Gender disparity exists even in informal labour market – The Hindu

Report on Gender Disparity in the Informal Labour Market and its Implications for Sustainable Development Goals (SDGs)

Introduction: Aligning Labour Market Analysis with SDG 5 and SDG 8

An analysis of India’s informal labour market reveals persistent gender inequality, a critical challenge to the achievement of Sustainable Development Goal 5 (Gender Equality) and Sustainable Development Goal 8 (Decent Work and Economic Growth). Despite a recent increase in the female workforce participation rate (FWPR), evidence from the Periodic Labour Force Survey (PLFS) indicates that this growth is concentrated in low-productivity sectors and does not translate into economic empowerment or decent work. This report examines the structural disparities in employment and earnings between genders within the informal sector, assessing the quality of female employment and its impact on household welfare.

Key Findings on Female Workforce Participation and Economic Outcomes

Data from the PLFS highlights significant gender-based differences in labour market outcomes, which impede progress towards SDG 5 and SDG 8.

• Concentration in Agriculture: A substantial portion of the recent rise in FWPR is located within the agricultural sector, primarily through increases in self-employment and unpaid family work.
• Disguised Unemployment vs. Productive Engagement: While these trends could signify engagement in historically undervalued economic activities, they also raise concerns about the quality and productivity of this employment, a key component of SDG 8.
• Systemic Disparity: Significant differences exist between male and female workers in terms of industrial classification, employment structure, and wage/earning outcomes, even within the subordinate informal sector.
• Prevalence of Discrimination: The informal sector, characterized by an excess supply of labour for menial tasks, is susceptible to discriminatory hiring and firing practices based on gender stereotypes, directly contravening the principles of SDG 5.

Analysis of Employment Quality and its Link to SDG 1 (No Poverty)

To evaluate whether increased female employment contributes to poverty reduction, as targeted by SDG 1 (No Poverty), the average monthly per capita consumption expenditure (MPCE) was compared between households with and without women workers. The findings suggest that the recent surge in female employment is not leading to a significant improvement in living standards.

• Marginal Impact on Consumption: Across most decile groups in both rural and urban contexts, there is no significant difference in MPCE between households with and without working women.
• Low-Productivity Work: This lack of impact on household expenditure indicates that women are predominantly engaged in low-productivity activities. The jobs do not generate sufficient income to substantially raise household consumption, thus limiting their effectiveness as a pathway out of poverty.
• “Jobs of Last Resort”: The proliferation of such roles suggests that women are compelled to enter the labour market to supplement insufficient household income, often in the absence of decent job opportunities for male household members or due to poor human capital formation among female job seekers. This scenario is contrary to the goal of full and productive employment for all under SDG 8.

Systemic Barriers to Achieving SDG 5 (Gender Equality) and SDG 10 (Reduced Inequalities)

A rigorous analysis confirms that gender is a significant factor in determining occupational choice and earnings, highlighting systemic barriers that perpetuate inequality and hinder the achievement of SDG 5 and SDG 10 (Reduced Inequalities).

1. Wage and Earning Disparity: Women consistently earn less than men across all forms of employment within the informal sector, including regular wage work, casual wage work, and self-employment. This directly violates Target 8.5 of the SDGs, which calls for equal pay for work of equal value.
2. Unequal Access to Employment: Wage employment is less accessible to female workers compared to their male counterparts. Women are more frequently pushed into self-employment, which often fails to generate substantial or stable earnings.
3. Implications for Empowerment: The concentration of women in precarious, low-earning roles limits their economic independence and undermines their empowerment and participation in decision-making processes, a core objective of SDG 5.

Policy Recommendations for Advancing SDGs 5, 8, and 10

The persistence of gender-based discrimination, even within residual and low-productivity economic activities, necessitates targeted policy interventions to create an equitable labour market aligned with the Sustainable Development Goals.

• Promote Access to Wage Employment: Policies must be designed to enhance female workers’ access to more stable and remunerative wage employment opportunities.
• Reduce the Gender Wage Gap: Active measures are required to address and eliminate the significant wage inequality that exists between men and women in all employment categories.
• Recognize and Address Discrimination: It is critical for policymakers to acknowledge that discrimination exists even in the informal sector and to formulate strategies that actively combat stereotypes and prejudices perpetuating gender inequality.

Analysis of Sustainable Development Goals (SDGs) in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 1: No Poverty

  The article connects women’s employment to household economic well-being by analyzing the average monthly per capita consumption expenditure (MPCE). It questions whether the rise in female employment translates into an increased standard of living, which is central to poverty reduction. The finding that there is no significant difference in MPCE for households with working women suggests that the jobs they hold are not effective in lifting their families out of poverty.

• SDG 5: Gender Equality

  This is the core SDG addressed. The article is centered on gender inequality in the labor market, discussing wage gaps, differences in employment structure, discrimination, and the undervaluation of women’s work. It explicitly states that “gender inequality issues are widespread and numerous” and that “women’s engagement in the labour market is not necessarily associated with equality,” which directly relates to achieving gender equality and empowering all women.

• SDG 8: Decent Work and Economic Growth

  The article extensively discusses the quality of employment for women. It highlights that the recent increase in female workforce participation is concentrated in “low-productivity activities” and “unpaid family work,” not “decent jobs.” It also points out the wage disparity where “women earn less than men,” which contradicts the goal of achieving full, productive employment and decent work for all.

• SDG 10: Reduced Inequalities

  The article’s focus on the disparity in labor market outcomes between men and women is a direct examination of inequality. It reveals that even within the informal sector, which is already disadvantaged, “women experience worse outcomes than men.” The analysis of wage and earning functions provides evidence of economic inequality based on gender, which is a key concern of SDG 10.

2. What specific targets under those SDGs can be identified based on the article’s content?

• Under SDG 5 (Gender Equality):
  • Target 5.1: End all forms of discrimination against all women and girls everywhere. The article directly points to discrimination, stating that “hiring and firing practices may involve gross inequality, perpetuated by stereotypes and prejudices” and that “even within the domain of petty and residual activities, discrimination exists.”
  • Target 5.4: Recognize and value unpaid care and domestic work. The article notes that a substantial portion of the increase in female workforce participation is due to a rise in “unpaid family work,” which has been “historically under-recognised and undervalued.”
  • Target 5.5: Ensure women’s full and effective participation and equal opportunities for leadership in all levels of decision-making in political, economic and public life. The article implies a failure to meet this target by noting that the poor quality of employment has “important implications for the non-attainment of empowerment and a ‘say’ in the decision-making process.”
• Under SDG 8 (Decent Work and Economic Growth):
  • Target 8.5: By 2030, achieve full and productive employment and decent work for all women and men… and equal pay for work of equal value. The article directly challenges progress on this target by showing that the rise in women’s employment is a “proliferation of low-productivity activities” rather than “decent jobs.” It provides clear evidence against equal pay, stating, “In regular wage employment, casual wage employment, and self-employment, women earn less than men.”
• Under SDG 1 (No Poverty):
  • Target 1.2: By 2030, reduce at least by half the proportion of men, women and children of all ages living in poverty in all its dimensions. The article’s analysis of MPCE indicates that women’s employment in low-quality jobs does not significantly improve household consumption. This suggests that this form of employment is not an effective pathway out of poverty, thereby hindering the achievement of this target.
• Under SDG 10 (Reduced Inequalities):
  • Target 10.4: Adopt policies, especially fiscal, wage and social protection policies, and progressively achieve greater equality. The article concludes by recommending policy action, stating, “Policy directives can be envisioned to extend support to female workers for accessing wage employment and to reduce gender wage inequality,” which aligns directly with the spirit of this target.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

• Female Workforce Participation Rate (FWPR): The article explicitly mentions and analyzes the “recent growth in female workforce participation rates (FWPR) in India.” This is a key indicator for measuring women’s economic engagement.
• Gender Wage and Earning Gap: The article’s central finding is that “women earn less than men” across different employment types. This gap is a direct indicator of economic inequality and is used to measure progress towards equal pay for work of equal value (Target 8.5).
• Proportion of Women in Informal Employment and Unpaid Family Work: The analysis is based on data from the Periodic Labour Force Survey (PLFS) and highlights the concentration of women in “self-employment and unpaid family work” within the agricultural and informal sectors. This distribution is an indicator of the quality and nature of women’s employment.
• Average Monthly Per Capita Consumption Expenditure (MPCE): The article uses MPCE as a proxy indicator to measure the impact of women’s employment on household standard of living and poverty levels. By comparing MPCE between households with and without women workers, it assesses the economic contribution and quality of their jobs.

4. Table of SDGs, Targets, and Indicators

Source: thehindu.com