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Using 13 major Indian state-level data of the rural sector, covering the period 2004–2005 to 2011–2012 and by estimating a simultaneous-panel model employing Baltagi's Instrumental-Variable EC2SLS estimation method, this chapter contributes to the literature by establishing: (i) the simultaneous dependence between female labor force participation rate (FLFPR) and female health status as measured by female life expectancy (FLE), (ii) the negative impact of outdoor air pollution as measured by prevalence of SPM, SO₂, and NO₂ on FLE, and (iii) the interaction among different demographic factors in determining both FLFPR and FLE. The interaction effect of air pollution with (i) economic growth and (ii) poverty (POV) on FLE is negative implying that the partial effect of a change in growth (POV) depends on air pollution level. Thus reduction in air pollution will increase FLE and hence FLFPR, as the simultaneous positive dependence between FLFPR and FLE is supported. The interaction effect of women's political power and education on rural FLFPR is significant and nonlinear with positive marginal effect. Thus the partial effect of a change in women's political power on FLFPR will in turn depend on level of education and vice versa. The positive impact of other demographic factors like (i) education, (ii) female leader, (iii) POV, and (iv) urbanization on FLFPR and (a) education, (b) female household head, (c) female leader, (d) sex ratio, and (e) growth on FLE are apparent. However, the household size significantly and negatively affects FLFPR.

The contributions of this chapter are to establish (a) simultaneous dependence between female labor force participation rate (FLFPR) and their health status measured by the life expectancy; (b) the roles of (i) air pollutants in explaining female life expectancy (FLE); and (ii) joint interactions of different explanatory variables in determining both FLFPR and FLE, by estimating a simultaneous panel model comprising equations of FLFPR and FLE, using Baltagi’s Instrumental-Variable EC2SLS method and 13 major Indian state-level data for urban sector, over 2004–2005 to 2011–2012. The air pollutants (measured by prevalence of SO₂ and NO₂) have significant negative impacts on FLE. The interaction effect of air pollutants with economic growth on FLE is negative implying that the partial effect of a change in growth depends on air pollution level. FLFPR can be improved by reducing air pollution through health, as FLE significantly affects FLFPR positively. The roles of other socioeconomic variables affecting FLFPR and FLE are also evident.