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Gender Diversity at the Workplace and Industrial Productivity: Empirical Evidence from Indian Formal Manufacturing Sector

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  • Irfan Ahmad Sofi

    (Department of Economics, Islamic University of Science and Technology, Awantipora, Pulwama
    Baba Ghulam Shah Badshah University, Rajouri)

  • Sarfraz Ahmed

    (Baba Ghulam Shah Badshah University, Rajouri)

  • Dil Pazir

    (Baba Ghulam Shah Badshah University, Rajouri)

Abstract

This study examines the impact of gender diversity on productivity in India’s formal manufacturing sector, utilizing unbalanced panel data across 13 states and 71 industries from 2008 to 2021. We construct a gender diversity index using Blau’s formula, and assess labour productivity and total factor productivity (TFP). Cob-Douglas production function is employed for TFP estimation, using Levinsohn and Petrin (2003) estimator to address the potential endogeneity problem. Fixed effects regression results indicate that a 1% increase in gender diversity leads to a 2.9% rise in labour productivity and a 2.7% increase in TFP. The findings remain robust after accounting for control variables and are further supported by propensity score matching analysis, which indicates that gender-diverse industries achieve 5.8–9.1% higher TFP. This study highlights the importance of gender-inclusive workplaces in boosting productivity and suggests policies to encourage female participation in manufacturing. By focusing on workforce-level diversity and its impact on productivity, this research fills key gaps in the Indian context.

Suggested Citation

  • Irfan Ahmad Sofi & Sarfraz Ahmed & Dil Pazir, 2025. "Gender Diversity at the Workplace and Industrial Productivity: Empirical Evidence from Indian Formal Manufacturing Sector," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 23(2), pages 561-576, June.
    • Handle: RePEc:spr:jqecon:v:23:y:2025:i:2:d:10.1007_s40953-024-00435-5
    DOI: 10.1007/s40953-024-00435-5
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