Syllabus: Inclusive Growth, Indian Economy and issues relating to Planning, Mobilization of Resources, Growth, Development and Employment (GS 3)
Source: The Hindu – 26/10/2023
Application: where to apply?
When asked about
– Gender Disparities in Labour Force
– Reasons for diminished LFPR of women
– Consequences of diminished LFPR
– Relevance of Female LFPR in Economic Nobel 2023
– Marriage as a hindrance to diminished LFPR
Content
Women’s labour force participation rate (LFPR) ( Global and National Statistics)
- World Bank estimates (2022): The worldwide Labour Force Participation Rate (LFPR) for women was 47.3% in 2022.
- Trend of Female labour force participation rate across India:
- International Labour Organisation (ILO) data: The employability gender gap in India is 50.9%, with only 19.2% of women in the labour force compared to 70.1% of men.
- World Economic Forum’s Gender Gap Report 2023: India ranked 127 out of 146 countries and was behind smaller neighbours such as Sri Lanka, Bangladesh, and Nepal.
- Potential GDP boost: The increased involvement of women in entrepreneurship has the potential to boost India’s GDP by $0.7 trillion by 2025.
Reasons for low female LFPR
Economic Reasons
- Gender Pay Gap: The 2022 Oxfam India Discrimination Report underscored the existence of a significant gender pay gap in India. This gap is a result of widespread bias in recruitment processes and salary structures, which disproportionately affect women across the nation.
- Weak Job Creation and Economic Policies: The lack of robust job creation, coupled with flawed economic policies and inadequate investment in unorganized sectors, micro, small, and medium enterprises (MSMEs), and rural development, has led to a dearth of gainful employment opportunities for both men and women.
- Women in Agriculture: A significant number of women in India are engaged in the agricultural sector. However, their work is often undervalued and underpaid, contributing to the overall low Labor Force Participation Rate (LFPR) for women.
- Lack of Suitable Jobs for Women: There is a scarcity of job opportunities that are suitable and accessible for women, further contributing to their low LFPR.
- Geographical Location: The geographical location of a woman’s residence can significantly impact her ability to participate in the labor force. Women living in remote or rural areas may face additional barriers to employment.
- Household Wealth: The wealth status of a woman’s household can influence her LFPR. Women from wealthier households may have lower LFPR due to socio-cultural norms or lack of necessity.
- Informal Sector Employment: A large number of women work in the informal sector where they are often underpaid or not paid at all. This informal work is typically undervalued and unrecognized as ‘work’.
- Lack of Skills or Training: Many women may lack the necessary skills or training for available jobs, reducing their chances of participating in the labor force.
Social and Cultural Reasons
- Societal norms and Gender roles: Conservative societal norms in India prioritize women’s roles within the family, often leading them to leave their jobs, especially after marriage or after having children.
- Care Economy Burden: Women often bear the “care economy burden,” which refers to unpaid work carried out at home or within the community. This includes tasks like childcare, elder care, cooking, cleaning etc., which consume a significant portion of women’s time and energy but are not recognized as economic activities.
- Religious and Caste Affiliations: Religious beliefs and caste affiliations can significantly influence women’s labor force participation in India. Certain religious and caste groups may have stricter norms regarding women’s work outside the home.
- Impact of Education: Interestingly, the relationship between education and labor force participation for married women in India is not straightforward. Women with lower levels of education or literacy are often more likely to participate in the labor force after marriage compared to their more educated counterparts. This could be due to economic necessity or lack of opportunities for educated women.
- Gender Inequality at Workplace: Gender inequality in the workplace is another factor that discourages women from participating in the labor force. This can manifest in various ways, including unequal pay, lack of opportunities for advancement, and gender bias.
- Workplace Safety Concerns: Concerns about safety at the workplace can deter women from participating in the labor force. This includes both physical safety and protection from sexual harassment.
- Lack of Childcare Facilities: The absence of affordable and reliable childcare facilities can make it difficult for women with young children to participate in the labor force.
- Limited Mobility: Women’s mobility can be restricted due to safety concerns or societal norms, limiting their access to job opportunities.
- Discrimination in Hiring Practices: Discrimination during recruitment processes can also contribute to lower LFPR for women. Employers may prefer male employees due to stereotypes or biases.
- Divergent Paths of Dominant-Class and Marginalized Women:Upper-class women often conform to societal norms by taking on domestic roles, while marginalized-class women are more likely to join the labor market due to economic necessities.
Marriage as a hindrance to female LFPR
- Limited educational attainment due to early marriage: Early marriage often results in limited educational opportunities for women and thus contributing to low LFPR.
- Less mobility due to increasing family obligations: Responsibilities such as taking care of children, the elderly, and house chores can limit women’s mobility and time available for employment.
- Societal disapproval of women in employment outside the domestic sphere: Societal norms and expectations can discourage women from seeking employment outside the home after marriage.
- Lower employment proportion for married women: Analysis of India’s NSSO PLFS survey shows that married women have a lower employment proportion under the UPS status compared to the UPSS status.
- Decrease in female labour force participation rate (FLFPR) among married women: There has been a 5% decrease in the FLFPR among married women aged 25 to 49 years, from 50% in 2004-05 to 45% in 2022-23. The decline is primarily concentrated within the age group of 25-29.
- Lower levels of labour force participation among married women compared to unmarried women: Married women tend to participate less in the labour force compared to their unmarried counterparts.
- Greater labour force participation among less educated women after marriage: Women lacking literacy skills demonstrate a greater inclination to participate in the labour force after getting married, as opposed to their well-educated counterparts.
Consequences of diminished Female LFPR
- Economic Impact: The nation’s economic advancement can be impeded by a reduced LFPR.
- Household Power Dynamics:It can reduce women’s intra and inter-household bargaining power.
- Income Inequality: It can exacerbate income inequality within households and society.
- Underutilization of Human Capital: The potential and abilities of a large part of the population are not fully utilized.
- Social Challenges: It can perpetuate conventional gender roles, hindering societal advancement.
- Poverty: A lower LFPR can result in an increased poverty rate among women.
- Education: Despite having the same level of education, women may face challenges in achieving parity in career opportunities.
Govt Initiatives
- Women Industrial Training Institutes: These institutes provide vocational training to women in India, aiming to stimulate employment opportunities among women of various socio-economic levels and different age groups.
- Maternity Benefit (Amendment) Act: This act was passed in 2017 and it increased the duration of paid maternity leave available for women employees from the existing 12 weeks to 26 weeks. It also provides 12 weeks maternity benefit to a ‘Commissioning mother’ and ‘Adopting mother’.
- The Equal Remuneration Act, 1976: This act provides for payment of equal remuneration to men and women workers for the same work or work of similar nature without any discrimination. It aims to eliminate gender-based wage discrimination in India.
- Minimum Wages Act, 1948: This act ensures that the wages fixed by the appropriate Government are equally applicable to both male and female workers. It does not discriminate on the basis of gender.
- National Career Service (NCS) Project: This is a mission mode project under the Ministry of Labour and Employment that provides a wide array of employment and career-related services to the citizens of India. It works towards bridging the gap between jobseekers and employers, candidates seeking training and career guidance, agencies providing training and career counseling.
- Nirbhaya Fund: This is a dedicated fund set up by the Government of India in 2013 for implementation of initiatives aimed at enhancing the safety and security of women in the country. The fund supports initiatives that protect the dignity and ensure safety of women in India.
Solutions for Low Female LFPR
- It is imperative to enhance the quality and accessibility of day-care services/crèches for employed women across various socio-economic strata, encompassing both formal and informal sectors.
- Implementation of work settings that prioritize the needs and well-being of women: This involves creating a supportive environment that respects women’s personal and professional needs. It includes flexible work hours, mental health support, and policies that promote work-life balance
- Provision of secure transportation options: Safe transportation is crucial for women’s mobility and independence. Strategies include designing bus routes according to women’s schedules and offering services that allow women to get off closer to their destinations late at night and early in the morning.
- Expansion of part-time job possibilities would serve as catalysts for the greater participation of women in the labour market within India.
- Financial support for women entrepreneurs, improved education and training access, gender equality promotion, safety and security measures, increased job opportunities, better work policies, and affordable child care.
International Labour Organisation (ILO)suggestions to bridge the workforce gender gap
- Ensuring equal pay for work of equal value through legal protection, wage transparency, and gender-neutral job evaluation.
- Addressing occupational segregation by challenging preconceived notions about the value of certain types of work.
- Eliminating gender discrimination and harassment through legislation, effective remedies, and awareness campaigns.
- Promoting work-family balance through adequate maternity protection, paid paternity and parental leave, and social protection measures.
- Creating quality care jobs and improving regulation and protection for care professionals.
- Implementing gender-responsive policies to safeguard women’s employment during economic downturns.
Way Forward
- Budgetary Allocations for Women and Children: Adequate budgetary allocations for women and children are crucial for their empowerment. This can be used for improving health services, education, and providing social security.
- Women’s Safety: Spending on women’s safety involves investing in law enforcement, creating safe public spaces, and promoting awareness about women’s rights.
- Thoughtful Policy, Quality Childcare, and Mentorship: Thoughtful policy-making involves considering the diverse needs of the population. Quality childcare can be ensured by setting high standards for childcare services. Mentorship programs can help in guiding individuals towards achieving their potential.
- Employment generation coupled with improving employability should be the priority of the Government.
Related Topics
Relevance of Female LFPR in Nobel Laureate’s work
- The recent Nobel Prize in Economics (2023) was awarded to Claudia Goldin for her groundbreaking work on women’s labour market outcomes.
- Her research has greatly enhanced understanding of the Female Labour Force Participation Rate (LFPR) and its impact on economic growth.
- Claudia Goldin established the weak correlation between economic growth and the women’s labour force participation rate (LFPR) by incorporating changes in the nature of work and the role of societal expectations around childbearing.
- Her research has shown how women’s paid employment went unreported in agricultural societies, declined with industrialisation, and then recovered as services provided most of the jobs.
- She challenged the notion that women’s LFPR increases as economies expand. Instead, she found that a higher LFPR requires numerous societal changes concerning women’s roles in families and societal expectations.
- Goldin’s research underscored how a low women LFPR leads to inefficient use of human capital and lower growth outcomes.
- She identified several factors influencing the demand and supply of women in the labour force. These include opportunities for women to balance paid work with family, decisions related to education and childrearing, technological innovations, laws and norms, and the structural transformation of the economy.
- The most significant of her observations was that female participation in the labour market did not exhibit an upward trend over the entire period, but rather a U-shaped curve.
- Goldin’s findings have drawn attention to the missing women from the labour force, sparking discussions on policies aimed at enhancing women’s LFPR.
Practice Question: Examine the factors contributing to the low Female Labour Force Participation Rate (LFPR) in India. Discuss the socio-economic implications of this trend and suggest measures to improve the situation.
Reference
- Female labour participation declining in India: Why are women not working?
- Improving Female Labour Force Participation through Outcomes-Based Financing
- Labour Force Participation Rate (LFPR) of women shows an increasing trend as per the annual PLFS reports
- Sustaining women at work: How to increase India’s female labour force participation