Does Culture Matter or Firm? Demand for Female Labor in Three Indian Cities

Abstract

This paper is based on a unique survey of 618 firms, carried out in 2015, in three of the largest cities in the state of Madhya Pradesh (India) – Bhopal, Indore and Gwalior. Madhya Pradesh (MP) itself is emblematic of India’s Hindi speaking heartland and can be seen, in many ways, as representing north-Indian culture and norms. The paper fills a void in the policy literature, as it assesses the relative role of culture, as signified by attitudes of employers, and of firm characteristics, in hiring women.