Women and Work in India: Descriptive Evidence and a Review of Potential Policies

Sustained high economic growth since the early 1990s has brought significant change to the lives of Indian women. Yet female labor force participation has stagnated at under 30 percent, and recent labor surveys even suggest some decline since 2005. Using the 2011–12 National Sample Survey, we lay out five facts about female labor force participation in India. First, there is significant demand for jobs by women currently not in the labor force. Second, female non-workers have difficulty matching to jobs. Third, women are more likely to be working in sectors where the gender wage gap and unexplained wage gap, commonly attributed to discrimination, is higher. Fourth, vocational training is correlated with a higher likelihood of working among women. Finally, female-friendly employment policies, including job quotas, are correlated with higher female participation in some key sectors. Combining these facts with a review of the literature, we map out important areas for future investigation and highlight how policies such as employment quotas and government initiatives focused on skilling and manufacturing could be leveraged to increase women’s economic activity.