Role of social and institutional factors in Indian women’s labour force participation and hours worked

Abstract

This article analyses the determinants of hours worked by Indian women, by means of a sample-selection model, with a special emphasis on the role played by social and institutional factors. We empirically confirm that social and institutional factors considerably affect women’s labour supply. A woman, who is empowered within the household, has trust in government institutions and is socially connected, is more likely to participate and given participation, a woman who in addition has an adequate support system in terms of better amenities and sharing of household duties by other members, tends to work longer hours. From an economic point of view, the need to earn income seems to be the major reason for work, leading to a reduced participation even as own education rises except at the post-secondary level. Demand-side considerations show that women in family farms and businesses or in the service sector tend to work longer hours.