In India, female employment rates drop by 12 percentage points after marriage, about one-third of the pre-marital employment level, even in the absence of children. Meanwhile, men gain a 13-percentage-point employment premium upon marriage, although this advantage gradually erodes after five years.
“This marriage penalty among women without children persists up to five years after the wedding in India and Maldives,” the report states, attributing the trend to deep-rooted social norms. In addition to the marriage penalty, women also face a “child penalty,” as caregiving responsibilities often push them out of the workforce.
The report sheds light on South Asia’s female labor force participation rate, which stood at just 32% in 2023, significantly lower than the 77% rate for men. Most countries in the region, except Bhutan, are in the bottom quartile of the World Bank’s global sample for female workforce participation.
Education’s Role in Reducing the Gender Gap
The study emphasizes that higher education for both men and women can mitigate the marriage penalty. “Women with more than secondary schooling or those marrying men with similar educational backgrounds are less likely to face the marriage penalty,” the report notes.
The South Asia Development Update, focused on “women, jobs, and growth,” indicates that the region has made progress in the past three decades. However, two-thirds of working-age women are still not part of the labor force. The report highlights that raising women’s labor force participation to the level of men could result in a 13–51% boost to South Asia’s regional GDP and per capita income.“If women worked in as productive jobs as men, GDP in the South Asian region could go up by up to 51%,” said Franziska Ohnsorge, World Bank’s chief economist for South Asia. She described South Asia, especially India, as a “bright spot” in the global economy but stressed that the potential could be even greater if more women entered the workforce.Poonam Gupta, director general of the National Council of Applied Economic Research (NCAER), echoed similar sentiments. “We need to target institutional and societal causes creating the gender gaps in employment, while simultaneously making it easier, safer, remunerative, and professionally rewarding for women to join the workforce,” she told TOI.
This report calls for coordinated efforts to bridge the gender employment gap in South Asia, underscoring the need for both policy reforms and social change to tap into the region’s full economic potential.
