Will Market Competition Trump Gender Discrimination in India?

Abstract

Empowering women to engage in productive employment is not only critical to achieving gender equality but also critical for economic growth and poverty reduction. This paper studies the pattern of female activity and gender segmentation in the Indian manufacturing and services sectors. Although the share of women entrepreneurs and employees is larger in manufacturing than in services, segmentation based on gender is pervasive in both sectors. Theory, dating back to Gary Becker, suggests that competitive reforms should reduce the extent of this segregation. In spite of competition-inducing reforms such as investment in Golden Quadrilateral (GQ) highways, trade liberalization and domestic reforms that India undertook since the turn of the century, this pattern of gender based segmentation has not subsided over the years.