In September 2021, 26% of women reported having lost their jobs compared to 20% of men globally and more than 70% of people who reported abstaining from work to dedicate themselves to caring for others are women…
This week we will be commemorating, in the context of International Women’s Day, the battles and achievements of women in the fight for equality and respect for their rights. Although much has been achieved since 1910, when in Copenhagen at the 2nd International Conference of Socialist Women the celebration of “Working Women’s Day” was approved, gender equality has not been achieved and in many aspects we have recently seen a stagnation.
The economic crisis triggered by Covid-19 has disproportionately affected women because they make up the majority of unpaid health, social service and care workers. In addition, women work more in the informal sector and suffer more cases of family violence. And of course, women continue to face pay gaps and barriers that prevent their advancement in the corporate hierarchy.
A study recently published by The Lancet shows how pre-existing and pervasive levels of inequalities between women and men have intensified during the pandemic. With data from different sources, information was collected from 193 countries, which was disaggregated by sex or gender to describe the effects of Covid-19. The most persistent gender gap was related to participation in the labor market and in unpaid activities.
In September 2021, 26% of women reported having lost their jobs compared to 20% of men globally and more than 70% of people who reported abstaining from work due to caring for others are women. If we add to this that women and girls were more likely to drop out of school, the picture is not very encouraging.
These types of studies highlight the deficiency of economic models and the formulation of public policies by not considering unpaid work, despite constituting an important part of the economy. Economic models take into account the goods and products sold in the market and those activities that have a price determined by the law of supply and demand. Caring for the sick, children and the elderly are invisible activities in the national accounts and therefore little valued.
The nature of unpaid work has other negative impacts on women’s economic and social inclusion. Limited access to financial services, social security and pension schemes severely reduce equality of opportunity and economic security throughout women’s lives.
Governments and society in general must recognize the important role of women in the economy. In Mexico, according to the 2020 population and housing census, more than 70% of unpaid domestic and care work is produced by women and this type of work has a value equivalent to 22.8% of the Gross Domestic Product. Women own more than a third of micro, small and medium-sized establishments in manufacturing, commerce and private non-financial services. However, they are mostly informal and have little access to finance.
To advance towards gender equality, it is necessary that public policies and private sector initiatives have a gender focus, taking into account the benefits of unpaid work, including it in indicators and economic models, the barriers to entry to entrepreneurship and the design of quality financial products at affordable prices that help build economic security among women. From the economy we must make concrete proposals to alleviate pre-existing inequalities that worsened as a result of the pandemic.
Actuary from UNAM
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Lucía Buenrostro holds a Master’s in Economics from El Colegio de México and a Master’s in Mathematics and Finance from Imperial College (United Kingdom). She has a PhD in Economics from the University of Warwick (UK). She has carried out teaching and research work at UNAM, the University of Warwick and the University of Oxford.
He has extensive and solid experience in the international financial system where he worked for almost 15 years in London as head of risk management areas in investment banking.