Improving labour force participation of low skilled women Nisha Arunatilake September 2019
Why Improve FLFP? • Gender empowerment 1 • Improving equality 2 • Labour shortages 3 • Slowing labour force 4
Gender Based Inequality Measures Sri India Pakista Lanka n GII 0.354 0.524 0.541 Adolescent birth rate (births per 14.1 23.1 36.9 1000 women aged 15-19) Female seats in parliament (%) 5.8 11.6 20.0 Female pop with some sec edu (%) 82.6 39 27 FLFP 35.1 27.2 24.9
Labour Force Trends 8400 8200 8000 7800 LF (15-64) 7600 7400 7200 7000 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 2042 2044 2046 2048 Source: IPS calculations
Labour Force Participation Rates, by Sex 90 80 70 60 50 40 30 20 10 0 2006* 2012* 2016* MLFPR FLFPR Source: Own calculations using LFS data; Note: * - Northern and Eastern provinces excluded
Percentage Point Difference in LFPR 2006-2014 Post Graduate group Location Level of education -5.2 Degree 1.1 Passes A/L -6.8 Secondary completed -5.3 Below Secondary -0.1 Primary -2.8 Estate -0.8 Rural -2.3 Urban 1.2 Adult (30 to 64) -1.1 Age Youth(15-29) -7.7 Female -2.6 Sex Male -0.8 Total -2.0 -10.0 -8.0 -6.0 -4.0 -2.0 0.0 2.0 Percentage point difference in LFPR 2006* -2014*
Factors affecting FLFP in Sri Lanka • Remittances from abroad • Labour market institution and labour legislation • Education • Infrastructure • Family wealth • Access to finance • Local labour market conditions • Local unemployment • Ethnicity and religion • Children and age of children • Work-life balance Source: ILO 2013, ILO 2016
LFPR, by Level of Education 100 90 80 70 60 50 40 <19% of pop> 30 <62%of pop> 20 19% of pop 10 0 No school Below Below Passed O/L Passed Degree Post Primary Secondary Collegiate Graduate Level Male 2006* Male 2016*** Female 2006* Female 2016*** Source: Nisha Arunatilake, using 2016 data. Note: * - Does not include Northern and Eastern provinces, *** - All provinces are included.
Female Labour Force Participation, by District and Level of Education Sri Lanka Kegalle Colombo 90.0 Ratnapura Gampaha 62.4 80.0 62.3 61.0 Moneragala Kalutara 61.5 61.9 70.0 65.3 60.0 61.6 Badulla Kandy 50.0 64.7 58.1 40.0 Polonnaruwa Matale 65.5 30.0 63.0 20.0 Anuradhapura Nuwara Eliya 73.7 10.0 59.0 0.0 63.7 63.1 Puttalam Galle 60.7 63.4 Kurunegala Matara 64.3 70.4 Trincomalee Hambantota 64.3 65.6 Ampara Jaffna 61.4 Batticaloa Mannar 70.1 70.7 Kilinochchi Vavuniya 73.3 85.5 Mullaitivu Only ALs Als and Vocational Training Only OLs OLs and Vocational Training Source: IPS calculations, using Census 2012 data
Tertiary and Vocational Education improves FLFP, but education participation is low
Distribution of 15+ Population by Level Education and Gender (2016) 60 49.4 50 44.0 40 30 18.8 18.8 20 15.3 13.7 11.9 11.8 10 4.8 4.9 3.4 3.2 0 Primary Primary Below O/L O/L Passed A/L Passed Degree & Incomplete Completed Above Female Male Source: IPS calculations, using LFS data
Education Participation of Youth (20-24) 2014 2.2 4.1 2.4 6.1 2006 1.3 2.1 2.2 3.5 0 10 20 30 40 50 School University Vocational/ Technical Institution Other Edu Institution Source: IPS calculations, using LFS data
Constraints that may impede demand for female workers • Gender segregation in the labour market • Wage gaps • Differences in quality of jobs available to women • Discrimination and disadvantages in accessing employment Source: Lim 1996 cited by ILO 2016
Labour market segregation • Women are concentrated in industries and occupations that are low wage indicating, lack of quality of employment
100 10 20 30 40 50 60 70 80 90 0 Total Female share in industry (%) Agriculture, forestry and fishing… Mining & quarrying (B) Manufacturing (C) Construction, Electricity, gas,… Wholesale and retail trade,… Transportation and storage (H) Female Employment Accommodation and food… Source: Own calculations using LFS data Information and… Distribution of female workers (%) Financial and insurance… Professional, scientific and… Administrative and support… Public administration and… Education (P) Human health and social work… Other service activities (S) Activities of households as… Other
10 20 30 40 50 60 70 0 35 Total Share of Female Workers, by Senior officials 28 Occupation Group (%) 64 Professionals Technicians 36 51 Clerks Service and market sales… 32 35 35 Skilled agricultural Craft workers 14 Machine operators Elementary occupations 37 Armed forces 17 1000000 1200000 200000 400000 600000 800000 Gender Employment , by Occupation and 0 Senior officials Professionals Female Technicians Clerks Service and market sales… Male Skilled agricultural Craft workers Machine operators Elementary occupations Armed forces
Wage Gaps Females are paid less Mainly due to wage gaps amongst low skilled
Gender Wage Gap Hourly Wage Differences: Male vs Female (%) 2014 unexplained 2012 explained wage difference 2006 -20% -10% 0% 10% 20% 30% 40% 50%
Gender Wage Gap Hourly Wage Difference, Males vs Females 40.2% Skilled agricultural, craft workers, machine operators, elementary 4.7% occupations 46.8% 13.8% Unexplained Clerks, service and market sales -2.6% Explained workers 10.8% Wage difference 2.0% Senior officials,Professionals, -4.9% Technicians -3.0% -10.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0%
Discrimination • Not only do women self select into less demanding jobs, employers take into account these behavior of women at recruitment
Data • Enterprise survey (National Institute for Labour Studies, 2018) • 209 Enterprises in the Western province • Covering 83,562 employees Composition of Enterprizes considered 3 Agriculture 76 Industry 84 Construction Trade Other Services 28 18
Factors Affecting Recruitment of Females (Share of employers expressing that they ‘very frequently’ or ‘always’ consider the following when recruiting:) 80% 70% 60% 50% 40% 30% 20% 10% 0% Family constraints Security issues Work location Source: The National Institute of Labour Studies. (2016).
Factors Affecting Recruitment of Females (Share of employers expressing that they ‘very frequently’ or ‘always’ consider the following when recruiting:) 120% 100% 80% 60% 40% 20% 0% Forestry and Fishery… Managers Professionals Technicians and Associate Clerical Support Workers Services and Sales Craft and Related Trades Plant and Machine Elementary Occupations Total Skilled Agricultural, Operators and… Workers Professionals Workers High turnover Absenteism Less dedication Source: The National Institute of Labour Studies. (2016).
How Labour Legislation Affect Recruitment of Females Maternity Benefits • Maternity Benefits Ordinance of 1941 (MBO) • Shop and Office Employees Act 1954 (SAO) Restrictions on night work • Shop and Office Employees (SAO 1954) • Employment of Women, Young Persons and Children Act of 1956 • Termination of Employment of Workman Act 1971 (TEWA)
Challenges faced by women doing night work & policy responses Emp. of Women and Young Persons Act (1956): • 1) the women choses to work voluntarily; • 2) written sanction of the Commissioner of Labour • 3) adequate rest between shifts; • 4) One and a half time their wages; • 5) female wardens to look after the worker welfare • 6) Rest rooms and refreshments by the employer; • 7) Only ten days on night work, in any month.
10% 20% 30% 40% 50% 60% 70% 0% Managers Share of Employers Finding Maternity Benefits an Issue When Professionals Technicians and Associate Professionals Clerical Support Workers Source: The National Institute of Labour Studies. (2016). Recruiting (%) Services and Sales Workers Skilled Agricultural, Forestry and Fishery Workers Craft and Related Trades Workers Plant and Machine Operators and Assemblers Elementary Occupations Total
Challenges faced by women doing night work & policy responses • Recent IPS study shows that problem is really not working in the night • But, – Adhering to social norms – Working conditions • very long work shifts, and unplanned work shifts • Lack of flexibility in taking leave • Poor renumeration – Practical issues in travelling to and from work – Inadequate facilities
Recommendations Improve access, efficiency and quality of education 1 Improve creation of good jobs 2 Modify and modernize labour legislation, make it gender 3 neutral Awareness building to change social norms, and 4 perceptions of employers Support to families for work life balance 5
Nisha Arunatilake Affiliations: • Director of Research, IPS • Research Fellow, PEP Contacts: E-mail:Nisha@ips.lk T:@ArunatilakeN
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