Changing Trends in Female Labour Force Participation in India: An Age–Period–Cohort Analysis

Despite rapid economic growth coupled with benefits of the demographic dividend, evidence from both the NSSO 66th and 68th Rounds reveals a decline in female labour force participation in India. This decline is diffi cult to explain in terms of economic variables as the country is experiencing rapid economic changes. Perhaps the age and cohort factors or educational and time period advantages might be leading to the postponement of female labour market participation. This paper attempts to explore the reasons for the decline in female labour force participation by sorting out the trends into age, period and cohort effects. In order to study these aspects, a linear regression model has been applied and the data has been drawn from various NSSO rounds. The empirical estimates suggest that age and period changes can account for a substantial decline in labour force participation. The provision of higher education and creation of employment opportunities for younger cohorts of women would help increase the labour force participation rate in the near future.