8 AUGUST2024IN FOCUSIN FOCUSThe World Bank's study titled "The Influence of Covid-19 on Young Women's Labour Market Aspirations and Expectations in India" shows that the pandemic significantly reduced the wage aspirations of young women in rural India by 25 percent, leading to a 90 percent decrease in the aspiration gap. This adjustment is not indicative of reduced ambition but reflects a pragmatic response to post-pandemic labor market dynamics.The study was conducted in Haryana by S Anukriti, Catalina Herrera-Almanza, and Sophie Ochmann, and found that the pandemic reduced "wage expectations" by 13 percent, leading to a 90 percent reduction in the "aspiration gap" among young rural women. The study, which involved 3,180 female vocational trainees, found that the pandemic reduced rural women's willingness to migrate to urban areas by 65 per cent due to uncertainty, fear of job loss, and lack of social security. Wage aspiration refers to a worker's willingness to accept a job, while wage expectation is their anticipated wage based on economic conditions.The study further mentioned, "Instead, the pandemic made the aspirations of young rural women more realistic. The decrease in their willingness to migrate is likely to decrease their expected income given that migration to urban areas is an important pathway to higher incomes for many rural households." Bain and Co. and Google shared a joint report titled "Women Entrepreneurship in India - Powering the Economy with Her" which reveals that women entrepreneurs in India have the potential to generate 150-170 million jobs by 2030, accounting for over 25 percent of the new jobs needed for the entire working-age population. This growth could enhance economic development, innovation, and productivity. However, challenges like limited capital access, gender bias, and societal expectations pose challenges. A supportive ecosystem is crucial for fostering women-led entrepreneurship.Megha Chawla, Partner, Bain and Co., mentions "There are an estimated 16 million women-owned and controlled enterprises representing approximately 20 percent of all enterprises today that are creating direct employment of about 27 million people in India. However, in order to enable women entrepreneurs to start up and scale, we will be able to increase direct employment by 50-60 million people, taking the total number of jobs to 150-170 million by 2030."She further stated that a decline in women's labor force participation has been noticed, despite India's economic progress. This is due to labor trends, technological disruption, and social barriers. Unlocking entrepreneurship among women presents an opportunity to change the country's economic and social trajectory, driving job creation and delivering transformational outcomes. The report also emphasizes equal access to finance and gender responsiveness across the financing sector. WORLD BANK REPORT SHOWS REDUCTION IN WAGE ASPIRATION OF RURAL WOMENINDIAN WOMEN ENTREPRENEURS CAN HELP GENERATE 150-170 M JOBS: BAIN & GOOGLE REPORT
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