Economic Impact of Sexual Harassment in Workplace: Prevalence, Legal Framework, and Female Participation in Urban Labour Force
Dibyansh Bagaria
Legal Consultant, Jurisaan LLP, Hyderabad, India.
10.46679/9789349926141ch13
This chapter is a part of: Law and Economics in India: Market Governance, Digital Change, and Inclusive Growth from India
ISBN (Ebook): 978-93-49926-14-1
ISBN (Hardcover Print): 978-93-49926-73-8
ISBN (Softcover Print): 978-93-49926-54-7
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Published: April 15, 2026
Abstract
Sexual harassment remains a pervasive issue in Indian workplaces, with severe economic consequences including reduced women’s labor force participation, high attrition rates, and diminished productivity. This study examines these impacts through analysis of India’s legal framework—particularly the Sexual Harassment of Women at Workplace (Prevention, Prohibition, and Redressal) Act, 2013—and prevalence patterns in urban labor markets. Despite comprehensive legislation, persistent harassment undermines female workforce engagement and organizational sustainability. The research evaluates economic costs encompassing direct liabilities, reputational damage, productivity losses, and insurance implications for businesses. It analyzes how workplace harassment affects women’s economic empowerment and broader GDP contributions through reduced labor supply and human capital losses. The study argues that strengthening legal enforcement, workplace culture reforms, and gender-inclusive policies are essential to mitigate these economic impacts. Effective measures against sexual harassment would enhance workforce diversity, organizational performance, and India’s economic growth while promoting gender equality. This research underscores the urgency of comprehensive action to create safe, inclusive work environments essential for sustainable economic development.
Keywords: Sexual Harassment, Economy, Gender Laws, Workplace, Harassment.
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