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Mapping Structural Break and Sectoral Movement on Female Employment in India Since 1991

Author

Listed:
  • Surbhi Mishra

    (Indian Institute of Technology)

  • Dukhabandhu Sahoo

    (Indian Institute of Technology)

  • Souryabrata Mohapatra

    (University of Auckland
    National Council of Applied Economic Research)

Abstract

The new economic regime in India has had a cascading impact on resource allocation and the redistribution of employment. Previous research has examined the general effects of economic shifts but lacks an exhaustive analysis of its impact on sector-specific female labour force participation (FLFP). This paper analyses structural breaks in sectoral FLFP in India using yearly data from 1991 to 2022, exploring the dynamic relationship among gross domestic product (GDP) contribution, education and FLFP across sectors and analysing inter-sectoral female labour movement. Results reveal that females engaged in the agriculture sector in India witnessed the highest structural breaks compared to other sectors. New economic reform of 1991, government policies, urbanisation and mechanisation, could be attributed to these breaks. Further, results revealed sectoral contribution to GDP and female education as an important determinant of FLFP. Along with this, the results of the Impulse Response Function show a significant shift in FLFP from agriculture to services. However, Variance Decomposition has provided evidence that the agriculture sector remains a fallback option for women in India. Based on these findings, the paper suggests that policymakers should promote higher education among women to enhance FLFP in the service sector. Furthermore, the study proposes strategies to attract and retain FLFP in the industrial sector, thereby alleviating labour pressures in agriculture.

Suggested Citation

  • Surbhi Mishra & Dukhabandhu Sahoo & Souryabrata Mohapatra, 2024. "Mapping Structural Break and Sectoral Movement on Female Employment in India Since 1991," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 67(3), pages 731-750, September.
    • Handle: RePEc:spr:ijlaec:v:67:y:2024:i:3:d:10.1007_s41027-024-00512-6
    DOI: 10.1007/s41027-024-00512-6
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    References listed on IDEAS

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    More about this item

    Keywords

    Sectoral transition; Structural transformation; Structural breaks; Female labour force participation; Inter-sectoral movement; India;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • J82 - Labor and Demographic Economics - - Labor Standards - - - Labor Force Composition
    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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