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#FLFPR
buzzbitezz · 2 years
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Why is female LFPR low in India ?
India is one of the fastest-growing economies in the world, yet it is facing a crisis in its female labour force participation rate (FLFPR). The FLFPR has been steadily declining over the past few decades, and this trend has only accelerated in recent years. These are all important questions that have been at the forefront of discussions about the female labour force participation rate (FLFPR)…
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iasguidance · 6 months
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Female labour force participation (FLFPR) rate: India can learn from Japan’s ‘womenomics’ reforms
Context: India’s Female labour force participation (FLFPR) rate has begun showing a rising trend, increasing from 23 per cent in 2017-18 to 37 per cent in 2022-23. About Female labour force participation (FLFPR) rate in India: Female labour force participation (FLFPR) rate in India, which refers to women who are either working or looking for a job, is below the global average of 47 percent for…
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pmsmarcellus · 11 months
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Read the piece written by Nushaiba Iqbal of IndiaSpend on how the Economics Nobel Awards relates to India's qualified and underpaid women.
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isbfedu · 2 years
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Downward Spiral Of FLFP Rate - Women And Their Unpaid Work Amidst Power Dynamics Of A Patriarchal Society
Feminisation of unemployment, widespread informalisation of female labour force coupled with abysmally low wages and ever expanding gender wage gaps has become the reality of today.
Unlike the global trend, India has witnessed a secular decline in women’s employment rates over the past few decades. Even though we have progressed as the 5th largest economy in the world, the economic prosperity seems to be skewed against women which form over 48% of our population.
According to World Bank statistics, there is significant divergence in terms of labor force participation across males & females with FLFP comprising only 20.3% while men constituted for 76%.
This has been accompanied by a faster rate of rural women withdrawing from their jobs.
In an attempt to understand the falling FLFPRs, we have analyzed the role played by female literacy, education & household wealth and allocation by leveraging the findings of the latest National Family Health Survey(NFHS) followed by an analysis of the psychological aspect linked to the same.
Rising Literacy & Education levels accompanied by low FLFPR – why the paradox?
Literacy holds relevance in understanding the increase in unemployment rate as recorded in the NHFS data which highlights that 23% of women and 11% of men have no schooling, additionally 84% of men and 72% of women are literate. As observed from subsequent rounds of NFHS, there has been an increased percentage of sampled respondents completing higher levels of education coupled with a decreasing gap between women and men from 2015-16 onwards.
Apriori one can expect a positive correlation between higher levels of literacy and female labour force participation owing to educational achievements as an effective job market signaling tool, greater freedom to exercise choice, enhanced levels of awareness in terms of individual rights and greater agency over finances, assets and other resources. Then what explains the current observed paradox?
A research by Afridi et al (2016) empirically concluded that increasing education levels amongst rural married women and the men in their households are the most prominent attributes contributing to the decline in FLFPRs. They also provide suggestive evidence that there is a rise in more educated women’s returns to home production, relative to their returns in the labor market which translates to low FLFPR and thus results in a paradoxical situation of high literacy accompanied by low FLFPRs in India.
It has also been observed that there is a significant gap in the skills required for higher official positions and those possessed by women which might explain why unemployment still persists despite rising literacy.
This trend can also be attributed to the very dominant patriarchal society which leads to gender discrimination and crime against women, hence making workplaces unsafe for females. This acts as a disincentivisaiton mechanism forcing well informed, educated women to sometimes opt out of labor force due to wage gaps and safety threats.
Most importantly, work performed by women largely constitutes unpaid work which is unaccounted for in FLFPR calculations. The unpaid work in context refers to the daily chores of keeping the household intact and the caregiving aspect of it.
As per reports, women put in around 532 minutes of domestic work each day while men account for only 51.8. These numbers are concerning as 49% of women in India do not have work to be accounted for in GDP calculations as a result of the unpaid work not being considered.
The psychological aspects behind the decline
Second Shift in an employed female’s work schedule
The second shift primarily point towards working outside of the home and then doing household duties, this can mainly be attributed to the patriarchal structure of our society. This prevails throughout the different social classes and the different designations are irrelevant to the opposed societal standards. Considering women in Indian households are more accountable for household duties, they find it difficult to partake in mutual that inhibits them from taking time off to tend to do other domestic duties.
The motherhood penalty is also a considerable reason for the increase in unemployment rate as there is a disparity in pay, benefits and maternity leave. The Intersectionality of women from the diverse backgrounds in unskilled and skilled labor which can be directly correlated with the dipartites presented within the workplace. This can also be deleterious towards non-working mothers as they have to worry about future employment opportunities’ which in the end forces them out of the workplace permanently.
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The ever widening wage gap
The PLFS Statistics state that the rate of which men are paid 1.7 times more than women. This wage gap has witnessed a secular jump since 1983 as illustrated through the graph below. This wage gap can be one probable disincentive driving women out of labor force due to abysmally low wages in comparison to male counterparts.
Inspecting the wage gap from a sectoral viewpoint, it is observed that this gap is more pronounced in the rural areas vis a vis the urban ones as the rural-urban division is altered by the migration of labor from unskilled agricultural industries to greater productivity sectors like industry and manufacturing.
Table 1
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Moreover, the wage gap difference is not just restricted to sectors but is also seen across different levels of educational qualifications. As illustrated in Table 2, the Indian workforce is characterized by an adverse wage disparity for women regardless of the socio-economic parameters adopted with a sharp spike in the “Primary to Higher Secondary Category”.
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The problem of working long hours and traveling to work place
Safety concerns, increasing crime against women, caregiving as a demanding side hustle is often taken as invisible constraints limiting the choice set made available to women in terms of finding appropriate employment. For example, given the implicit safety concerns, women have to leave work early and thereby are unable to put out the same output as men, which decreases overall productivity and morale of the organization. For traveling jobs as well, there is presence of a glass ceiling limiting a woman’s flight professionally.
Occupational segregation
It is vital to talk about the facet of gender disparity due to the variance in benefits, pay and work conditions between two genders or their personal characteristics in order to understand the decrease in rate of unemployment among women.
Some of the reasons for occupational Segregation can be attributed to Individual preferences, Educational & Work disparities.
Individual Preferences
There are instances where women opt out of higher paying positions to prioritize spending time with their families. Sometimes women also do not pursue further career opportunities’ due to the Gender hierarchy and find it comfortable to stay at home to take of children and other family members.
2. Educational & Work Disparities
According to the 2011 Census of India, 82% of men can read and write where only 65% girls can do so. This creates an Imbalance in the opportunities’ that can be pursued in terms of career advancement. We can primarily attribute this phenomenon on local culture, poverty and the dominant patriarchal society present in rural India. Work disparities can be present in many ways in a workplace in the form of lack of work incentives, forcing them into lower paying jobs because of their gender and racial ethnicity.
Conclusions
As India progresses towards a more equitable society, we need to acknowledge how far we’ve come since Independence and need to recognize how far we need to go to be more accommodating to the opposite sex. As our honorable PM Narendra Modi has highlighted in his 76th Independence Speech about respecting and treating women with the utmost dignity and it is only then we can progress as a nation. Finding ways to account for the unpaid labor women do is a very significant part on the way we look at the work they do. There should be more efficient checks and balances for the implementation and the formation of economic reforms introduced to help women in their employment opportunities.
Written by-
Saniya Salunke : Saniya Salunke is an Economics & Finance enthusiast. She is a student at ISBF UoL and also the Secretary of the Student Council.
Roshil Kevin Jayakumar : Roshil Kevin is an Accounting/finance student at SIBF UoL. He is the founder of DoDonate and a finance enthusiast.
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reportwire · 3 years
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Indian Women in Manufacturing - Machine Insider
Indian Women in Manufacturing – Machine Insider
Indian Manufacturing: No Industry for Women First, the bad news: At 16 percent, India’s female labor force participation rate (FLFPR) is among the lowest in the world, and, presently, the lowest in India’s own history. For perspective, all our neighboring countries fare better, including Pakistan which has 20 percent, Afghanistan, with 22 percent, and Bangladesh, and Sri Lanka both with more than…
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newsmatters · 3 years
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No place for women: What drives India’s ever-declining female labour force?
No place for women: What drives India’s ever-declining female labour force?
In the last century, the world has witnessed great strides in terms of women’s economic participation. On an average, the FLFPR increased from 40 percent to 51 percent for the OECD countries during 1960-2016. One of the biggest jumps has been experienced by Canada, where the female labour force participation rate (FLFPR) has improved by 45 percentage points during 1911-2016. In fact, OWID…
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