The Influence of socio-economic variables on female labour force participation in Kathmandu Valley, Nepal

This paper attempts to measure the impact of various socio-economic variables on female labour force participation (LFP) in Kathmandu Valley- the most populous region of Nepal. Attempts have also been made to measure the rural/urban differentials and to examine how these determinants associate with female LFP. The data from the Nepal Labour Force Survey 2008/2009 is analyzed by the logistic regression model. Based on the results of chi-squared tests and theoretical models which explain female labour force participation, a number of potential variables for inclusion in the logistic regression are identified. The study shows the prevalence of gender differentials in labour force participation which is more profound in urban than rural areas. The study also reveals that female labour in the valley is largely concentrated in subsistence agriculture, retail trade, textiles, crafts with less than one third employed population working as paid employees. In contrary to the general finding about the influence of education on labour force participation, this study has found that women with less than primary education have the highest FLFP followed by labour force participation of women with "No schooling" and completed primary education.