It is not only participation in higher education that will provide a broad solution but skills training relevant to the market demand is also necessary
Every year on International Women’s Day the world celebrates the achievements of women in social, economic, cultural and political spheres. Not many are aware that this special day for women began as a labour movement in 1908, when 15,000 women marched through New York City demanding shorter working hours, better pay and the right to vote. March 8 was taken up as the official International Women’s Day in 1975 by the United Nations. This year’s theme was centred around celebrating the tremendous efforts of women/girls in shaping a more equal future and also in aiding recovery from the pandemic. However, it is imperative to highlight the gaps that remain and the way forward to address them successfully.
Gender inequality in the labour market, particularly in the context of developing nations, is one area of concern that still poses a great challenge, particularly in a country like India. Historically, women have been denied many opportunities due to deep-rooted biases in the social system. These eventually lead to labour market inequality as such discrimination is not limited to the domestic arena only but extends beyond the household. The underlying factors that cause such discrimination in India are the sex ratio at birth, life expectancy at birth, the infant mortality rate, the under-five mortality rate, the maternal mortality rate, nutritional deprivation, inequality in literacy rates and the gender gap at the highest level of political decision-making. These inequalities have direct implications for labour market outcomes in terms of women’s participation in economic activities. Even with similar educational attainments and skill sets as men, women are denied opportunities, which leads to significant differences in status of work, income and occupations. Despite the introduction of many affirmative policy actions, such exclusionary approaches remain.
Inequality in the labour market: While some studies have noted an improvement in employment conditions for women, with rising salaries and more participation in quality or decent jobs, other studies have highlighted jobless growth and declining participation in the labour market in the past decades. The pandemic severely hit economic activities of those who were at the lower rung of the occupation hierarchy, particularly women working in the informal economy. They were out of jobs for a significant period of the outbreak and those who managed to hold on to one had to face wage cuts. This has further precipitated the vulnerability of women.
Employment and education/skill level: Globalisation has led to an increase in women’s participation in the labour market in India. But there is still a huge gender gap, with only 18 per cent of women employed as compared to 47 per cent men. It is often argued that women are engaged in mostly low-skilled, low-paid work under precarious work conditions. Education and skill level play a key role in access to the labour market and in the quality of work one gets.
Almost half of the working women (42 per cent) are illiterate compared to 19 per cent men, and around 77 per cent are educated up to the upper primary level as compared to 62 per cent men. There is a significant difference between the higher education level of working women and men, i.e. 23 per cent of women as compared to 38 per cent of men are educated above the secondary level.
Job quality and occupations: More than half of working women (53 per cent) are engaged in self-employment, whereas one-fourth take up some form of casual work (25 per cent) and only 22 per cent are in regular salaried jobs. The share of men engaged in regular work (24 per cent) is relatively higher, while their share in casual employment (24 per cent) is slightly lower. Further, differences are also observed in terms of occupational segregation in the labour market i.e. the difference in the share of men versus women within an occupation. Such segmentation is widespread within occupational groups.
The occupational distribution by gender shows that women (28 per cent) are relatively more involved than men (22 per cent) in low-paid and unskilled jobs, such as elementary occupations (domestic helpers, cleaners, street vendors and garbage collectors), services (personal care, housekeeping and salespersons) and as office and customer service clerks. Women (10 per cent) are also under-represented in high-skill and well paid jobs, such as those of professionals, technicians and associate professionals, as compared to men (13 per cent). Additionally, the percentage of women (92 per cent) engaged in informal employment in the country is higher than men (88 per cent).
Unemployment, NEET and inactive people: The overall unemployment level among women (five per cent) is less than their male (six per cent) counterparts. The unemployment rate among young (15-29 years) women is not only significantly high (18 per cent) but also greater than men (17 per cent). The trend also shows a sizable increase in youth who are not in employment, education and training (NEET), among whom a large proportion is that of women. More than half of young women (55 per cent) are in the NEET category with only 13 per cent of young men featuring in it. Additionally, 84 per cent of young women are inactive as compared to 41 per cent of men. The inactive youth include those who face employment difficulties and may drop out of the labour force when jobs are hard to find, whether for study, leisure, illicit activities or due to inertia. Women face many social and economic hurdles which limit their participation in the labour market and this may lead to labour market inactivity.
Factors aiding inequality: There are many factors that contribute to labour market inequality. Mehta and Awasthi (2019) analysed various factors through an econometric decomposition exercise. Their study revealed four important factors: Educational qualification or skill level is one of the most important factors contributing to inequality, as individuals with high education or skill level can access better jobs or have higher chances of getting a decent job; access to a decent quality job or a regular formal salaried job, which provides better and secure income, while casual work is irregular and low paid; gender, as various socio-economic conditions and other restrictions cause women to have a lower labour force participation rate and lastly work experience, as people with experience are more likely to get better access to the labour market.There are other factors such as social groups, income level or poverty and rural and urban location which play a key role in gender inequality in the labour market.
The way forward: Rising inequality in the labour market is a reality, with the differences between the male and female population growing wider. Though, over the years, female presence in regular or high-skilled and better-paid jobs has improved but still a large number of them are engaged in low-paid and unskilled jobs. In recent years, the growing enrollment of young women in secondary and tertiary-level education has resulted in them being better-skilled employees and their proliferation in decent employment. This trend is seen particularly in the services sector, especially in financial services and information technology. Hence, apart from a gender-friendly environment, it is necessary to make education up to the secondary level universal and free.
However, the growing number of women in the NEET category and the higher unemployment level among educated or skilled women is negating the advances made through such measures. Therefore, it is not only participation in higher education that will provide a comprehensive solution but skills training relevant to the market demand is also necessary.
The writer is senior faculty at Institute for Human Development, New Delhi. The views expressed are personal.
