Exports and labor force participation of women in India: empirical evidence using state-level data

Shruti Shastri, Swati Shastri and Nidhi Kumari

Journal of Economic Studies, 2025, vol. 53, issue 6, 1133-1148

Abstract: PurposeThe present study aims to examine the impact of exports on female labor force participation in India using state-level data. In particular, the study seeks to answer the following questions: First, what is the impact of the export intensity of a state on the likelihood of female labor force participation? Second, do existing business competition, gendered norms and occupational mobility moderate the relationship between export intensity and female labor force participation?Design/methodology/approachThe empirical approach of the study utilizes an identification strategy that exploits the detailed person and household level survey data by the National Sample Survey and links it to the states’ export intensity. Logistic regression analysis is used to predict the probability of labor force participation conditional upon the change in various explanatory variables including the export intensity of the state.FindingsThe findings suggest that states with higher export intensity witness higher odds of female labor force participation. We find a positive impact of export intensity on labor force participation for both urban and rural women. However, the impact appears to be quantitatively larger for urban women. In case of various sub groups based on education levels, export intensity of a state increases the odds of labor force participation of females with secondary and tertiary education. Furthermore, the relationship between export intensity and female labor force participation is stronger for states with favorable gender norms and higher occupational mobility of women.Originality/valueThe study employs a unique identification strategy that exploits the geographic variation in exposure to international trade and discerns its effects on female labor force participation. The study also augments the existing literature by investigating various factors such as occupational mobility, societal attitude towards women that moderate the nexus between exports and women’s labor force participation. The analysis is also conducted for various subgroups such as rural and/or urban women and women with different education levels.

Keywords: International trade; Exports; Gender; Female labor force participation; Logistic regression (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eme:jespps:jes-12-2024-0875

DOI: 10.1108/JES-12-2024-0875

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