Telework exposure and female labor supply in emerging economies: Evidence from India
Read abstract
Female labor force participation remains low in many emerging economies like India, where social norms discourage women from working outside home. Telework relaxes this constraint by letting individuals to work without always being physically present. This paper examines whether greater exposure to telework-compatible jobs increase women’s labor supply in India. Since India does not have task surveys like O*NET in the United States, I construct telework scores for each occupation using supervised text classification method on Indian occupation manual. I define telework exposure as the interaction between pre-existing share of telework-compatible jobs and local digital infrastructure in each district. Using the instrumental variable approach, key results show that a one-standard-deviation increase in telework exposure raises female labor supply by 3.96 percentage points. These gains are concentrated among women who are married, belong to upper caste and economically better off households. Among married women, the effects are skewed towards those who live in nuclear households and have young children. College degrees matter only among women in their late thirties. Cost benefit analysis shows that the public investment in digital connectivity can further unlock women’s gains from telework.
Research question
Does greater telework exposure increase women’s labor supply in emerging economies?
Main result
A one-standard-deviation increase in telework exposure raises female labor supply by 3.96 percentage points using an instrumental variable approach. Gains are concentrated among married women and women from upper caste and economically better off households. Among married women, effects are skewed toward those in nuclear households with young children. College degrees matter only among women in their late thirties.