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Can Female Political Representation Impact Female Labour Force Participation Rate? A Study across Indian States using Fixed Effect Panel Data Model

Author

Listed:
  • Deepika Sharma

    (Patliputra University
    National Institute of Technology)

  • Deepak Kumar Behera

    (National Institute of Technology (NIT)
    University of Hyderabad)

Abstract

Despite much impetus on economic growth, educational expansion, health and infrastructural development, women participation in labour force market is not improving. Women participation in politics, leadership positions, national parliaments and local government, judiciary and police force is very essential for achieving Sustainable Development Goals (SDGs) by 2030. The said target is clearly mentioned as SDG 5.5 which entails—“Ensure women’s full and effective participation and equal opportunities for leadership at all levels of decision-making in political, economic and public life”. In India, percentage of female elected representatives in parliament rose from 9.0% in 1999 (13th Lok Sabha general elections) to 14.4% in 2019 (17th Lok Sabha general elections) as per the statistical reports published by the Election Commission of India. Thus, the paper tries to study the relationship between women in parliament (MP) and female labour force participation rates (FLPR) using panel data across Indian states for the period 1999 to 2019. The objective of the paper is to empirically examine the relationship between female (elected) political representation and FLPR, using fixed effect panel data model across 15 Indian states excluding Union Territories (UTs), North-Eastern States (NEs), Delhi, Goa, and Jammu & Kashmir (J&K). The panel data is created by taking data of female elected candidates of different states from the statistical reports of general elections published by Election Commission of India and that of FLPR is extracted from various rounds of National Statistical Office (NSO) and Periodic Labour Force Survey (PLFS) reports, respectively. The empirical results suggest that higher political representation of women is associated with favourable female labour outcomes. Our result implies that Female Political Representation (FPR) has a positive and significant effect on FLPR under fixed effect model. However, the random effect model suggests net state domestic product (NSDP) per capita has a negative and significant effect on FLPR, while, Fixed effect model suggests that female literacy rate has a negative and significant effect on FLPR which are consistent with the established literature.

Suggested Citation

  • Deepika Sharma & Deepak Kumar Behera, 2023. "Can Female Political Representation Impact Female Labour Force Participation Rate? A Study across Indian States using Fixed Effect Panel Data Model," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 66(4), pages 1005-1017, December.
    • Handle: RePEc:spr:ijlaec:v:66:y:2023:i:4:d:10.1007_s41027-023-00464-3
    DOI: 10.1007/s41027-023-00464-3
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    References listed on IDEAS

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    1. Clots-Figueras, Irma, 2011. "Women in politics: Evidence from the Indian States," Journal of Public Economics, Elsevier, vol. 95(7-8), pages 664-690, August.
    2. Bhalla, Surjit & Kaur, Ravinder, 2011. "Labour force participation of women in India: some facts, some queries," LSE Research Online Documents on Economics 38367, London School of Economics and Political Science, LSE Library.
    3. Raghabendra Chattopadhyay & Esther Duflo, 2004. "Women as Policy Makers: Evidence from a Randomized Policy Experiment in India," Econometrica, Econometric Society, vol. 72(5), pages 1409-1443, September.
    4. Aysit Tansel, 2001. "Economic Development and Female Labor Force Participation in Turkey: Time-Series Evidence and Cross-Province Estimates," Working Papers 0124, Economic Research Forum, revised 08 2001.
    5. Beaman, Lori & Duflo, Esther & Pande, Rohini & Topalova, Petia, 2011. "Political Reservation and Substantive Representation: Evidence from Indian Village Councils," India Policy Forum, National Council of Applied Economic Research, vol. 7(1), pages 159-201.
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    More about this item

    Keywords

    Female labour force participation rate (FLPR); Fixed effect; Random effect; Panel data; Hausmen test; Female political representation (FPR);
    All these keywords.

    JEL classification:

    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

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