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Anjuli Gupta

The Value of Unpaid Care Work:Recognizing and Redistributing Responsibilities for a Stronger Society

Updated: Oct 11


Unpaid care work - Role in economic development (Online Economics tuition)
Unpaid care work - Role in economic development

Historically, unpaid care work has been viewed as a natural and expected responsibility of women and girls within the household. This perspective was reinforced by cultural and societal norms that placed a higher value on paid work outside the home, typically performed by men. As a result, unpaid care work was often undervalued and overlooked in economic analysis. The rise of the feminist movement in the 20th century brought attention to the undervaluation of women’s work, including unpaid care work.


In recent years, there has been a growing recognition of the importance of unpaid care work in the economy. This shift in perspective has been driven by a number of factors, including the increasing participation of women in the paid workforce, the aging of populations in many countries, and the recognition of the role that unpaid care work plays in supporting economic growth and development.


It can be observed that non-working homemakers perform a significant amount of unpaid labour, such as cooking, cleaning, and childcare. According to a study by the United Nations, the value of unpaid care work in the world is estimated to be $10.8 trillion per year (UN Women, 2015). This unpaid labour is essential for the functioning of households and allows other family members to participate in paid work. The COVID-19 pandemic has further highlighted the essential nature of unpaid care work, as many families have had to rely on caregivers to manage the increased demands of remote work and virtual schooling. Non-working homemakers provide social and emotional support to their families, which is crucial for their well-being. This support helps family members to be more productive in their work and indirectly contributes to the economy.


Non-working homemaker women also contribute to the economy through community work. They often volunteer in their local communities, such as in schools, religious organizations, and charities. According to a study by the Corporation for National and Community Service, volunteers in the United States contributed 6.9 billion hours of service in 2018, which is equivalent to $167 billion in economic value (CNCS, 2019). Non-working homemaker women make up a significant portion of these volunteers.


Non-working homemaker women also have the potential to contribute to the economy through entrepreneurship. They can start their own businesses from home, such as selling products online or providing services like tutoring or consulting. According to a study by the Global Entrepreneurship Monitor, women entrepreneurs in the United States generated $1.8 trillion in revenue in 2019 (GEM, 2019).


According to the UN, in theory, this type of work should be counted as a part of GDP. A study conducted by feminist economists and statisticians found that in Argentina, unpaid work contributes about 7% of GDP, and in a much less developed country like Tanzania, this figure was about 63%. Another study in Switzerland found out that if they added the value of unpaid work, it is almost equal to the total contribution of the banking and insurance industry together in Switzerland.


However, the area of concern is that most of this work is being done by women in society. In one study, it was found that almost 75% of this work is done by women. This work is highly feminized. Is this fair?

This penalizes women in terms of not earning a decent wage, not accumulating pensions or benefits they would have been able to earn, and increased dependence on their spouse or other male family members financially. The penalties are very high in comparison to the kind of contribution to society.


How can we make things better? One solution could be to redistribute care, which means sharing unpaid work among others. State policies need to reconsider and re-evaluate their approach and strive to provide good public child care facilities, among other things. Another essential aspect is to change expectations and social norms, so that women and men can share these responsibilities equally.



International Labor Organization - 3 R's approach (Online Economics tuition)
International Labor Organization - 3 R's approach

In Japan (a developed nation) and Nigeria (a developing nation), the expectation that women should stay at home and take care of the household has led to a decline in the workforce participation rate. This decline negatively affects the economy, resulting in a shortage of workers and a decrease in productivity. Non-working homemakers may possess skills and talents that could be used in the workforce effectively.


Some Scandinavian countries recognize the importance of unpaid care work and the role of non-working homemakers in shaping the economy. For example, in Sweden, parents are entitled to 480 days of paid parental leave and in Norway, parents are entitled to 49 weeks of paid parental leave. These can be shared between both parents. Other countries that follow this policy include Finland and Denmark.


In conclusion, it becomes vital to value unpaid care work because it provides a strong foundation for any society and definitely can help in increasing economy’s GDP. This work plays a crucial role in building a stronger and more cohesive community.



References

  • CNCS. (2019). Volunteering and Civic Life in America. Corporation for National and Community Service.

  • GEM. (2019). Global Entrepreneurship Monitor 2019/2020 Women’s Report. Global Entrepreneurship Monitor.

  • UN Women. (2015). Progress of the World’s Women 2015-2016: Transforming Economies, Realizing Rights. United Nations.

  • https://www.unwomen.org/en/news/in-focus/csw61/redistribute-unpaid-work

  • https://www.oecd-ilibrary.org/sites/4d0229cd-en/index.html?itemId=/content/component/4d0229cd-en

 
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