Impact of inflation on female labor force participation: A panel study on the countries of Indian sub-continent

Abstract

This paper has studied the impact of inflation on Female Labor Force Participation (flfp). This study was conducted on the Indian Sub-continental countries. Countries included in this study are still in the developing phase and participation of females in the labor market is very crucial for further economic development. Inflation affects the expenditure and real wage and overall household income, so it was tested if this economic shock of inflation affects the participation of female labor. Other explanatory variables were considered which might affect the flfp. Some explanatory variables could have been included in the regression, but the unavailability of the data has been a constraint. The overall empirical results support my hypothesis that with the increase/decrease in inflation, Net National income decrease/increase respectively and the the relation between NNI and FLFP is inverse relation. Inflation can be used to understand the behavior of ‘flfp’ when the individual entity effect and time effect are taken into consideration.