Inequalities in India’s labor market are enormous and bridging the gap is the key to achieving social justice for working women
Inequalities in India’s labor market are enormous and bridging the gap is the key to achieving social justice for working women
India is one of the most important countries when it comes to the story of global economic growth and structural change. A commensurate improvement in its labor market outcomes and a fair distribution of the fruits of economic progress will promote further economic growth and the benefits it brings. But, surprisingly, in a country the size and diversity of India, inequalities still exist in the country’s labor market.
impact of pandemic
Yesterday was the third International Equal Pay Day 2022 – the day falls on September 18th – and it is time to pause and reflect on the progress we have made towards closing the gender pay gap and reaffirming our collective commitment to effective and speedy realisation. Is. The principle of ‘equal pay for work of equal value’. Given the disproportionate impact of the COVID-19 pandemic on women workers in terms of job and income loss, this ‘becomes more important in the present context’. Full and productive economic growth requires a human-centred recovery from the pandemic, which will be made possible by improving women’s employment outcomes and bridging the gender pay gap.
While the full impact of the pandemic is yet to be ascertained, it is clear that its impact has been unequal, with women being worst hit in terms of their income security – partly in their areas affected by COVID-19. because of representation. , combined with the gender division of family responsibilities. Many women returned to full-time care of children and the elderly during the pandemic, giving up their livelihoods to do so.
a wide pay gap
This is evidenced by the International Labor Organization’s “Global Wage Report 2020-21”, which states that the crisis put a huge strain on wages and disproportionately affected women’s overall wages compared to men’s. This greater reduction in wages for women means that the pre-existing gender pay gap has widened.
Despite significant progress in closing the gender pay gap in India over time, the gap remains high by international standards. Indian women earned an average of 48% less than their male counterparts in 1993-94. Since then, the gap has come down to 28% in 2018-19, according to the labor force survey data of the National Sample Survey Office (NSSO). The pandemic reversed decades of progress as the initial estimates of the Periodic Labor Force Survey (PLFS) 2020-21 showed a 7% growth between 2018-19 and 2020-21. The data further suggests that the sharp decline in female wages during the pandemic contributed to this decline compared to the sharp increase in male wages, which requires immediate policy attention.
discrimination as a factor
While personal characteristics such as education, skills, or experience explain part of the gender pay gap, a substantial portion of the gender pay gap can still be attributed to discrimination purely based on one’s gender or gender. Gender-based discriminatory practices include: low wages paid to women for work of equal value; Underestimation of women’s work in highly feminized occupations and enterprises, and the maternity pay gap – lower wages for mothers than for non-mothers.
Internationally, the United Nations has placed the challenge of closing various forms of gender inequality at the center of its work. The ILO has incorporated ‘equal pay for work of equal value’ in its constitution and the Convention on the Elimination of All Forms of Discrimination against Women (CEDAW) to realize gender equality and to address the intersectional forms of discrimination and vulnerabilities. Provides an international legal framework for between women and girls.
Steps taken by India
India has taken several steps to close the gender pay gap in the legislative arena, especially at the lower end of the wage distribution. In this regard, it was one of the leading countries to adopt the Minimum Wages Act in 1948 and the Equal Remuneration Act in 1976. In 2019, India made extensive reforms in both the laws and enacted the Code on Wages. ,
Evidence shows that the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) in 2005 benefited rural women workers and helped bridge the gender pay gap, both directly and indirectly. Directly, by raising the wage level of women workers participating in the programme, and indirectly, through higher incomes, the benefits to women involved in agricultural occupations, as MGNREGA has led to a rapid increase in the overall rural and agricultural wages in the country. contributed to.
In 2017, the government amended the 1961 Maternity Benefit Act, which increased ‘maternity leave with pay security’ from 12 weeks to 26 weeks for all women working in establishments employing 10 or more workers. This is expected to reduce the maternity pay gap between mothers in the middle and higher wage earners working in the formal economy.
In addition to enabling laws, the Skill India Mission is striving to equip women with market-relevant skills to bridge the learning-to-livelihood gap and gender pay gap.
While the gender pay gap is slowly narrowing, at the current rate of progress it will take more than 70 years to close it completely. Quick and bold action is needed to widen the gender pay gap and close the existing gap.
One of the goals of the United Nations Sustainable Development Goal 8 is to achieve “full and productive employment and decent work for all women and men, including young people and persons with disabilities, and equal pay for work of equal value” by 2030. In support of this goal, the International Coalition for Equal Pay (EPIC), launched in 2017 as a multi-stakeholder initiative led by the ILO, UN Women and the Organization for Economic Co-operation and Development (OECD), aims to create equal rights for women. Wants to get salary. And men everywhere.
Equal pay for work of equal value is necessary to bridge the gender pay gap. Closing the gender pay gap is important for achieving social justice for working women as well as for economic development for the country as a whole.
Dagmar Walter is the director of the International Labor Organization’s Decent Work Technical Support Team for South Asia and the Country Office for India. Susan Ferguson is the woman representative of the United Nations (UN) in India; United Nations part in India team