Drivers of labour force participation among female undergraduates in Sri Lanka

Abstract

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Despite the strong growth over the past decades, which was accompanied by higher labour force participation, low er unemployment rates, wom en's higher level of education and relatively unhindered access to the job market, the low female labour force participation has become a puzzle and a serious econom ic issue in Sri Lanka for several reasons. The demographic dividend o f a large working age population, which is projected to be shrieked after 2026, urges optimizing the use o f working age population. In this regard, female labour force which encompasses m ore than 5 0 % of the population has been identified as crucial actors in achieving and sustaining any inclusive growth strategy. W om en's social protection at the Older age largely depends on current status of employment. Further, it is a cause for concern given the substantial cost in term s of public as well as private money and effort undertaken in order to obtain a university degree. Hence, the abstention from the labour market of a substantial proportion o f female work force is a significant waste of valuable investment in human capital with serious implications for both society as a whole and the wom en themselves.' Given this seriousness of the problem, effective policy interventions demand the understanding of the matters that constrain the active participation of female work force in the labour market productively. Therefore, this paper aims to investigate possible reasons of why wom en in the tertiary level education choose to be outside the labour force. Data w ere collected from a stratified random sample of 300 final year students in 2014 at the University of Sri Jayewardenepura using a structured- questionnaire. Despite a comprehensive descriptive analysis, constructed binary dependent variable on labour force participation to suit the study objective was used in logistic regression, which is the main inferential statistical method in the study. It was found that the probability for undergraduate wom en to participate in the labour force was affected positively by the magnitude of their work experience and training, availability of household assistance, availability of suitable child care facilities, availability of flexible working hours, mothers education level, and negatively by parents’ wealth status, monthly family income, husband's expected earnings and number of children. Regression coefficients on parents’ expectations and the faculty appeared with the predicted positive 'sign w ere not statistically significant. Results should be replicated to minimize sampling frame limitations. This study suggests suitable policy interventions to facilitate wom en by providing trainings, quality child care facilities, a secure working environm ent with flexible working hours and enhancing part tim e job opportunities. Proactive private-sector leadership can also encourage wom en's participation by establishing company policies and practices that relieve constraints on wom en's tim e, by providing appropriate leave for maternity and childcare.