Sunday, October 26, 2014

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
Central Bank of Sri Lanka (2010). “Economic and Social Statistics of Sri Lanka 2010.” XXXII
Chowdhury, A.R. (2013) “South Asia Human Development Sector Low Female Labor-Force Participation in Sri Lanka: Contributory Factors, Challenges and Policy Implications. World Bank Discussion Paper Series 68, World Bank.
Department of Census and Statistics (2013). Sri Lanka Labour Force Survey: Annual Bulletine.
Esteve-Volart, B. (2004) “Gender Discrimination and Growth: Theory and Evidence from India”. DEDPS Working Paper 42, London: London School of Economics and Political Science.
Kabeeer, N. and Luisa Natali (2013). “Gender Equality and Economic Growth: Is there a Win-Win?” IDS Working Paper 417, Institute of Devleopment Studies and Pathways of Women’s Empowerment.

Knowles, S., Lorgelly, P. K. and Owen, P. D. (2002) “Are Educational Gender Gaps a Brake on Economic Development? Some Cross-country Empirical Evidence.” Oxford Economic Papers 54.1: 118-49
Ruwanpura, K. (2004) “Quality of Women’s Employment: A  Focus on the South” International Institute for Labor Studies.
The World Bank (2005). “Treasures of theEducation System in Sri Lanka:Restoring Performance, Expanding Opportunities and Enhancing Prospects.” The World Bank Colombo Office.

UNDP. (2013) Human Development Report 2013: Explanatory Note on 2013 HDR Composite Indices.

16 comments:

  1. The country if it’s need to develop both mail and female should be engage to National labor grid. I would like remand to you our history
    “when King Dutugamunu build the Mahiyanganeya Dagabe , in the mean time Bulatha (one of strong man) and his wife build Sorabora wawe (water tank) this is marvels project in the Country. The wife hardly helpful, kindness helpful, charming helpful, exertion support and so on. Marian Fernando explain under Female Labor Force Participation, Black Clouds that Keep Women at Home is well. If the country females contribute to the National Production sector it has several additional benefits. “Every successful person has behind a woman.

    Upul Weerawardena
    MDS/2014/C-03/03

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  2. In reply to above comment, I would like to stress that I was referring to the low level of female labor force participation in Sri Lanka. I did not mean to say that labor force participation of men is not important. What I argued was that there is a lot of potential in the female labor force that needs to be captured in this country through which economic growth can be improved significantly. This does not mean that men should be ignored.

    Marian MDS- 28

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  3. I would like to ask you an out of the box question. We discuss about gender base violence, less representation of SL females in the work force / in the parliament, deteriorating of child safety, elder & disable issues in participation for the development etc etc separately.
    Have we yet understood the basic root cause? We have one basic root cause every where. As a society do we promote inclusiveness or not? Do we promote active participation or not? Do we make a level playing field for all or not? Do we want us to be surrounded by successful happy healthy people or not at the end of our life journey? Do we want future generations to live or not after we die?

    These are basic fundamental principals that need to be openly discussed & agreed upon every human being in this country & in the world.

    - Sumudu Hewawasam (2014 / MDS / 16)

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  4. The writer shows one of the hidden factor of our country faces. The female work force is playing major role for development of our economy. But after getting marriage they refraining doing job because of family convenience. Specially in Asian counttries experience these situation immensely. Therefore necessary actions should be taken on behalf of this.

    M.R.S.Silva( MDS/2014/23)

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  5. Besides of what Marian suggested, I think possibilities of E Jobs for women should be also consider. By these kind of alternative jobs females can engage in earning activities and same time their education obtained will be not wasted. They can support family’s economy as well as engage in household activities. These alternatives can reduce the travel time and save the time of a woman. Education relevant to online jobs, information technology etc. can be encouraged for educated females that can done on part time basis.

    W.P.U.K.Perera
    MDS – 20 (2014/2015)

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  6. The writer has raised a significant global issue which is about to attack severely to Sri Lankan population despite the ages In my point of view diabetes can be regarded as a symptom of long term damages to eyes, kidneys, heart etc. However, appropriate policies should be taken promptly. Consequently, the economic development will be threatened. Moreover, child education too will be in danger as a number of young patients have been found. Therefore, the writer's effort has a chronological value.
    P.H.Premawathie MDS 2014 No. 13

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  7. The article provides a good overview of factors that contribute to poor female participation in the formal labour market. Recently the World Economic Forum’s Global Gender Gap 2014 Report indicates that the Gender gap in Sri Lanka has increased particular on areas such as political participation. The patriarchal attitudes reflected in official policy documents such as Mahinda Chintana reinforce the gendered role expectations for Sri Lankan women. Until steps are taken to change such outdated mindsets at all level's, we will continue to see this phenomenon and impact on GDP growth.

    Regards,
    Eranga Amunugama MDS 2014/05

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  8. The author explores one of the most important issues in Sri Lanka's current and future development. The importance of female participation in the labour leads to not only better long term development but also to a well-rounded society. The writer discusses the usual culprits ranging from marriage to issues with working late. However the most important question to be answered is whether an overhaul of the female perspectives on life priorities should be done to ensure that females do have a life beyond marriage and children. Of course the answer depends on the females concerned, many prefer to be housewives but in modern days, however the ones who prefer to enter the labour force should be encouraged by means and methodologies to address the gender gap in the labour force. All in all, a well written article by the author.

    Regards,
    A.P Abeyrathne MDS/2014/26

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  9. This article is well applicable to the current context since the statistics says that the number of females doing higher studies is higher than the males yet the labour force participation of females is comparatively less. I think as the writer reveals, the most prominent barrier is our culture which leads females to become housewives. Sri Lankan culture has made women to believe that the children of occupied mothers are more vulnerable for social corruptions as they are lacking immediate supervision of their parents. Therefore promoting jobs which make women to work part-time or with remote access would be more effective and efficient mechanism to address this situation. In parallel more effort to be exerted to change the attitudes of the people by ensuring the women’s capacity to stay in right balance with their personal lives and professional lives.

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  10. Women enjoy more freedom and power than ever before. However, they are still disadvantaged when compared to men in virtually all aspects of life. Women are deprived of equal access to education, health care, capital, and decision making powers in the political, social, and business sectors. Women still make-up the majority of part-time and temporary workers in developed countries. Consequently, these women working in informal economies are likely to have less access to basic health care services, education, financial capital, political appointments, employee rights, and land ownership.

    Manjula Rajapaksha (2014/MDS/15)

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  11. A stronger female workforce will push policy makers to concentrate on childcare facilities and other benefits that so far are neglected by the overwhelmingly male political population of Sri Lanka. Providing efficient childcare services and encouraging women to remain part of the labour force would diminish the mythical glass ceiling and motivate better jobs with higher salaries for this extremely capable but largely ignored segment of the economy.

    K.A.W.Fernando
    2014/MDS/08

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  12. Marian analysed the about Dilemma of Female Labor in Sri Lanka. We have free education system. Srilanka in the top of literacy level. But there is a big problem. This education system how to apply for the economic development. Marian explained many things under the ‘umbrellas to Get to Work’ in the article. I think we have two big problems about the Female Labor Force Participation in Srilanka. The first is attitude. The second, There is no good opportunity in Sri lankan Economy for Female Labor Force Participation.

    Sisira Ekanayaka
    2014/MDS/06

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  13. More than half of the females in the work force are not engaged in any kind of economic activity and their capabilities are under- utilized. The unemployment rate is higher for women with higher education attainment implying that investment made on them are not generating the expected economic returns to the country.
    Gender equality in the labour market was important for improving economic and social development and empowerment of women.
    Working arrangements in Sri Lanka should be made more flexible, so that it would enable women to enter employment not forgetting their family obligation. For instance regulating and monitoring existing day care centers is a practical step that should be taken immediately, and provision of an allowance to working mothers also would bring down the work related costs of working mothers and thus, encourage them to remain in employment.

    S.M.K.Weliwita
    MDS 18

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  14. He try to explain importance of women participation for economic activities. As will as he suggests creating mother working environment. This is suggestion is good for economic perspective but it is not good for psychosocial and mental perspective. Because family caring system gives more benefits for child than institutional caring. therefore you should try to that side also.
    THAVARASA THARSHAN
    MDS/2014/22

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  15. The author has clearly explained about the unemployment of the educated women. There is another fact that we have to consider apart from the above mentioned facts. That is the reason for leaving most of the high educated women from the labour force and the staying of most of the less educated women on the labour force. This shows that the women leaving the labour force may have some stability in their economic condition. If the husband is capable of earning more or the husband is more educated than the woman, the possibility of the employment of the woman is minimum. This is because of the attitude in the society about employment. They believe that a job is considered only as a way of earning money. But if they see doing a job as a way of developing the social & personal skills, the above employment percentage of women would increase.
    M.J. Fernando
    MDS/ 12

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  16. I believe in addition to what author mentions as challenges faced by women at work the social stigma/perception on women at work still plays a huge role in countries like Sri Lanka. Depending on the community, social status and the type of work it has a huge influence on been employed as a women. There are women who are well educated/skilled and could equally earn as men and could balance family life but still cannot engage in work because of the wealth or the family background. For instance the society would not accept a women from a very wealthy background to be at work , similarly society may have negative perception about women being a vehicle drivers... therefore depending on the community and social status & the perception of the society may stand as a barrier for a woman engage in work that she may wish to and are able to.

    Thilini Fernando
    2014 MDS/ 27

    ReplyDelete