Why does high female literacy rate not always translate into higher female labour force participation in India?

Female literacy rates in India have improved substantially over the past few decades, with notable increases in secondary and tertiary education enrolment, particularly in STEM disciplines. Human Capital Theory suggests that higher educational attainment should increase female labour force participation (Becker, 1964; Mincer, 1974). However, this relationship remains weak in India, creating an important development paradox. Historically, female labour force participation declined from 42.7% in 2004–05 to 24.5% in 2019 before recovering to 41.7% in 2023–24, although much of this increase was concentrated in rural and unpaid family work (MOSPI, 2024; Sorsa, 2015). This study investigates why rising female education does not consistently translate into higher labour force participation by analysing the 2020–21 Periodic Labour Force Survey (PLFS) microdata. Using person-level data for 201,086 women, the study examines the relationship between educational attainment, social group, marital status, rural–urban residence and labour force participation. The findings aim to provide evidence on the structural and socio-economic factors that continue to constrain women’s employment despite improvements in educational attainment.