Transformation of Women at Work in Asia By Sher Verick Deputy Director, ILO, New Delhi Asia-Pacific Policy Dialogue on Women s Economic Empowerment in the Changing World of Work 23 February 2017
Motivation Strong economic growth in Asia over many decades, accompanied by urbanization, rising education, decreasing fertility rates Yet, women s LF participation has decreased or remained stagnant - this sets Asia apart from other regions 80 70 60 50 40 30 20 10 0 Female labour force participation rates, 1995 and 2015 (%) 64.4 61.3 Sub-Saharan Africa 52.6 45.5 Latin America and the Caribbean 21.1 17.2 Arab States 69.1 61.8 1995 2015 58.7 58.8 34.8 28.3 Eastern Asia South-Eastern Southern Asia Asia
Framework of analysis there is no U-shape Female labour force participation rate (%) 80 60 40 20 2.5 3.0 3.5 4.0 4.5 5.0 Cambodia Nepal Vietnam Lao PDR China Thailand Singapore Mongolia Malaysia Philippines Korea, Rep. Indonesia Japan Bangladesh Sri Lanka India Pakistan Log of per capita GNI, Atlas method ($) Dominant hypothesis that LFPRs and growth fit a U-shape there is no evidence of this in Asia. Women s LFP is complex and driven both by demand and supply side factors, and is not deterministic. Policy plays critical role.
Uncertain structural transformation and transition out of agriculture Structural transformation often correlated with labour-intensive industry, dominated by women workers but this is not happening consistently across Asia. Garments sector important source of jobs for women - in Bangladesh, Cambodia, Indonesia, Sri Lanka. But when productivity (and wages) in the garment sector rise, women are crowded out, e.g. China. 4 3.5 3 2.5 2 1.5 1 0.5 0 Employment in Bangladesh garment sector Employment (million)
Demand-side plays a key role in driving participation EDUCATION is a key factor driving both decreasing and increasing LFPR trends U shape more prominent here in some countries; women need more than secondary schooling to get decent work Social norms dictating women s BEHAVIOR and CARE WORK constrain their ability to work outside the home link between marriage, motherhood, safety and labour market withdrawal LACK OF EMPLOYMENT OPPORTUNITIES and OCCUPATIONAL SEGREGATION crowding out women from paid employment, especially after sectoral reforms Other factors: HIGHER WAGES as a pull factor, crisis response (ADDED WORKER EFFECT)
Six policy pillars to promote opportunities for women in the labour force Supply and demand-side interventions within an economic policy agenda Create more jobs which women can access Improve access to quality education & skills Reduce women's time burden Improve transport and infrastructure Strengthen legal rights and protection Enhance measurement of women's work
Social protection: supporting labour supply of women? In advanced economies, concerns centre on the disincentive effect of social protection on labour supply Reducing participation in worst forms of employment is a good thing! Evidence from emerging and developing countries is more nuanced e.g. impact of pension in South Africa
Social protection: supporting labour supply of women? Uncertain transformation process means social protection is important Women are unable to access decent and productive employment outside the home/village A positive impact on reservation wage protects workers from exploitation (e.g. MGNREGA as a minimum wage in a non-competitive labour market) A positive impact on labour supply if it alleviates credit, care, infrastructure and other constraints (e.g. due to cost of commuting, care, access to energy)
Final words Women in Asia have played a critical role in driving the growth process but there is no room for complacency It is critical to understand how FLFPR and labour market outcomes for women are being shaped by various forces, including structural transformation. Promoting opportunities and choice for women to work outside the home will go a long way towards achieving SDG 8 on decent work and inclusive growth More research is needed on policy solutions to promote participation and access to decent work.