Exigency to Redesign Policy Initiatives Improving Female Labor Supply in Urban India

Abstract

Purpose : The paper aimed to investigate female participation in paid employment across states in urban regions of India. We examined whether supply-side issues were the primary cause of the low and stable female participation rate in urban areas using data from the Indian Human Development Survey II (2011–2012).

Methodology : We employed logistic regression to examine the influence of supply-side determinants on women’s participation in paid employment in metropolitan areas because the dependent variable is dichotomous. For analysis, Stata18 was utilized.

Findings : It was found that only 22–23% of females participated in paid employment activities despite urban residence. The participation of married females across the working age group of 25–59 years was the lowest compared to unmarried females, separated/divorced, and widowed. The participation of graduate females in states with high urbanization rates was lower.

Practical Implications : We recommended that legislators concentrate on creating laws that offer high-quality employment opportunities to women with a range of educational backgrounds and skill levels. Traditional social conventions that discourage women from pursuing job possibilities can be changed with the support of a shift in family beliefs around gender roles. Encouraging more female participation may require reducing the care load by offering reasonably priced childcare facilities.

Originality : The present paper has highlighted the stagnation of female participation in the labor market in urban regions of India, which has not been extensively covered in the broader literature.