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IWWAGE-Institute for What Works to Advance Gender Equality

Working or Not: What Determines Women’s Labour Force Participation in India?

Women’s labour force participation is abysmally low, and persistent gender gaps characterise the Indian labour market. It is alarming to note that women have been continuously dropping out of the labour market since the mid-2000s. Their participation has been declining despite rising GDP, increasing educational attainment, rising household incomes, and declining fertility. Utilising household-level data of Periodic Labour Force Surveys (PLFS) (covering the years 2017-18 and 2018-19), and NSSO’s Employment-Unemployment Surveys (EUS) (various rounds completed in 1993-94, 1999-00, 2004-5, 2009-10, 2011-12), this paper provides systematic evidence on the country’s gender gaps in employment and labour market outcomes.
This paper tries to unpack the critical aspects of low female labour force participation in rural and urban India. Findings suggest that women have notably lower employment rates than men, even though their enrolment in schools and colleges have risen. U-shaped relationship between education and women’s labour force participation is seen, which is strongly evident in the case of urban women. Women perform a disproportionate amount of unpaid care work and domestic work and face multiple constraints in society, limiting their mobility and labour market choice, forcing them to take non-wage employment or remain out of the labour force. Our findings suggest that policies supporting women’s entry into the labour market, such as vocational and technical skills, can significantly impact increasing their participation and mitigating persistent inequalities in India’s labour market outcomes. The paper underscores the importance of a comprehensive and integrated approach and suggests investing in gender-responsive policies to break down women’s economic engagement barriers.

Women’s Workforce Participation State wise Trends in India

Madhya Pradesh (MP) is the only state in India to have witnessed a rise in workforce participation rates (WPRs) of women in both rural and urban areas between 2011-12 and 2017-18. The increase in women’s WPR in MP was driven largely by increase in self-employment in the rural areas and regular employment in the urban areas. According to the Periodic Labourforce Survey in 2017-18, more than half of the female workforce in the state is self-employed, with a higher incidence of self-employment in rural areas. While approximately 88 percent of the rural self-employed women in MP are engaged in unpaid work, the share of women in own account enterprises is substantially high in urban MP. The distribution of casual women workers suggests very few women engaged under MGNREGA and other public works as 96 percent women in casual employment were engaged in non-public works, with very little security or guarantee of payment

Digital Solutions for SHGs in Chhattisgarh

In partnership with the State Rural Livelihoods Mission (SRLM) in Chhattisgarh and Haqdarshak Empowerment Solutions Private Limited (HESPL), IWWAGE an initiative of LEAD at Krea University is implementing a project to enhance awareness and uptake of government welfare schemes through a unique community-led model.

Under this initiative, women self-help group (SHG) members are trained to become Haqdarshikas-agents who use a digital application called Haqdarshak to identify relevant central and state government entitlements. Armed with this tool, Haqdarshikas go door-to-door in their communities, sharing information and helping families apply for schemes, charging a small, affordable fee for their services.

A survey of 411 Haqdarshikas, conducted in 2020, revealed critical insights into retention, challenges, and the impact of COVID-19 on their work. While many women remained active in the field, a significant number had stopped using the app-pointing to a need for improved digital access and ongoing support. Encouragingly, the majority of Haqdarshikas held leadership positions in their SHGs and VOs, showcasing the model’s ability to harness women’s agency and social capital.

Findings also indicated that the top motivators for joining the program were a desire to build identity, earn income, and learn new skills. However, barriers such as limited citizen interest in entitlements, lack of smartphone access, and reduced income due to the pandemic were noted. Notably, even during COVID-19, many Haqdarshikas continued working, underscoring their resilience and commitment.

This initiative not only strengthens women’s economic empowerment but also promotes inclusive access to social protection, especially for rural and marginalised households. Through continued research and qualitative insights, IWWAGE aims to further refine this model and ensure sustained impact.