Gender and economics operate in the frame of an overall societal construct. And so, naturally, factors like gender inequality transcend socio-economic boundaries. Consequently, women all over the world regularly struggle with unequal pay, lack of gender-conscious policies and gender-based workplace abuse. These travails are but the tip of a larger iceberg - a deeply embedded, even internalized, oppression. The inter-play of our pre-existing gender norms with the economy strengthens inequality.
Somewhere in the depths of the internet, there exists an Oxfam article titled, ‘Can we get Davos talking about the care economy?’ Davos is a small, picturesque town in Switzerland that hosts the World Economic Forum meeting every year. What is the care economy? Why does it hold key significance in bringing tangible economic gender reform? What about the care economy today will make global leaders sit up and take notice?
The Care Economy
Care work loosely covers all societal-economic activities with a ‘to serve’ agenda. Everything from education and overall child development, to health and old age care comes under the purview of Care work. Unsurprisingly, the majority of the employees in the field are women. In the formal care sector which constitutes around 11.5% of the global economy, a third of the workers are women. And in the informal sector, 85% of the total work is performed by women. Taken from a survey of 45 countries, these women work approximately 16.4 billion hours every day. Translated into eight hour working days, the informal care sector has a workforce of 2 billion people the world over. Most of these women, it would prudent to assume, are under-valued and under-paid. In effect, these 2 billion women are consistently overlooked by state policy makers, private sectors and other employers.
Women in the Care Sector
The informal care sector is usually run by the work of domestic workers and women who stay home and support their immediate families. Classic gender roles in the economy assign women the task of maintaining the household while the men ‘earn bread’. This is one of the main reasons for gender inequality in labor in the economy. Women who are engaged in care work are naturally unable to make a significant contribution to other sectors and forms of the economy.
This is problematic on two fronts.
The informal Care economy has virtually no monetary value in our system. This is on account of a large portion of care workers being unpaid for their services. Women effectively have to remove themselves from the functioning economy to care for their children/ family members, despite having the skill set to perform in the system. Because of the lack of accommodation in the system, these women also have a hard time inserting themselves in the job market. Care work has no assigned acknowledgement; women are perceived as having done nothing in the time that they spent working tirelessly to provide for the household. The result: women are financially crippled in a system that has no value for care. They are dependent, unable to break away from oppressive familial systems and be self-reliant. In cases where they do get to work, they bear what is called a ‘double burden’, which constraints them and puts them at a greater disadvantage as compared to their male counterparts.
This economic system continually pushes the underprivileged, which happen to be more women than men, to the bottom rungs, where many face exploitation without any tangible relief.
For instance, domestic workers, predominantly women, work in informal settings. These are women who largely come from disadvantaged racial, ethnic or financial classes. Globally, 8.3 million female domestic workers are illegal migrants. These women have no collectivized union, have no knowledge of their rights and are usually isolated from society. They rely on informal agencies and their employers for survival. Thus they forfeit rights which are generally available to laborers in formal markets. Most prevalently in Asian countries like Hong Kong and China, women are lured into damaging, perpetual contracts, sexually and physically abused, paid very little for a lot of work and have little/ no access to legal aid. Female children from poor families are burdened with the responsibilities of caring for the family, depriving them a chance to get an education. This effectively creates a vicious cycle of disadvantage for women from such backgrounds.
All of these problems are aggravated by the pointed disregard of the decrepitude of these women by Governments. Governments of all countries have a responsibility to provide care to the vulnerable and dependent sections of society. Today, welfare and care are made out to be personal responsibilities to be tackled by the ‘family unit’ instead of the Government. Barring Scandinavian and North-East European countries, most governments intentionally leave care work for the unseen section of women. Currently, the United Kingdom is going through an urgent care crisis brought on by over-looking the essential sector.
Reproductive Value
A major line of argument against the formalization of the care economy is the obscurity of its output. Informal Care work does not produce anything, manufactured or serviced.
While this may be true, care work is, in fact, the biggest ‘silent resource’ of economic systems. Care work is essential to the rest of the system. First brought to public platforms in the 1970s by the ‘wages for housework’ campaign, care has been acknowledged to bring Reproductive Value to labor. It maintains a healthy, competent workforce which is the driving force behind any successful economy. It is the state’s responsibility, therefore, to reimburse this sector as it would any other sector. The output of care work, all care work, is seen in the quality of the workforce in an economy.
The Impact of COVID-19
With the advent of the pandemic, it has become evident that a formal, skilled and competent care sector is necessary, not just for the sake of the workers (who deserve rights more than what they are currently given) but also for the people who need these provisions. A fragile care sector is precisely the reason why the global economy buckled as soon as a pandemic struck. A sound, strong care infrastructure is the need of the hour and cannot be brushed under the carpet any longer.
The Ageing Future
The surge in population during recent times is only going to result in a large, aged population in the future. The forecasted number is unprecedented at 426 million people over 80 by 2050. As a result, by 2030, demand for care work is expected to grow to 80 billion workers. We must begin accommodation.
Economic Growth
Today, unpaid care work contributes 20-60% of the GDOP on a global average. Studies also show that unpaid care work and employment of women are indirectly proportionate. It also shows that with a mere 2% GDP investment (roughly, based on data from different countries) millions of jobs in the care economy could be created for women. It will also have add-on effects such as job creation in manufacturing industries for supplying initial set up as well as an increase in familial income.
Care Today
Privatization
Many companies like Urban Company and Helpr have entered the market. Paid leaves for women, equitable retirement benefits and a cushion for them to re-enter markets are increasingly becoming priorities in organizations in western democratic countries. This is a positive sign.
Regulation Theory
Regulation theory, originated sometime after the industrial revolution, supports a centralized economy to accommodate welfare within the system. Feminists suggest a moderated regulation theory to support the care economy. Many women do not have the means to enlist the services of care workers. In such situations, state intervention becomes necessary. Child care and welfare policies need to be embraced by the State. Such is their responsibility.
International Endeavors
The struggle for reform in the care economy has garnered attention in the realm of international governance. Organizations like ILO (International Labor Organisation) and IMF (International Monetary Fund) have focused on gender based economics as a key issue for the past few years. Other feminist policies like gender-budgeting and austerity policies have also been fairly implemented.
Despite significant strides, the care economy has a long way to go to receive proper recognition. The dreadful effects of the pandemic awaken a new appreciation for those hidden behind the screen of our entitlement. It is imperative that the systemic oppression which women are subjected to is broken. Let’s start by caring.
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