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Capital and Female Employment in Manufacturing

Author

Listed:
  • Rakesh Banerjee

    (University of Exeter Business School)

  • Tushar Bharati

    (Department of Economics, University of Western Australia)

  • Swami Jishnurupananda

    (Ramakrishna Mission Vidyamandira, Howrah, India)

Abstract

We study the relationship between capital intensification and female employment outcomes. Using panel data on more than 25,000 manufacturing firms across over $100$ countries, we document a robust empirical regularity: as firms become more capital intensive, they employ fewer female workers and more male workers. We further substantiate this relationship using a natural experiment that exogenously altered establishments' access to capital. Exploiting changes to Foreign Direct Investment (FDI) regulations in India during the 2000's and combining them with more than 15 years of data from the Annual Survey of Industries, we find that the liberalization of FDI rules led to substantial increases in capital intensity and male employment but declines in female employment and the female wage bill.

Suggested Citation

  • Rakesh Banerjee & Tushar Bharati & Swami Jishnurupananda, 2026. "Capital and Female Employment in Manufacturing," Economics Discussion / Working Papers 26-05, The University of Western Australia, Department of Economics.
    • Handle: RePEc:uwa:wpaper:26-05
    Note: MD5 = 6b4aa1b62fb75058bcad567d5cd06dff
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    Keywords

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    JEL classification:

    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • J4 - Labor and Demographic Economics - - Particular Labor Markets
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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