An analysis of the determinants of labour force participation rate of muslim women in India

Indian women have been increasingly dropping out of the labour market over the past two decades, a trend attributed to both demand and supply-side factors. Among the most marginalized are Muslim women, whose labour force participation (LFP) rates warrant focused examination. This study aims to analyze the trends and determinants of LFP among Muslim women. Using unit-level data from the NSSO’s EUS 61st round (2004-05), EUS 68th round (2011-12), and PLFS (2017-18), the study reveals a decline in LFP among Muslim women despite rising enrollment rates. It finds a U-shaped pattern in LFP relative to education level across rural and urban areas, though urban Muslim women have lower participation rates compared to their rural counterparts. Using an instrumental variable probit model, the study finds that place of residence and education level significantly impact LFP. Additionally, widowed and divorced women participate more due to financial needs and family responsibilities. The low LFP among Muslim women highlights a critical policy issue. To leverage India’s demographic potential and promote inclusive growth, targeted policy responses are essential to address both demand and supply-side challenges.