How trade diversification and economic growth affect gender inequality in female labour market participation? The case of India

Abstract:

Purpose
This paper attempts to investigate through empirical exercise how the chances of female employment opportunities rise in a developing country like India, against the backdrop of changes in institutions that are associated with globalization.

Design/methodology/approach
The paper develops a simultaneous equation model through a growth equation, gender equation and globalization equation to identify the factors impacting female labor market opportunities in India, based on annual time series data 1991–2019.

Findings
The major results of this study are as follows: (1) It is social globalization that positively impacts gender equality in employment opportunities apart from economic growth and trade diversification; (2) Evidence of “feminization of labor force” in the context of trade diversification is found; and (3) Equal gender opportunities reflect in equalizing outcomes in the labor market.

Practical implications
Growth strategies need to be constructed in such a way in India that it has redistributive implications and benefits women. The state agency needs to optimize the productive base of human resources and increase women's empowering capability through social and legal sanctions.

Originality/value
The uniqueness of the present paper lies in contributing to the existing literature on how gender inequality impacts trade diversification and how trade diversification impacts gender.