C HANGING L IVELIHOOD STRATEGIES - C HANGING L ABOR M ARKET P ROSPECTS W OMEN P ARTICIPATION IN L ABOR M ARKET. L ABOR D IVISION AND NEW SKILLS. Neeti Aryal Khanal 1

Changing Livelihood Strategies – Changing Labour Market Prospects b. Women Participation in Labour Market c. Labor division and new skills (Discussion on Cases from Nepal, Sri Lanka and Afghanistan) 2

C HANGE IN LABOUR MARKET PROSPECTS Industrial society to information society Manufacturing has shrunk and there is much greater emphasis on service industries. There has been an explosion of IT and we now inhabit a much more clearly knowledge based economy. National economy to world economy It is clear that we now operate in a global labour market. There is greater mobility of people and goods. Multi- national corporations have global profiles. It no longer makes sense to think only in terms of a local or even national labour market. Even those who choose not to geographically move themselves may be affected by global forces. The availability of cheaper labour overseas leading to factory closures in the UK is one example, or the increasing need to speak more than one language in order to negotiate effectively with suppliers and customers based overseas. 3

4 Core, permanent staff to outsourcing There has been a trend to contract out in all sorts of industries. Most of us will have seen or worked in organisations where permanent staff are replaces by contract operators for e.g. cleaning or portering who can be brought in on a 'when needed' basis rather than being retained on permanent contracts. Autonomous working to teamwork There is a great emphasis on the ability to work as part of multi- disciplinary teams to increase creativity and productivity. Very few workers now will operate in isolation and autonomy. Increasing emphasis on transferable skills and key competencies Even if people don't change organisations during their working lives, it is still very likely the nature of their jobs will evolve and change. This being so, a key trend is the need for transferable skills which can be applied to new situations and circumstances if required. A key transferable skill might be verbal communication and a competency might be interpersonal effectiveness. There is an ongoing debate relating to the precise nature of core skills and competencies that is beyond the remit of this entry, but feel free to contribute your own thoughts to the discussion thread if you wish. You will need to log in to do so.

W OMEN PARTICIPATION IN LABOUR MARKET Today nearly 50 percent of women around the world are in the labor force, and women constitute approximately one-third of all workers. Most of the work performed by females are not paid following the traditional division of labor within the household or the nature of employment in family farms. Even when it attracts pay, women's work is valued less than men's. Typically women's earnings average around two- thirds of men's. Overall, no more than one-fifth of the world's wages accrue to women partly because women are usually engaged in low-paying jobs. Even in these jobs, women are usually paid less than men doing comparable work 5

W OMEN PARTICIPATION IN LABOUR MARKET Evidences shows that there is high level of gender inequality in labour market Reducing gender inequality is essential to increasing women's economic security, defeating poverty and fostering sustainable development and growth. Gender inequality in the labour market is manifested by: Occupational segregation Gender-based wage gaps Women's disproportionate representation in informal employment, unpaid work and higher unemployment rates (UNFPA, 2005) 6

7 Source: United Nations The Millennium Development Goals Report, New York: United Nations.

Women's access to paid employment is lower than men's in most of the developing world. In the developed regions, women and men approach parity in wage employment. Women are less likely than men to hold paid and regular jobs and are over-represented in the informal economy, which provides little financial security and few social benefits. Fewer women than men own businesses and employ others. Worldwide, over 60 per cent of people working in family enterprises without pay are women. In the home, women perform most of the chores – work that is both unpaid and not reflected in national production statistics. 8

Women represent the majority of the working poor in all regions Out of the 550 million working poor in the world, an estimated 330 million, or 60 per cent, are women. Several factors contribute to this situation, including the undervaluation of women's work and women's intermittent career paths, due mainly to their role as caregivers in the family and their greater need to balance work and family life. In some countries, there are also legal restrictions or prohibitions against women engaging in certain types of work. Despite some progress in the 1990s, women typically earn less than men, even for similar kinds of work 9

O CCUPATIONAL SEGREAGATION Even where women have made significant gains in paid employment, labour markets remain strongly segregated, often to the disadvantage of women. Occupational segregation is often accompanied by lower pay and worse working conditions in occupations that are typically held by women. Occupational segregation decreased significantly during the 1990s in developed countries, Latin America and the Middle East. Proportionately more women than men are unemployed, particularly young women (below 25 years old) in Latin America and the Caribbean, Southern and Western Asia and Northern Africa (UNFPA, 2005) 10

C OMMON E XPLANATIONS FOR W OMEN ' S D ISADVANTAGE IN THE L ABOUR M ARKET. Economic analyses of labor markets explain women’s disadvantage and gender discrimination in terms of: supply factors: determine the quantity and quality of women workers in the labour market (family responsibilities and constraints; and inequalities in education, training and access to productive resources); demand factors: (labour market segregation, discrimination in pay differentials and quality of employment, higher risks of unemployment) which are conditioned by specific structures of the economy; Policies: that include or exclude women (discriminatory legislation and regulations, employment discrimination, unequal hiring standards and lower pay for equal work), and govern their treatment in the economy and labour market (World Bank, 1994, cited in Masika and Joekes, 1996) 11

O THER ANALYSES Other analyses have distinguished market and production factors from household factors such as household structure, income, resources and decision-making. Neo-classical economists have argued that reproductive labour is a cause of female disadvantage in the labour market. This has been dismissed by feminists who have argued that female specialisation in child rearing and domestic labour is not ’natural but socially constructed and hence susceptible to change’ Feminist perspectives have pointed out that not only do definitions of work tend to exclude and underestimate much of women's work but that within a patriarchal family structure, women may not control the proceeds of their labour. They may be obliged, coerced or predisposed to allocate their own incomes towards household or family, rather than personal needs. 12

F ACTORS BEHIND INEQUALITY Existing gender discrimination in society which manifests into lower access to education and trainings system of occupational segregation: pink collored jobs discriminatory work places issues of maternity leave and child care sexual harrassment in work places lower wages/salary to men than women women considered less competent and professional than men However, the situation is improving gradually 13

L IVELIHOOD : BEYOND CONCEPT OF INCOME AND EMPLOYMENT Beyond concept of income and employment : In both rural and urban contexts the vast majority of the poor have individual, household and community survival strategies that may include employment, but go beyond this to a range of other economic activities that include informal sector work, exploitation of common property resources, share- rearing of livestock and reliance on social networks for mutual support as well as a number of other mechanisms for coping in times of crisis 'For many of the poor, livelihood seems to fit better than employment as a concept to capture how poor people live, their realistic priorities, and what can help them' 14

DEFINING LIVELIHOOD "A livelihood comprises the capabilities, assets (including both material and social resources) and activities required for a means of living. A livelihood is sustainable when it can cope with and recover from stresses and shocks and maintain or enhance its capabilities and assets both now and in the future, while not undermining the natural resource base." (Chambers and Conway 1992) 15

L IVELIHOOD STRATEGIES Livelihood strategies are the combination of activities that people choose to undertake in order to achieve their livelihood goals. They include productive activities, investment strategies and reproductive choices. Livelihoods approaches try to understand the strategies pursued and the factors behind people’s decisions; to reinforce the positive aspects of these strategies and mitigate against constraints. 16

LIVELIHOOD STRATEGIES AND DIVERSIFICATION The choice of strategies is a dynamic process in which people combine activities to meet their changing needs. For example, in farming households, activities are not necessarily confined to agriculture but often include non- farm activities in order to diversify income and meet household needs. Migration, whether seasonal or permanent, is one common livelihood strategy.Migration livelihood diversification is then defined as ‘the process by which households construct a diverse portfolio of activities and social support capabilities for survival and in order to improve their standard of living’ ( Ellis, 1999) 17

F ACTORS THAT EFFECT LIVELIHOOD STRATEGIES A major influence on people’s choice of livelihood strategies is their access to assets assets policies, institutions processes that affect their ability to use these assets to achieve positive livelihood outcomes. processeslivelihood outcomes 18

A SSETS human capital: skills, knowledge, health and ability to work social capital: social resources, including informal networks, membership of formalised groups and relationships of trust that facilitate co-operation natural capital: natural resources such as land, soil, water, forests and fisheries physical capital: basic infrastructure, such as roads, water & sanitation, schools, ICT; and producer goods, including tools and equipment financial capital: financial resources including savings, credit, and income from employment, trade and remittances 19

P OLICIES, INSTITUTIONS AND PROCESSES Social relations: the way in which gender, ethnicity, culture, history, religion and kinship affect the livelihoods of different groups with a community Social and political organisation: decision-making processes, civic bodies, social rules and norms, democracy, leadership, power and authority, rent-seeking behaviour Governance: the form and quality of government systems including structure, power, efficiency and effectiveness, rights and representation Service delivery: the effectiveness and responsiveness of state and private sector agencies engaged in delivery of services such as education, health, water and sanitation Resource access institutions: the social norms, customs and behaviours (or ‘rules of the game’) that define people’s access to resources Policy and policy processes: the processes by which policy and legislation is determined and implemented and their effects on people’s livelihoods 20

L IVELIHOOD OUTCOMES Livelihood outcomes are the goals to which people aspire, the results of pursuing their livelihood strategies. Livelihoods approaches stress the importance of understanding and supporting poor people’s efforts to achieve these goals.livelihood strategies Examples of livelihoods outcomes might include: increased income reduced vulnerabilityvulnerability increased well-being improved food securityfood security more sustainable use of natural resourcesnatural resources 21

L IVELIHOOD OUTCOMES : WHAT DO THEY TELL US Livelihoods outcomes are important because they help us understand: the results of peoples’ livelihoods strategies in a particular context why people pursue particular strategies and what their priorities are how people are likely to respond to new opportunities or constraints 22

C AUSES THAT INDUCE CHANGE IN LIVELIHOOD STRATEGIES ( SHOCKS, TRENDS AND CYCLES ) Shocks : have a rapid on-set and result in an immediate impact. Examples are contagious diseases, natural disasters and collapses in prices for export commodities. Trends: Other causes of change manifest themselves as trends with longer gestation, for example the long-term decline in the world market prices of cereals or the effect of soil erosion on the productivity of a field. Cycles: Those that occur with warning signs (such as declining soil fertility), or according to cycles (such as household maturation or seasonality) are more predictable. This may make coping with them more manageable (for some). The distinction between shocks, trends and cycles may be blurred: what is a shock to many may be perceived as a result of a trend or cycle by those with more information. 23

C AUSES OF CHANGE IN LIVELIHOOD ( LINKING THAT WITH EFFECT OF CONFLICT ) Shocks Household LevelStructural level Unexpected illness/ death of economically active household member Change in regulations governing land ownership Trends Rising education level over generation Rising prices of agricultural inputs Expansion of transport cycles Changing dependency level in household Seasonal variation of rainfall or agricultural labor demand 24

O THER STRUCTURAL CHANGES Population growth and resulting pressure on land and natural resources (leading to landlessness, ncroachment and conflict with the state); Urbanization; State supported development of agricultural technology, infrastructure and investment: the green revolution (GR) package (leading to upward mobility among cultivators, class differentiation, higher wages and incomes, with concomitant new technology and need for inputs); and, Rise of the non-farm economy, particularly construction work and service sector work (for forward castes and scheduled castes respectively) Global environment degradation, global warming and climate change 25

LIVELIHOOD AS A DEVELOPMENT APPROACH Livelihoods approaches emerged during the 1980s in recognition that effective poverty alleviation required action at the community level as well as at the level of government policy and services Livelihoods approaches gained prominence within the humanitarian sphere in the late 1980s, following the severe famines of that decade, with a particular emphasis on livelihood (or asset) protection to reduce vulnerability and save lives in the longer term. Livelihoods activities can also be understood more broadly as work to strengthen institutions and influence policy, as well as supporting assets. Activities may therefore range from food aid and cash transfers to agricultural support, market and income support and influencing policies on land rights. More recently, livelihoods approaches have been used to guide analysis and response in complex emergencies. 26

G ENDER AND LIVELIHOOD STRATEGIES The livelihoods needs of men and women are not always the same, due to their different roles, responsibilities and resources. The impact of different livelihood interventions will also vary according to gender: e.g. a technology to relieve the workload of men, may result in an increase in the workload of women, or vice versa. Women and men are likely to differ also in their capacity, authority or availability to participate in livelihoods analysis or livelihoods interventions, so attention must be paid to overcoming such barriers. 27

C HANGES IN L IVELIHOOD AND G ENDER P ATTERNS Increasing poverty in countries effected by conflict The incidence, severity and distribution of poverty has not been uniform over time and space, but it is becoming increasingly clear that the vulnerability (to shocks) of the poor is increasing in many parts of the developing world especially in countries that are marginalised in the world economic system or affected by conflict and civil disorder. 28

L IVELIHOOD AND CONFLICT In conflict-related emergencies, a number of points are worth highlighting in relation to livelihoods. First, livelihoods can be exploitative; in other words, situations exist where one group’s livelihood is dependent upon the exploitation of others. Livelihood strategies in themselves may be violent, such as theft and looting or coercive practices, or may entail risks to safety. Second, assets can be a liability and can make some communities or households vulnerable to attack or exploitation Third, policies, institutions and processes often consist of different forms of deliberate violence and abuse. Finally, ‘security is a basic dimension of livelihood sustainability’ (Chambers and Conway, 1991). 29

P OVERTY AND LIVELIHOOD STRATEGIES A number of studies have illustrated the increasing reliance of the poor on diverse forms of coping and survival strategies often known as livelihood diversification (Moser, 1996; Davies, 1996b). In the context of increasing poverty in many developing countries, the emerging trend is that women's capabilities are being eroded much more quickly than men's. Gender inequality in terms of access to resources seems to be increasing and more and more people are having to resort to unsustainable forms of livelihoods. 30

R URAL L IVELIHOOD : T RENDS The introduction of new technology, new agricultural practices and legislation continues to favour men. A significant trend in developing countries has been the move towards private ownership in land. New laws tend to be premised on the assumption that men are heads of households. In Latin America, this has meant that women have been excluded from rights to land ownership. In many rural areas women are less likely to have access to agricultural credit (without collateral such as land) and have limited opportunities for participation in decision making processes oriented towards enhancing agricultural production (World Bank, 1995b). This tendency limits women's scope to ensure sustainable livelihood. 31

T RENDS An emerging trend is the 'feminisation of agriculture'. As men migrate to cities in search of employment, rural women are increasingly having to take up a number of agricultural tasks with limited capabilities Increasing Networking and alliance Increasing alliance-building and networking among rural women has facilitated the integration of their concerns into policymaking. The recent introduction of new international agreements, legislation, policies and programmes may eventually improve women's access to land and tenure security. NGOs and community-based organisations have given rural women a voice 32

E NVIRONMENT AND N ATURAL R ESOURCES M ANAGEMENT Growing environmental degradation: The increased volume of world trade has been criticised by many environmentalists as accelerating environmental degradation in some regions. For instance, tropical timber exports have played a part in the decimation of rain forests. Intensive production of cash crops, like coffee and bananas for export has increased water pollution with the run-off of pesticides and fertilisers. These environmental consequences have had particular implications for women affecting women in their capacities as hewers of wood and drawers of water 33

P USH TO UNSUSTAINABLE LIVELIHOOD Limited sources of employment in rural areas may push women to overexploit the few natural resources at their disposal (FAO, 1995a). As Kettel (cited in Wee and Heyzer, 1995) points out: 'the challenge of maintaining sustainable livelihoods in a degrading environment is a gender-differentiated challenge. Environmental degradation exacts higher costs on women than men. In a world that is largely rural, women are the main subsistence farmers of Africa, Asia and South America. At an everyday level, these women farmers are facing the challenge of maintaining sustainable livelihoods for themselves, their families, and their communities, as their resource base of fuel, water and food becomes increasingly depleted'. 34

I NDIVIDUAL, H OUSEHOLD AND C OMMUNITY C OPING S TRATEGIES The gender division of labour affects how individuals confront crisis and shocks. The impact of economic restructuring in terms of cuts in food subsidies can make it difficult to maintain nutritional standards without greater inputs in time for women Many case studies have shown that women reduce their personal consumption, although in some cases girls may benefit from the coping strategies adopted. For instance, in times of crisis in parts of northern Cameroon and Chad girls tend to stay with their mothers, and have access to food when preparing meals 35

W OMEN ’ S ADDITIONAL BURDEN : Coping strategies to reduce vulnerability to crisis impose unequal burdens on household members. A comparative study of household responses to increasing poverty and vulnerability in four poor urban communities shows that men and women diversify or increase household income in different ways, with women extending their working day to a far greater extent than men, risking their health (Moser, 1996). 36

R EFERENCES ODI (2003) Understanding Livelihoods in Rural India: Diversity, Change and Exclusion, DFID Ellis, Frank ( 1999) Rural livelihood diversity in developing countries: evidence and policy implications, ODI Focus (1999) Women in the labor market, University of Wisconsin–Madison Institute for Research on Poverty LMI (2010) Labour Market Changes, available at learning/changing/changeshttp:// learning/changing/changes European Union (2002) Gender inequalities in pay and pensions, Eurpean union available at UNFPA (2005) Gender equality, state of world population Tzannatos, Z ( 1998), women and labour market changes in the global economy, world Bank April 1998 EI (2010) The gender pay gap: reasons and implications available at ie.org/Docs/WebDepot/feature2%20-% %20-%20reasons%20and%20implications%20- %20final%20EN.pdf Rachel Masika, Arjan de Haan and Sally Baden (2007) Urbanisation and Urban Poverty: A Gender Analysis, Bridge report No.54, available at 0http:// Bangladesh 37