Baby's hand over mother's hand

In our project, we aim to promote and advocate for gender and socioeconomic equalities. We do this by working to reduce gender gaps in economic outcomes and by showing and properly valuing social and economic contributions of caregivers; and integrating care into macroeconomic policy making toolkits.

In this era of demographic shifts, economic change and chronic underinvestment in care provisioning, innovative policy solutions are desperately needed, now more than ever. Sustainable and inclusive development requires gender-sensitive policy tools that integrate new understandings of care work and its connections with labor market supply and economic and welfare outcomes.

The Care Work and the Economy Project, currently based at the Economics Department of American University and co-led by Maria S. Floro and Elizabeth King, includes more than 30 scholars around the globe, working closely together to provide policy makers, scholars, researchers and advocacy groups with gender-aware data, empirical evidence and analytical tools needed to promote creative macroeconomic and social policy solutions. In the next phase of the project, Care Economies in Context, we will be scaling up our project to include 8 different countries, in 4 global regions. I will be leading this next phase of the project, which will be based at the University of Toronto.

I define Care work is defined broadly as work and relationships that are necessary for the health, welfare, maintenance and protection of all people – young and old, able bodied, disabled, and frail. This definition may seem broad – but care– at its core is a very basic human need and a necessity. Whether we know it or now, we all participate in providing care work – paid or unpaid, and in receiving care every day.

By care economy, I am referring to the sector of economy that is responsible for the provision of care and services that contribute to the nurturing and reproduction of current and future populations. More specifically, it involves child care, elder care, education, healthcare, and personal social and domestic services that are provided in both paid and unpaid forms and within formal and informal sectors.

Care work is important because it is important work that sustains life. It is also important now in particular because it is one of the fastest expanding economic sectors and a major driver of employment growth and economic development around the world. For example, across the OCED, the service sector economy now accounts for over 70 percent of total employment and GDP. In lower- and middle-income countries, it is estimated to comprise nearly 60 percent of GDP. Within the service sector economy, care services is one of the fastest growing subsectors.

The International Labour Organization (ILO) estimates that the global employment in care jobs is expected to grow from 206 million to 358 million by 2030 simply based on sociodemographic changes. The figure will be even more dramatic to 475 million if governments invest resources to meet the UN sustainable development goal targets on education, health, long-term care and gender equality.

In Canada, the service sector already makes up for 75 percent of employment and 78 percent of GDP. Within this sector, healthcare, social assistance and education services are key drivers of economic and employment growth. In the U.S., healthcare is already the largest employer, larger than steel and auto industries put together. In short, our current and future economy is and will be increasing dominated by care services and care work.

However, at the same time, much of the care work continues to be performed for no pay, by families and friends, at home and in communities. This unpaid care work is not including in in our national GDP because GDP only takes into account work that is done for pay in the formal market. Therefore, if we only look at the GDP as a measure of the economy and economy growth, we miss a huge segment of the economy and economic activities. As the pandemic has shown, without both paid or unpaid care work, our economy will not be able to function effectively, nor would it be able to sustain itself.

What we are trying to do in our project is to make the care economy clearer and more visible by measuring and mapping out the size and shape of the economy, and to develop macroeconomic models that would help policymakers and civil society actors to develop better policies and better strategies to ensure more sustainable and equality inducing economic growth.

Listen to the full talk “The Care Work and the Economy Project” to learn about what the care economy is and why we should know more about it, particularly now.

 

 

The blog was authored by Ito Peng, contributing researcher for the Understanding and Measuring Care research cluster

 

On International Women’s Day earlier this month, the Whitaker Institute hosted a webinar titled “Engendering the Macroeconomy: Current Efforts and Future Directions” featuring Dr. Maria S. Floro, Principal Investigator of the Care Work and the Economy Project (CWE) and CWE contributing researcher Dr. Srinivasan Raghavendra. Dr. Raghavendra also serves as Co-PI of DFID funded research on “Economic and Social Costs of Violence Against Women and Girls.” This session was hosted by Dr Nata Duvvury, co-leader of the Gender and Public Policy cluster at the Whitaker Institute.

The webinar focused on exploring what engendering the macroeconomy entails, current efforts, and future directions. The discussion provides insight into ways to bring gender dimensions into macroeconomics by incorporating unpaid and paid care of children, the sick, disabled and the elderly into existing macroeconomic models, the interdependency between the market economy and the care economy, and how gender blindness of macroeconomic models are reflected through every crisis.

Faculti, an organization that presents digital media from leading experts and academics outlining their work, recently released a digital presentation by the Care Work and the Economy Principal Investigator Dr. Maria S. Floro entitled “Macroeconomic Policies, Care and Gender in the Post-COVID Era.” The discussion describes the interconnections between the crisis of care, the deepening ecological crisis and growth and accumulation processes.

There are many common threads with the climate and ecological crisis and the care crisis. Significantly, the idea that economic growth is overall beneficial. The type of economic growth generally pursued worldwide has not only increased stresses put upon the earth’s resource base but also on care labor capacity, which is similarly but wrongly perceived to be of infinite supply. Moreover, arguments that equate economic growth with overall improvement fail to recognize the distributional element of rising income inequality, which is far more nuanced. In fact, among countries that are higher income, gains from economic growth within those nations do not trickle down to everyone. When looking at care, the widening income equality gaps has shifted distribution of care givers across social classes and national boundaries. As a result, the quality and adequacy of care within a single nation can be very different, which exacerbates differences in social reproduction.

At the same time, income inequality has created a solution for the care needs of those that have the means to hire care for children and elderly, because care workers in those sectors are often paid low wages. But for the working poor, hiring care work help is inaccessible due to financial constraints, therefore they rely on their kinship networks to help provide this care. Furthermore, much of the care work burden still falls on women even as they enter to labor force. Economics and social policy in many parts of the world continue to neglect the heavy work burden put upon women and the necessity to balance household care activities and market work. What can also be observed is a global care supply chain, with the migration of women and girls to urban areas to provide care for wealthier families. Care itself is becoming one of the drivers of income inequality.

The economy is not all about material production; it is really about human vision and social provisions. However, an illusion has been created that unpaid care work is a natural resource that serves as an input for market production to promote GDP growth. However, this idea does not take into account that the wellbeing of people, especially the elderly, the sick and children should be an end in and of itself, to achieve sustainable growth. There is much work to be done to address these issues. To begin, economists must envision long term horizons that look forward to future generations while also taking into account the interdependence of life and moral responsibility. They must also integrate care and environmental consequences into our economic policy tools. Overall a new economic paradigm that includes green ecology and feminist economic concerns is needed.

Link to Part 1 of this blog here.

Photograph of multiple hands, palms up joining

Faculti, an organization that presents digital media from leading experts and academics outlining their work, recently released a digital presentation by the Care Work and the Economy Principal Investigator Dr. Maria S. Floro entitled “Macroeconomic Policies, Care and Gender in the Post-COVID Era.” This discussion delves into the foundation of project itself, its context, the analytical tools utilized in the research, as well as the external factors that have served as the catalyst for the work being done.

The Care Work and the Economy Project was developed after a group of feminist economists observed that in the effort to reduce gender gaps in economic outcomes, as laid out within the United Nations Sustainable Development Goals, there were aspects of care work that needed to be addressed. The project includes 35 scholars from all around the world that are working to develop innovative analytical tools. The research has been applying and testing these tools in South Korea, a country that quickly industrialized in the 70s and 80s and therefore witnessed a very rapid demographic change in fertility and life expectancy.

The care economy, which is inclusive of caring for those that cannot care for themselves, underpins the production of all economies within society. This begins with the fact that if people stopped having children, which require care, then the economy would come to a halt due to lack of labor force. Generally, care work has a tendency to be undermined through a lack of gender awareness in macroeconomic modeling, which does not address care needs in any adequate manner. This aspect is also neglected within the policy making discourse, with the current economic paradigm failing to take into account the necessity for care work to achieve economic growth.

Economic models that display growth also fail to take into consideration social elements, making the assumptions that, for example, children will be cared for despite the lack of social investment into care. However, with care work there comes social, political and economic significance.  The Care Work and the Economy project is working to demonstrate what a care focused macroeconomic model can reveal through the implementation of the analytic tools being developed and implemented through the research.

The absence of the care economy within macroeconomic models is in large part due to it being “invisible” since the work often unpaid. This has led to the neglect of care needs despite unpaid care work providing indispensable services in terms of economic activity and growth. The result is an emerging care crisis that has manifested itself in terms of uncared for elderly, sick and children. Furthermore, the crisis has provoked a form of silent protest against long unpaid work hours performed by women, leading to a decline in marriage and fertility rates. This in turn has resulted in a reproduction crisis.

The Care Work and the Economy project researchers are developing and using innovative analytical tools to bring care to the forefront, along with a deeper understanding of the nature of care work, while illustrating the intersectionality between care provisioning, economic growth and distribution. Although these analytical modeling tools are currently being applied in South Korea, the project believes they can be adopted and implemented into other countries as long as the provision of care is taken into context of those countries. The project research shows that governments have an important role and duty to invest in care provisions as well as comprehensive national care plans.  One of the key findings is that it is important to take into account demographic change and climate change along with economic and structural changes taking place in policy making. This is a tall order but necessary to sustain economies and provide a future for next generation.

 

Link to Part 2 of this blog here.

A recent virtual presentation from Massey College, “The Massey Dialogues: COVID, the old and Canada – What’s wrong with us?” brought together a panel to discuss how the detrimental impacts of COVID-19 in Ontario and Quebec fall alarmingly onto the elderly population. In fact, 80 per cent of pandemic deaths in Canada have occurred among the institutionalized elderly, the highest proportion in the world.

Ito Peng joins this conversation as a special guest to discuss the pandemic and its impact on Canada’s Long Term Care (LTC) sector, and ways through which the dominant thinking around market value/productivity neglects to value the work that older adults have already contributed to the economy throughout their lives, and fails to recognize their role as keepers of history and caretakers themselves.

In this discussion, Ito Peng is joined by Massey Fellows Dorothy Pringle, Husayn Marani and Michael Valpy.

Earlier this month, the Hofstra Labor Studies and the Center for the Study of Labor and Democracy in collaboration with Long Island Jobs with Justice and A.L.L.O.W. (Advancing Local Leadership Opportunities for Women) conducted a virtual forum addressing care work in the context of COVID-19. This discussion emphasized the financial and mental health challenges associated with all types of care work during this pandemic, and the immense need to address and resolve these issues in order to assist with a fair and sustainable economic recovery. Although the discussion is focused primarily on Long Island and New York, the problems indicated are applicable to care work throughout the U.S.

There is anecdotal evidence to suggest that the unemployment or the stress of juggling work and home life as a result of the crisis has hit women much harder than men. This discussion utilized academia as an example of this, drawing upon data indicating that academic journal submissions have greatly increased among men since the beginning of the pandemic, but sharply decreased among women. For those working in academia, publishing work is crucial to professional advancement.

The pandemic has also shed a harsh light on the fragility of the overall childcare system in the U.S. Many families lacked adequate childcare even before the pandemic, forcing them to rely on unpaid care work. These existing issues paired with the recent closures of childcare facilities has exacerbated the problem.

Although the CARES Act did include childcare support, New York receiving  $164 million going toward the childcare industry to provide protective equipment and cleaning supplies, the panel argues that while helpful those measures still did not provide adequate relief. The HEROES Act could potentially provide further relief for the care industry, but participants of this forum are less than optimistic about it providing the level relief needed.

 The International Labor Organization estimates that three-quarters of unpaid care worldwide is provided by women. In the U.S. women provide 37% more unpaid care work than men on a daily basis. Among care providers in the U.S., Hispanic women do the majority of unpaid care and account for the biggest gap among men and women. Beyond traditional gender roles, this is largely tied to economics; oftentimes men have opportunities to make more money. But generally speaking, even when both parents work full time, women are still taking on more unpaid work even if they are earning more money than the male figure within the household.

There is also a societal tendency which expects care workers to be exceptionally giving. This is highlighted in the fact that even within paid care work positions, there is a fair amount of unpaid work being performed. For example, staying with an elderly person at their doctor’s appointment a couple of hours after the official workday has ended. This is a constant strain within the care industry, and COVID-19 has increased the pressure on this component of unpaid work within the paid care industry.

Additionally, the many racial and ethnic disparities within care work serve as a microcosm of larger racial inequities prevalent in society. For example, in New York,  80% of care workers are women, and a large majority of them are women of color. Furthermore, care workers in New York typically make minimum wage yet are still known to go above and beyond in their roles to ensure the best care is provided, regardless of whether or not it is part of their job description. This existing issue has been pushed to a new level due to COVID-19; now many of our care workers are putting their lives on the line.

Part of the reason that low wages are prevalent within the care sector is the historical association that care work is a “women’s job,” coming naturally and requiring little skillset. This sentiment in the U.S. is compounded by care work being viewed as the responsibility of the individual.  The decision to have a family is viewed as a personal choice, therefore the basic needs of childcare are the sole responsibility of the parents, not something to be addressed via larger social safety nets.

New York is facing a particularly troubling dilemma within its care work industry. Despite the fact that a large majority of the workforce is comprised of immigrants, the guidelines that have been released outlining protection measures from COVID-19 are only available in English. This is concerning given that some workers may not yet possess the English language proficiency necessary to fully comprehend these guidelines.

In order to address these strains within the care work industry, political will and national policy are needed. The U.S. Department of Defense provides an exemplary model that could be emulated on a national scale. This government sector presently has one of the best childcare systems available in the U.S., operating on a sliding scale making it accessible to all those within the department that need it.  This allows these federal employees to perform their duties with the comfort of this social safety net.

Furthermore, at the local level, immediate state, and county-level funding for care work can have a significant impact on the accessibility needed during this stressful time. Without swift action on the policy level, the issues discussed will continue and have detrimental effects on not only families, but economic recovery as well.

 

 

Even in a typical year, U.S. households are estimated to experience $31.9 billion in lost wages as a result of inadequate childcare and paid leave. Roughly 1 in 5 people living in the U.S. today incur caregiving expenses, and the need for care work is experienced in nearly every household at least once. Those who are professional care workers, disproportionately women of color, are underpaid and therefore susceptible to financial insecurity. Those insecurities have been exacerbated even further amidst COVID-19 and the resulting economic downturn.

In June 2020, the Aspen Institute Business and Society Program hosted a digital discussion “Paid Leave, Livable Wage, Affordable Care: Policies that Could Avert the Next Crisis” in conjunction a policy brief  The True Cost of Caregivingthat was released in May. Within this discussion, the panel focused on the fragility of the care system and the financial stability of those providing care, both paid and unpaid. The panel not only addresses these issues but seeks to re-imagine a system in which care is treated like a public good, examines the hierarchy of human value, delves into the historical context behind care work in the U.S., the vulnerability of care workers in the current pandemic, and the inefficiency of the current care economy within the larger economic system.

A number of important questioned are addressed such as:

– How to quantify the benefits of paid leave, livable wages, and affordable care policies?

-What are feasible policy responses to COVID-19, in both the short term and long term, that can lead to better systems of caregiving in the U.S?

-What does an inclusive and equitable care system could look like?

-Who bears responsibility for building this system?

Further, this panel brings to the table the idea that care work should be invested in collectively as a nation, as opposed to being looked at as an individual burden; which puts increasing downward pressure on those who are already disadvantaged in the U.S. due to race and gender.

Policies that address these concerns could assist in not only building a more equitable system of care but have the potential to aid in averting future crises like that which the care economy finds itself in today.

 

In an interview with the Institute for New Economic Thinking, Care Work and the Economy lead researcher for the Rethinking Macroeconomics group Elissa Braunstein of Colorado State University explores social reproduction from a macroeconomic perspective. She explains how processes of economic growth need labor, both paid and unpaid, as an input; yet macroeconomists almost never treat labor as something that is being produced. Instead, labor is approached as a natural resource that occurs spontaneously on an as needed basis. Essentially, the efforts put forward to produce and care for another human being in terms of time and money is neglected within macroeconomic models. This is particularly relevant to gender roles in which women are primarily tasked with the time aspects of care work. Because of the tendency within macroeconomic models to emphasize the market sectors of activities, they neglect to include time and resources dedicated to the labor force (including unpaid care work), or to incorporate them as a macroeconomic issue that needs to be reconciled or addressed. However, by including processes of social reproduction, like that of care work, into these models, macroeconomists have the potential to better understand dynamics within and outside the market. Additionally, the relevance of gender roles and responsibilities have significant macroeconomic causes and consequences within these dynamics.

See the full interview to better understand the theoretical work Elissa has done incorporating social reproduction into a macroeconomic model of growth and development. This work allows for a better understanding of the implications of market force participation as it pertains to unpaid care work performed by women, the transitions within these roles from the non-market to the market sector, and subsequent changes in the dynamics of production. By incorporating social reproduction into these models, greater comprehension on the causes and consequences of macroeconomic dynamics can be achieved, in addition to resulting in direct economic consequences.  Through this work she also emphasizes that gender equality is smart economics.

 

Unpaid Work, Animated

About half of all the time devoted to work in the U.S. is devoted to unpaid work in the home. The Institute for New Economic Thinking has created an adorable animation of some comments I made in an interview with them on this topic a while back.

It’s quite a lot of fun, and basically accurate. Just don’t pay too much attention to the numbers they inserted into my discussion of two families, each with a market income of $50,000–the animation seems to imply that leisure should be assigned a monetary valuation–not something I advocate. Still, the main point comes through just fine: conventional measures provide a misleading picture of living standards.

The animation provides a great introduction to the topic for students, and you can find a more academic version of the basic argument in a short briefing paper I wrote for the Washington Center for Equitable Growth.

Original blog published on CARE TALK: FEMINIST AND POLITICAL ECONOMY on June 11, 2020. See here for the original posting.

Reposted with permission from Dr. Nancy Folbre from University of Massachusetts Amherst and an expert researcher for the Care Work and the Economy Project within the Rethinking Macroeconomics working group.