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The labour market dilemma of young urban women in India: An outcome of family welfare optimization

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  • Parida, Jajati Keshari
  • Bhagavatula, Niharika

Abstract

This paper uses a theoretical model to explain the patterns and determinants of labour market participation behaviour of young urban women in India. Based on the National Sample Survey (NSS) data and through probit regression results, it argues that the labour market participation decision of young women is an outcome of the joint utility maximization behaviour of their family. The standard of living of the family, market wage, other family characteristics, including the number of children, adult women in the family, elderly members, and occupation, and gender of the head, etc., are significantly determining their labour market participation; apart from women’s individual characteristics like age (experience) and level of education and training. The empirical result also reflects that the “discouraged worker effect” is stronger than the “added worker phenomenon”. Hence, measures to create jobs in modern services could help boost the stagnant female labour force participation in urban India.

Suggested Citation

  • Parida, Jajati Keshari & Bhagavatula, Niharika, 2023. "The labour market dilemma of young urban women in India: An outcome of family welfare optimization," World Development Perspectives, Elsevier, vol. 32(C).
    • Handle: RePEc:eee:wodepe:v:32:y:2023:i:c:s2452292923000565
    DOI: 10.1016/j.wdp.2023.100540
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    More about this item

    Keywords

    Labour Force Participation; Young Women; Family Welfare; Urban Areas; India;
    All these keywords.

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General

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