Women’s labour market participation is often concomitant with enhanced economic prospects and better household decision-making power. From a macroeconomic standpoint, a diminished level of women’s labour force participation rate (LFPR) has significant consequences for women’s intra and inter-household bargaining power, as well as the overall economic progress of the nation. “There are still large differences between women and men in terms of what they do, how they’re remunerated and so on,” said Claudia Goldin, who was awarded this year’s Economics Nobel “for having advanced our understanding of women’s labour market outcomes”. Goldin’s comprehensive analysis of the economic history of women has presented new insights into the many aspects of gender disparities in the labour market. Additionally, her research has shown the underlying factors that have contributed to these gaps throughout history, and the persisting inequalities that exist in contemporary times.
Data shows low labour participation
Globally, however, the level of female labour force participation remains relatively low. World Bank estimates (2022) show that the worldwide LFPR for women was 47.3% in 2022. Despite the remarkable advancements observed in the global economies, there has been a persistent decline in the labour force participation rate (LFPR) of women in developing nations. The estimations also indicate that female labour force participation in India between 1990 and 2022 has decreased from 28% to 24%. This fall has impeded their growth and hindered their ability to achieve their maximum capabilities. A significant disparity in labour market participation based on gender continues to persist worldwide.
