Abstract

India has entered into Amrit Kaal (an auspicious period most conducive to achieving the country’s potential). Share of working-age population (WAP) has exceeded the combined share of children and elderly population since 2018 and is likely to continue till 2055 with peak expected around 2041. To take maximum advantage of demographic dividends, India needs to increase female labour participation rate (FLFPR) and bring the unemployed labour into the labour market by implementing policies aiming at gender equality, improved health, education, expansion of opportunities of employment, etc. The paper describes multidimensional index of FLFPR of a country at t-th year FLFPRt I by aggregating correlates of FLFPR and also describes measures of both first and second demographic dividends ( FDDt and t SDD ). FLFPRt I avoids problems of logarithmic transformations, scaling/normalization, finding weights and issues related to multiple regressions and involves no bias for developed, developing or under-developed countries. Since base period figures are different for different countries, comparison of countries may be meaningful in terms of progress made from base period or on Year-to-Year basis. Since higher considering theoretical advantages, FLFPRt I is recommended for finding relationship of the form Demographic dividend = α β + ( ) FLFPR further relationship of GDPt or Per Capita GDPt of a country with ( FDDt and t SDD ) by regression analysis to see effect of FLFPR on economic growth.

Keywords

female labor force participation; demographic dividend; regression, geometric mean; support ratio. JEL Codes: B41, C4, J1