Economic Aspects of Gender Discrimination in the Georgian Labour Market: Myths and Realities

Transcription

1 Economic Aspects of Gender Discrimination in the Georgian Labour Market: Myths and Realities Eka Sepashvili Economics and Business Faculty Tbilisi State University N o r w e g i a n I n s t i t u t e o f I n t e r n a t i o n a l A f f a i r s ( N U P I ) Georgia R e g i o n a l C o m p e t e n c e - B u i l d i n g f o r T h i n k - T a n k s i n t h e S o u t h C a u c a s u s a n d C e n t r a l A s i a [ ]

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3 Dr Eka Sepashvili Associate professor, Tbilisi State University, Economics and Business Faculty Economic Aspects of Gender Discrimination in the Georgian Labour Market: Myths and Realities Abstract: Relations between men and women have many aspects, many of which have been the object of a great deal of research. In recent decades, these relations were marked by the sole term gender, encompassing a number of areas, including political, social, economic, cultural, anthropological and linguistic. However, gender is not only related to social roles and status it also has great economic meaning, perceptible in long-term outcomes. Gender equality represents a key factor for unlocking the economic potential of nation states and for leveraging economic growth. In this paper we will discuss the economic aspects of gender relations, namely the gender dimension of the labour market in Georgia. The overall aim of this research is to study the level and forms of gender discrimination in the Georgian labour market. This paper discusses the problem of employment from a gender point of view and identifies types of discrimination and the results of gender bias. This paper compares inaccurate perceptions of gender related issues in the labour market myths that exist in society to the real situation which is presented by means of data and a questionnaire analysis. 1

4 Introduction: Why does gender equality matter? The primary goal for national policy-makers is to raise the level of welfare within the nation state. This task is closely connected to the efficiency of resources capital and labour. High efficiency of capital means high returns on capital inputs and high efficiency of labour means, correspondently, high salaries. Economic theories dictate, and empirical data prove, that to achieve this goal national economies should be widely involved in the world economy, the nature of which has significantly changed in the last century, in particular the 1980s and 1990s owing to the rapid economic growth generated by the global economy. The contemporary global economy relies on knowledge, where human resources are the most valuable. The development of new technologies and innovations diminished the importance of low skilled labour and unprecedentedly increased the value of workers able to perform cognitive tasks. Today countries have to integrate into the modern globalized world economy in such a way as to avoid or minimise harm the national interest, avoid the negative consequences of globalization and completely benefit from the openness of the national economy and hence, support the growth of domestic welfare. This new pattern changes the social and economic objectives of nations (Sutherlend & Sewell 1998). It is no exaggeration to say that one of the main components of national success is the inclusion and utilisation of highly skilled labour in the production process. One of the most reliable ways to ensure high levels of income and to raise resource efficiency is to increase human resource efficiency. Human resources are characterised not only by education, but also by gender dimensions. In this regard, women s economic contributions are vital and the ability to realise the full labour potential of women in the national economy is decisive to meet the challenge of attracting highly qualified employees to compete in international markets. Unfortunately, few nations and companies recognize the significance and potential that women hold. The World Development Report 2012 (World Bank 2011) dedicated to Gender Equality and Development, affirmed the positive correlation between: 1) the Index of Economic Participation and Opportunity measuring the female male ratio in labour market participation, wages, and incomes and; 2) the GDP level per capita and overall level of welfare. Gender equality is not only about the protection of human rights, it is also about economic efficiency and economic development. As mentioned above, currently, national economies devote a great deal of attention to resource efficiency. In this regard, gender equality represents a key factor for unlocking the economic potential of nation states and for leveraging economic 2

5 growth. Gender equality leads to smart Economics (Buvinic & King 2007). This supports the economic empowerment of women and increases investment in female human capital an investment that has returns not only for women but for men, children and the nation as well. At the same time, the economic rationale and the tenets of social justice, which encompass different bases for women s rights, are not always respected when women are fully engaged in labour activities (Sepashvili 2003). The first implies maximum utilization of available female human recourses, thus causing their exploitation by imposing a double burden on women. The second underlines the importance of equal rights and opportunities for both men and women and is aimed at harmonising the development of the entire society. Meanwhile, equal opportunities and rights suggest women s equal participation in the country s political, economic, cultural and social life. These are the areas that policy makers have to address. The important message to be considered is that gender equality does matter in achieving the ultimate goal of increasing welfare provision for the entire population. Gender in Georgia: A short historical excursion Georgia is one of the oldest countries in the world, with its own rich and unique traditions. It is located between the Black and Caspian Seas. It borders Russia to the north and Azerbaijan, Armenia and Turkey to the south. Georgia s population stands at 4.6 million and its territory covers 69,700 km 2. There are specific features, generated by Georgia s history, which make gender relations different in this country and which lay the foundation for present-day social attitudes. Traditionally, Georgia has always been regarded a country with a cult of woman, although recently researchers have argued that this is more like a cult of mother (Surmanidze 1998). This situation has resulted in a number of prevailing perceptions in society, including: There is no gender discrimination in Georgia Women and men have equal rights Women are highly respected There are no obstacles for female career advancement and their participation in decision making Women have equal opportunities in the labour market, etc. 3

6 Despite the progress in many sectors, gender equality remains a challenge in political and economic decision-making more or less everywhere in the world. In this regard, Georgia is no exception. Studies carried out in the field (Khitarishvili 2009; Sumbadze 2008; Sabedashvili 2007) show that the concept of gender equality and the need for its application and implementation in society have been imposed by international organizations. The term gender was introduced from the West and it is mostly associated with Georgia s new path of development after the country s independence in the early 1990s. Nowadays, Georgian society is familiar with gender-related problems. Different international and local organizations work on gender issues and a great deal has been done in this direction. Nevertheless, the gender equality concept and problems related to gender relations are still only vaguely understood. Georgian society does not always adequately understand and interpret its actual meaning. The situation is even worse for issues related to the economy and gender (Shioshvili, Chavleishvili, & Khachidze 1998). Hence, in this paper we will try to examine specific economic aspects of gender discrimination in Georgia and gender role myths in economic relations. Identification of the Problem Gender economics (Jashi 2005: 27-41) examines the disparity between the socio-economic status of women and men, determined by gender roles and relations. The main subjects of gender economic analysis are the usage and control of resources, employment, the distribution of income and welfare, the execution of property rights, managing financial leverage and establishing institutional, social, political, demographic and geopolitical factors all factors critical for gender economic equality. Discrimination is often not seen clearly for what it is, as it is caused by structural factors and social attitudes. Therefore, structural gender discrimination is always difficult to identify, especially if we discuss the economic aspect of the problem. Economic aspects are frequently neglected due to the fact that they are often hidden. Only accurate data collection and targeted statistics are able to show the real depth of gender discrimination and its impact on the country. The development and proper utilization of the labour potential of both genders should stand high among the priorities of national economic development strategies (Sepashvili 2011). The rationale for this is simple: half, even more, of the population of any country are female. 4

7 Whenever the national economy does not fully engage with women labour, it means the country wastes resources. Simultaneously, efforts should be directed to raise labour productivity to ensure higher returns on labour inputs. As noted above, increasing resource efficiency is intimately connected to the growth of welfare levels. Hence, when we suggest putting emphasis on high skilled workers, biological disparity between genders does not matter at all, as it plays no role in the performance of cognitive tasks in the work place. Thus, the utilisation of women s labour potential, which typically represents at least half the entire human resource capital of any given country, represents one of the important goals for policy makers to meet the challenges of contemporary development. A gender imbalance in the labour market is a problem faced by many countries (Khoreva 2009). The problem is growing due to the effects of globalization, which deepens the gap between men and women, in terms of access to political-economic power and resources. Georgia is no exception in this case (Kepuladze 2005). Gender imbalances and a significant gender segregation of the labour market is a reality. Horizontal gender segregation is observed within different professional groups while vertical segregation is shown in the asymmetrical distribution of high status posts between men and women in Georgia. Another serious aspect exaggerating this problem is that Georgian society does not recognize the existence of gender discrimination, in particular in the labour market, which we attempt to explore in this paper. The situation described by experts and supported by official data and our survey results demonstrates the existence of numerous traditional, but erroneous, stereotypes in society (Surmanidze 1998). The main problem is that when people talk of gender problems in focus groups, or when relevant questions are posited, then the problem becomes clear, but otherwise the impression is that there is no gender discrimination. This is especially true of men, who feel no burden of discrimination. To improve this situation it is necessary to identify the problems and to put them high on the public and policy making agenda. The aim of this research is to study the level and forms of gender discrimination in the labour market in Georgia. This paper discusses the problem of employment from a gender point of view and identifies the manifestations of discrimination as well as the results of gender bias. This research is conducted by examining official data presented by relevant government agencies, as well as research papers prepared by different local and international experts and by conducting in-depth interviews. A small scale (164 respondents) public opinion poll was also conducted. This paper analyses and compares the 5

8 erroneous perceptions of gender related issues myths that exist in society regarding the labour market to the real situation as shown by the research results. The Gender Dimension of the Georgian Labour Market: Survey Results and Analysis To examine the labour market in Georgia, we conducted an opinion poll (164 respondents) using a specially trained pollster and a random selection technique to choose respondents. In the course of constructing the questionnaire, local and foreign experts were consulted and their opinions were taken into consideration and reflected in some of the questions. The aim of the survey was to identify respondent perceptions of gender issues in order to compare this data with the official statistics published by the Georgian National Statistics Office, as well as the results recorded by various research papers in Georgian and English on the same subject. Questions related to the assumptions and prejudice that prevail in Georgian society. In total, 84 women (51%) and 80 men (49%) participated in survey, with 23.8 % of female respondents and 25% of male respondents unemployed at the time (see Figure 1 for an overview of the respondents employment status). The age of respondents varied from 15 to 65 years of age. Figure 1. Employment status of the respondents women men 0 state/public private employed unemplyed Main findings Survey data analysis provides the following picture. The majority of unemployed women were trying to find paid work in order to gain additional income for their family, while the majority of men in the corresponding category were seeking employment to maintain their family. According to the commonly expressed view, women are less involved in labour the market, with official data indicating a 47.5% employment rate for women, as opposed to 61.2% for men. According to our data, there is no significant difference between the unemployment rate for women and men. Accordingly, more women are working than men. 6

9 This indicates that females have better access to jobs, although a related problem and one discussed below concerns the kind of jobs they are performing. Our survey shows that the majority of respondents (43%) believed that women face fewer difficulties in finding employment and just 17% believed that men have fewer problems to work. Women tend to hold an opinion that it is easier for them to start a job and this situation is proved by the statistics. The hidden side of the problem is that women are often offered jobs in the private sector where there is an unhealthy work environment, where their rights are frequently violated and where the jobs are, as a rule, low paid. In addition, the jobs they are offered in the state or public sector are also characterized by low earnings. In short, and in both cases, these are the jobs which men refuse to take. Survey data showed that 26% of male respondents held high status positions (e.g. director / executive directors of establishments), while only 3% of women reported the same. Data gained from our survey indicates that the majority of men in leading positions did not feel that they needed to have high-level qualifications, but at the same time, 44% of women who held high-ranking positions thought that they were required to be highly qualified. Our data and expert analysis prove that less qualified labour is in greater demand in the Georgian labour market (Jashi 2005: 100). Figure 2 provides an overview in terms of the qualifications that respondents felt they needed to have to work: Figure 2. Levels of Qualifications Deemed Necessary to Work in Georgia high sufficiently high average low no Women Qualification Men Qualification Furthermore, the survey explored data regarding society s opinion about career advancement for men and women. It appeared that 36.6% of our respondents think that it is easier for men 7

10 to advance their career; 21.7 % think women have an advantage and 41.7% think men and women have equal possibilities to advance at work. Again, society, owing to established stereotypes, continues to consider women and men equal in the labour market. It is men rather than women who experience greater career advancement. There is no correlation between age and the amount of career growth for men, while for women there is clear correlation: the older the woman, the higher the number of promotions they are likely to have achieved. Generally, men reported that a year period was needed to win a promotion, with women reporting a figure of 2-3 years. One can argue that this tendency is caused by the low qualifications of women in comparison with men. This statement is partially false and partially true. False, because the number of males and females in the Georgian education system is roughly equal and is, in fact, slightly in favour for women (statistics 2006: 26-33). Conversely, it is true because the double burden of productive and household functions means that women have less time to increase their qualification levels after they finish studying, spending up to 13 times longer performing household tasks than men (Sepashvili 2008: 30). The judgment on comparative educational levels among men and women appeared diverse, reflecting the complexity of the problem mentioned above. Legal rights Our survey showed that the majority of respondents (61%) think that men and women have equal rights according to Georgian labour legislation. Moreover, 70% of women think there is no gender discrimination in the legal system, although only 2.4% of women and 15% of men said they fully understood Georgian legislation. Furthermore, 16.7% of female respondents and 20% of male respondents are sure that priority is given to men. An interesting picture emerged when data from unemployed and employed respondents were compared. Not a single employed female respondent thought that they had any privileges at work, although 15% of employed male respondents were confident about their privileged position, supported by the law. Thus, a majority of respondents have erroneous perceptions and just 8% of them thought that women have some advantages according to Georgian legislation and as a result of their household function. There is no gender discrimination in Georgian legislation. Particular articles of law are designed to protect mother and child rights. Positive gender discrimination in favour of 8

11 women and children is emphasised throughout the entire legal system and existing legislation (Metonidze, Aladashvili & Meskhi 1997). There are special articles in relevant laws that give certain privileges to pregnant women and women with infant children (under three years of age). 1 Maternity leave and some financial support over a period of 126 calendar days (600 GEL) are provided by law, although these benefits are equally applicable to men too. However, very few men apply for maternity leave. Overall, analysis conducted by international experts confirms that Georgian Law is, by and large, gender neutral (Duban 2010). As practice shows, gender neutral legislation and the absence of gender discrimination in the law do not facilitate gender equality in society. Many other factors and obstacles affect women s status and work conditions. Hence, additional gender oriented legislation is needed to realize the gender equality goal in the labour market, or at least to improve the status of women. If we look more carefully at the positive gender discrimination stipulated by Georgian legislation, it becomes apparent that all the privileges granted to women are derived from their household function. Taking into account this fact, I included a special question in the survey: in your opinion, is it men or women who experience greater problems at work when she/he has a young child? Overall, the majority of respondents recognized that a child or children only create work place problems for women, with more women (88%) than men (62%) considering children an extra burden for women in the work place. No female and only one male respondent indicated that children create problems for men in the work place. The problem becomes gloomier if we take into consideration the fact that there is insufficient social infrastructure to support women in dealing with this problem. For example, one particular aspect of the social infrastructure includes pre-school educational institutions, such as kindergartens. These institutions are under municipal control and, in Tbilisi; the Kindergarten Administration is responsible their management. The routine that is common for all public kindergartens is that working hours are set to enable women to go to work. The problem is that kinder gardens schedule an estimated months of down time when they are not open. 2 Practice shows that relatives, elder children, private wet-nurses, neighbours and sometimes private kindergartens are used by parents to solve this serious problem, although it 1 The Constitution of Georgia, the Georgian labour code, the law on public work in Georgia

12 is clear that some of these solutions (private wet-nurses, private kindergartens) require extra spending, often met by the mother. Finally, 2011 was remarkable in a negative sense due to rises in kindergarten fees. The cost of maintenance for one child was 80 GEL, partly paid for by the parents (average 45 GEL) and partly by the city municipality. 3 It is worth mentioning that some children receive kindergarten care free of charge, while in some districts of Tbilisi parents have to pay up to GEL. Thus, for an average family (mother, father and one child) kindergarten care may cost 3.5% of the total family income 5.3 % for two children. If we consider the fact that, according to official statistics, the unemployment rate in urban centres is as high as 27.2% (Geostat 2010) and if the unemployment rate is lower for women than for men, then it appears that there are many families with one employed parent, often the mother. Is this case, 7% of the family or mother s income will go to pay fees for one child and 10.6% for two children. The situation becomes gloomier if we further examine the official statistics: the average salary in sectors which are usually feminized is lower than the above mentioned average. Moreover, if we examine segregated data, then women s average salaries in these sectors are lower than the overall average ones, thus showing the true extent of the problem: a woman will have to set aside % of her salary to place one child in a kindergarten and % for two children just to have the possibility to work. These points vividly demonstrate that this situation inevitably creates grounds for discrimination against women in the labour market in Georgia. Analysis of the situation with kindergartens shows the extent of the problem women face. One should also not forget that this is just one source of discrimination against women in the labour market which results in the reduced competitiveness of women labour, although this problem is not widely acknowledged. Wage gap It should be mentioned that Georgian legislation does not contain any discrimination with regard to the salaries of women and men performing the same job. The answers gained demonstrate a widely held opinion that there is no discrimination in this regard, which at the same time is backed by legislation which clearly legalizes equal salaries for similar positions. 3 Average US$/GEL 1US $= 1,669 GEL for the October 5, National Bank of Georgia, 10

13 This is a typical situation that shows that few people are aware of hidden discrimination, resulting in a situation where no steps will likely be taken to improve the situation. This is a classic case of structural discrimination which can be revealed only by statistical data. It is well known that the horizontal and vertical segregation of the labour market according to sex is a Georgian reality. We have traditional masculine sectors (construction, transport, energy, financial, communication and manufacturing) and feminine sectors (education, health and social care, hotels and restaurants). The average monthly nominal salary in 1999 was 67.5 GEL which increased to GEL by the first quarter of In 1999, the average women s salary was 47.4 GEL and for men 90.9 GEL meaning the average women s salary was 52 percent that of the male equivalent. In 2011, the average women s salary was GEL and GEL for men, meaning women on average received 58 percent of the average male salary. If we compare average salaries in masculine and feminine sectors of the economy we see a similar picture (see Table 1) Table 1. Incomes in Masculine and Feminine Sectors of the Economy, 1999 and the first quarter of 2011 Masculine sectors Construction Transport and communication Financial intermediary total men wome n % 5 total men women % total men wome n % All data are taken from the official web-page of the Georgian National Statistics Agency: 5 The number indicates the percentage of women s salary in correlation with men s salary. 6 Numbers are given in Georgian National Currency Lary GEL. 11

14 Feminine sectors Education Health and social work Hotels and restaurants total men wome n % total men wome n % total men wome n % As this limited data (only two years) show, the gender wage-gap is an indivisible feature in every sector, even for those which have a clear preponderance of female workers. Thus, we can conclude, that the wage equality supported by law is not an economic reality in Georgia. Due to a trend of preferring men over women to fill leading positions (even in female branches of the economy) women generally have lower salaries than men. The two main factors that determine lower salaries for women include the under-representation of women in high profit sectors of the economy and the over-representation of men in high status and high paid posts in nearly every sector of the economy, including public, state and even traditional feminine sectors. A majority (57.1%) of respondents have either the wrong perception that men and women have equal incomes or that women s incomes exceed men s, or simply have no opinion at all, owing to the fact that this issue has never or only rarely been discussed. Recommendations Generally speaking, a country has to have sufficient budgetary/financial resources to achieve gender equality and to finance the household function of women. At the same time, respect for human rights, democracy, rule of law and transparency are those factors which are necessary, but not sufficient to guarantee equal opportunities for men and women in the country. Positive gender discrimination is also necessary. Meanwhile, political will is a decisive factor in achieving gender equality. In order to attain genuine gender equality in Georgia several steps should be taken: The appropriate legislation for achieving gender equality should be strengthened and its implementation should be guaranteed by the public/state and private sectors Women should be given legal advantages, as their household function requires special treatment 12

15 Gender awareness activities should be widely implemented in order to explain the meaning of gender equality, how to achieve it and what benefits society and the country will gain by ensuring gender equality Appropriate social infrastructure needs to be created to support women s involvement in the labour force Special state aid programmes should be initiated to recognize and facilitate women s household functions Structural gender discrimination should be overcome by legal means and appropriate transparent systems based on equal rights and merit should be introduced Gender statistics should be applied more widely The gender impact of any law and policy should be assessed before it is implemented The gap between salaries in masculine and feminine sectors should be narrowed by eradicating vertical segregation. 13

16 Bibliography Buvinic, M. & King, E. (2007) Smart Economics in a Quarterly magazine of IMF Finance and Development 44(2). Constitution of Georgia, Labour code of Georgia, Law on Civil work of Georgia. Available at: Accessed 22 March Duban, Elisabeth (2010) Gender Assessment. DevTech Systems. USAID/Georgia. Jashi, Ch. (2005) Actual Problems of Gender Economics. UNDP& SIDA. Tbilisi. Kepuladze, T., (2005) Some aspects of Labor market Formation in Georgia. Economy 7: Khitarishvili, T. (2009) Explaining the Gender Wage Gap in Georgia. The Levy Economics Institute, Bard College: New York Khoreva, Violetta (2009) Gender Pay Gap: Lessons from Multinational Corporations, 18th EDAMBA Summer Academy: Soreze. Metonidze, V. Aladashvili, I. & Meskhi, M. (1997) International Convention on Women Rights, Georgian Legislation and Practical Mechanisms, UNDP: Tbilisi. National Service of Statistics of Georgia-GEOSTAT. Available at Accessed 22 March Porter, Michael (1992) The Competitive Advantage of Nations, The Free Press. A division of Macmillian, Inc: New York Sabedashvili, T. (2007) Gender and Democratization: The Case of Georgia Heinrich Boll Foundation, South Caucasus Regional Office: Tbilisi. Sepashvili, E. (2003) Gender Equality and Ways of Its Implementation through Budget. Economics, Tbilisi State University 3: Sepashvili, E. (2008) The Structure of Time Budget and Welfare of population in Georgia. Tbilisi. Sepashvili, E. (2011) Success of Business on Global Markets and Gender Aspects of Resources Productivity. in International conference proceedings. The socio-cultural Environment of International Business. Tbilisi. Shioshvili, N., T. Chavleishvili.& I. Khachidze (1998) Issues of Women Employment. UNDP: Tbilisi. Sumbadze, N. (2008) Gender and Society. Project Gender and Politics. Institute of Policy Studies. UNDP: Tbilisi. Surmanidze, L. (1998) Women in Georgian Mentality in Actual Problems of Gender UNDO:Tbilisi. Sutherlend, Peter & Sewell, John (1998) The Challenges of Globalization. Earth Island Journal 13(4): Tbilisi Kinder Garden Administration. Available at Accessed 22 March Women and Men in Georgia (2006) statistical publication. Tbilisi. World Development Report (2010): Gender Equality and Development, the World Bank. 14