Female Employment in India: Trends and Underlying Processes in the Era of Reforms

Abstract

The paper deals with different aspects of female employment and compares the pre– and post- reforms situation. It looks at the structure of sectoral output and productivity differentials between the broad sectors to contextualize women’s employment in India. Whether the macro level output growth pattern and development aspects such as poverty, illiteracy, asset ownership have a bearing on female employment in rural areas is tested at the state level. The paper also explores whether the services sector and its growth has had a favorable impact on female employment in urban India. Analysis reveals that employment structure in India has led to polarization of skills such that women predominate in low paid, low skill work. While there is persistence of anomalous relationship of female workforce participation rates as also female employment in primary sector in terms of underlying factors, agriculture is a last resort option for a majority of the women workers in rural India. Women form substantial proportion of service sector, but their concentration in personal services in urban areas points towards distress driven employment growth. Higher concentration of female workforce in low productivity industries negates the premise that economic reforms would create more employment opportunities in modern sectors. In this context, the most important policy intervention has to be in the realm of strengthening the human capital base of women workers. Spread of education and skill development can empower women workers in the country to reap the benefits of growth. Direct employment generation and fiscal incentives for expansion of activities that use female labor are also desired..