Publication: Does Culture Matter or Firm? Demand for Female Labor in Three Indian Cities
Loading...
Date
2019-02
ISSN
Published
2019-02
Author(s)
Editor(s)
Abstract
In discussing the inordinately low employment of Indian women in urban areas, several studies have argued that culture and attitudes have created a labor market that is inherently discriminatory. The unsaid corollary is that culture is slow and hard to change and so, women will stay out of the labor market until social change occurs. The empirical evidence on the role of culture is slim at best. This paper fills the void in the policy literature, as it assesses the relative role of culture, as signified by attitudes of employers, and firm characteristics in hiring women. The paper is based on a unique survey of 618 firms in three of the largest cities in the state of Madhya Pradesh (India)—Bhopal, Indore, and Gwalior. Using detailed descriptive, bivariate and multivariate analysis at the firm level, the hiring process, and attitudes toward male and female workers, the paper addresses the issue of culture and firm characteristics, while noting that the two are not necessarily in binary opposition. The results reinforce the conventional wisdom in some ways and are surprising in others. The most salient result is that employer attitudes matter much less for the chance that women will be hired, than do firm and location characteristics. This has significant policy implications, the most important of which is that female employment in urban India is amenable to policy intervention, and that it is not necessary to wait for culture to change.
Link to Data Set
Citation
“Mehta, Soumya Kapoor; Das, Maitreyi Bordia; Zumbyte, Ieva; Sasmal, Sanjeev; Goyal, Sangeeta. 2019. Does Culture Matter or Firm? Demand for Female Labor in Three Indian Cities. Policy Research Working Paper;No. 8736. © World Bank. http://hdl.handle.net/10986/31268 License: CC BY 3.0 IGO.”
Associated URLs
Associated content
Other publications in this report series
Publication The Macroeconomic Implications of Climate Change Impacts and Adaptation Options(Washington, DC: World Bank, 2025-05-29)Estimating the macroeconomic implications of climate change impacts and adaptation options is a topic of intense research. This paper presents a framework in the World Bank's macrostructural model to assess climate-related damages. This approach has been used in many Country Climate and Development Reports, a World Bank diagnostic that identifies priorities to ensure continued development in spite of climate change and climate policy objectives. The methodology captures a set of impact channels through which climate change affects the economy by (1) connecting a set of biophysical models to the macroeconomic model and (2) exploring a set of development and climate scenarios. The paper summarizes the results for five countries, highlighting the sources and magnitudes of their vulnerability --- with estimated gross domestic product losses in 2050 exceeding 10 percent of gross domestic product in some countries and scenarios, although only a small set of impact channels is included. The paper also presents estimates of the macroeconomic gains from sector-level adaptation interventions, considering their upfront costs and avoided climate impacts and finding significant net gross domestic product gains from adaptation opportunities identified in the Country Climate and Development Reports. Finally, the paper discusses the limits of current modeling approaches, and their complementarity with empirical approaches based on historical data series. The integrated modeling approach proposed in this paper can inform policymakers as they make proactive decisions on climate change adaptation and resilience.Publication Global Poverty Revisited Using 2021 PPPs and New Data on Consumption(Washington, DC: World Bank, 2025-06-05)Recent improvements in survey methodologies have increased measured consumption in many low- and lower-middle-income countries that now collect a more comprehensive measure of household consumption. Faced with such methodological changes, countries have frequently revised upward their national poverty lines to make them appropriate for the new measures of consumption. This in turn affects the World Bank’s global poverty lines when they are periodically revised. The international poverty line, which is based on the typical poverty line in low-income countries, increases by around 40 percent to $3.00 when the more recent national poverty lines as well as the 2021 purchasing power parities are incorporated. The net impact of the changes in international prices, the poverty line, and new survey data (including new data for India) is an increase in global extreme poverty by some 125 million people in 2022, and a significant shift of poverty away from South Asia and toward Sub-Saharan Africa. The changes at higher poverty lines, which are more relevant to middle-income countries, are mixed.Publication Geopolitical Fragmentation and Friendshoring(Washington, DC: World Bank, 2025-06-26)This paper examines the relationship between geopolitical fragmentation and friendshoring of foreign investments over time, countries, and sectors. The analysis uses comprehensive data on foreign direct investments covering greenfield projects, mergers and acquisitions, and stocks of affiliates, as well as data on four alternative measures of geopolitical distance between countries. The gravity estimations suggest that, first, geopolitical differences have a negative effect on foreign investments and the magnitude has heightened in the post-pandemic period compared to a decade ago. Second, it is primarily the companies from advanced Western economies whose foreign investment decisions are increasingly shaped by friendshoring forces. Finally, the paper shows that friendshoring is not only confined to strategic industries, implying that allocations of foreign direct investments may not solely reflect national security or resilience considerations.Publication Soaring Food Prices Threaten Recent Economic Gains in the EU(Washington, DC: World Bank, 2025-07-02)The surge in food prices following the 2021 economic rebound has become a significant concern for households, particularly low-income ones, in Bulgaria, Croatia, Poland, and Romania. Food price inflation, which surpasses general inflation rates, risks worsening poverty and food insecurity in these countries. This paper explores the distributional impacts of rising food prices and the effectiveness of government response measures. Low-income households, who allocate a larger share of their income to food, are disproportionately affected and are struggling to cope with unexpected expenses, leading to increased difficulties in accessing proper nutrition. Simulations indicate that rising food prices contribute to higher poverty rates and greater income inequality, especially among vulnerable populations. They also suggest that the main poverty-targeted social assistance schemes offer critical support for the extreme poor, but expanding both coverage and benefits is vital to shield all at-risk individuals. Targeted policies that balance immediate relief with long-term resilience-building are essential to addressing the challenges posed by escalating food prices.Publication Disentangling the Key Economic Channels through Which Infrastructure Affects Jobs(Washington, DC: World Bank, 2025-04-03)This paper takes stock of the literature on infrastructure and jobs published since the early 2000s, using a conceptual framework to identify the key channels through which different types of infrastructure impact jobs. Where relevant, it highlights the different approaches and findings in the cases of energy, digital, and transport infrastructure. Overall, the literature review provides strong evidence of infrastructure’s positive impact on employment, particularly for women. In the case of electricity, this impact arises from freeing time that would otherwise be spent on household tasks. Similarly, digital infrastructure, particularly mobile phone coverage, has demonstrated positive labor market effects, often driven by private sector investments rather than large public expenditures, which are typically required for other large-scale infrastructure projects. The evidence on structural transformation is also positive, with some notable exceptions, such as studies that find no significant impact on structural transformation in rural India in the cases of electricity and roads. Even with better market connections, remote areas may continue to lack economic opportunities, due to the absence of agglomeration economies and complementary inputs such as human capital. Accordingly, reducing transport costs alone may not be sufficient to drive economic transformation in rural areas. The spatial dimension of transformation is particularly relevant for transport, both internationally—by enhancing trade integration—and within countries, where economic development tends to drive firms and jobs toward urban centers, benefitting from economies scale and network effects. Turning to organizational transformation, evidence on skill bias in developing countries is more mixed than in developed countries and may vary considerably by context. Further research, especially on the possible reasons explaining the differences between developed and developing economies, is needed.
Journal
Journal Volume
Journal Issue
Collections
Related items
Showing items related by metadata.
Publication Scaling the Heights : Social Inclusion and Sustainable Development in Himachal Pradesh(World Bank, Washington, DC, 2015-01)Himachal Pradesh has the reputation of being stable, inclusive, cohesive and well-governed and it stands apart in many respects from its neighbors in northern India. It has additionally, achieved remarkable growth, especially in the last two decades, which has been accompanied by very good human development outcomes. Despite being a predominantly rural society, educational attainment in Himachal Pradesh for instance, is among the best in the country; poverty headcount is nearly one-third of the national average; life expectancy is 3.4 years longer than the number of years an average Indian expects to live; and, per capita income is the second highest among "special category" states in India. Underlying its strong economic and social development outcomes is Himachal Pradesh's commitment to expand access to public services to the remotest areas, across tough, hilly terrain and its strong institutional foundations. Inter-group disparities are low in a state where traditionally disadvantaged groups such as the Scheduled Castes (SCs) and Scheduled Tribes (STs) make up a solid 30 percent of the population.Publication A Closer Look at Child Mortality among Adivasis in India(2010-03-01)The authors use data from the National Family Health Survey 2005 to present age-specific patterns of child mortality among India's tribal (Adivasi) population. The analysis shows three clear findings. First, a disproportionately high number of child deaths are concentrated among Adivasis, especially in the 1-5 age group and in those states and districts where there is a high concentration of Adivasis. Any effort to reduce child morality in the aggregate will have to focus more squarely on lowering mortality among the Adivasis. Second, the gap in mortality between Adivasi children and the rest really appears after the age of one. In fact, before the age of one, tribal children face more or less similar odds of dying as other children. However, these odds significantly reverse later. This calls for a shift in attention from infant mortality or in general under-five mortality to factors that cause a wedge between tribal children and the rest between the ages of one and five. Third, the analysis goes contrary to the conventional narrative of poverty being the primary factor driving differences between mortality outcomes. Instead, the authors find that breaking down child mortality by age leads to a much more refined picture. Tribal status is significant even after controlling for wealth.Publication Poverty and Social Exclusion in India(World Bank, Washington, DC, 2012)The report’s main objective is to track development outcomes for three select groups - scheduled tribes (STs), scheduled castes (SCs), and women - that have traditionally faced exclusion in India. It asks the question: how did these groups fare over a period of rapid growth in India, primarily in the nineties; and were they able to break through the historically grounded inequalities that have kept entire generations among them trapped or did traps trump opportunities? It focuses on exclusion along three spheres - services, markets, and voice and agency. Within these too, the attempt is to highlight a few select issues that offer new insights. The report draws both on national data (national sample surveys (NSS) and national family health surveys (NFHS)) as well as qualitative work for its evidence, relying more on the latter to probe heterogeneity within states and groups and incipient processes that result in exclusion.Publication Poverty and Social Exclusion in India(World Bank, Washington, DC, 2012)This brief describes the poverty and social exclusion of Women in India. The last few decades have seen remarkable progress in the status of women and girls, yet the cultural roots of gender inequality are still strong and affect a range of outcomes. The high salaries and independent lifestyles of women in urban India have captured public imagination. Yet progress has been very uneven and slower than would have been expected based on India’s levels of per capita income. Females still have an overall survival deficit in childhood and during their reproductive years and are severely disadvantaged in the labor market. Inequalities in wages are a disincentive for women to work, but they clearly want work!. The Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) is an example of a program that explicitly seeks to provide paid work to poor women. The scheme mandates that at least one-third of workers should be women and makes several provisions to enhance the participation of women. Threats to women’s security also influence the ability of women to access markets and services and claim spaces for themselves. This is an area in which policy can have a huge effect. Making public spaces safe for women is a major step forward in enhancing women’s access to these spaces.Publication Poverty and Social Exclusion in India(World Bank, Washington, DC, 2012)This brief is based on a Poverty and Social Exclusion in India.Caste is perhaps the oldest form of social stratificationin India.After independence, the Indian Constitution abolisheduntouchability and the erstwhile untouchablescame to be known as the Scheduled Castes(SCs).The situation of Dalits has undergone dramatic transformation over time.While caste has had significant implications for poverty and other welfare outcomes, this note focuseson two arenas—education and the labor market.Our analysis based on the National Sample Survey(NSS) data suggests that there has been expansion in education among Dalits, but not at the samepace as among the upper castes.Micro studies continue to document discrimination against SC students. In the labor market, Dalits remain largely in casuallabor. Education is considered a panacea to poor labor market outcomes and overall it has positive effects for all men.It would nevertheless be naïve to dismiss the changes in caste dynamics, more so over the past two decades. Attendant to the economic changes, social movements asserting the power of Dalits have swept some states and have given Dalits a sense of political voice and agency. In sum, we find that despite localized changes,there have been modest changes for Dalits in the aggregate.
Users also downloaded
Showing related downloaded files
Publication Breaking the Conflict Trap : Civil War and Development Policy(Washington, DC: World Bank and Oxford University Press, 2003)Most wars are now civil wars. Even though international wars attract enormous global attention, they have become infrequent and brief. Civil wars usually attract less attention, but they have become increasingly common and typically go on for years. This report argues that civil war is now an important issue for development. War retards development, but conversely, development retards war. This double causation gives rise to virtuous and vicious circles. Where development succeeds, countries become progressively safer from violent conflict, making subsequent development easier. Where development fails, countries are at high risk of becoming caught in a conflict trap in which war wrecks the economy and increases the risk of further war. The global incidence of civil war is high because the international community has done little to avert it. Inertia is rooted in two beliefs: that we can safely 'let them fight it out among themselves' and that 'nothing can be done' because civil war is driven by ancestral ethnic and religious hatreds. The purpose of this report is to challenge these beliefs.Publication Government Matters III : Governance Indicators for 1996-2002(World Bank, Washington, DC, 2003-08)The authors present estimates of six dimensions of governance covering 199 countries and territories for four time periods: 1996, 1998, 2000, and 2002. These indicators are based on several hundred individual variables measuring perceptions of governance, drawn from 25 separate data sources constructed by 18 different organizations. The authors assign these individual measures of governance to categories capturing key dimensions of governance and use an unobserved components model to construct six aggregate governance indicators in each of the four periods. They present the point estimates of the dimensions of governance as well as the margins of errors for each country for the four periods. The governance indicators reported here are an update and expansion of previous research work on indicators initiated in 1998 (Kaufmann, Kraay, and Zoido-Lobat 1999a,b and 2002). The authors also address various methodological issues, including the interpretation and use of the data given the estimated margins of errors.Publication Governance Matters IV : Governance Indicators for 1996-2004(World Bank, Washington, DC, 2005-06)The authors present the latest update of their aggregate governance indicators, together with new analysis of several issues related to the use of these measures. The governance indicators measure the following six dimensions of governance: (1) voice and accountability; (2) political instability and violence; (3) government effectiveness; (4) regulatory quality; (5) rule of law, and (6) control of corruption. They cover 209 countries and territories for 1996, 1998, 2000, 2002, and 2004. They are based on several hundred individual variables measuring perceptions of governance, drawn from 37 separate data sources constructed by 31 organizations. The authors present estimates of the six dimensions of governance for each period, as well as margins of error capturing the range of likely values for each country. These margins of error are not unique to perceptions-based measures of governance, but are an important feature of all efforts to measure governance, including objective indicators. In fact, the authors give examples of how individual objective measures provide an incomplete picture of even the quite particular dimensions of governance that they are intended to measure. The authors also analyze in detail changes over time in their estimates of governance; provide a framework for assessing the statistical significance of changes in governance; and suggest a simple rule of thumb for identifying statistically significant changes in country governance over time. The ability to identify significant changes in governance over time is much higher for aggregate indicators than for any individual indicator. While the authors find that the quality of governance in a number of countries has changed significantly (in both directions), they also provide evidence suggesting that there are no trends, for better or worse, in global averages of governance. Finally, they interpret the strong observed correlation between income and governance, and argue against recent efforts to apply a discount to governance performance in low-income countries.Publication Design Thinking for Social Innovation(2010-07)Designers have traditionally focused on enchancing the look and functionality of products.Publication Governance Matters VIII : Aggregate and Individual Governance Indicators 1996–2008(2009-06-01)This paper reports on the 2009 update of the Worldwide Governance Indicators (WGI) research project, covering 212 countries and territories and measuring six dimensions of governance between 1996 and 2008: Voice and Accountability, Political Stability and Absence of Violence/Terrorism, Government Effectiveness, Regulatory Quality, Rule of Law, and Control of Corruption. These aggregate indicators are based on hundreds of specific and disaggregated individual variables measuring various dimensions of governance, taken from 35 data sources provided by 33 different organizations. The data reflect the views on governance of public sector, private sector and NGO experts, as well as thousands of citizen and firm survey respondents worldwide. The authors also explicitly report the margins of error accompanying each country estimate. These reflect the inherent difficulties in measuring governance using any kind of data. They find that even after taking margins of error into account, the WGI permit meaningful cross-country comparisons as well as monitoring progress over time. The aggregate indicators, together with the disaggregated underlying indicators, are available at www.govindicators.org.