attainment, increased family duties, less mobility, and societal disapproval of women working outside the home.
- Marriage increases household duties for women and introduces several social and cultural barriers to their labour force participation.
Factors Influencing Labour Market Participation Of Married Women
- Many factors can lead married women to leave the labour market.
- These factors include individual characteristics, societal norms, religious and caste affiliations.
- Location and household wealth also play roles in deciding women’s labour market participation.
- Societal norms about women working outside the home can significantly impact their participation in the labour force.
Analysis Of Women’s Career Choices Post Marriage
- When deciding to return to work after marriage, many women prefer jobs that offer flexibility and are close to their homes.
- They face unique professional challenges due to societal constraints, which leads to gender disparities in career choices, income, marriage age, and family planning decisions.
- Upper-class women tend to meet societal expectations by primarily assuming domestic roles.
- Lower-class women, on the other hand, often participate in the labour market, largely due to economic pressures arising from poverty.
Married Women’s Workforce Participation In India
- The labour force participation rate of married women in India shows significant differences when calculated by Usual Principal Status (UPS) and Usual Principal and Subsidiary Status (UPSS).
- Data from the National Sample Survey Office’s Periodic Labour Force Survey (PLFS) indicates lower employment for married women under the UPS status.
- In 2022-23, the labour force participation rate for married women (25-49 years old) fell by 5% from 50% in 2004-05 to 45%.
- This decreasing trend is mainly observed in the 25-29 age group.
- Compared to unmarried women, married women are less likely to participate in the labour force.
- Education appears to affect a married woman’s decision to work. Less educated women are more likely to work after marriage than educated women.
- The agricultural sector remains the primary source of employment for women in India.
Improving Workforce Participation Of Married Women In India
- High economic growth in India needs to be coupled with women’s empowerment.
- A significant deterrent for working women in India is the lack of sufficient day-care services.
- Enhancing accessibility and quality of day-care services/crèches across socio-economic classes is crucial.
- These services should be readily available in both formal and informal sectors.
- Government initiatives like the National Crèche Scheme for the Children of Working Mothers are steps in the right direction.
- Similar schemes need to be implemented across public and private sectors to boost married women’s participation in the workforce.
- Work environments should focus on the needs and well-being of women.
- Safe transportation options should be made available for women.
- Expansion of part-time job opportunities can further encourage women to join the labour market.
Note: This editorial analysis is based on the article titled “Women, marriage and labour market participation”, published in The Hindu on, October 26, 2023.