Zerodha's Nithin Kamath shares insight on India's low female labour force participation rate
In an attempt to find out the reason behind India's low female labour force participation rate, Zerodha's Nithin Kamath shared insight in the same on X (formerly Twitter)
India's female labour force participation remains to be at an extremely low level in past one decade. Over the years, it has improved nominally. Highlighting the opportunity of economic boost by employing India's female population, Zerodha's Nithin Kamath shared insight on India's female labour force participation.
He also underlined thed drastic fall in female labour force participation rate from 30% to 20% post 90s era. The percentage increased minutely by 24% in the coming years.
U-shape trend between female labour force participation and GDP per capita
Delving an answer to the sudden fall and then slight increase in FLFP trend, Nithin Kamath shared the data provided by India Data Hub. In his analysis he said that the female labour participation and per capita GDP follows a U-shape trend.
“The relationship between female labour participation and per capita GDP tends to be U-shaped. This is because at lower income levels, a large part of female employment (and the same holds for children) tends to be distress or need-driven As income levels rise, this distress employment reduces, and thus female labour participation declines. And then it rises as women enter the labour force again, not due to distress, but voluntarily," explains Nithin Kamath.
He supported his tweet with the graph images of GDP per capita of Indian states and FLFP% dip in 1990s and its subsequent improvement post 2018.
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