What keeps women in the labour force a study of women’s labour force choices at the extensive margin

Abstract

Despite declining female labour force participation rates (LFPR) amidst economic growth, a recent positive shift post-2019 suggests a change in women’s work engagement. The change has since been a matter of discussion and study. This thesis examines factors influencing women’s labour force participation in low-income areas of Ahmedabad, India. The analysis employs an LPM model to study the persistence of women’s distressed em ployment in the informal sector. I support the results using Lundberg’s household labour supply framework under uncertainty to analyze the interplay between economic adver sity and individual motivations. Using cross-sectional data from Vatwa and Behrampura in Ahmedabad and qualitative insights, the results show that male household employ ment negatively impacts women’s participation. The study highlights the critical areas where interventions can be made to support women’s labour force participation, such as equitable distribution of household responsibilities and the informal sector.