Gender as a Barrier for Shared Growth: The Case of Costa Rica Poverty Assessment Lucia Fort, Andrew D. Mason (TTL), Maria Beatriz Orlando, and Carlos Sobrado (TTL) Prem Learning Week -2007

Gender as a Barrier for Shared Growth: The Case of Costa Rica Poverty Assessment Growth without poverty reduction in LAC countries and women’s economic empowerment Growth without poverty reduction in LAC countries and women’s economic empowerment Challenges for women’s economic empowerment in high growth LAC countries Challenges for women’s economic empowerment in high growth LAC countries The case of Costa Rica PA: key hypothesis and key findings The case of Costa Rica PA: key hypothesis and key findings Creating an enabling environment for poor female workers Creating an enabling environment for poor female workers Implications Implications

In terms of gender, LAC and Costa Rica have achieved MDG3, but face challenges… Country UNDP Human Development Index (Rank – of 175) UNDP Gender Empowerment Measure (Rank – of 70) World Economic Forum Gender Equality Index (Rank – of 115) United States Spain Costa Rica Chile Mexico Colombia644622

Female labor force participation in Costa Rica, Chile, and Mexico is low Female Labor Force Participation in Latin America years old. Urban

Key Questions Costa Rica Poverty Assessment Main Objectives: Main Objectives: To understand why poverty in Costa Rica did not decline from despite relatively consistent economic growth To understand why poverty in Costa Rica did not decline from despite relatively consistent economic growth To develop policy recommendations to re-invigorate the poverty reduction process To develop policy recommendations to re-invigorate the poverty reduction process Main Hypotheses: Main Hypotheses: Patterns of growth (not pro-poor) Patterns of growth (not pro-poor) The poor not prepared to benefit from growth (human capital story) The poor not prepared to benefit from growth (human capital story) Ineffective public investments/spending to reduce poverty Ineffective public investments/spending to reduce poverty Immigration of poor Nicaraguans have offset gains among Costa Ricans Immigration of poor Nicaraguans have offset gains among Costa Ricans Data/Measurement problems Data/Measurement problems NOTE: No gender hypothesis to be found here!

The poverty headcount (P0) in higher for FHH than male-headed households (MHH)

Female “ Headship ” is correlated to poverty in Costa Rica Key Determinants of Poverty in Costa Rica Key Determinants of Poverty in Costa Rica Household size (+) Household size (+) Female Household head (esp., in rural areas) (+) Female Household head (esp., in rural areas) (+) High school and college in general and primary education in rural areas (-) High school and college in general and primary education in rural areas (-) 2 rural regions: Chorotega and Brunca (+) 2 rural regions: Chorotega and Brunca (+) Census segments averages: sewer and phone (-) Census segments averages: sewer and phone (-) Insurance and formal employment (-) Insurance and formal employment (-) Agricultural work (+) Agricultural work (+)

The share of households that are female-headed (FHH) has increased …

… so has share of FHH among the poor

What is behind poverty in FHHs Two-thirds of female-headed households are single mothers with young children Two-thirds of female-headed households are single mothers with young children Except for education levels, FHHs disproportionately possess characteristics associated with poverty, including Except for education levels, FHHs disproportionately possess characteristics associated with poverty, including high unemployment high unemployment high levels of self-employment high levels of self-employment higher than average incidence of part-time work higher than average incidence of part-time work Evidence suggests that single mothers with young children lack the ability to work full-time jobs with standard working hours due to lack of affordable child care options Evidence suggests that single mothers with young children lack the ability to work full-time jobs with standard working hours due to lack of affordable child care options

Unemployment among the poor in Costa Rica has increased since 1990 Source: Costa Rica Poverty Assessment, World Bank, 2006

… and quite dramatically among poor female households heads

Self-employment levels are also high among female household heads

The proportion of poor Costa Rican women working part time has increased Source: Costa Rica Poverty Assessment, World Bank, 2006

In addition, Labor legislation has created an uneven playing field In Costa Rica, there are legal barriers to women working non-standard work hours, In Costa Rica, there are legal barriers to women working non-standard work hours, Note that in Chile, firms hiring 20 women or more are legally obliged to provide on-site child care Note that in Chile, firms hiring 20 women or more are legally obliged to provide on-site child care A Chilean labor regulation formally sanctions family leave to care for sick children or elderly for female workers, but not for male workers A Chilean labor regulation formally sanctions family leave to care for sick children or elderly for female workers, but not for male workers

Creating an enabling environment for poor female workers in Costa Rica Providing greater social support – in the form of affordable child care options – to female workers, whether poor single mothers or female spouses, Providing female workers the same working-hour flexibility as male workers– would make it easier for single, working mothers to seek employment during times when it may be easier to make alternative childcare arrangements (e.g., with extended family members).

Concluding Remarks Women’s labor force participation does not always increase with economic development – LAC, MNA Women’s labor force participation does not always increase with economic development – LAC, MNA Women’s labor force participation is not necessarily higher among low-income groups Women’s labor force participation is not necessarily higher among low-income groups Is this true in other regions? Is this true in other regions?

Implications Research – much more needed on differences within countries and their causes Research – much more needed on differences within countries and their causes Policy – policies and plans to improve human capital, address poverty reduction, and increase growth should: Policy – policies and plans to improve human capital, address poverty reduction, and increase growth should: have a gender focus, have a gender focus, be targeted to those groups where inequality is highest, be targeted to those groups where inequality is highest, their design needs to address the causes of gender inequality. their design needs to address the causes of gender inequality.