Abstract
This paper studies employment patterns and trends in South Asia to shed light on determinants of extremely low female employment rates in the region. After a comprehensive literature review, the authors use employment data from about one hundred censuses and surveys from Afghanistan, Bangladesh, Bhutan, India, Nepal, Pakistan, and Sri Lanka to compare employment trends across countries over time. They work through data inconsistencies to standardize definitions of variables to compare demographic and labor market determinants: age, sector, contract type, location, and education. The paper finds that (i) overall since 2001, women's employment participation across South Asian countries has been low and broadly unchanged; (ii) the gender employment gap emerges more clearly in middle age brackets; (iii) rural female employment is higher than urban; (iv) agriculture is the economic sector accounting for the greatest share of female employment, although this is slowly changing in some countries, and; (v) women with mid-level education tend to have lower employment rates than those with both lower and higher education.
Highlights
South Asia has been undergoing rapid economic transformation, but despite high economic growth, most countries in the region are under pressure to quickly create more and better jobs to cope with fast-growing populations and to sustain growth
Women are being excluded from labor markets—as evidenced by low female labor force participation rates, persistent gender disparity in male and female employment rates, and greater likelihood of women being engaged in unpaid employment
The aggregate figures show that since 2011 employment rates have been relatively stable in all countries except for Bangladesh, where the gap between men and women’s employment has widened
Summary
South Asia has been undergoing rapid economic transformation, but despite high economic growth, most countries in the region are under pressure to quickly create more and better jobs to cope with fast-growing populations and to sustain growth. Expanding productive employment for women and lowering barriers for their entry into the labor market are necessary for inclusive growth in South Asia. Female engagement in market work is desirable for a variety of reasons. In addition to economic returns, female employment has positive development spillover effects: households invest more in the health and education of their children as female earnings increase, and women being paid for work gives them greater “voice” at home and stronger engagement in society. In India, employment in the business processing sector is associated with increased household investment in girls’ education and health (Jensen, 2012). Outside of South Asia, increased demand for labor in the female-intensive manufacturing sector in Mexico is associated with increased household decision-making power for women and improved health of their children
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