Female
Labor Force Participation: Black Clouds
that Keep Women at Home
By Marian Fernando
Soft but Able: Female
Labor in the Globe
Female
labor force participation (FLFP) is crucial for the growth of an economy. Numerous
studies across the world suggest that the increase of FLFP results in increased
growth to varying degrees (Kabeer and
Luisa Natali, 2013).
Modeling panel data from sixteen Indian states from 1961 to 1991,Esteve-Volart
(2004) estimates that by increasing the female-to-male ratio of total workers
by 1%, the per capita total output can be increased by 0.8%. In addition, various other studies highlight
the positive impact of female education on the per capita annual GDP growth (Kabeer and Luisa Natali, 2013). Brummet uses data from 72
countries, both developed and developing countries, to underscore this
phenomena (cited in Kabeer and Luisa Natali, 2013). Analyzing data
on five year averages from 1960 to 1990, Knowels et al. (2002) estimate that 1%
increase in female education can result in 0.37% increase in GDP per worker. Hence,
evidence suggest that educated female labor force is a potential asset for
economic growth.
High yet Low: Dilemma
of Female Labor in Sri Lanka
Despite the high levels
of human capital accumulation indicated in the human development enjoyed by Sri
Lankan women, their labor force participation remains low, making the country unable
to harness female labor productivity in the economic growth. In year 2012, the
female literacy rate was 94. 6 which is almost at par with the rate that of
men: 96.8. Sri Lankan women outperform their male counterparts in mean years of
schooling by 1.3 years and beats the South Asian average for women by 7.2 years
(UNDP 2013). In addition, out of total undergraduate enrollments, 62 % are
females whereas only 38% are malesbetween 2011 and 2012 (Department of Census
and Statistics 2013).
In stark contrast, FLFP
remains considerably low at 35.6% as opposed to 74.9 % labor force
participation of men as of 2012 (Department of Census and Statistics 2013).Adding
to the severity, the educated women are more unemployed than the uneducated
women indicating a serious loss of human capital and growth capacity in the
economy (Chowdhury 2013). Therefore, struggling its way towards economic growth,
it is of vital importance to examine the lost female labor force participation
in the Sri Lankan economy.This paper will thus analyze the causes of low female
labor force participation in Sri Lanka, and thereby propose implications for
future action.
Why Worry Us Sri
Lankans?
As a result of the low LFP
of women, especially the ones who are educated, investments in human capital
are wasted. As of 2002, government spent LKR 66,000 per undergraduate, LKR
7,500 per high school student, and LKR 6,500 per primary student (The World
Bank 2005). In 2003 , 7,143 female students had enrolled at university, making the
ruling government spend approximately LKR 470 million per year (calculated
based on Central Bank of Sri Lanka 2010).
These statistics, though older, provides an understanding about the magnitude
of government spending on free education. By quitting or never entering the
labor force, the money spent on educating such women become a lost investment,
except for the positive externalities of female education-better health care of
family, and social wellbeingthat might indirectly increase growth.
By leaving or not
entering into the labor force, women also reduce the skilled, semi-skilled and
skilled labor availability in the economy, and in turn prevents the economy
from reaping the productivity of that lost labor. Examining the causes of FLFP
becomes imperative in this regard.
Black Clouds that Keep
Women at Home
This paper identifies
three causes of low FLFP: (1) marriage and familial responsibilities, (2) wage
disparities, and (3) the skill gap. While the former becomes the defining
factor of FLFP, latter two might explain some forms of FLFP.
(1) Marriage
and Familial Responsibilities
Responsibilities
attached to marital life including child bearing and rearing, and household
chores seem to be the biggest barrier for FLFP in Sri Lanka. Majority of the
economically inactive female population is married and unsurprisingly is
involved in house work. According to 2007 disaggregated data, only 35.73% of
married women between 15 and 60 years were in the labor force. Out of the
64.27% of economically inactive population of this age group an overwhelming
95.8% were involved in house work whereas only 0.4% were studying full time and
3.77% were too old to work. In contrast, more women in the never married
category are involved in the labor force in working age female population.
While 45.71% of never married women are in the labor force, more than 39% of
economically inactive population are full time students as expected. Thus, only
a thin layer of never married women, namely 12.35% are actually kept home with
household work. In this regard, it is evident that responsibilities brought
along with marriage seem to take women away from contributing to the Sri Lankan
formal economy with their labor and human capital (Chowdhury 2013).
In addition, the data
from 2007 shows that women with less family support such as divorced, separated
and widowed women are more likely to engage in the labor force (Chowdhury 2013).
Therefore, this explains that women are capable in managing both work and
family if they are provided with incentives. A widowed woman is forced to earn
money in the absence of her husband, so she works and manages her family at the
same time. Though negative, she has an incentive to work. The latter part of
this paper will discuss such positive incentives that could re-direct women into
the labor force.
(2) Wage
Disparities
While gender
inequalities in wage might not explain the low FLFP to a greater extent, it is
worth understanding the dynamics behind the scene. A person with high human
capital would not be satisfied with a lower pay that does not suit his or her
skills and qualifications. This might explain why FLFP is low despite the
higher levels of female undergraduates that Sri Lanka produces each year.
Data shows that public
sector is more equal in wage premiums offered to males and female than severe
inequalities existing in the semi-government and private sectors. The
percentage difference between male and female earnings in the public sector
from 2006 to 2009 has remained at less than 1%, whereas this value isas high as
30% in the semi-government sector in years 2008 and 2009. This difference in
private sector has varied between 33% and 36% during the same period (Chowdhury
2013).
One should also keep in
mind that cheap labor is conducive for labor- intensive export economy and will
attract investment. Nonetheless women should not be at the receiving end of
this economic benefit of cheap labor. It is rather the allocation of labor
force which creates a gender segregation of occupations that should be addressed
to decrease the wage gap. In Sri Lanka women are limited to female occupations
“such as teaching, semi-skilled and unskilled production work- mostly in
garment industries, and domestic service” (Ruwanpura 2004). Providing a good
model to alleviate wage disparities and encourage FLFP, in 1999, Tzannatosestimated,
using data from 11 Latin American and Carribbean countries, that 50% female
wage increase can be obtained without significantly damaging the wages of males
by “reallocations of the labor force to eliminate the gender segregation of
occupations” in which women are loaded into low-paid jobs (Kabeer and Luisa Natali, 2013).
Thus, the wage disparities that might discourage women from being in the labor
force should be systematically addressed.
(3) Skill
Gap
Despite the higher
levels of human capital indicated in the education achievements of women, there
seem to be a skill gap between men and women in the country. As per the Step
Skills Measurement Survey administered to men and women between 15 and 64 years
in 2012 in Sri Lanka, men surpass women, at least slightly in some aspects, in
cognitive and non-cognitive skills, with the exception of “decision making and
agreeableness”. At the same time men use their skills more than women and are
confident of their skills. Men on the average have more work experience than
women which also put them in greater advantage (Chowdhury 2013).
Due to this skill gap,
women might have less opportunities in the labor force in spite of their higher
educational achievements which might explain the low FLFP to certain extent.
Umbrellas to Get to
Work
Implications for future
action to boost economic growth through increased FLFP are multi-stakeholder in
nature. Policies should be created to allow flexible working hours for women,
to provide necessary transport for late hour work, to establish
well-established day care centers at public and private office spaces equipped
with well-trained care givers, and to provide more support base for women,
especially mothers. Private and public sector employers should be motivated to
follow the policies and create a mother-friendly environment at work. Although
difficult, policies to re-allocate resources to diminish occupational
segregation should be pursued and wage gaps should thus be reduced. Women
should be self-motivated to increase their skill levels to match the market
needs. All in all, creating and improving existing economic opportunities to
suit the socio-cultural requirements of women and motivating women through
media, secondary and tertiary educationcan be pursued to improve the FLFP and
thus strengthen the economic growth of the country.
Reference
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