Low Female Labor Force Participation in Sri Lanka: Contributory Factors, Challenges and Policy Implications

In: Discussion Paper Series, Bd. 68 (2013). Washington, D.C., International Bank for Reconstruction and Development / The World Bank 2013

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Abstract

Even though Sri Lanka is a fore-runner in many human development dimensions and aspects of gender equality amongst the South Asian countries, it is similar to other South Asian countries when it comes to women's participation in economic activities. Female labor force participation has not changed much in recent decades and remained stagnant at a rate around 30 to 35 percent of working age women. This rate is much lower than one would expect given the educational attainment of the female population in Sri Lanka. In order to encourage increased women s participation in economic activities, the first condition is to understand what is keeping them out of the scene. This paper analyzes the underlying reasons behind low participation rates of women in economic activities. It also investigates the employment outcomes, occupational choice, rates of returns, and skills set of economically active women in comparison with men to identify and understand the gaps. The findings have been used to suggest potential policies and programs that can help remove some of those barriers and encourage and enable women to become more economically active in the labor market.