Multiplier Effect of Increasing Female Employment: Assessing Impacts in Urban Centres

Introduction:

Almost all women work—within or outside their homes, with or without payment, and for production, self-consumption, or reproduction—but much of this work remains unaccounted, leading to an underestimation of their economic and social contribution. In developing countries like India, it is important for women to participate more visibly in economic activities and the growth process. Despite this, the Female Work Participation Rate has been declining in recent decades, particularly in rural areas, even though the absolute number of working women has increased in urban areas. This paradox highlights the need to better understand women’s employment patterns and their broader economic impact, especially in terms of the multiplier effects generated through additional job creation in urban contexts.

Aims and Objectives

• To examine trends in female employment in urban India (1993–2013).
• To identify key sectors with rising female participation.
• To analyze the multiplier (cascading) effect of women’s employment on creation of domestic work jobs.
• To assess the impact of this effect on economic conditions of Female Domestic Workers (FDWs).

Methodology

• Mixed approach using secondary (NSSO data) and primary survey data.
• Secondary data: Employment trends (1993–94 & 2011–12).
• Primary survey: Conducted in Delhi, Noida, Kolkata, and Asansol.
• Sample: 424 households across 16 wards and 32 blocks.
• Stratified sampling based on working women and employment of FDWs.

Findings

Macro Trends:

• Female LFPR declined (37.3% → 24.2%), especially in rural areas.
• Urban female employment increased in absolute terms.
• Growth in paid domestic workers (PDWs), especially in urban areas.
• Sales and service jobs show highest growth for women.
• PDWs growth linked with higher female LFPR regions.

Multiplier Effect:

• Increase in working women creates demand for FDWs (maids, cooks, caregivers).
• Multiplier ranges from 0.09 to 0.29 → 100 new jobs create 10–30 additional jobs.
• Households with working women are more likely to hire FDWs.

Field Insights:

• Higher LFPR in Delhi/Noida than Kolkata/Asansol.
• 63.7% households employ FDWs.
• Demand higher in richer, smaller, and upper-caste households.

Condition of FDWs:

• Low wages (often below minimum wages except Noida).
• Poor socio-economic background and low education levels.
• Lack of social security and high workload (double burden).
• Income contributes significantly to household earnings.
• Moderate autonomy but limited in major decisions.

Policy Recommendations

• Promote female employment through supportive policies and work environments.
• Recognize and formalize the care economy.
• Improve wages and working conditions of FDWs.
• Provide social security (healthcare, leave, insurance).
• Address inequality arising from labour market segmentation.