What will be the impact of increased female labour force participation and retaining female labour on Indian economy? Explain.

Women’s supply of labor increases household incomes, which helps families escape poverty and increase their consumption of goods and services. At the same time, as countries develop, women’s capabilities typically improve, while social constraints weaken, enabling women to engage in work outside the home.

However, labor force participation is the outcome of not only supply-side factors, but also of the demand for labor. In particular, the nature and spatial distribution of economic growth and job creation help determine whether women can access jobs, particularly in a context where social norms dictate how and where women can work. As seen in developing countries that have experienced rising female labor force participation, laborintensive manufacturing has provided an important conduit for women to work outside the home, albeit often in difficult working conditions .

The relationship between evolving socio-economic and demographic factors and how women participate in the world of work is multifaceted. In particular, whether a woman is working may be driven, on the one hand, by poverty (as evident in low-income countries) and, on the other, by women’s increasing educational attainment and the opportunities to work that are made available in a more modern economy. Moreover, during periods of crisis and in response to economic shocks, women are often required to take up (typically informal) employment to smooth household consumption. This occurred in Indonesia in the wake of the East Asian financial crisis of 1997–1998 .

Beyond analyzing labor force participation, it is critical to look at the nature of women’s employment. In general, when women work, they tend to be paid less _____ ________ ___ ___ ___ _______ ___ __________.
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