Study links India's 2017 maternity leave expansion to drop in women manufacturing jobs
Research shows that after the 2017 amendment extending paid maternity leave to 26 weeks, women's employment in covered manufacturing firms fell while men's employment rose.
A paper published in the IZA Discussion Paper Series examines the impact of India's 2017 Maternity Benefit (Amendment) Act, which raised paid leave from 12 to 26 weeks for the first two children and required firms with 50 or more workers to provide a nearby creche. Using Annual Survey of Industries data, the authors found that women’s total work days fell by 9.5% while men’s rose by 2.1% after the amendment. At covered manufacturing firms, female employment declined 8.4% and male employment rose 2.6%, with no significant effect on firm output or profitability.
Industries employing more women saw sharper shifts—women’s jobs fell 12% and men’s rose 4.1%. Field observations in construction echo these patterns, as contractors avoid hiring women to sidestep additional obligations. The authors recommend moving maternity-leave financing to a social-insurance scheme, introducing state-funded paternity leave, and extending protections to informal workers.
Why it matters
The findings highlight how well-intentioned maternity policies can unintentionally reduce women's labor participation, informing future labor reforms.
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