Gendered Occupational Segregation and Its Cost in India: Evidence from NSSO Data

Research on gender-based occupational segregation and its costs in developing countries like India is an under-researched area. This paper estimates the level of gender-based occupational segregation in India, decomposes the estimate into endowment effect and “unexplained” component (referred to as discrimination), and estimates the cost of gender-based segregation in terms of wage loss of female workers. The study is based on the two rounds of NSSO data (61st and 68th rounds). The results reveal an increase in occupational segregation across gender at the all-India level and for most states. About 30% (in the 61st round) to 22% (in the 68th round) of the segregation index may be due to unexplained factors. Such gender-based segregation has resulted in the lowering of GDP by 11% in the 61st round and 1% in the 68th round. The study advocates encouraging educational programmes for school-going female students to promote the choice of atypical occupations, encouraging vocational training programs for female workers and addressing gender biases in institutional practices like selection, recruitment, and promotion.