Question

1. You must explain the issue using appropriate economic theory and concepts and highlight the key points to present your comments.

2. Include relevant argument on social interest, externalities (positive or negative) and public good provision in your discussion.

3. You are encouraged to cite related sources in your writing. Follow the usual citation protocols. (Five paragraphs at least)

With some variation among different societies, almost everywhere in the world, gender inequality in the job market is present. This inequality can be observed in income, leadership position as well as opportunities prior to the job market. Social scientists, including economists, consider this as a “problem”. From the public sector’s perspective, how can this issue be addressed? Suggest a few policies that you believe can change the current gender distribution in the labor market.

Answer 1

Gender inequality is an immense challenge in the world labor market. Participation rate of women workforce is very less as compared to the male counterpart. Women are less likely to find a job along with relatively lower pay scale. They even get less opportunity in the leadership position. Therefore, opportunities are restricted for women in the job market.

In 2018, the labor force participation rate for women was 49.3% , which was 26.7 percentage points lower than men. According to International Labor Organization report of 2017, labor market segregation is one of the major causes of gender gap problem in workplace. Women are often segregated into certain profession in different sectors. Therefore, demand for female worker in some sectors are very limited especially in industrial and service sectors. If problem intensifies if the occupations restricted for women are not growing overtime.

For the same reason, supply of women workers in salaried employment field is greater than demand. Hence, very few women who get the opportunity to work facing discriminations, are forced to work for low salary for the same post in comparison to the men workers.

14.9% employed female workers are family workers globally compared to 5.5% employed men. Women are also involved in 2.5 times more on unpaid household tasks and care work than male workers.

Economic benefits of reducing gender gap is reduction in poverty level. An working woman gets freedom to take family decisions regarding spending and wellbeing of the family members. A sense of equality is also developed among the members and society, which has a positive externality. Women can live with dignity in the society and they can contribute positively in economic decision making. Greater participation of women workforce in the labor market gives additional lift to the global growth.

Policy consideration

Arrangement of flexible working condition can reduce gender gap in both public and private sectors. This kind of arrangements encourage women workers to overcome socio economic constraints such as household responsibilities along with child care.

Promotion of women entrepreneurship through training for skill development may help to enhance confidence of women to develop self-business and grow up with leadership skills. Government has to support representation and participation of women in various leadership positions in decision making. Moreover, governmnet can make changes in laws by ensuring equal pay, incentive provisions for both men and women for similar position in workplace. Legals actions in case of gender related workplace discriminations may be helpful for reducing gender gap.