• Women''s labor market participation is closely linked to improved economic prospects and greater decision-making power within households.
• On a macroeconomic level, a lower women''s labor force participation rate (LFPR) has significant implications for both women''s bargaining power within and between households and the overall economic development of a nation.
• Claudia Goldin, who was awarded the Nobel Prize in Economics, has contributed to understandings of women''s labor market outcomes.
• Her research has shed light on various aspects of gender disparities in the labor market, identified historical factors contributing to these gaps, and highlighted the ongoing inequalities that persist in the modern era.

Data on low female labor participation:

• Globally, the level of female labour force participation remains relatively low.
• World Bank estimates from 2022 show that worldwide labor force participation rate for women was 47.3% in that year.
• Despite the progress observed in many global economies, there has been a persistent decline in the LFPR of women in developing nations.
• In the case of India, estimates indicate that female labor force participation decreased from 28% to 24% between 1990 and 2022.
• This decline has hindered the growth of women and their ability to reach their full potential.
• Gender-based disparities in labor market participation continue to be a significant global issue.

Work of Claudia Goldin:

• Economist Claudia Goldin points out that the LFPR of adult women follows a U-shaped pattern as economies grow.
• She explained that the initial decline in the participation rate is primarily driven by the shift of production from the household, family farms, and small businesses to the broader market, along with a strong income effect.
• However, over time, the income effect weakens, and the substitution effect (the inclination to participate in paid work outside the home) becomes more influential.

Challenges in female labor force participation

Effects of marriage:

• The LFPR among married women tends to decline after marriage due to several factors.
• These include lower educational attainment, reduced mobility resulting from increased family responsibilities, and societal disapproval of women working outside the home.
• The institution of marriage often amplifies women''s domestic obligations while simultaneously subjecting them to various social and cultural barriers that hinder their participation in the workforce.
• These challenges can make it difficult for married women who wish to be part of the labor market.

Individual and societal factors:

• The reduced labor force participation of married women or their tendency to leave the workforce after marriage is influenced by several factors.
• Women''s entry into the labor market is shaped by a variety of individual and societal factors, which may have a greater impact on married women than unmarried ones.
• Multiple variables play a role in restricting women''s labor force participation, including their religious and caste affiliations, geographical location, household wealth, and societal norms regarding women''s employment outside the home.
• These factors can make it challenging for married women to remain engaged in the workforce.

Other Challenges:

• When women decide to rejoin the workforce after marriage, they often prefer employment opportunities that offer flexibility and are close to their homes.
• Women also face gender-based career costs as a result of several societal constraints, resulting in gender disparities in premarital career selections, income inequality, age at marriage, and family planning decisions.
• In some cases, women from more privileged backgrounds may conform to traditional societal roles by focusing on domestic responsibilities, while women from disadvantaged backgrounds are more likely to participate in the labor market due to economic constraints arising from poverty.

Analyzing the Female LFPR in India

• Analyzing the Female LFPR in India''s NSSO Periodic Labour Force Survey (PLFS) survey for women aged 25 to 49, it is observed that there is significant difference in employment rates for married women when comparing Usual Principal Status (UPS) and Usual Principal and Subsidiary Status (UPSS) categories.
• UPS approach assesses a person''s activity status over the 365 days preceding the survey date. The activity status in which a person has spent a significant portion of that period (183 days or more) is considered their usual principal activity status.
• UPSS Approach is a hybrid one which takes into consideration both the major time criterion and shorter time period (30 days or more in any economic activity).
• The data highlights that marital status has a substantial impact on women''s labor market participation.

Female labor force participation rate among married women:

• In 2022-23, there has been a decrease of 5% in the female LFPR among married women aged 25 to 49 years, with a decline from 50% in 2004-05 to 45% in 2022-23.
• The decline in the female LFPR is primarily concentrated within the age group of 25-29.
• Married women tend to have lower LFPR compared to unmarried women.
• An analysis of the impact of educational attainment on the labor force participation of married women reveals that women with lower literacy skills are more likely to participate in the labor force after marriage, in contrast to their well-educated counterparts.
• Research on the distribution of female labor across different industry sectors in India indicates that agriculture remains the predominant sector for female employment.

Road ahead

• Research on female LFPR highlights the significant influence of social and cultural factors on women''s decisions regarding their entry into the labor market.
• This analysis primarily focuses on the relationship between women''s marital status and their outcomes in the Indian labor market.
• The results suggest that married women have the lowest levels of labor force participation compared to widowed, divorced, and unmarried women.
• Given the substantial representation of married women in the working-age population, their non-participation in the workforce has a significant economic impact.
• It is essential to find appropriate solutions to empower women in the face of high economic growth. The lack of sufficient day-care services often discourages female LFPR.
• Therefore, it is crucial to improve the quality and accessibility of day-care services and creches for working women across various socio-economic backgrounds, including both the formal and informal sectors. 
• The government has introduced initiatives like the National Creche Scheme for the Children of Working Mothers.
• It''s crucial to implement such schemes in both the public and private sectors, especially to increase the participation of married women in the labor force.
• Creating workplaces that prioritize women''s needs and well-being, offering safe transportation options, and expanding part-time job opportunities can act as catalysts for greater female participation in the Indian labor market.

The declining labor force participation of married women in India has significant economic implications. Factors such as reduced educational attainment, increased family responsibilities, and societal barriers contribute to this trend. To address this issue, it is crucial to improve the accessibility of day-care services, create female-friendly workplaces, and expand part-time job opportunities. Recognizing and empowering the substantial working-age population of married women is essential for India''s economic development and gender equality.