Name of the Asset | Internet Adoption and Gender Productivity Gap: An Analysis of India's Unorganised Sector
Type of Asset | Research
Date | January 2026
DOI | 10.69814/wp/2026112
SUMMARY
This study examines the impact of internet adoption on labour productivity in the unorganised sector in India, focusing on gender-based productivity gaps. Prior research highlights the persistent productivity differences across male and female-led enterprises, but there is limited evidence on how ICT tools can influence these gaps. Using two rounds of the National Sample Survey Office (NSSO) data (2010-11 and 2015-16) and three rounds of the Annual Survey of Unincorporated Sector Enterprises (ASUSE) (2021-22, 2022-23, and 2023-24), we analyse patterns of internet adoption and its relationship with productivity. We observe a notable increase in internet adoption among small firms, which was previously concentrated among larger enterprises. Our findings confirm the persistence of gender-based productivity gaps; however, they also show that female-headed enterprises benefit significantly from internet use, with improved productivity outcomes. In addition to gender, other significant determinants of productivity include caste, age, location, enterprise size, and the nature of the business. The results highlight the potential of digital tools to reduce existing productivity inequalities among small firms and enhance productivity within India’s unorganised sector, offering valuable insights for policies aimed at promoting inclusive digital growth.
AUTHOR | Jayati Chatterjee, Subash S., Rajesh Raj S. N.
COUNTRY AND/OR REGION | India
PROGRAMME | Global Development Conference 2025: Call for Papers
