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

Abstract

Abstract This paper explains the patterns and determinants of labour market participation behaviour of young urban women in India using a theoretical model. 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 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 “added worker phenomenon”. In this context, measure to create jobs in modern services could help to boost the stagnant female labour force participation upward in urban India.