Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/315933 
Year of Publication: 
2024
Series/Report no.: 
EGC Discussion Papers No. 1111
Publisher: 
Yale University, Economic Growth Center, New Haven, CT
Abstract: 
India's GDP per capita grew threefold between 1987 and 2019, coinciding with rapid urbanization. During this period, female labor force participation (FLFP) declined significantly. Consistent with this observation, we document a pronounced urban-rural participation gap, where FLFP is higher in poorer, rural labor markets. Using time-use data, we show that this is primarily driven by an extensive margin: in rural districts, women often engage in part-time activities, typically related to agriculture and informal family businesses. These activities are less common in urban areas, where some women take formal jobs, but a larger share withdraws from the labor market to focus on home production. We propose and estimate a model of household labor supply that aligns with these trends. The main drivers of the urban-rural participation gap are higher spousal incomes in cities, which reduce the marginal utility of female labor, and labor market distortions that depress women's urban wages below their marginal product. Counterfactual simulations show that economic growth is unlikely to provide a sharp reversal of this trend in future decades unless it is accompanied by changes in gender norms and labor market institutions.
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.