Women’s Labour Market Potential: Unpaid Care Work and the Formalisation of Part-time Employment

Women’s Labour Market Potential: Unpaid Care Work and the Formalisation of Part-time Employment

3 January, 2026
Centre for Gender and Macroeconomy

Published in: Economic & Political Weekly

This paper investigates the macroeconomic and labour market implications of gender equality in unpaid care work and the formalisation of part-time employment in India. The unequal distribution of unpaid care responsibilities significantly limits women’s labour force participation, perpetuating gender disparities in employment and economic outcomes. Using the McCall–Mortensen macroeconomic job search framework, this paper models the potential impacts of policy interventions on female labour force participation rates. A key contribution of the paper is to derive quantitative estimates via model simulation. We find that formalising part-time employment contracts and equalising the time burden of unpaid care work between genders predict a 6 percentage point increase in female LFPR, raising the current rate from 37% to 43%. The findings underscore the critical need for formalising part-time employment contracts in India.

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