Improving labour force participation of low skilled women Nisha - - PowerPoint PPT Presentation

Improving labour force participation of low skilled women

Nisha Arunatilake September 2019

Why Improve FLFP?

1

• Gender empowerment

2

• Improving equality

3

• Labour shortages

4

• Slowing labour force

Gender Based Inequality Measures

Sri Lanka India Pakista n GII 0.354 0.524 0.541 Adolescent birth rate (births per 1000 women aged 15-19) 14.1 23.1 36.9 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

7000 7200 7400 7600 7800 8000 8200 8400 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 2042 2044 2046 2048

LF (15-64)

Source: IPS calculations

10 20 30 40 50 60 70 80 90 2006* 2012* 2016*

Labour Force Participation Rates, by Sex

MLFPR FLFPR

Source: Own calculations using LFS data; Note: * - Northern and Eastern provinces excluded

Percentage Point Difference in LFPR 2006-2014

• 2.0
• 0.8
• 2.6
• 7.7
• 1.1

1.2

• 2.3
• 0.8
• 2.8
• 0.1
• 5.3
• 6.8

1.1

• 5.2
• 10.0
• 8.0
• 6.0
• 4.0
• 2.0

0.0 2.0

Total Male Female Youth(15-29) Adult (30 to 64) Urban Rural Estate Primary Below Secondary Secondary completed Passes A/L Degree Post Graduate Sex Age group Location Level of education Percentage point difference in LFPR 2006* -2014*

Factors affecting FLFP in Sri Lanka

• Remittances from abroad
• Education
• Family wealth
• Local labour market

conditions

• Local unemployment
• Ethnicity and religion
• Children and age of children
• Work-life balance
• Labour market institution

and labour legislation

• Infrastructure
• Access to finance

Source: ILO 2013, ILO 2016

10 20 30 40 50 60 70 80 90 100 No school Below Primary Below Secondary Passed O/L Passed Collegiate Level Degree Post Graduate Male 2006* Male 2016*** Female 2006* Female 2016***

LFPR, by Level of Education

Source: Nisha Arunatilake, using 2016 data. Note: * - Does not include Northern and Eastern provinces, *** - All provinces are included.

19% of pop <62%of pop> <19% of pop>

62.4 61.0 61.9 61.6 58.1 63.0 73.7 63.1 63.4 64.3 65.6 85.5 70.1 73.3 70.7 61.4 64.3 70.4 60.7 63.7 59.0 65.5 64.7 65.3 61.5 62.3

0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0

Sri Lanka Colombo Gampaha Kalutara Kandy Matale Nuwara Eliya Galle Matara Hambantota Jaffna Mannar Vavuniya Mullaitivu Kilinochchi Batticaloa Ampara Trincomalee Kurunegala Puttalam Anuradhapura Polonnaruwa Badulla Moneragala Ratnapura Kegalle

Only ALs Als and Vocational Training Only OLs OLs and Vocational Training

Source: IPS calculations, using Census 2012 data

Female Labour Force Participation, by District and Level of Education

Tertiary and Vocational Education improves FLFP, but education participation is low

13.7 4.8 44.0 18.8 15.3 3.4 11.8 4.9 49.4 18.8 11.9 3.2

10 20 30 40 50 60 Primary Incomplete Primary Completed Below O/L O/L Passed A/L Passed Degree & Above

Distribution of 15+ Population by Level Education and Gender (2016)

Female Male

Source: IPS calculations, using LFS data

Education Participation of Youth (20-24)

1.3 2.2 2.1 4.1 2.2 2.4 3.5 6.1 10 20 30 40 50 2006 2014 School University Vocational/ Technical Institution Other Edu Institution

Source: IPS calculations, using LFS data

• Gender segregation in the labour market
• Wage gaps
• Differences in quality of jobs available to

women

• Discrimination and disadvantages in

accessing employment

Constraints that may impede demand for female workers

Source: Lim 1996 cited by ILO 2016

Labour market segregation

• Women are concentrated in industries and
• ccupations that are low wage indicating, lack
• f quality of employment

Source: Own calculations using LFS data

10 20 30 40 50 60 70 80 90 100 Total Agriculture, forestry and fishing… Mining & quarrying (B) Manufacturing (C) Construction, Electricity, gas,… Wholesale and retail trade,… Transportation and storage (H) Accommodation and food… Information and… 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

Female Employment

Female share in industry (%) Distribution of female workers (%)

35 28 64 36 51 32 35 35 14 37 17

10 20 30 40 50 60 70 Total Senior officials Professionals Technicians Clerks Service and market sales… Skilled agricultural Craft workers Machine operators Elementary occupations Armed forces

Share of Female Workers, by Occupation Group (%)

200000 400000 600000 800000 1000000 1200000

Senior officials Professionals Technicians Clerks Service and market sales… Skilled agricultural Craft workers Machine operators Elementary occupations Armed forces Female Male

Employment, by Occupation and

Gender

Wage Gaps

Females are paid less Mainly due to wage gaps amongst low skilled

• 20%
• 10%

0% 10% 20% 30% 40% 50% 2006 2012 2014

Gender Wage Gap Hourly Wage Differences: Male vs Female (%)

unexplained explained wage difference

Gender Wage Gap Hourly Wage Difference, Males vs Females

• 3.0%

10.8% 46.8%

• 4.9%
• 2.6%

4.7% 2.0% 13.8% 40.2%

• 10.0%

0.0% 10.0% 20.0% 30.0% 40.0% 50.0%

Senior officials,Professionals, Technicians Clerks, service and market sales workers Skilled agricultural, craft workers, machine operators, elementary

• ccupations

Unexplained Explained Wage difference

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

3 84 18 28 76

Composition of Enterprizes considered Agriculture Industry Construction Trade Other Services

0% 10% 20% 30% 40% 50% 60% 70% 80%

Factors Affecting Recruitment of Females (Share of employers expressing that they ‘very frequently’ or ‘always’ consider the following when recruiting:)

Family constraints Security issues Work location

Source: The National Institute of Labour Studies. (2016).

0% 20% 40% 60% 80% 100% 120% Managers Professionals Technicians and Associate Professionals Clerical Support Workers Services and Sales Workers Skilled Agricultural, Forestry and Fishery… Craft and Related Trades Workers Plant and Machine Operators and… Elementary Occupations Total Factors Affecting Recruitment of Females (Share of employers expressing that they ‘very frequently’ or ‘always’ consider the following when recruiting:) 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.

0% 10% 20% 30% 40% 50% 60% 70% Managers Professionals Technicians and Associate Professionals Clerical Support Workers Services and Sales Workers Skilled Agricultural, Forestry and Fishery Workers Craft and Related Trades Workers Plant and Machine Operators and Assemblers Elementary Occupations Total

Share of Employers Finding Maternity Benefits an Issue When Recruiting (%)

Source: The National Institute of Labour Studies. (2016).

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

1 Improve access, efficiency and quality of education 2 Improve creation of good jobs 3 Modify and modernize labour legislation, make it gender neutral 4 Awareness building to change social norms, and perceptions of employers 5 Support to families for work life balance

Nisha Arunatilake Affiliations:

• Director of Research, IPS
• Research Fellow, PEP

Contacts: E-mail:Nisha@ips.lk T:@ArunatilakeN