Abstract:
We leverage a quasi-natural experiment from India on introduction of free bus schemes for women to study its impact on women's labour force participation (WLFP) and other welfare indicators. We use two rounds of the representative Time Use Survey (2019 and 2024) and a triple difference estimation strategy, complemented by an event study type framework to identify the causal relationship of interest. Findings reveal that the bus scheme is successful in improving women's paid work participation and the duration of employment. These results are not a continuation of prior trends. The effects are mainly concentrated among early adopters like Punjab and Tamil Nadu, two states with historically different levels of WLFP. Moreover, the effects are disproportionately higher for women residing in more patriarchal districts and those facing higher mobility restrictions. We argue that the scheme works through easing of non-financial binding constraints, which lowers barriers to women's mobility and workforce participation.
