Jobs and Gender in ECA María E. Dávalos Gender Focal Point Training, Brussels (April 2013)

Few people participate in labor markets in ECA compared to other middle-income regions Source: World Development Indicators. Notes: population 15+.

Women’s activity rates declined in ECA (past 30 years); they have been stagnant in the past decade + 2% World + 4% Sub - Saharan Africa + 2% South Asia + 5% Middle East & North Africa Change in past 30 years + 16% Latin America & Caribbean + 7% High income - 7% Europe & Central Asia - 3% East Asia & Pacific 0% 10% 20% 30% 40% 50% 60% 70% 80% Source: WDR 2012. Female labor force participation rate

Across ECA, people – particularly women - lose many years of potential productive lives Average years of lost potential employment in ECA for an individual in each age groups, circa 2010 Source: Forthcoming ECA Jobs report.

Beyond country averages, activity rates are even lower for some population groups Source: Forthcoming ECA Jobs report.

Moreover, there are few women employers in the region compared to men Source: ECA Gender report.

For every dollar a man makes, a woman earns… Tajikistan 22 ₵ Georgia 44 ₵ Estonia 56 ₵ Armenia 60 ₵ Latvia 64 ₵ Czech Rep. 65 ₵ Lithuania 68 ₵ Kyrgyz Republic 73 ₵ Bulgaria 74 ₵ Russia 80 ₵ Romania 81 ₵ Macedonia Albania Slovenia 82 ₵ Poland 83 ₵ Hungary Men and women work in different parts of the economic sphere, and as a result, have very different levels of productivity and earnings.. Whether as workers, farmers or entrepreneurs; whether in low, middle income or high income countries. Source: Forthcoming ECA Jobs report.

Do these inequalities matter? Is the right thing to do… ... is the smart thing to do Matter intrinsically: gender equality is a core development objective in its own right. But also matter for development and development policy making: gender equality is smart economics.

Addressing gender inequalities is good economics Projected change in ECA’s labor force, by age group and scenario (millions) Eliminating inequalities in participation rates would mitigate pressures from the demographic transition Eliminating employment segregation would increase labor productivity (e.g., by as much as 10 to 22 percent in Turkey) Eliminating barriers that prevent women from working in certain occupations or sectors would reduce the productivity gap between male and female workers by one third to one half and increase output per worker by 3-25% across a range of countries: 10-22% in Egypt; 8-24% in Morocco; 10-18% in Algeria; 10-22% in Turkey Source: WDR 2012 and forthcoming regional pensions report.

WHY ARE many women out of the labor market? Exploring Some Barriers to Work

Any ideas? (group discussion)

Women face multiple barriers to work, often reinforcing each other Access to services: childcare and elderly care Work arrangements Access to productive inputs, information and networks Attitudes and social norms Geographic mobility Skills Women face multiple barriers to work, often reinforcing each other Source: Forthcoming ECA Jobs report.

For example, women dedicate more time to household chores and less time to gainful work than men Household Chores Gainful work Women hours, less men hours Men hours, less women hours Notes: Gainful work includes time spent on main and second jobs (including informal employment) and related activities, breaks and travel during working hours, and on job seeking. Household chores include housework, child and adult care, gardening and pet care, construction and repairs, shopping and services, and household management. Source: Forthcoming ECA Jobs report.

The gap in LFP in ECA increases around women’s childbearing years… Source: Forthcoming ECA Jobs report.

… linked to relatively few young children in childcare With the demise of the Soviet Union, child care opportunities fells. We understand little how the lack of childcare affects women’s occupational choice, early retirement, and how far from home women chose to work. We do know from US analysis that women who leave the labor force for one year for maternity purposes and return, lose 10 percent of income over their life time.

Moreover, women sometimes face discrimination in accessing jobs Percentage of respondents that believe that each factor, all else equal, puts the worker at a disadvantage in accessing a job Source: European Commission (2012).

What can be done? Some areas of action

Policy areas Provide affordable child care Institutional and other changes aimed at shifting norms/responsibilities around housework Reduce discrimination in labor markets (increase women’s participation in male occupations/sectors; strengthen women’s networks) Eliminate institutional barriers, e.g., reforming labor laws that treat men/women differently

Policy areas Make parental leave more gender-neutral Promote flexible work arrangements: part-time, home-based work Make legal reforms where women’s property rights are restricted; beyond legal reforms, enforcement is key Expand of access to formal credit (beyond microfinance), combined with training

Thanks