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

 

A recent Gender & COVID-19 brief (also a sign on letter) “Making the Biden-Harris Transition Plan for COVID-19 gender-responsive” outlines how the Biden-Harris Transition Plan in the US can be made more gender-responsive. The brief is a starting point in highlighting the potential within the Biden-Harris Transition Plan, using economic recovery as an entry point, with recommendations based on the best practices for feminist economic recovery from COVID-19.

The Biden-Harris Economic Recovery Plan is constructed around four challenges which must be overcome to rebuild the nation. The brief applies a gender lens for each challenge, emphasizing that for these efforts to be truly equitable, it is critical that they are not implemented in isolation and an intersectional gender lens is used in policy making and interventions.

  • Mobilize American manufacturing and innovation to ensure that the future is made in America, and in all of America: Targeted support to business owners from under-represented groups in the forms of emergency funds, skills, training and mentorship; and direct funding to businesses in women-majority sectors, including caregiving and social enterprises, should be a centerpiece of the policy.
  • Mobilize American Ingenuity to build a modern infrastructure and an equitable, clean equitable future: Investment in care infrastructure is also green, as it supports jobs for women (in the care sector) and men (in the construction sector), and provides services communities need to thrive. Implementing stimulus programs focused on ‘green jobs’ should proactively plan for gender equity and include formal programming for women, with special emphasis on displaced workers, communities of color, and women who are in recovery from incarceration.
  • Mobilizing American talent and heart to build a 21st century caregiving and education workforce: Prioritize universally accessible, free (or highly subsidized) childcare and long-term elder care as central to its economic recovery plan. This can in part be accomplished through the designation of direct public funds to existing regulated and licensed care services. Direct public funds should also be used to invest in measures to keep workers safe and expand the number of care spaces available. Importantly, many workers who provide the backbone of the care economy are informally employed, wherein they have limited or no access to social protection. As such, government assistance schemes should be expanded to include family and informal caregivers, and an expedited path to permanent resident status should be created for precarious immigrant care workers so that they can access those schemes. This has a much greater effect than simply creating employment in the care sector but facilitates women’s participation across the economy.
  • Mobilize across the board to advance racial equity in America: There can be no gender justice while there is racial injustice. Racial and gender inequities are inextricably linked to the economy. For example, Black, racialized, and immigrant women are disproportionately represented as personal support workers, cleaners, and in other essential but low-paid occupations – many of which are in the informal economy – that do not provide paid sick leave or family leave.

READ FULL BRIEF: Solomon A, Morgan R, Wenham C, Smith J, Nacif Pimenta D, Mueller V, Herten-Crabb A and Hawkins K (2020) Making the Biden-Harris Transition Plan for COVID-19 gender-responsive, Gender and COVID-19 project