Women at work: addressing the gaps - CIEDUR
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A publication of
The International Policy Centre for Inclusive Growth
Volume 15, Issue No. 1 • April 2018
Women at work:
addressing the gaps
Policy in Focus is a regular publication of the International Policy Centre for Inclusive Growth (IPC-IG).
The International Policy Centre for Inclusive Growth (IPC-IG) is a partnership Specialist Guest Editors:
between the United Nations and the Government of Brazil to promote Carolina Robino (IDRC) and Raquel Tebaldi (IPC-IG)
South–South learning on social policies. The Centre specialises in research-
based policy recommendations to foster the reduction of poverty and In-house Editor: Manoel Salles
inequality as well as promote inclusive growth. The IPC-IG is linked to the
United Nations Development Programme (UNDP) in Brazil, the Ministry of Publications Manager: Roberto Astorino
Planning, Development, Budget and Management of Brazil (MP) and the
Institute for Applied Economic Research (Ipea) of the Government of Brazil. Copy Editor: Jon Stacey, The Write Effect Ltd.
Director a.i.: Niky Fabiancic Art and Desktop Publishing: Flávia Amaral and Rosa Maria Banuth
IPC-IG Research Coordinators: Diana Sawyer; Fábio Veras Soares;
Luis Henrique Paiva; Rafael Guerreiro Osorio and Sergei Soares Cover art: Mosaic produced by the IPC-IG Publications Team, composed of
photographs by Atul Loke, IDRC/Nichole Sobecki, UN Women/Ryan Brown,
The views expressed in IPC-IG Publications are solely those of the authors
UN Women/Joe Saade (the UN Women photographs are licensed under
and should not be taken as representing the views of their respective
the Creative Commons ).
institutions, the Canadian International Development Research Centre (IDRC),
the United Nations Development Programme, or the Government of Brazil.
Editor’s note: On behalf of the IPC-IG, I would like to express heartfelt
Rights and Permissions – All rights reserved. The text and data in this publication
thanks to the Canadian International Development Research Centre (IDRC)
may be reproduced as long as written permission is obtained from the IPC-IG and
for their support and collaboration in the development of this issue.
the source is cited. Reproductions for commercial purposes are forbidden.
In particular, we would like to extend a special thanks to the specialist
Some of the photographs used in this publication are licensed guest editors, Carolina Robino and Raquel Tebaldi, for their dedication, and
under The Creative Commons license; full attribution and links to the to Gabriela Galassi for her support in reviewing the articles. Finally, we would
individual licenses are provided for each. Special thanks to Mylène like to thank all the authors for their generous and insightful contributions.
Bordeleau (IDRC) for her invaluable support.
Summary
7 Women’s empowerment in business and the labour force
10 Labour participation and economic empowerment: two sides of the same coin?
12 The economic case for reducing gender gaps in the labour market
14 Women’s labour force participation in South Asia
18 Bridging gender gaps? The rise and deceleration of female labour force
participation in Latin America
21 Linking inequality with the gender wage gap in Latin America
25 Furthering women’s empowerment through labour force participation
28 Policies toward female labour force participation in Latin America
31 Economic empowerment of young women in Bangladesh: barriers and strategies
33 Eliciting women’s willingness to take a job: evidence from displaced and
extremely poor women in Cali, Colombia
36 Washing machines, gender roles and time use: a pilot study intervention in Colombia
38 The impact of after-school care on women’s labour outcomes
41 The impact of subsidised early childcare on women’s labour force
participation in an African slum
44 Effects of domestic worker legislation reform in Brazil
47 Social protection, economic opportunity strategies and women’s
empowerment in Peru
Editorial
Despite progress in education and health worldwide, Development Research Centre (IDRC) in Latin America
women still face significant barriers to engage as full and from the Growth and Economic Opportunities
economic citizens. There are significant gender gaps in for Women (GrOW) programme—a multi-funder
wages and labour market participation. In many cases, partnership between the United Kingdom Department
women also face barriers and lack the assets needed to for International Development (DFID), the Hewlett
become entrepreneurs. These inequalities remain large, Foundation and IDRC. Although the focus is mainly
persistent and pervasive in many parts of the world. on Latin America, studies from other developing
Addressing these gaps is not only a moral imperative; countries provide useful comparisons.
there is growing evidence that gender equality can
The issue opens with a theoretical discussion about
directly foster economic growth and broad-based
the feminisation of work, and the links between female
social development.
labour market participation and women’s economic
An important aspect of women’s economic empowerment empowerment. An overview follows of the trends in
is their participation in the labour market, which is the key gender gaps in labour participation and pay, promoting
focus of this special issue of Policy in Focus. However, not a discussion of the determinants of these trends.
all kinds of work entail positive outcomes for women, as Articles then go on to examine specific policies and
they face challenges in pursuing well-paid, productive jobs interventions to assess their good practices, limitations
that enable them to accumulate assets. Women’s time use and unintended effects. The authors do not simply
will remain constrained if deeply rooted social norms, such consider potential solutions to address inequalities
as regarding housework and child-care responsibilities, within labour markets, but also examine a leading
continue to weigh heavily on their shoulders. In fact, form of inequality which is generated outside the
greater labour market participation can exacerbate these labour market: the unequal distribution of unpaid care
constraints if these responsibilities are not shared by other work within the household. Also contemplated is the
household members. There is also evidence suggesting role of social norms, to both explain the supply and
links between women’s greater economic empowerment demand of women’s labour and highlight the need
and violence against them. Vulnerable groups in particular for change in the interest of fostering gender equality.
are subject to greater gender inequality. When this The contributions in this issue provide elements that
situation is compounded with socio-economic inequality, might enable this change and suggest avenues for
the result is a cyclical reproduction and intergenerational further research and policy experimentation.
transmission of vulnerability and poverty.
We hope that this publication contributes useful
The articles in this volume examine the conditions evidence for policies that can help empower women
under which work can lead to women’s empowerment, and remove barriers to a virtuous circle between their
assessing the recent trends and determinants of economic empowerment and sustainable development
women’s labour market participation and the public in a broader sense.
policies that aim to improve gender equality in the
economy. They include contributions from research
projects supported by Canada’s International Carolina Robino and Raquel Tebaldi
6
Women’s empowerment in business
and the labour force1
by Naila Kabeer 2 to the International Labour Organization and practical restrictions on their time and
(ILO 2016), it will take more than 70 years mobility; discrimination in access to financial
There is strong and growing evidence for women to achieve equal pay. Of capital, social connections and other
(Kabeer and Natali 2013) that women’s particular relevance to these inequalities resources; and lack of education, all of which
economic empowerment is central to within the labour market is a key inequality may translate into greater lack of experience
the achievement of inclusive growth, outside it: women’s increasing entry into and self-confidence (Goyal and Yadav, 2014).
particularly in low- and middle-income paid work has not been accompanied by
countries. On the one hand, greater gender a commensurate change in the gender Evidence also suggests that self-
equality in paid work and other valued division of unpaid labour within the home. employment is a default option for many
economic resources contribute to the As a result, working women tend to work women, reflecting a paucity of wage
pace of economic growth. On the other, longer hours than men, giving rise to the opportunities more generally as well as the
economic growth is more likely to translate phenomenon of ‘time poverty’. discrimination they face in accessing waged
into broad-based social development work (Hampel-Milagrosa, 2011; Buvinic et
when it is accompanied by the expansion These trends clearly raise the question al. 2013). Where women’s entrepreneurial
of women’s access to reasonably well- of whether the paid work available to activities are dictated by necessity rather
paid and secure employment. Why, then, women can be considered empowering. than opportunity, the transition to the
are women underrepresented in these What we can reasonably assume is that accumulation end of the spectrum is much
forms of employment, and what can the empowerment potential of paid harder to negotiate (Calderon et al. 2016).
policymakers do to improve this situation? work is likely to be greater when women
In a recent working paper published in take it up as a response to opportunity From exploitative to ‘decent’ work:
McGill University’s GrOW research series rather than as a response to distress, and women’s empowerment and wage labour
(Kabeer 2017), I try to answer these when they can choose from a wide range Wage opportunities can also be located
questions by focusing on two categories of opportunities rather than being confined on a spectrum—from ‘bad’, poorly paid
of work—entrepreneurial activity and to a narrow range of female-intensive and highly exploitative work on one end,
wage employment—to work out what occupations. For this to this happen, we need to ‘good’ jobs characterised by formality
distinguishes women in the poorly paid and to understand the barriers to overcome. of contracts, decent working conditions,
poor-quality versions of these activities from regularity of pay and social protection
those in better-paid, higher-quality versions From survival to accumulation: on the other.
and to outline policy actions to improve the women’s empowerment and
gender equity of growth outcomes. enterprise development What appears to be ‘better’ waged work
If self-employment is thought of as a for women in the face of shrinking public-
Gender inequalities in paid and unpaid spectrum, with survival-oriented income sector employment is employment in the
work: empirical patterns and trends generation at one end and accumulation- private sector within global value chains.
A review of the empirical patterns and oriented enterprises at the other, the The higher wages and better working
trends in women’s work in past decades majority of self-employed women can conditions generated by larger-scale units
reveals that gender has persistently been be found at the survival end (World Bank act as a ‘pull’ factor for young women,
a form of disadvantage. While female 2013). A number of generalisations emerge who migrate from rural to urban areas to
labour participation rates have increased from the literature on entrepreneurship. take these jobs. Whether such jobs are
globally, with women having moved out of First, gender differentials in productivity empowering is the subject of considerable
agriculture into services and manufacturing, often decline and can disappear once controversy. On the one hand, studies
this has not necessarily signified a controls for gender differences in individual suggest they have increased women’s
movement into productive and decent and business characteristics have been bargaining power in the household and
forms of work, as highlighted by the United introduced: these include the education, enabled them to escape the exploitative
Nations Sustainable Development Goals. skills and experience of the entrepreneurs power of local monopsonies (Oya 2010;
along with the size, formality, capital and Kabeer 2000; Deere 2009; Maertens and
Many more women than men remain sector of the enterprise (Hallward-Driemier Swinnen 2008). At the same time, modern
outside the labour force, many more are 2011). In other words, business competence supply chains remain ‘bearers of gender
unemployed, and, among those who have is not innately gendered. What we need inequality’, doing little to challenge the
work, many more are crowded into the to understand is why these differentials in gender segregation of occupations and
lower ranks of the occupational hierarchy individual and business characteristics exist future prospects (Dolan and Sorby 2003).
(Anker et al. 2003; UN Women 2015). The and persist. Explanations include the greater
gender gap in earnings has diminished, difficulties women face in balancing their Hence, wage labour can be as
but at such a slow pace that, according work and family responsibilities; cultural much a product of distress as can
The International Policy Centre for Inclusive Growth | Policy in Focus 7
be self-employment. Transitions to bank accounts and to set up businesses. gender deficits and skill and knowledge
‘better’ employment face at least two Legislation setting minimum wages has gaps. Evaluations of vocational training
major challenges: first, supply-side brought disproportionate gains for waged programmes in Latin America that based
constraints, including unpaid domestic women workers, who are more likely than their curriculum on market demand report
responsibilities, lower levels of education men to work for pittance wages. At the increased likelihood of formal employment
and skill, and lack of bargaining power; same time, it is important to note that forms among graduates, with impacts generally
and second, demand-side constraints, of legislation apparently intended to protect stronger for women than for men (Ibarran
including employer discrimination and promote women at work may end and Shady 2009). In South Asia, the self-help
and the structural dearth of decent up curtailing their employment options. group approach, which combines group
employment opportunities. Examples include maternity leave whose formation with access to micro-financial
costs are largely borne by employers, and services and skills development, has been
Making markets fairer the banning of night shift work for women. associated with improved livelihoods and
for women: some policy options higher political participation among
An expansion of economic opportunities Voluntary regulation poorer rural women (Deininger and
through employment-centred growth While building state capacity to enforce Liu 2013; Desai and Joshi 2014).
would create a hospitable macroeconomic labour laws is an important precondition
environment for women’s empowerment, for improving standards and rights at Gender-aware social protection
without setting men and women in work, voluntary codes adopted by leading The provision of regular and predictable
competition with each other for decent multinational companies can provide a forms of social protection has played an
forms of work. However, it would not, on complementary route to these outcomes important role in addressing gender-specific
its own, overcome the gender-related within global value chains. These appear constraints. Because these help offset forms
constraints that have so far curtailed to work most effectively when certain of disadvantage inherent in customary laws
women’s ability to take advantage of conditions are in place: flourishing export and practices or generated by discriminatory
existing opportunities. The following markets, where company codes resonate market forces, they have enabled women
interventions appear to have made a with, and reinforce, national laws and and girls to make progress in both
difference in this regard. regulations; a strong local civil society; intended and unanticipated ways.
and shorter supply chains, which allow For instance, cash transfers intended for
The regulatory environment closer relations between multinational children’s welfare have not only helped
Formal regulations frequently reproduce corporations and suppliers (Dejardin 2009). close gender gaps in education and in
gender-specific constraints rooted in the More recently, evaluations by later employment prospects among
informal relations of family and kinship. the International Labour Organization’s targeted children but have also led to
A World Bank/International Finance Better Work programme (Brown et al. 2016), increased investment in productive
Corporation report (World Bank 2011) which builds on the lessons from the Better assets controlled by their mothers
finds a broad correlation globally between Factories Cambodia programme, report (Rubalcava et al. 2009; De La Rocha 2008).
legalised gender discrimination and promising impacts in a number of countries.
women’s ability to work or to own or run Addressing women’s unpaid
businesses. Successful regulatory reforms Skills and training domestic responsibilities
include extending equal rights to women New forms of tailored—rather than For women in the global South, these
to own or inherit property, to travel, to open generic—training have helped to overcome include but go beyond the care of children
“
A review of the
empirical patterns
and trends in women’s
work in past decades
reveals that gender has
persistently been a form
of disadvantage.
Photo: UN Women/Christopher Herwig. Woman works at her own small home appliances shop, Jordan, 2015
.
8
and of elderly family members to include
the provision of water, fuel and subsistence
for their families. They add up to
considerable time and mobility constraints,
which curtail women’s capacity to respond
to economic opportunities. While reliable
and affordable child-care arrangements are
clearly one way to reduce such constraints,
improvements in transportation,
information and communication
technologies and infrastructure can help
to free up some of women’s time, making
it easier for them to travel to markets
and to bring information, opportunities
and orders closer to home.
Organisation and voice Photo: UN Women/Joe Saade. Women from a rural women's cooperative in Tristao Islands, Guinea, 2015
Finally, with the growing informality .
of work, new forms of organising have
emerged that are more responsive to
the interests of working women than Dejardin, A.K. 2009. “Gender in(equality), Paper. . Accessed 6 November 2017.
traditional trade unions. They have
92. Geneva: International Labour Organization.
fashioned new ways to exercise voice Kabeer, N., and L. Natali. 2013. “Gender Equality
and influence that acknowledge the De La Rocha, M.G. 2008 “Life after and Economic Growth: Is there a Win-Win?”
Oportunidades: Rural program impact after IDS Working Paper 417. Brighton: Institute of
precarious nature of the livelihoods of 10 years of implementation.” In External Development Studies. .
legal arbitration, symbolic politics and areas. Vol. 1, chapter III. Mexico City: Accessed 6 November 2017.
Secretariat of Social Development.
the mobilising power of information, in Maertens, M., and J.F.M. Swinnen. 2008. “Gender
place of the more confrontational tactics Desai, R., and S. Joshi. 2014. “Can producer and modern supply chains.” LICOS Discussion
associations improve rural livelihoods? Evidence Paper 231. Leuven: LICOS Centre for Institutions
of old-style unionism. These new forms of and Economic Performance.
from Farmer Centers in India.” Journal of
organising have also helped to revitalise Development Studies 50(1): 64–80.
Oya, C. 2010. “Rural inequality, wage
the older unions and have awakened
Dolan, C.S., and K. Sorby. 2003. “Gender employment and labour market formation
them to the potential and challenge of in Africa: historical and micro-level evidence.”
and employment in high-value agricultural
organising in the informal economy. industries.” Agriculture and Rural Development Working Paper 97. Geneva: International Labour
Paper No. 7. Washington, DC: World Bank. Organization Policy Integration Department.
Anker, R., H. Malkas, and A. Korten. 2003. Goyal, P. and V. Yadav. 2014. “To be or not to be a Rubaclava, L., G. Teruel, and D. Thomas. 2009.
“Gender-based occupational segregation in the woman entrepreneur in a developing country?” “Investments, time preferences, and public
1990s.” Working Paper 16. Geneva: International Psychosociological Issues in Human Resource transfers paid to women.” Economic Development
Labour Organization. and Cultural Change 57: 507–538.
Management Volume 2(2): 68–78
Brown, D., R. Dehejia, A. Rappaport, E. Voegeli, UN Women. 2015. Progress of the World’s Women
Hallward-Driemeier, M. 2011. Enterprising
M. Davis, et al. 2016. The Impact of Better Work: 2015–2016. Transforming Economies, realizing
women. Expanding opportunities in Africa.
A Joint Program of the International Labour rights. New York: UN Women.
Washington, DC: World Bank.
Organization and the International Finance
Corporation. Medford, MA: Tufts University Labor World Bank. 2011. Women, Business and the
Hampel-Milagrosa, A. 2011. The role of regulation,
Lab. . Accessed 6 November 2017.
impact of job-training programs in Latin America:
E. (2013) A Road Map for Promoting Women’s
evidence from IDB funded operations. Washington, World Bank. 2013. Gender at Work: A companion
Economic Empowerment. United Nations
Foundation, Exxon Mobil. DC: Inter-American Development Bank. to the World Development Report on Jobs.
Washington, DC: World Bank.
Calderon, G., Lacovone, L. and Juarez, L. 2016. ILO. 2016. Women at Work: Trends 2016. Geneva:
‘Opportunity versus necessity: understanding the International Labour Organization. . Accessed 6 November 2017. 1. A version of this article was originally
Deere, C.D. 2009. “The feminization of agriculture:
The impact of economic restructuring in rural Kabeer, N. 2000. The power to choose: Bangladeshi published in the November 2017 issue
Latin America.” In The gendered impacts of women and labour supply decision-making in of the Policy Options magazine:
liberalization: towards ‘embedded’ liberalism?, .
Deininger, K., and Y. Liu. 2013 “Evaluating program Empowerment and Inclusive Growth: Labour 2. Professor of Gender and Development at the
impacts on mature self-help groups in India.” Markets and Enterprise Development.” GrOW Gender Institute, London School of Economics
World Bank Economic Review 27(2): 272–296. Working Paper Series GWP-2017-01 – Concept and Political Science.
The International Policy Centre for Inclusive Growth | Policy in Focus 9
Labour participation and economic
empowerment: two sides of the same coin?1
by Alma Espino 2 and Soledad Salvador 3 market engagement—and their male general population. Likewise, employers
counterparts (Lupica 2015; Espino and and policymakers regard this pattern as
Women’s labour participation gained Salvador 2016; UN Women 2017). being intrinsic to women—and probably
great momentum in the 1990s and started to wives and/or mothers.
slowing down around the middle of the Gender limitations
2000s (Gasparini and Marchionni 2015). The root causes of gender inequalities lie In some societies, such as in Bolivia, Ecuador,
Their staggering professional integration in different types of limitations faced by Nicaragua and El Salvador, the conditions for
was driven by women who had remained women. On the one hand, Kabeer (2012) entering the labour market and obtaining
outside the labour market until then identifies intrinsic limitations: the standards, jobs that foster women’s economic
because they were living with a partner. beliefs and values that condition and empowerment are linked to education
However, while participation gaps between characterise social and family relationships level and the very limited availability
men and women with higher levels of and define each society’s dominant models of care services for dependants and
educational attainment were closing of masculinity and femininity. Thus, society children. In addition, there is a widespread
(11 percentage points), significant differences assigns women, men, girls and boys understanding that women are responsible
persisted between men and less-educated certain roles and responsibilities based on for caring for their children or dependants,
women (25 percentage points between housework distribution and on supposedly while men are only there to ‘assist them’.
men and women with 10–12 years of gendered labour market positions,
formal education, and 33 percentage according to prejudices associating gender In other societies such as Argentina,
points between men and women with with specific qualifications and abilities. Chile and Uruguay, the situation is quite
6–9 years of education) (ECLAC 2016). On the other hand, markets are governed different, as women have better education
by formal and informal rules, procedures levels, on average higher than men’s, and
After analysing the situation across all and practices that reflect and reproduce it is more socially accepted to see women
Latin-American countries, Gasparini and preconceived ideas about masculinity participating in the labour market on an
Marchionni (2015) concluded that this and femininity. Acknowledged as being equal footing with men. In the countries
deceleration process, though evidenced imposed on workers, these limitations are reviewed and in the region more broadly,
in all groups of women, was particularly echoed in employers’ preferences, cultural people still believe that women are
blatant among vulnerable women—low- standards and legal regulations covering essentially responsible for care services,
income, rural, married women with children access to and the control of resources and this belief is then reflected in policies
and low levels of education. The root cause (land, capital, credit, technology etc.), inter and entrepreneurial attitudes. Hence, the
of such inequality lies in the different ways alia. Even among women themselves, most relevant result observed in these
of meeting care needs, including domestic both types of limitation mark differences countries is that gender gaps arise less
work. Women with access to higher levels between people based on their ability from personal or intrinsic reasons than
of education and better jobs can typically to design personal strategies and to take from limitations imposed by the market
afford to outsource care services to the internal and external household decisions or by institutions—in other words, they
market, whereas women with lower incomes about their own life and about family or arise from employers’ preferences, cultural
bear heavier overall workloads—overall community situations. standards and legal regulations.
time dedicated to paid and unpaid work—
choose jobs which enable them to combine The possibility to overcome such In the qualitative studies, the women
both activities—domestic services, self- limitations and thus revert gender interviewed and focus group members
employment etc.—or remain outside the inequalities through empowerment identify and describe gender-associated
labour market (Espino and Salvador 2016). processes is at least partially linked to stereotypes, either critically or from a
the opportunity to participate in the perspective that naturalises and leads to
The women who entered the labour force labour market and earn one’s own income embracing them. These stereotypes refer to
in the 1990s—even those with better job through a quality paid job—one that offers the different abilities, roles, responsibilities
opportunities that enabled them to bear access to social protection and an adequate and activities assigned to men and women.
the costs of children and family and to income level. Accordingly, many feminine attributes
outsource household care—faced a strongly are closely linked to women’s role in
male-oriented labour market governed Evidence from Latin America the private sphere: interpersonal skills,
by the standard of the ‘ideal worker’—one A recent investigation4 carried out in household responsibility and caregiver/
without family responsibilities. This explains eight Latin American countries5 confirms mother function.
why there are still income and hierarchy that women’s decisions are conditioned
gaps between women—even women by their nearly exclusive responsibility By contrast, the abilities, responsibilities and
with higher levels of education and labour to do the housework and care for the roles identified in the interviews as being
10“ A recent investigation
carried out in eight
Latin American
countries confirms that
women’s decisions
are conditioned by
their nearly exclusive
responsibility to do the
housework and care for
the general population.
Photo: James Rodríguez/Panos Pictures for IDRC. Woman makes corn tamales at home, Chiapas, Mexico, 2017.
masculine are mostly related to the public composition and to women’s marital Kabeer, N. 2012. Women’s economic
sphere. Several women acknowledged status: whether they live with a partner or empowerment and inclusive growth:
Labour markets and enterprise development.
that the concept of a supplier-man not. Employment options often depend on Ottawa, ON: International Development
remains relevant within intra-household households’ resources to purchase services Research Centre.
relationships. Being a breadwinner is or on the availability of family members—
Lupica, C. 2015. Instituciones laborales y
actually regarded as men’s most relevant possibly elder daughters—to look after políticas de empleo. Avances estratégicos
responsibility, and their engagement in paid children or dependants. y desafíos pendientes para la autonomía
work is seen as an intrinsically masculine económica de las mujeres. Serie Asuntos de
Género no. 125. Santiago de Chile: CEPAL.
characteristic. Persisting throughout The tension emerging from care
society, these stereotypes perpetuate the responsibilities often urges people UN Women. 2017. El progreso de las Mujeres
sexual division of labour and reproduce to withdraw from the labour market to en América Latina y el Caribe 2017. Transformar
las economías para realizar los derechos.
inequalities in the labour market. personally care for their children and no Panama: UN Women.
longer outsource this task to third parties.
The qualitative studies show that, in all In several countries, choosing this option
countries, women with young children is followed by a subsequent reintegration
tend to reduce their paid workload, work as in informal employment. 1. This article is based on Espino
self-employed or in salaried employment, and Salvador (2016).
choose temporary jobs or withdraw from the Final considerations 2. Department Coordinator on Development
labour force. The scarcity of services, labour Labour participation and economic and Gender at the Interdisciplinary Centre for
Development Studies, Uruguay (CIEDUR).
regulations and cultural transformations empowerment are not synonyms.
3. CIEDUR.
towards redistributing care responsibilities To transform labour participation into an
4. This research was conducted under the
limits the chances of finding quality and empowerment process, gender stereotypes project ‘Promoting women’s economic
higher-income jobs, as corroborated by have to be debunked, and the labour empowerment through better policies’
the qualitative studies. Women explain that market has to become an environment (Promoviendo el empoderamiento económico
de las mujeres a través de mejores políticas),
they opt for more flexible working hours to where work and care are compatible. supported by the International Development
be able to look after their offspring. Taking Research Center (IDRC), UN Women and UNDP.
care of young children is often prioritised The project was coordinated by the Centro
ECLAC. 2016. Social Panorama of Latin Interdisciplinario de Estudios sobre el Desarrollo-
over achieving professional fulfilment or Uruguay (CIEDUR) and the Centro de Estudios
America 2015. Santiago: Economic Commission
earning an income. for Latin America and the Caribbean: Distributivos Laborales y Sociales (CEDLAS),
Statistical Annex, Box 17. under the Universidad de La Plata, Argentina.
Quantitative studies were conducted based
To adapt paid work to care constraints, many on econometric analysis and household or
Espino, A., and S. Salvador. 2016. Restricciones
women opt for reduced working hours or y oportunidades para el empoderamiento employment surveys from each country;
teleworking. However, these flexible options económico de las mujeres. Montevideo: on qualitative studies involving in-depth
Centro Interdisciplinario de Estudios sobre el interviews and focal groups; and on a policy
can have negative impacts in terms of mapping providing an insight into the strategies
Desarrollo-Uruguay.
economic autonomy, as they imply losing implemented in each country to tackle this
one’s income, benefits and experience. Gasparini, L., and M. Marchionni. 2015. issue. For further information, see .
of Female Labor Force Participation in Latin 5. The countries participating in the project
In some cases, such decisions are also America: An overview. La Plata: Centro de were: Argentina, Bolivia, Chile, Ecuador, El
connected to households’ income and Estudios Distributivos Laborales y Sociales. Salvador, Mexico, Nicaragua and Uruguay.
The International Policy Centre for Inclusive Growth | Policy in Focus 11The economic case for reducing
gender gaps in the labour market
by Magalí Brosio, Gala Diaz Langou that gender inequality is not only unfair but 2012), their relative lower bargaining power
and Martin Rapetti 1 also inefficient. Narrowing and eliminating may lead to underinvestment in children’s
gender gaps may yield important economic education and health. Similarly, Slotsky
Gender gaps in the labour market remain returns, both nationally and globally. (2006) argues that increasing women’s
a pressing global challenge. Female labour decision-making power favours aggregate
force participation has risen in recent Economic arguments for addressing productivity in the long term, as they
decades, but it is still nearly 27 percentage gender gaps: three important channels seem to have a stronger preference for
points lower than the rate for men, and no Gender labour gaps may affect economic goods and services that contribute to their
improvements are expected in the short performance in several ways. One obvious children’s human capital (de Hoop et al.
term (ILO 2017a). Female participation channel emphasises the underutilisation 2017). Finally, because the increase in female
rates have stagnated in recent years, of talent associated with women’s lower education levels renders women’s time
casting doubts on the future tendency participation in the labour market. more expensive, families tend to reduce the
of this phenomenon and the reduction of Increasing their participation—by, for number of children they have and spend
gender gaps in the labour market. Gender instance, exploiting the economies of scale more on them. This leads, on average, to
inequality is not only observed in terms of extending the supply of day care— higher income per capita (Lagerlof 2003).
of participation rates: women who do would imply an increase in a country’s
participate are less likely to find a job than potential gross domestic product (GDP) Economic returns of reducing
their male counterparts, and if they do and per capita income (OECD 2012; gender gaps: some evidence
manage to find employment, they often McKinsey Global Institute 2015; ILO 2017a). An increasing literature has documented
find additional obstacles: vertical and and quantified the economic returns of
horizontal segregation, lower wages, etc. A second channel through which reducing gender gaps in the economy.
gender gaps affect efficiency is the A group of studies has analysed
The state of gender gaps in the labour underinvestment in women’s human how different aspects of the gender
market is worrisome per se, but the very capital. Blackden et al. (2006) argue composition of boards of directors or
slow rate of progress makes things even that gender inequality in education—in managerial positions within a firm impact
more shocking. According to the World addition to that in the labour market— their performance. The Credit Suisse
Economic Forum’s last Global Gender Gap reduces both the actual and potential Research Institute (CSRI 2014), for instance,
Report, the situation of women actually stock of human capital. The disadvantaged finds that within large companies—with
worsened for the second year in a row position of qualified women in labour market capitalisation greater than USD10
in 2017. If the current trend continues, markets and the artificial restriction posed billion—those in which managing boards
economic gender equality will not be on the pool of talent create inefficiencies have a higher-than-average percentage of
achieved for at least another 217 years and hamper economic growth. A similar women outperformed those with fewer-
(World Economic Forum 2017). argument can be made specifically than-average by 36 per cent in terms
regarding entrepreneurial talent, which of stock market performance between
Both the state and the evolution of gender is arguably distributed randomly among 2005 and 2014. Similarly, Catalyst (2011)
gaps highlight how relevant the obstacles individuals independently of their gender. shows that Fortune 500 companies with
to both the fulfilment of women’s rights If women have fewer opportunities a higher representation of women in
and sustainable development are. First and to reach management positions—a senior management positions financially
foremost, the persistence of gender gaps in phenomenon known as the ‘glass ceiling’— outperform companies with proportionally
the labour market represents a violation of the speed of innovation and technology fewer women at the top: between 2004
women’s economic rights, which have been adoption in the economy shrinks and, as a and 2008, they obtained 26 per cent higher
recognised internationally through human consequence, so do aggregate productivity return on invested capital and 16 per cent
rights commitments and specific women’s and GDP per capita (Esteve-Volart 2009). higher return on sales. Kim and Starks
rights instruments (such as the Convention (2016) show that women directors enhance
on the Elimination of All Forms of A third channel operates through the impact the effectiveness of advisory boards
Discrimination Against Women—CEDAW— of gender inequality on the stock of human due to a more diversified pool of skills.
adopted in 1979 by the United Nations). capital of the next generation. Sen (1990) Greater director heterogeneity of expertise
and Klasen and Wink (2003), for instance, is associated with higher company
There is also a large body of research argue that asymmetries in employment and value—a gender-diverse board has the
suggesting that there are substantial income undermine women’s bargaining potential to increase company value (Kim
potential economic gains to be made by power within the household. Since women and Starks 2015). Ali et al. (2011) find
reducing gender gaps. This literature, which are typically more likely than men to invest evidence of an overall positive relationship
is briefly surveyed in this article, suggests in their children’s well-being (Duflo 2003; between gender diversity and employee
12productivity in Australian companies.
Finally, Cuberes and Teignier-Baqué (2011)
estimate that male-dominated industries
could increase their productivity by
between 3 per cent and 25 per cent in
many developing countries by improving
female labour force participation.
Consistent with the evidence at the micro
level, positive effects are estimated at the
macroeconomic level. McKinsey Global
Institute (2015) constructs an ideal future
scenario in which women participate in the
economy identically to men. According to
its estimations, this could add up an extra
USD28 trillion dollars in 2025 to annual
global GDP, compared with a business- Photo: UN Women/Ryan Brown. One of the few women who work on the ships and docks at Port Victoria,
as-usual scenario. These numbers arise Seychelles, 2017 .
from closing different gaps. For instance,
rising female participation in the labour
force accounts for 54 per cent of the and should be made in terms of fairness. Esteve-Volart, B. 2009. “Gender discrimination
potential increase. Closing the gap in An emerging literature suggests that and growth: Theory and evidence from India.”
Working Paper. London: London School of
hours worked would generate 23 per cent the case could also be made in terms of Economics and Political Science.
of the estimated incremental GDP. Finally, economic efficiency and growth. Giving
ILO. 2017a. World Employment Social Outlook.
women tend to be overrepresented in equal opportunities to women in the Trends for Women 2017. Geneva: International
lower-productivity sectors, while men are labour market is in many cases a good deal Labour Office.
overrepresented in those with higher-than- for individual companies, but it is clearly a
ILO. 2017b. “Economic impacts of reducing the
average productivity. Thus, shifting women good deal for societies as a whole. gender gap. What Works.” Research Brief No. 10.
into positions in higher-productivity Geneva: International Labour Office.
sectors to match male distribution patterns Ali, M., C.T. Kulik, and I. Metz. 2011. “The Kim, D. and L.T. Starks. 2015. “Board
would add another 23 per cent to the total gender diversity–performance relationship Heterogeneity of Expertise and Firm
in services and manufacturing organizations.” Performance.” Unpublished.
potential incremental GDP. International Journal of Human Resource
Management 22(07): 1464–1485. Kim, D. and L.T. Starks. 2016. “Gender diversity
Since this scenario seems unrealistic in on corporate boards: Do women contribute
Blackden, M., S. Canagarajah, S. Klasen, and D. unique skills?” American Economic Review
the medium term, the report evaluates Lawson. 2006. “Gender and growth in Sub-Saharan 106(5), May: 267–271.
achievable scenarios more closely. For Africa.” UNU-WIDER Research Paper No. 2006/37.
example, if all countries matched their Helsinki: United Nations University–World Institute Klasen, S., and C. Wink. 2003. “Missing Women:
for Development Economics Research. Revisiting the Debate.” Feminist Economics 9.
progress in terms of gender parity with
the best-performing country in the region, Catalyst. 2011. The bottom line: corporate Lagerlof, N. 2003. “Gender equality and long run
performance and women’s representation on growth.” Journal of Economic Growth 8: 403–426.
global GDP would increase by USD12 trillion
boards (2004–2008). New York: Catalyst.
by 2025. Similarly, the International Labour McKinsey Global Institute. 2015. The Power of
Parity: How Advancing Women’s Equality can
Organization (ILO) estimates the potential CSRI. 2014. The CS Gender 3000: Women in
add $12 Trillion to Global Growth. New York:
gains in terms of GDP if all countries were to Senior Management. Zurich: Credit Suisse
Research Institute. McKinsey & Company.
meet the G20 target, established in 2014, of
OECD. 2012. Gender Equality in Education,
reducing the gap between male and female Cuberes, D., and M. Teignier‐Baqué. 2011. Employment and Entrepreneurship: Final Report to
“Gender inequality and Economic Growth.”
labour participation rates by 25 per cent by the MCM 2012. Paris: Organisation for Economic
Background paper for the World Development Co-operation and Development.
2025. This amounts to an increase of USD5.3 Report 2012. Gender Equality and Development.
trillion dollars in global GDP. Moreover, the Washington, DC: World Bank. Sen, A. 1990. “Gender and Cooperative Conflicts.”
report highlights the potential self-financing In Persistent Inequalities, edited by I. Tinker. New
De Hoop, J., P. Premand, F. Rosati, and R. York: Oxford University Press.
effects related to public investment that Vakis. 2017. “Women’s Economic Capacity
is attributed to closing gender gaps: and Children’s Human Capital Accumulation.” Stotsky, J.G. 2006. “Gender and Its Relevance to
IZA Discussion Paper No. 10501. Bonn: Macroeconomic Policy: A Survey.” IMF Working
it is estimated that this could increase Forschungsinstitut zur Zukunft der Arbeit. Paper WP/06/233. Washington, DC: International
global tax revenues by USD1.4 trillion Monetary Fund.
dollars (ILO 2017b). Duflo, E. 2003. “Grandmothers and
Granddaughters: Old-Age Pensions and World Economic Forum. 2017. The Global Gender
Intrahousehold Allocation in South Africa.” Gap Report 2017. Geneva: World Economic Forum.
Conclusions World Bank Economic Review 17(1): 1–25.
Observed gender gaps in the economy
Duflo, E. 2012. “Women Empowerment and
imply a straightforward disadvantage for Economic Development.” Journal of Economic 1. Centro de Implementación de Políticas Públicas
women. The case for closing such gaps can Literature 50(4): 1051–1079. para la Equidad y el Crecimiento (CIPPEC).
The International Policy Centre for Inclusive Growth | Policy in Focus 13Women’s labour force
participation in South Asia
by Arjan de Haan 1 and North Africa, but also—and perhaps than two thirds of what men earn for
more surprisingly—in South Asia. the same work (World Economic Forum
Across the world, gender disparities in 2017). Women are more likely than men
education and fertility rates have been In Sri Lanka, as Minister da Silva stressed to be ‘informal workers’ (ILO 2018; Chen
decreasing, but in many places this has during a regional meeting in Colombo and Doane 2008)—contract labourers,
not been accompanied by women finding organised by the Growth and Economic domestic workers etc.—usually without
paid jobs. The following piece explores Opportunities for Women (GrOW) social security or job protection.
this dilemma, drawing extensively on programme and its partners,2 only 36 per
findings from IDRC’s Growth and Economic cent of women are in the labour force The differences in women’s labour
Opportunities for Women (GrOW) (The Nation 2017).3 In India, female labour force participation within the different
programme, a multi-funder partnership force participation is only 24 per cent, and countries of South Asia and between
between the IDRC, the United Kingdom according to official statistics it has even South Asia and other low-income
Department for International Development declined from 34 per cent over the last contexts defy common and general
(DFID), and the Hewlett Foundation, as two decades (Sarkar et al. 2017). Around explanations. The ‘U-hypothesis’ that
well as evidence from the wider literature 20 million women have dropped out of Goldin (1994) introduced5 suggests
on the topic. Since the 1980s, gender the labour market (rural and urban) since that (married) women’s female labour
gaps in labour force participation have the mid-2000s, according to World Bank force participation first declines
been declining, but the gap seems more estimates (Andres et al. 2017). with economic growth—particularly
persistent than originally perceived, as industrialisation—and high fertility and
the increase in women’s labour force Importantly, there are also large differences levels of education make it less likely
participation has halted. within South Asia, as Figure 2 shows. that women join the labour market, with
Female participation rates are lowest in income levels causing differentiated
Moreover, regional differences across the Pakistan and India. These rates converged responses. As growth and the economic
global South are extremely large, as Figure 1 as India’s declined. There is also significant structure evolve, and women’s fertility
shows. In sub-Saharan Africa and East Asia, heterogeneity within India (Ministry of and education gaps decline, women’s
the ratio of female-to-male labour force Labour & Employment 2012).4 Participation participation starts to increase again.
participation is high—around 80 per cent. rates among women are much higher in The cross-regional differences and
In Latin America, while female labour force Bangladesh and, particularly, Nepal. differences within South Asia clearly
participation has increased at a fast rate indicate that explanations need to take
in the past, this trend is declining. When women work, they are tremendously into account diversity and complexity,
The ratio is much lower in the Middle East disadvantaged. Indian women earn less and suggest that context-specific
(and changing) norms play a key role.
What is causing the lack of progress in
FIGURE 1: Ratio of female-to-male labour force participation, by region, women`s labour force participation?
for population aged 15+ (percentage) Why are the differences in labour force
participation across genders, geographies
and time so stark? Explanations revolve
90 East Asia
and Pacific around three main issues. First, the data
80 North America may be wrong. Women’s participation in
the labour force may be under-recorded,
70 Sub-Saharan
Africa which seems particularly pertinent
60 Europe and
in assessing the impact of structural
Central Asia transformation (which has major gendered
50
La n America implications), as agricultural and home
and Caribbean
40 work is difficult to record. Further,
South Asia
definitions may have changed over time.
30 For example, the decline in women`s
Middle East and
North Africa labour force participation in India may
20
have been caused by changes in the way
2008
2012
1992
1994
1996
2004
1998
2010
1990
2000
2002
2006
this has been measured. These definitional
issues may explain some of the patterns,
Source: Author's elaboration based on ILOSTAT . but not all (Klasen 2017a). 6
14Second, demand for female labour may
be restricted compared to that for men, FIGURE 2: Female labour force participation rates in South Asia,
due to gendered norms or expectations. all ages (percentage)
The majority of World Value Survey
respondents in India (52 per cent) and
90
Pakistan (75 per cent) agreed with the
80
statement that “when jobs are scarce,
70
men should have more right to a job than
60
women” (against 2 per cent in Sweden)
50
(World Values Survey 2018). As few jobs have
40
been created in the region, women may
30
have been pushed out of labour markets.
20
10
Although it is widely recognised that
0
employers may favour hiring men over 1990 1995 2000 2005 2010 2013
women (Gerdeman 2017), there is no easy
explanation for this. Gender stereotyping India Bangladesh Sri Lanka Nepal Pakistan
of jobs is common, but with significant
variation across contexts and time Source: Andres et al. (2017).
(Borrowman and Klasen 2015; Klasen
2017b). In Bangladesh, women form the
vast majority of the unskilled labour force and household duties. In India, according found that 80 per cent of men “agreed that
in the (export-oriented) textile and garment to Counting Women’s Work (2016), women changing diapers, bathing and feeding
industries, though in similar occupations in spend 40 hours per week on unpaid children are a mother’s responsibility” (ICRW
the region the proportion of men was much care and housework on average, while 2011). Social norms are a key force behind
higher.7 Importantly, as women join the men spend 3.5 hours on these activities the division of labour that assigns most care
labour force, they tend to be concentrated (see Figure 3). These responsibilities can responsibility to women. As mentioned
in specific sectors—often with lower pay represent a significant barrier for women above, a majority of the population in India
and fewer opportunities (Klasen 2017b). in terms of the kind of jobs they can take and Pakistan think men have more right to
up, the small businesses they might start or a job than women, and the higher level of
Despite norms about women not working, potentially develop, and hence the income education of men reduces the likelihood
or jobs not being suitable for women, in they can earn. of women participating in the labour force
South Asia, they do take up the hardest at all. Though there are similarities, these
jobs. GrOW-supported research in India Social norms play a critical role in both the norms can vary across the region’s many
and Nepal (Interactions for Gender Justice demand for and supply of women’s labour, social-cultural and religious groups.
2018a; 2018b) shows that poor women’s and this has been—perhaps surprisingly—
work outside the household can be neither well analysed nor integrated in On the demand side, social norms and
extremely exploitative and hard, even in policymaking. A study by the International stereotypes also appear to be a key factor.
development programmes such as India’s Center for Research on Women (ICRW) The segmentation in the labour market
national employment scheme. This entails
high risks of dropping out of the labour
force because of accidents or deteriorating
health. Norms about the suitability of
FIGURE 3: Indian adults’ hours spent per week on market and
work can take effect when household
non-market activities
socio-economic conditions improve,
when the income of other household
70
members increases, and with higher levels
60
of education of male household members
(Sarkar, Sahoo, and Klasen 2017). 50
40
Third, women may be less able or willing 30
to enter the labour force. Their supply of 20
labour may be constrained by a range
10
of factors. Where women are primarily
0
responsible for the ‘care economy’—
Men Women Average (unweighted)
the work in the household and care of
dependants—their time may be restricted. Market Non-market Total
Research confirms that women spend
significantly more time than men on care Source: Counting Women’s Work (2016).
The International Policy Centre for Inclusive Growth | Policy in Focus 15“ Despite norms about
women not working, or
jobs not being suitable
for women, in South
Asia, they do take up the
hardest jobs.
Photo: Asian Development Bank. Woman works as a welder, a job once reserved for men, Nepal, 2011
.
is often accompanied by stereotypes of Employed Women’s Association (SEWA) by the Institute of Development Studies
which jobs are suitable for women, even has for many years advocated for the (IDS) and the Institute of Social Studies
though poor women are heavily involved recognition of women as workers. Trust (ISST) highlights that women
in manual labour in the informal sector, Private companies, particularly leading prioritise investment in infrastructure and
which lacks protection. And the lower pay multinationals, have also been increasingly water facilities, as this would reduce their
for the same work that is unexplained in committing to improving women’s workload and time spent collecting water.
analysis is also likely the result of gender- opportunities and working conditions.8
discriminatory norms. The data on cross-country differences in
Moreover, reform of education systems labour force participation and differences
Policy priorities and training is often needed to improve across socio-economic groups clearly
As we have seen, the reasons for women’s the link between skills formation and suggest that social norms matter.
disadvantages and the lack of progress changing labour market demands. As previously mentioned, there has
in economic empowerment are complex, Tailoring skills formation systems to the been relatively little research in this area.
and policies need to take different specific needs of women is particularly SEWA has shown how women’s voice
contexts into consideration. However, urgent. Similarly, regular cash transfers can be enhanced. GrOW-supported
as documented by Naila Kabeer (2017a; and tailored financial services can research in poor villages in two states
2017b), there is evidence of which policies enable women to overcome constraints in India is showing the importance of
and interventions do work. and invest in economic opportunities. social mobilisation and collectivisation.
An IDRC-supported research project The Mahila Samakhya government-
Both formal and voluntary regulation make in Bangladesh assessed what kind of run programme has aimed to raise
a difference. Gender differences in the law incentives can help young women from the voices of marginalised women,
are common, including in South Asian rural areas access jobs in the formal challenge patriarchy and address social
countries, according to the World Bank sector (IDRC 2018d). constraints—with positive impacts also
and International Finance Corporation on women’s economic participation
(IFC) programme ‘Women, Business and If women have to spend 40 hours a week (Jha and Menon 2016; Centre for Budget
the Law’, and legal reforms removing on domestic tasks, their chances for and Policy Studies 2015). These are likely
discriminatory clauses have been shown exploring alternative opportunities are long-term and non-linear processes,
to help enhance women’s opportunities limited, so addressing women’s double and need sustained investment.
(World Bank 2018). However, even where burden has to be a key part of policies to
equality is legally guaranteed, compliance enhance their economic opportunities.
Andres, L.A., B. Dasgupta, G. Joseph, V. Abraham,
and implementation are critical. Work by the IFC (2017) establishes that and M. Correia. 2017. “Precarious Drop:
Workplaces without facilities for women— it is profitable for companies to promote Reassessing Patterns of Female Labor Force
such as separate toilets—are likely to hold childcare. GrOW-supported research Participation in India.” Policy Research Working
Paper 8024. Washington, DC: World Bank.
women back. Information technology in Rajasthan is assessing the impact of .
was critical for young women in Indian non-governmental organisation (IDRC Accessed 19 January 2018.
cities. Civil society organisations also 2018e). A wide range of other public
Borrowman, M., and S. Klasen. 2015. “Drivers of
play a key role in advocating for equal investments can also play a role: for gendered occupational and sectoral segregation
opportunities. For example, the Self example, the research in India and Nepal in developing countries.” Unpublished paper.
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