THE CONTEXT: The critical appraisal of the declining participation of women in India’s labor force, particularly in rural areas, despite the country’s economic growth is a cause of concern. While 70-80% of men are in paid employment, only about 17% of urban women and even fewer rural women are in the workforce. The U-shaped curve of women’s labor force participation in economic progress, with India being an outlier where female participation remains low. Multiple factors are considered for this trend, including supply-side issues like mobility restrictions and care burdens, demand-side problems such as insufficient job creation, and inaccuracies in how women’s work is captured in surveys.
ISSUES:
- Low Participation Rates: While 70-80% of men in urban and rural areas are employed, only about 17% of urban women and even fewer rural women are in the paid workforce. This discrepancy is significant and has been worsening over time.
- Economic Development and Women’s Labor Force Participation: Claudia Goldin’s U-shaped curve theory suggests that women’s labor force participation initially falls with economic development but rises again at higher levels of development. However, India does not follow this pattern; despite economic growth, female participation remains low.
- Supply and Demand Issues: Different academic perspectives exist on why women’s labor force participation is low. The supply side suggests that social norms, mobility restrictions, and the burden of care discourage women from entering the workforce. On the demand side, the lack of sufficient job creation in the economy means there are not enough employment opportunities for women.
- Underreporting of Women’s Work: Women’s contributions are often not captured accurately in surveys. If a woman assists in a family business or farm, she might not be recognized as employed. This underreporting is exacerbated by the fact that men often respond to surveys on behalf of the entire household, particularly in conservative areas.
- Motherhood Penalty: Contrary to findings in high-income countries, India does not have a significant motherhood penalty affecting women’s employment in salaried jobs. However, any employment gains for mothers are seen in informal or casual work, which is precarious and often detrimental to both the mother’s and child’s health.
- Quality of Employment: The question is whether mere employment is sufficient. The focus should also be on the quality of jobs and how women manage their professional and caregiving responsibilities. The precarious nature of informal employment, often the only option available to women post-childbirth, poses significant health risks to both women and their children.
THE WAY FORWARD:
- Policy Reforms: Implement policies that provide affordable and accessible childcare facilities, enabling women, especially mothers, to participate in the workforce without compromising their child’s care. Enforce laws that ensure equal pay for equal work and promote equal employment opportunities for women in all sectors. Encourage companies to adopt flexible work arrangements such as remote work, flexible hours, and part-time opportunities to accommodate the needs of women.
- Societal Changes: Conduct awareness campaigns to challenge and change the traditional gender roles and norms restricting women’s participation in the labor force. Increase educational efforts focusing on the importance of women’s economic participation as beneficial to the entire society, not just to individual women or families.
- Economic Incentives: Provide financial incentives or subsidies to businesses that hire and retain female employees, especially in leadership roles. Offer grants, subsidies, and training for women entrepreneurs to encourage more women to start their businesses, which can lead to more job creation and economic independence.
- Strengthening Legal Protections: Strengthen legal frameworks to protect women from discrimination and harassment in the workplace. This includes strict enforcement of existing laws and the introduction of new regulations where necessary.
- Health and Safety Measures: Ensure that all workplaces comply with health and safety standards that protect all employees, particularly women, who might face different and more severe risks in specific environments.
- Research and Data Collection: Enhance the data collection methods in labor force surveys to capture women’s work more accurately, including informal and unpaid labor. This can help in better policy formulation and assessment.
THE CONCLUSION:
The absence of a motherhood penalty may not be positive, as it reflects the necessity for women to work in precarious conditions that can negatively impact their and their children’s health. There is a need to focus not just on employment numbers but on the quality of employment and how women manage their professional and caregiving responsibilities.
UPSC PAST YEAR QUESTIONS:
Q.1 Distinguish between ‘care economy’ and ‘monetized economy’. How can the care economy be brought into the monetized economy through women’s empowerment? 2023
Q.2 Women empowerment in India needs gender budgeting. What are the requirements and status of gender budgeting in the Indian context? 2016
Q.3 Examine the role of ‘Gig Economy’ in the process of empowerment of women in India. 2021
MAINS PRACTICE QUESTION:
Q.1 Evaluate the impact of declining female labor force participation in rural India on the country’s socio-economic development and discuss the potential measures that could be implemented to reverse this trend.
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