Economic Growth and Role of ‘The Missing Half’: A Cross-Country Analysis with Specific Reference to India

Abstract

Women’s employment is an imperative factor in their advancement towards economic independence yet there is relatively inadequate and mixed evidence on the relationship between economic growth and female labour force participation rates. This study examines the impact of economic growth on female workforce participation in South Asian Nations (SANs) from 2000-2015 within the outline of U-shaped hypothesis using panel data modelling. The impact of several key macro-economic variables on female labour force participation is also examined in different econometric model specifications. The effects of economic development, literacy, urbanization and different unemployment patterns on female labour force participation are found to be negative whereas Gini coefficient is found to be positive. The findings suggest that most of the SANs are still experiencing the downward portion of U-shaped (while India being close to attaining the tipping point sooner as compared to other nations) may be, due to being at the early stages of economic development. In the present scenario, policy interventions should handle a variety of issues, including reconstructing access to and significance of education and training programmes and boosting private sector development in industries and regions that would escalate job opportunities for women in developing countries.