Indian paradox: Rising education, declining womens' employment

<b>Background</b>: Theories of human capital would suggest that with more education, women acquire greater skills and their earnings increase, resulting in higher labor force participation. However, it has been long known that in India, women's education has a U-shaped relationship...

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Main Authors: Esha Chatterjee, Sonalde Desai, Reeve Vanneman
Format: Article
Language:English
Published: Max Planck Institute for Demographic Research 2018-03-01
Series:Demographic Research
Subjects:
Online Access:https://www.demographic-research.org/volumes/vol38/31/
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author Esha Chatterjee
Sonalde Desai
Reeve Vanneman
author_facet Esha Chatterjee
Sonalde Desai
Reeve Vanneman
author_sort Esha Chatterjee
collection DOAJ
description <b>Background</b>: Theories of human capital would suggest that with more education, women acquire greater skills and their earnings increase, resulting in higher labor force participation. However, it has been long known that in India, women's education has a U-shaped relationship with labor force participation. Part of the decline at moderate levels of education may be due to an income effect whereby women with more education marry into richer families that enable them to withdraw from the labor force. <b>Objective</b>: The paper uses the first comprehensive Indian income data to evaluate whether the other family income effect explains the negative relationship between moderate women's education and their labor force participation. <b>Methods</b>: Using two waves of the India Human Development Survey, a comprehensive measure of labor force participation is regressed on educational levels for currently married women aged 25-59. <b>Results</b>: We find a strong other family income effect that explains some but not all of the U-shape education relationship. Further analyses suggest the importance of a lack of suitable employment opportunities for moderately educated women. <b>Conclusions</b>: Other factors need to be identified to explain the paradoxical U-shape relationship. We suggest the importance of occupational sex segregation, which excludes moderately educated Indian women from clerical and sales jobs. <b>Contribution</b>: This paper provides a more definitive test of the other family income effect and identifies new directions for future research that might explain the paradoxical U-curve relationship.
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spelling doaj.art-c9940730bf2c43a3b21a61b138268c1e2022-12-21T23:22:28ZengMax Planck Institute for Demographic ResearchDemographic Research1435-98712018-03-01383110.4054/DemRes.2018.38.313838Indian paradox: Rising education, declining womens' employmentEsha Chatterjee0Sonalde Desai1Reeve Vanneman2University of MarylandUniversity of MarylandUniversity of Maryland<b>Background</b>: Theories of human capital would suggest that with more education, women acquire greater skills and their earnings increase, resulting in higher labor force participation. However, it has been long known that in India, women's education has a U-shaped relationship with labor force participation. Part of the decline at moderate levels of education may be due to an income effect whereby women with more education marry into richer families that enable them to withdraw from the labor force. <b>Objective</b>: The paper uses the first comprehensive Indian income data to evaluate whether the other family income effect explains the negative relationship between moderate women's education and their labor force participation. <b>Methods</b>: Using two waves of the India Human Development Survey, a comprehensive measure of labor force participation is regressed on educational levels for currently married women aged 25-59. <b>Results</b>: We find a strong other family income effect that explains some but not all of the U-shape education relationship. Further analyses suggest the importance of a lack of suitable employment opportunities for moderately educated women. <b>Conclusions</b>: Other factors need to be identified to explain the paradoxical U-shape relationship. We suggest the importance of occupational sex segregation, which excludes moderately educated Indian women from clerical and sales jobs. <b>Contribution</b>: This paper provides a more definitive test of the other family income effect and identifies new directions for future research that might explain the paradoxical U-curve relationship.https://www.demographic-research.org/volumes/vol38/31/educationfamilyincomeIndialabor force participationwomenwomen's employment
spellingShingle Esha Chatterjee
Sonalde Desai
Reeve Vanneman
Indian paradox: Rising education, declining womens' employment
Demographic Research
education
family
income
India
labor force participation
women
women's employment
title Indian paradox: Rising education, declining womens' employment
title_full Indian paradox: Rising education, declining womens' employment
title_fullStr Indian paradox: Rising education, declining womens' employment
title_full_unstemmed Indian paradox: Rising education, declining womens' employment
title_short Indian paradox: Rising education, declining womens' employment
title_sort indian paradox rising education declining womens employment
topic education
family
income
India
labor force participation
women
women's employment
url https://www.demographic-research.org/volumes/vol38/31/
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