According to the Global Gender Gap Report 2022, out of 146 countries, India was ranked 143 on the economic participation and opportunity category for women. This contrasts with several other countries which have higher labour force attachment rates for women at similar education, income, and fertility levels as that of India.
Despite increasing female education, declining fertility, and economic growth, the proportion of working-age females who are employed continues to remain conspicuously low and stagnant at 23 per cent, according to the latest Periodic Labour Force Survey against the global average of slightly over 50 per cent.
Overall Growth
India’s low levels of female employment not only have negative implications for income generation in the economy but also result in lower female empowerment. Several studies show that women who earn an income have a higher household decision-making power and greater control over allocation of household resources. For instance, in households where women contribute a higher share of income, more income is likely to be spent on children’s education and health. This has positive spill-over impacts on human capital formation, spurring future growth. Thus, female empowerment is likely to be beneficial for the overall growth of the economy.
However, India has not witnessed any growth in the urban female employment rate in the past three decades. Research shows that this could be a result of both supply- and demand-side factors. Some of the factors that explain the low levels of employment among urban women include social norms around the gendered division of domestic work, concerns regarding family status if a woman is working, and a lack of suitable job opportunities.
Unequal Division Of Labour
Latest time use data show that married women spend at least eight hours per day on domestic work as opposed to married men, who spend only an hour per day. This contrasts with the developed countries where women spend only 1.5-2 times more hours on household chores than men, and even in South-East Asia where various time use surveys show on average thrice the time spent by women on domestic work when contrasted to men.
In India, the disparities are much starker with married women spending almost eight times more hours on household work than men. The expectation that women must undertake household chores in addition to any outside work, can lead to low female attachment to the labour market.
Data from the Periodic Labour Force Survey 2019-20 show that among urban married women having at least college education, the employment rate is 30 per cent. On the other hand, the employment rate among women of similar age and education but who are never married is almost 70 per cent. This clearly shows that unequal division of labour within married couples can lead to gender disparities in employment rates.
Status Building Activities
Studies also show that time spent in status-building activities for the household, such as religious or community activities, increases with female education and household income. Thus, status generated for the household through these activities leads to lower levels of female engagement in the labour market. Households also place higher status on men being the primary breadwinners for the family, further exacerbating this channel.
In addition, employed women in India face a penalty in the marriage market. Recent research shows that employed women are 10-20 per cent less likely to receive proposals from potential male suitors. This penalty is larger among the higher castes of northern India, where gender norms are more patriarchal. The penalty is also larger for women employed in male-dominated occupations.
On the other hand, the penalty for employed women is the least in female-dominated occupations such as teaching, which allow for balancing household work with time spent at work. These occupations also have more women, thus, reducing sexual harassment at work and other safety concerns. Notably, female-dominated occupations also have lower wages showing that gender segregation of employment due to marriage market preferences can exacerbate gender wage gaps.
The lack of suitable quality jobs can also inhibit female employment. Around 42 per cent of married women and 50 per cent of unmarried women who are not in the labour force in urban India report that they would be willing to take up work if it was near their homes (National Sample Survey, Employment and Unemployment 2011-12, author’s own calculations) — again pointing at the flexibility that women need to balance household work with professional duties.
Quality Jobs
Emerging evidence also shows women are more likely to work in larger firms since these firms are more likely to provide amenities such as maternity and paid leave, which are likely to be valued more by women. These firms are also more likely to demand both female and male skills. Thus, quality jobs are essential to increase female employment in India.
While changing social norms is a slow process, other supply-side barriers such as providing safe and accessible transport for women and skills which are demanded by the labour market could induce women to enter the labour market.
We need a combination of demand- and supply-side interventions that can bolster the female employment rates in India, finally making the two halves of the population equal in their access to economic opportunity.
(Kanika Mahajan is Assistant Professor of Economics, Ashoka University)
Disclaimer: The views expressed above are the author's own. They do not necessarily reflect the views of DH.