Saturday, April 01, 2023

Facts only, no counterfactual please.

"The Labor Force Participation Rate (LFPR) for males has gone up to 57.5% in 2020-21, as compared to 55.6% in 2018-19. Female Labor Force Participation Rate (FLFPR) has gone up to 25.1% in 2020-21 from 18.6% in 2018-19." Ministry of Finance, India. The Economic Survey 2022-23 complains that, "According to the latest ILO standards, limiting productive work to labor force participation is narrow and only measures work as a market product. It does not include the value of women's unpaid domestic work, which can be seen as expenditure-saving work such as collecting firewood, cooking, tutoring children, etc, and contributes significantly to the household's standard of living." The improvement in the standard of living is because it is saving the earnings of men. If, however, unpaid housework is counted as work then a monetary value should be placed on it, which will double the income of the household while their purchasing power stays the same. "These tasks are not counted as part of economic activity because they are difficult to measure based on values in the marketplace. Yet their economic value is substantial, with estimates ranging from 10 to 60 percent of GDP," wrote Kristalina Georgieva et al. "Women do 4.4 hours of unpaid work on average around the world and men only 1.7 hours." In Norway the gap is small, with women doing 3.7 hours of unpaid work, while men contribute 3. On the other extreme, in Egypt, women do 5.4 hours of unpaid work and men only 35 minutes." One explanation may be that the GDP per capita of Norway was $89,154.3 in 2021. World Bank. While that of Egypt was a fraction at $3698.8 in 2021. World Bank. When people have so much money they can eat out, thus largely reducing housework.  Another reason may be that the fertility rate in Norway is 1.5 per woman in 2020, well below the replacement level of 2.1. World Bank. In the same year, the fertility rate was 3.0 in Egypt, although it is falling steadily. World Bank. Pregnancy and breast feeding is something only women can do. Economists Surjit S Bhalla and Tirthatanmoy Das argue that the low employment ratio for women in India is a myth. They repeat the argument that unpaid housework should also be counted as work. But they go further. "We also know that more women go to college than men." "Think of the counterfactual - why would a person after finishing college education, not want to work?" The National Family Health Survey (NFHS-5) of 2019-2021 revealed that "the more educated a woman is, the lower are her chances of being employed," wrote Vivek Kaul. "Around a third of women with less than five years of education are employed. This drops to 18.4% for women with an education of 10-11 years and then jumps a little to 21.5% for women with 12 or more years of education." This is similar for men. "As per the World Economic Forum, of the 13 million people who join India's workforce each year, only one in four management professionals, one in five engineers, and one in ten graduates are employable." India Today. Wanting to work increases FLFPR but not employment. Bhalla & Das should state facts not counterfactual. Economics is not politics.      

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