Problem of the Plenty- Ethnic Fractionalization and Female Employment in Rural India

Abstract

This study examines the relationship between jati level ethnic fractionalization and employment status of married women in rural India using a nationally representative household survey. We observe that past ethnic fractionalization lowers married females’ likelihood of being employed. The findings are robust to accounting for possible endogeneity related to ethnic fractionalization variable. On exploring the pathways, we find that regressive patriarchal norms, lower confidence in institutions, and lower social capital are a few of the potential channels through which ethnic fractionalization in the village adversely impacts female employment. Our study also highlights that the negative effect is not homogenous and is prominent for male-headed households and in less gender-equal states.