The Paradox of Declining Female Work Participation in an Era of Economic Growth.

Abstract

The past three decades have seen the advent of major transformations in the Indian economy. The economy has achieved average growth rates of 5-9 per cent, education has risen sharply for both men and women, fertility rates have declined, and infrastructure facilities, particularly access to electricity, cooking gas and piped water, have improved. All these factors are expected to reduce the demand for women's time spent in domestic chores and increase their opportunities for paid work. Paradoxically, however, the National Sample Surveys document a substantial decline in women's Work Participation Rates (WPRs), particularly for rural women. Optimistic interpretation of these trends suggests that increasing prosperity accounts for women's labour force withdrawal. For young women, rising school and college enrolment is incompatible with demands of the workforce. For both young and older women, rising prosperity allows for withdrawal from economic activities to focus on domestic duties. Pessimistic interpretations of these trends suggest that it is absence of suitable jobs rather than women's withdrawal from the labour force that accounts for declining female work participation. A third explanation focuses on increasing measurement errors in work participation data from the National Sample Surveys. This paper examines these diverse explanations using data from National Sample Surveys and India Human Development Surveys for 2004-5 and 2011-12 and finds that: (1) Decline in rural women's work participation recorded by National Sample Surveys may be overstated; (2) Supply factors explain a relatively small proportion of the decline in women's work participation rates; (3) Public policies such as improvement and transportation facilities and MGNREGS that enhance work opportunities for women are associated with increased participation by women in the work force.