Female Labour Supply in Rural India: An Econometric Analysis

Abstract

Several studies for developing countries have come up with econometric evidence to indicate that an inverse relationship exists between supply of labour and wage rate at low level of wage, especially for women in rural areas. In this paper, this issue is investigated for rural female labour supply in India using NSS data for 1999-00. The results indicate that supply of female labour from below poverty line households in rural areas is inversely related to wage rate and the number of earning members in the family. This may create difficulties in attaining the objectives of the recent National Rural Employment Guarantee Scheme and calls for greater attention to the designing of the scheme, particularly the activities in which employment will be provided.