Unit 5: Gender and Economy Changing Livelihood Strategies Changing Labour Market Prospects Background to Sustainable Livelihoods Approaches Developed in response to dissatisfaction with the RESULTS of development efforts Not INVENTED EVOLVED from the late 1980s through the 1990s (and still evolving) Contributions to the development of SLA Country work by OXFAM and WORLD BANK on characterisation of the poor Experience of wide-range of NGOs & CBOs, bi- & multi-lateral agencies, informing researchers Work by ROBERT CHAMBERS and GORDAN CONWAY on RURAL LIVELIHOODS Work by AMARTYA SEN on ENTITLEMENTS Approaches contributing to the development of SLA PARTICIPATORY APPROACHES to development FARMING SYSTEMS RESEARCH Recognition of some of the limitations in MICRO-FINANCE New approaches to MULTI-DIMENSIONAL ANALYSIS of POVERTY (including by IFAD) Slide 3Background of Sustainable Livelihoods DFIDs SL Framework Policies Institutions Processes N S F P H The Poor Vulnerability Context Shocks Seasonality Trends Changes influence Livelihood Strategies Livelihood Outcomes DFIDs SL Principles People-centred Sustainability-focused Holistic Implemented in partnership Linking the micro with the macro Dynamic Building on the strengths of the poor Choosing alternative livelihood strategy determined by human and other assets low level of education Unequal distribution of physical and natural assets Lack of adequate infrastructure Lack of trust in social organizations Lack of economic variation and market linkages Livelihood strategies Livelihood strategies are adopted irrespective of caste, ethnicity and to some extent gender except some specific ones - tailoring, shoe making, jewellery making, weaving/knitting. Agriculture and livestock is most common among all castes, ethnic groups including men and women New generation migrating (1/3 population is in village in community 5). Livelihood strategies.. More women perceived that they have higher sensitivity and lower adaptive capacity - family decision making Families from different caste/ethnic groups having same or similar livelihood strategies are more or less uniformly sensitive. Families from the same caste/ethnic groups having different livelihood strategies were differently sensitive to the impacts of climate change. Agriculture tool maker is more sensitive to rainfall than jewellery maker who is more sensitive to ceremonies/festivals although they are brothers. Findings Women or Men in the same family are differently vulnerable if they had different livelihood strategies/occupation such as working in agriculture, teacher and shop runner Both men and women are uniformly vulnerable if they had same livelihood strategy(ies) Among livelihood groups, dependent on agriculture and wage labour are more sensitive to climate variability than others Findings Some families of socially higher caste are more vulnerable than some families of socially lower caste Sensitivity and adaptive capacity were also differentiated by the status (health, income, occupation) of his/her spouse As youths are migrating out temporarily or for longer, their parents had to bear the greater burdens. However, vulnerability depended on the income/remittance men's migration does not necessarily increase women's vulnerability Pastoralist societies in Africa and the world over are faced with social, economic and environmental realities that are driving change and impacting their production system and way of life IN ORDER TO make ends meet, that is, to sustain their households, women employ various strategies, including income diversification- remittance through participation in more than one income-generating activity, and the involvement of children in income generation CHANGE AFFECTS PEOPLE in different ways- having land and ownership survival strategy approach, used extensively for analyzing peoples strategic responses to economic crisis,5 is valuable for exploring the dynamic nature of the environment in which livelihood decisions are made Multiple Modes of Livelihood Approach An alternative framework for understanding contemporary livelihood arrangements in urban areas is the multiple modes of livelihood (MML) approach. The MML approach especially its focus on the relationship between macro-level processes and domestic units. Intensification of other forms of earning a livelihood. Livelihood system refers to the mix of individual and household strategies, developed over a given period of time, that seeks to mobilize available resources and opportunities (Grown and Sebstad, 1989: 941), and it has many dimensions, including productive processes, reproduction, consumption, and social relations (Beall and Kanji, 1999 Economic situation The percentage of people living below the international poverty line (people earning less than US$1.25 per day) has halved in only seven years. At this measure of poverty the percentage of poor people declined from 53.1 percent in 2003/2004 to 24.8 percent in 2010/2011. With a higher poverty line of US$2 dollars per-capita per day, poverty declined by one quarter to 57.3 percent. Changing Labor Market Prospects Labour migration presents both challenges and opportunities in a globalized world today. Women migrants had 46.8% and in % (UN 2007) Gender and economic power All human beings, irrespective of gender, must have equal opportunities to seek out economic opportunities. People access resources and livelihoods for survival and sustenance. But beyond that, economic power helps them acquire capabilities that enlarge choices for satisfying and creative lives. This is the promise of human development Why does discrimination occur in the labour market? The 'Taste' Model (Gary Becker) - Discrimination arises here because employers and workers have a distaste for working with people from different ethnic backgrounds or final customers dislike buying goods from salespeople from different races i.e. people prefer to associate with others from their own group. They are willing to pay a price to avoid contact with other groups. With reference to race, this is equivalent to racial prejudice. Employer ignorance Discrimination arises because employers are unable to directly observe the productive ability of individuals and therefore easily observable characteristics such as gender or race may be used as proxies the employer through ignorance or prejudice assumes that certain groups of workers are less productive than others and is therefore less willing to employ them, or pay them a wage or salary that fairly reflects their productivity, experience and applicability for a particular job. Occupational crowding effects Females and minorities may be crowded into lower paying occupations Gender INEQUALITIES Gender Inequality Index Gender Development Index The Gender-related Development Index (GDI) is a composite indicator of gender equality, developed by the United Nations (UN). It is one of the five indicators used by the United Nations Development Programme in its annual Human Development Report (UNDP). It aims to show the inequalities between men and women in the following areas: long and healthy life, knowledge, and a decent standard of livingUnited Nations Development ProgrammeHuman Development Report Eg:- HDI Country Rank 97 Sri Lanka Sri Lanka 157 Nepal Nepal 172 Afghanistan Afghanistan What is a labor force the labor force of a country (or other geographic entity) consists of everyone of working age (typically above a certain age (around 14 to 16) and below retirement (around 65) who are participating workers, that is people actively employed or seeking employment Formal and informal labor Informal labor in the world Informal labor and gender Agricultural and non-agricultural labor Agriculture and gender Paid and unpaid labor Unpaid labor and gender Labor Market Discrimination The definition of Labor Market Discrimination is: It exists when 2 equally qualified individuals are treated differently solely on the basis of their gender, race, ethnicity, disability, etc. Feedback effects of labor market discrimination Faced with labor market discrimination that lowers the returns to human capital investments, women have less incentive to undertake them. Womens economic outcomes are therefore adversely affected both directly and indirectly by labor market discrimination. Feedback Effects Gender Division of Labor in the Family Gender Differences in Labor Market Outcomes Similarities & Differences in Characteristics of Male & Female Full-Time Workers Men and women have similar amounts of education. Men have more full-time experience and women have more part-time experience. Men are more likely to be in blue- collar jobs and to work in mining, construction, or durable manufacturing. Women are more likely to be in clerical or professional jobs and to work in the service industry. Feed Back If such behavior is encountered it is only logical that those being affected by this labor market discrimination view the returns on human capital investment to be lower Consequently they will have less incentive to invest in human capital Feed Back Furthermore, if this feed-back is widely spread such as to be known by younger individuals it could even lead to many dropping out of school or not pursuing higher education or advanced degrees Glass Ceiling In 1991 as part of the Civil Rights Act of 1991, 21 member committee was formed and chaired by the Labor secretary to determine if there was a glass ceiling in the upper management of American firms Glass Ceiling In terms of the findings of the commission There is a glass ceiling and the derives from three sources: Societal/Non-Market Business Government Glass Ceiling In terms of those reasons under the control of business are: Outreach and recruitment practices that do not seek out or reach or recruit minorities and women Corporate climates that alienate and isolate minorities and women Pipeline Barriers that directly affect opportunity for advancement Initial placement and clustering in staff jobs or in highly technical and professional jobs that are not on the career track to the top Glass Ceiling In terms of those reasons under the control of business are (continuation): Lack of mentoring Lack of management training Lack of opportunities for career development, tailored training, and rotational job assignments that are on the revenue-producing side of the business Glass Ceiling In terms of those reasons under the control of business are (continuation): Little or no access to critical develop mental assignments such as memberships on highly visible task forces and committees Special or different standards for performance evaluation Glass Ceiling In terms of those reasons under the control of business are (continuation): Biased rating and testing systems Little or no access to informal net-works of communication Counterproductive behavior and harassment by colleagues Glass Ceiling In terms of those reasons under the control of government are: Lack of vigorous, consistent monitoring and law enforcement Weaknesses in the formulation and collection of employment-related data which makes it difficult to ascertain the status of groups at the managerial level and to disaggregate the data Inadequate reporting and dissemination of information relevant to glass ceiling issues Measuring Discrimination However, measuring discrimination is not that simple For instance, Looking at only wages does not represent the true level of discrimination since it is likely that personal characteristics may account for some of that disparity 45 Gender inequalities :- eg from europe Violence against women and pay gaps: most important inequalities according to Europeans 46 B. Gender inequalities Significant variations exist between countries: violence is the leading issue in 12 Member States In your opinion, which of the gender inequalities in the following list are the most important? First? And then ? (3 ANSWERS MAXIMUM) The Overcrowding Model The labor market exhibits SEGREGATION Consequently: Some jobs are male jobs other are female jobs Some jobs are white jobs other are minority jobs The Overcrowding Model Assume that workers F and M (female and male) are perfect substitute for each other (i.e. they are homogenous) Let the labor market be divided into two type of jobs. Job type F accounts for a quarter of the jobs available and job type M accounts for three quarters of the jobs available. The Overcrowding Model At first assume that both jobs on average pay the same wage. Under this circumstances then we would have the following graph Overcrowding Labor Wage S fo DfDf L f0 F Occupations W0W0 Labor Wage DmDm S mo L m0 M Occupations W0W0 Suppose that men and women are equally qualified for occupations F and M. Then the wages for those jobs will be the same (W 0 ). Overcrowding Labor Wage S fo DfDf L f0 F Occupations W0W0 Labor Wage DmDm S md S mo L md L m0 M Occupations W md W 0 If women are excluded from the M occupations, the reduced supply in those jobs results in higher wages. Overcrowding Labor Wage S fo S fd DfDf L f0 L fd F Occupations W 0 W fd Labor Wage DmDm S md S mo L md L m0 M Occupations W md W 0 In the F occupations, where women can get jobs, the supply of workers is increased and the wages fall. The Overcrowding Model Now assume that at least one of the following is possible: M workers can move easily between job types, yet F workers can not. F workers can find F type jobs but can enter into M type jobs. F workers prefer to work only F type jobs Employers of M type jobs will not hire F workers Some other reason that will concentrate F workers only to F type jobs The Overcrowding Model Based on the previous scenarios: Workers will begin to concentrate in F type jobs There will be less available workers for M type jobs In a sense, F type jobs become less important than M type jobs or F type jobs become subservient to M type jobs The Overcrowding Model F type JobsM type Jobs w $ $ L L S S D D wFwF wMwM LFLF LMLM The Overcrowding Model After the overcrowding in the F type jobs the result is that The wages in the F type jobs are lower than the wages in the M type jobs (i.e. w M >w F ) This time, F type jobs account now for more than a quarter of the jobs available (L F ) and M type jobs accounts for less than three quarters of the jobs available (L M ). Models of Labor Market Discrimination Tastes for Discrimination Gary Becker conceptualized discrimination as a personal prejudice U=U( ,W,B) Where U is the utility of the employer are the profits W is the number of White workers And B is the number of Black workers Internal Labor Market The assumption is that certain firms will generally only promote from within. If for whatever reason, entry level jobs attracted a certain type of worker or if only certain type of worker will be retained or if only certain type of worker will stay in that job Then upper management will be composed of that type of worker that remains in that entry level position Internal Labor Market Wages ($) Job Ladder Firm-Specific Training Primary and Secondary Jobs The assumption is that certain firms will generally only promote from a certain type of entry jobs. In other words, some entry jobs will only allow the workers to reach certain heights within the organization Internal Labor Market Wages ($) Job Ladder Primary Secondary Feedback Effects Some times employees and employers may discriminate by bringing into the work place the behavior exhibited in the household So gender roles played in the household labor are parallel in the work labor Efficiency Unequal treatment on the basis of gender, etc. may result in an inefficient allocation of resources. Prices do not serve as accurate indicators of social costs. Consider for example, the overcrowding model. Since female labor is underpriced, firms will produce too much of the outputs produced by that labor. Since male labor is overpriced, firms will produce too little of the outputs produced by that labor. In addition, since women are deterred from investing in their human capital by discrimination, society loses a valuable resource. What is Discrimination Disparate Treatment Discrimination treating two otherwise equal people differently on the basis of race Adverse Impact Discrimination doing something that is not necessarily discriminatory on its face but that impacts some groups more negatively than others Rational or Statistical Discrimination discrimination that is based on sound statistical evidence and is consistent with profit maximization Measuring and Detecting Discrimination Regression techniques Statistical methods which seek to determine if the differences in treatment for whites and blacks could have happened by random chance. Auditing techniques Sending paid actors into a situation to determine if people with identical economic characteristics are treated differently based on race. Why Competition Would Eliminate Discriminatory Pay Businesses that hired only whites at the higher wage would have higher costs than businesses that did not discriminate. Businesses that did not discriminate could lower their prices and take the market share of those firms that did discriminate. As this happened firms would see that discrimination was not consistent with maximizing profits and would stop discriminating. Why Competition Would Not Necessarily Eliminate Discrimination In industries where there is economic profit, firm owners may continue to discriminate and consider it a price they are willing to pay so as to not employ blacks. In industries in which the customer chooses which business to patronize based on race, firms may be willing to discriminate because their profit maximizing interest and discrimination are consistent. Why Women Make Less than Men Pregnancy Loss of time in the field and intermittent absence can put women at a economic disadvantage. (Many times this difference in treatment is against the law.) Stay-at-home Moms 98% of stay-at-home parents are women leaving them out of the job market for extended periods of time. Why Women Make Less than Men (continued) Different Professions Teachers Nurses Social Workers Day Care workers Secretaries Why Women Make Less than Men (continued) Flexible Employment Women, more than men, tend to choose jobs that allow them to deal with her children s activities and illnesses. Sociology vs. Economics Economic Explanation for pay differences People make choices and one of the consequences of those choices is their earning capacity. If women choose professions that do not pay well, to have and stay home with children jobs that allow them to deal with their children they will make less money. Sociology vs. Economics (continued) Sociological Explanation for pay differences Women are socialized to pick certain professions into being the parent to stay home into being the parent that sacrifices career for family which causes them to be paid less. Labor participation rate, female (% of female population ages 15+) Labor force participation rate is the proportion of the population ages 15 and older that is economically active: all people who supply labor for the production of goods and services during a specified period. eg: Afganistan: Nepal: Sri Lanka: 37 35 Gender Division of Labour Economic situationNepal Real wages continue to rise, and have been accommodated by monetary easing since early FY11, adding to inflationary pressures:- Nepal Wages have been rising faster than consumer prices; the wage index rose by 31 percent y-o-y in FY11 (measured in mid-June). Agricultural labor wages rose fastest, at 40 percent, followed by regular worker wages (33 percent) and wages for construction workers (30 percent). Large scale outflow of migrant workers and the resulting worker shortages also explain the wage increases. In addition, huge remittance inflows in the recent past have increased aggregate demand (i.e., consumption) without raising the nations production capacity. Socio-economic scenario More women migrants Gender Inequality Index (GII) Trends, HDR 2011\Copy of HDR_2011_Statistical_Tables.xlsHDR 2011\Copy of HDR_2011_Statistical_Tables.xls Country Afghanistan Nepal Sri Lanka Remove barriers to assets Expand paid employment Deepen the benefits of education Invest in womens health Make mobility safe 87 F. Conclusion Gender inequality problems, in general, and pay gaps in particular, are regarded as serious by a very large majority of Europeans To combat pay gaps, sanctions and incentives are rated equally In terms of the trade-off between work and child-minding (father/mother), stereotypes persist The EU level remains the most appropriate scale for tackling these problems To promote gender diversity in "male" and "female" occupations, the improvement of working conditions is necessary in most Member States Analysis by group of countries, by country and using socio-demographic criteria demonstrates genuine complexity in the structure of opinions of gender inequality are formed