Nobel Prize 2023: Unveiling Women’s Role in Economic Growth

Context:

• This article is based on the news “Economics Nobel 2023: How marriage, parenthood, and the pill impact women in the workforce” which was published in the Indian Express. Professor Claudia Goldin has been awarded the Nobel Prize in Economics 2023, for her comprehensive research on women’s contribution to the labour market.

Claudia Goldin; A 3rd Woman Scholar Awarded Nobel Prize in Economics

• Before her, only two women scholars — Elinor Ostrom in 2009 and Esther Duflo in 2019 — had won this honor since 1969.
• This is only the 26th time when this prize has been awarded to a single laureate. 

What did Claudia Goldin win the Nobel Prize for?

• Claudia Goldin has been a pioneer in studying the role of women in the economy and has written several books on the topic, such as Understanding the Gender Gap: An Economic History of American Women (Oxford, 1990), and Career & Family: Women’s Century-Long Journey toward Equity (Princeton University Press, 2021).
• Her research reveals:
  • the causes of change and the main sources of the remaining gender gap.
  • The participation of married females decreased with the transition from an agrarian to an industrial society in the early nineteenth century, but then began to increase with the growth of the service sector in the early twentieth century.

What is the women employment rate in India ?

• According to Indian Census figures from 2011, there are 587 million women in India, accounting for 48 percent of the population. 
  • Despite this, only 29% of women over the age of fifteen participate in the labor.
• In India, the female labor participation rate had fallen to 20.3% in 2019 from more than 26% in 2005, according to World Bank estimates.  

Why is Women Labor Participation Important?

• Achieving $5 trillion economy target: Ensuring women comprise 50% of the labor force could be the best way for India to increase its GDP growth rate by 1% and touch the 8% growth it needs to become a $5 trillion economy by 2030,  as per World Bank estimates. 
• Gender Equality and Rights: Female’s economic empowerment includes female’s ability to participate equally in existing markets; their access to decent work which in turn promotes meaningful participation in economic decision-making at all levels from the household to international institutions.
• Achieving the 2030 Agenda for Sustainable Development: Empowering females in the economy and closing gender gaps in work are key to achieving the Sustainable Development Goals, particularly Goal 5, to achieve gender equality, and Goal 8, to promote full and productive employment and Goal 10 on reducing inequalities.
• Women’s Economic Empowerment and Equality: Women’s economic empowerment boosts productivity, increases economic diversification and income equality in addition to other positive development outcomes.
  • For example, increasing the female employment rates in OECD countries to match that of Sweden, could boost GDP by over USD 6 trillion.

ALSO READ: HUMAN DEVELOPMENT AND SUSTAINABLE DEVELOPMENT

What are the problem faced by women Labour?

• Gender Pay Gap: Men in India capture 82% of labor income, while women earn just 18%, according to the World Inequality Report 2022.
• Imposter syndrome: A 2020 KPMG study revealed that almost 75% of female executives across industries have faced imposter syndrome.
• • Imposter syndrome is a self-doubting tendency that leads an individual to feel skeptical and undeserving of their accomplishments.
• Difficult to overcome career gap: According to an Indeed survey, 67% of females respondents find it challenging  to re-enter the workforce.
  • Pregnancy, childbirth, and caring for children or the elderly are just a few personal reasons that frequently require more females than men to take a job break. 
• Barriers in leadership: The difficulty of juggling work and home obligations often prevents women from pursuing leadership positions. 
  • A recent McKinsey analysis claims only 21% of C-suite roles are really held by women. 
• Social Norms: Lack of proper family support is another issue for working females. Household work is still considered a duty of females only. 
• Covid-19 and women’s jobs: The lock-downs immediately impacted females, with 37.1 percent losing jobs (compared to 27.7 per cent for men) between April 2020 and April 2021, as per data from the Centre for Monitoring Indian Economy (CMIE)

What are the provisions for protection of women workers in India?

• Constitutional Provisions:
  • Article 15 includes provisions for females, children, and individuals who are socially and educationally disadvantaged. These provisions are not discriminatory in any way.
  • In matters of public employment, Article 16 guarantees equal opportunity. 
• The Code on Occupational Safety, Health And Working Conditions (OSH), 2020 has the provisions for the employment of women in the aboveground mines including opencast workings has been allowed between 7 pm and 6 am,                 
• Safety Measures: According to the Sexual Harassment of Women at Workplace (Prevention, Prohibition, and Redressal) Act of 2013, every commercial or public organisation with 10 or more employees must have an internal complaints commission (ICC).
• Prohibition of Night Work: Section 66(1)(b) of the Factories Act, 1948 states that no woman shall be required or allowed to work in any factory except between the hours of 6 a.m. and 7 p.m.
• The Maternity Benefit Act, 1961: It regulates the employment of women in certain establishments for certain periods before and after child-birth and provides maternity benefits. 
• Vocational Training For Women: Under Directorate General of -Employment & Training Vocational training is provided in the form of  traditional and contemporary courses and certification to females to meet the trained skill workforce in the industry and service sector etc.

Also Read: Reservation Of Women In Legislature

Way Forward

• The International Labour Organisation suggests the following strategies to bridge the workforce gender gap:
  • Ensuring equal pay for work of equal value through legal protection, wage transparency, and gender-neutral job evaluation.
  • Addressing occupational segregation by challenging preconceived notions about the value of certain types of work
  • Implementing gender-responsive policies to safeguard women’s employment during economic downturns.
• Skilling, upskilling and reskilling: The true potential of demographic dividend cannot be harnessed if we do not ensure equal participation of females in the economy by skilling, upskilling and reskilling them.
• Bridge the Gender Gap:  if males and females are equally qualified or educated, they must enjoy equal employment opportunities and thus participate in the labor market equally.
  • For Example: Uttar Pradesh has the highest absolute number of workers – both men and women – 498.5 lakh and about 159.7 lakh respectively, however it also accounts for the largest gender gap of about 338.8 lakh people. 
• Promoting flexible working arrangements: The flexibility of hybrid work allows females to be more efficient and productive, to partake in additional training to support their careers, and to increase their visibility with senior leadership.
• Encourage women to enter traditionally male occupations: Growing evidence shows that females benefit from crossing into traditional male occupations, which pay better.  
  • In Uganda, women who moved into male-dominated sectors such as carpentry, electricals, and metal fabrication, made as much as men, and three times more than females who remained in female-dominated sector
• Providing training and development opportunities for women: The women SHGs should be converged with government schemes like National Rural Livelihood Mission for enhancing females participation in the workforce.

Conclusion:

Claudia Goldin, the third woman to win the Nobel Prize in Economics, brings attention to the critical role of females in the workforce

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