However, solving the problem of low female labor force participation is more nuanced than simply expanding employment opportunities for women; factors such as cultural norms and labor regulations affect both supply and demand for female labor. Gender norms in both public and private spheres are closely entwined with the status of women in a region, religion, or caste. As a result, significant differences in female labor force participation exist by region, ethnicity, religion, and social status (Das, 2006)<sup>5</sup> . In India, Bernhardt et. al (2018) show that a husband’s preference and perceptions of community attitudes are linked to his wife’s work outcomes (status and wages). In particular, they find that where males perceive that the community thinks badly of a husband whose wife works, the likelihood of wives working falls significantly. Evidence from Bangladesh and Pakistan also reflects the influence of traditional gender norms and cultural practices on female employment-related preferences and outcomes (see Heintz, Kabeer, and Mahmud, 2017; Bridges, Lawson, and Begum, 2011; and Luci, Jütting, and Morrisson, 2012).

Field et. al. (2016) elaborates on the importance of incorporating these social norms in female labor supply models. They show that, in contrast to the traditional model of household behavior—in which work decisions depend on own-preferences for leisure and wages—greater bargaining power is important for increasing women’s work in India, even if this does not increase their wages. The effect of increased bargaining power was found to concentrate among women who had not worked and those whose husbands disapproved of women working. This highlights the role of gender norms in limiting women’s participation in the labor market.

Legal barriers to female employment, such as restrictions on working hours, are key to understanding how a discriminatory policy may affect overall female participation in the labor market. South Asian women are still subject to laws governing when and in which industries they can work (see Table 2). These rules continue to disproportionately affect women even as the economy grows: for example, Indian female participation in export-oriented manufacturing jobs fell despite increased trade and reduced trade barriers during the 1990s, likely due to legal constraints on women’s working hours through the factory laws (Gupta, 2014).

Other factors affecting labor market opportunities for women in the region include information asymmetries, technological advancements, foreign direct investment (FDI), skills, and migration and conflict, among others. Maqsood (2014) found that female labor force participation positively correlates with FDI and urbanization, while negatively correlates with trade openness across South Asian Association of Regional Cooperation (SAARC) countries. Jaffri et. al. (2015) found that openness to trade reduces gender-based labor force participation in Pakistan, while FDI improves female labor force participation rates in non-services sector. Another comprehensive study by Pradhan (2005) found that trade has promoted women’s employment in India’s manufacturing sector, but the overall effect of technology—

> 5 For example, women’s labor force participation rates tend to be relatively lower in north India and Pakistan compared to southern India. The practice of _purdah_ , which is prevalent in Muslim societies and in some Hindu areas, constrains women’s freedom of movement and is related to the ethos of seclusion across the region (excluding Sri Lanka and several South Indian states). These norms are less stringent among women belonging to scheduled castes and tribes, but there is a tendency for upwardly mobile “lower” castes to adopt the cultural and religious norms of the “upper” castes, which include restrictions on women’s mobility and their activities. For details see Das (2006).

5