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The Puzzling Decline in Rural Women's Labor Force Participation in India: A Reexamination

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  • Neff, Daniel
  • Sen, Kunal
  • Kling, Veronika

Abstract

Between 2004/2005 and 2009/2010 there was a sharp fall in female labor force participation (LFP) in rural India. Why did this occur? We look at the four standard explanations: that more women in rural areas are now pursuing higher education and are therefore not available for work (education effect), that household incomes are rising quickly enough that there is a tendency for women to withdraw from the labor force to attend to domestic duties (income effect), that employment opportunities for women are decreasing, and that social and cultural factors may be interacting with these three factors and amplifying their effects. Our findings suggest that the decline in rural women's LFP could potentially be due to an income effect and partly due to an education effect. We find no evidence of changes in employment opportunities or of social and cultural interaction effects that could explain the decline in rural female LFP.

Suggested Citation

  • Neff, Daniel & Sen, Kunal & Kling, Veronika, 2012. "The Puzzling Decline in Rural Women's Labor Force Participation in India: A Reexamination," GIGA Working Papers 196, GIGA German Institute of Global and Area Studies.
    • Handle: RePEc:zbw:gigawp:196
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    References listed on IDEAS

    as
    1. Vinoj Abraham, 2008. "Employment growth in rural India: Distress driven?," Centre for Development Studies, Trivendrum Working Papers 404, Centre for Development Studies, Trivendrum, India.
    2. Wendy Olsen & University of Manchester & Smita Mehta & Cambridge University, 2006. "A Pluralist Account of Labour Participation in India," Economics Series Working Papers GPRG-WPS-042, University of Oxford, Department of Economics.
    3. Dreze, Jean & Srinivasan, P. V., 1997. "Widowhood and poverty in rural India: Some inferences from household survey data," Journal of Development Economics, Elsevier, vol. 54(2), pages 217-234, December.
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    More about this item

    Keywords

    labor force; women; rural; India;
    All these keywords.

    JEL classification:

    • J00 - Labor and Demographic Economics - - General - - - General
    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

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