Gendered Human Capital Misallocation in India: Education, Labour Market Barriers, and Policy Failure
Authors: Simran Sinha; Beaulah Anton; Priyansi; Rezaa Sharma
Abstract:
India has made significant progress in expanding female education, yet women’s labour market outcomes remain disproportionately poor. This study reframes this paradox as an issue of gendered human capital misallocation, rather than a deficit in skill formation. It examines how the gendered labour market constraints impede the educated women from productive employment, leading to underutilisation of skills and decreased economic efficiency.
Utilising a qualitative-descriptive approach and secondary data from multiple databases, this paper examines unemployment, occupational segregation, unpaid care work, and wage disparities between educated women and their male counterparts. The findings show a persistent education-employment paradox: increased female education correlates with high unemployment, informalisation, and labour force withdrawal. These patterns are driven by demand-side discrimination, inflexible work arrangements, safety and challenges in mobility, and unequal distribution of care responsibilities. The analysis argues that government policies have largely prioritised educational expansion without addressing labour market absorption, therefore sustaining gendered inefficiencies. Addressing this inefficient allocation is what makes it important for optimal human capital utilisation and for inclusive economic growth.
Keywords:
Human Capital, Female labour, Labour market segmentation, Gender wage gap, public policy, employment, Human capital misallocation