National Council of Applied Economic Research
Opinion: Jyoti Thakur and Poonam Munjal.
In India, women still face numerous hurdles to access employment and, once employed, to access decision-making positions.
Claudia Goldin’s winning the 2023 Nobel Prize in the Economic Sciences, with her comprehensive account of women’s earnings and their underrepresentation in the global labour market, has aroused renewed interest among the international community in the persistently low female labour force participation rates across many countries. The G20 New Delhi Leaders’ Declaration 2023 also focused on the importance of women’s economic empowerment, recognised as a driver of national prosperity.
Unfortunately, in India, women still face numerous hurdles to access employment and, once employed, to access decision-making positions. Despite constitutional provisions safeguarding gender equality and initiatives like the National Policies for Women in 2001 and 2016, Mission Shakti, etc., gender inequality and discrimination persist in India. Understanding the difficulties and seizing opportunities to increase women’s economic involvement are essential to solving the puzzle of the low female labour force participation rate.
Grip of unpaid work
Everyone shares the same “time budget” of 365 days a year and 24 hours a day. However, the ability to allocate time freely is influenced by societal norms and gender roles. The significant disparities in time spent on unpaid work between women and men underscore the need for a closer examination. In rural India, women spend an average of 301 minutes per day on unpaid work, while urban women dedicate 293 minutes. In contrast, rural men devote only 98 minutes, and urban men spend 94 minutes on these activities. This stark contrast in unpaid work could be a key factor contributing to the gender gap in the labour market. Every extra minute women spend on unpaid work costs them the opportunity to earn a living and be independent.
Data from the Periodic Labour Force Survey (PLFS) 2021–22 corroborate these findings, revealing that a whopping 76 per cent of women in the productive age group (15–59) reported being out of the labour force due to childcare and household responsibilities.On top of that, 7 per cent cited social reasons for not being employed. However, research from different parts of the world indicates that access to childcare programmes can significantly boost women’s participation, ranging from 5 per cent to 47 per cent, depending on various contextual factors.
Work from Home: A Catalyst
Women, with their natural instincts, outdo men when it comes to voluntarily engaging in childcare, elderly care, and other household responsibilities, but sadly, these instincts became gender norms. While it might take several generations to overcome the social barriers imposed by these gender norms, workplaces could offer a conducive environment for women to stay in the workforce. The workplace being averse to employing young, unmarried women because they will soon get married and then bear children is not uncommon. But hold on—research finds that women demonstrate unparalleled dedication in various professional domains. Their work ethics, attention to detail, and ability to multitask bring immense value to organisations. Studies consistently highlight the positive impact of gender diversity in the workplace, emphasising the significance of women’s inclusion. Women’s participation in the workforce has a direct impact on economic productivity as they bring diverse skills, perspectives, and talents. Thus, it wouldn’t be a stretch to say that a workforce that includes women is more innovative, efficient, and better positioned to address the complex challenges of a rapidly evolving global economy.
How not to lose such a productive and potentially large proportion of aspirant women to social barriers? Remote work could possibly be a solution. The concept of ‘Work from Home’ (WFH) gained prominence, especially in the wake of global events such as the pandemic. In a country like India, where women’s participation outside the home is frowned upon, WFH can be a game-changing solution. It provides women with the flexibility to balance their professional and personal responsibilities by diminishing the traditional dichotomy between work and home life. As observed in the State of Working India Report, 2023, a significant portion of employed women in India depend on public transportation for their daily commutes, a factor frequently identified as a hindrance to women’s participation in the workforce. This challenge could potentially be mitigated through the adoption of WFH practices. While WFH presents numerous advantages, challenges such as blurred work-life boundaries, potential feelings of isolation, and the need for robust digital infrastructure should be acknowledged and addressed to ensure a sustainable and healthy work environment.
India, with its high population growth rate, stands at a pivotal moment where tapping the potential of the demographic dividend could lead to remarkable economic growth. Nevertheless, this hinges on the meaningful engagement of women in the economy. Moreover, over the years, India has made substantial investments in educating its female population. The exclusion of women from the workforce implies an underutilization of the skills acquired through education.
The PLFS data also shows that of the total men who are trained in vocational courses, about 80% stayed out of the labour force as they proceeded to pursue higher education. On the other hand, this proportion is only 11% in the case of women, while an additional 87% of women stayed out of the labour force to attend domestic duties.To reap the benefits of educational investments, it is essential to create avenues for women to apply their learning in professional settings.
The rapid evolution of digital technologies has heralded a transformative era, reshaping every aspect of life across the globe. Digital advancements present a unique opportunity to break down barriers and empower women economically. Freelancing, online entrepreneurship, and remote work options can provide women with a platform to transcend the constraints posed by traditional roles or geographical and social barriers.
Digitalization has democratised access to education and skill development. Online courses, webinars, and digital skill-building platforms can allow women to acquire relevant skills irrespective of their geographical location. This, in turn, can enhance their employability and equip them with roles in emerging digital industries.However, despite the positive promises, digitalization also suffers from various challenges. The persistent digital gender divide in the country, due to uneven access to digital tools and literacy, remains a challenge. Bridging this gap is pivotal to ensuring that women, irrespective of their socioeconomic backgrounds, can harness the benefits of digitalization.
The active participation of women in India’s economic growth is not just a matter of equality but also an economic and social imperative. A nation that leverages the talents, skills, and aspirations of its entire population, irrespective of gender, stands to gain immeasurable benefits. To garner India’s demographic dividend and ensure inclusive growth, it is essential to create an environment that empowers and enables women to participate fully and meaningfully in the nation’s progress.
Jyoti Thakur is associate fellow and Poonam Munjal is professor at NCAER, New Delhi