Context:

In economic discourse, the monetisation of economies is often viewed as crucial for growth, particularly in less developed nations. Defined as a system where goods and services are exchanged for money, a monetised economy emphasises paid labour and formal markets. However, this focus can overshadow the equally vital care economy—a sector characterised by unpaid labour, time poverty, and significant gender disparities.

Why in News:

Recent insights from Shamika Ravi, a member of the Economic Advisory Council to the Prime Minister, highlight the importance of prioritising the care economy to achieve balanced growth and equitable development in India.

What is the Care Economy?

• The care economy comprises all activities necessary for the existence and well-being of society, including both paid and unpaid care work. Unpaid care work, often personal and relational, includes activities like childcare, elder care, and household chores, while paid care work involves roles such as nurses, teachers, and domestic workers.
• Despite the essential nature of care work, it is frequently undervalued and poorly compensated.
• For instance, Accredited Social Health Activist (ASHA) workers in India are among the lowest-paid workers globally, highlighting a concerning trend in the care economy that affects the overall economic landscape.

Problems with the care economy: 

• Gender Disparities: A striking feature of the care economy is the disproportionate representation of women. The World Health Organisation reports that women account for 70% of the workforce in health and social sectors, yet they experience an average gender pay gap of around 28%. This disparity places care work among the most biased sectors regarding wage payments.
• The Double Burden of Work: Indian women frequently juggle unpaid domestic responsibilities and paid employment, resulting in significant time poverty. This dual burden leads to burnout, reduced labour force participation, and compromised well-being.

According to the 2019 Time Use Survey, women in the working-age group spend an average of seven hours daily on unpaid household work, significantly limiting their ability to engage in the monetised economy.

• Undervaluation and Low Wages: Care workers in India, particularly domestic and Anganwadi workers, are often paid very low wages, which perpetuates poverty, burnout, and high turnover rates among these workers.

• Data from the National Sample Survey Office (NSSO) for 2017-18 indicates that 62% of domestic workers earn less than ₹5,000 per month. 

• Informality and Lack of Protection: Many care workers in India operate informally, lacking essential labour protections and benefits. This informal status makes them vulnerable to exploitation, poor working conditions, and limited access to social services. The NSSO reports that 71% of domestic workers are informal.
• Societal Attitudes and Cultural Norms: In Indian society, care work is often perceived as "women's work" or viewed as less valuable. This perception perpetuates gender stereotypes and undervalues the contributions of care workers. An IPSOS survey from 2019 found that 65% of Indians believe caregiving is solely the responsibility of women.
• Policy Gaps and Fragmented Approaches: India's care policies are often fragmented, lacking coordination and comprehensive frameworks, which leads to inefficient resource allocation and inadequate support for care workers.
• Market Failures and Economic Metrics: The undervaluation of care work leads to its invisibility in economic metrics, resulting in market failures that contribute to time poverty for women. This situation creates care and motherhood penalties, ultimately reducing female labour force participation.

According to a recent policy brief, care work contributes approximately 15-17% to India's GDP, a testament to its economic significance, yet it remains unrecognised in traditional economic assessments.

• The Global Care Chain: The notion of a “global care chain” is emerging in discussions around the crisis of care. As women from dominant communities enter the workforce, the resulting care gap is often filled by migrant women or those from marginalized communities, leading to a troubling dynamic. This chain perpetuates vulnerabilities, particularly for women at the bottom of the socio-economic ladder.

Solutions:

To address the challenges faced by the care economy, the International Labour Organisation has proposed the 5R framework, which emphasizes:

·        Recognising the value of paid and unpaid care work.

·        Rewarding care work with fair compensation.

·        Reducing the burden of unpaid care work on women.

·        Redistributing care responsibilities within households.

·        Reclaiming the public nature of care services.

This framework provides a roadmap for policymakers to better integrate the care economy into the broader economic narrative.

Policy suggestions:

• Invest in Social Care Infrastructure: Establishing affordable and accessible public care services, such as childcare and eldercare, can create job opportunities for women with caregiving experience. By formalising traditionally unpaid work, these services would not only provide women with paid employment but also alleviate their unpaid responsibilities, encouraging higher rates of female labour force participation.
• Enhance Labor Market Access and Opportunities: Implementing minimum wage laws that ensure fair compensation for care workers is crucial. Recognizing care work as skilled labour can empower workers and improve their bargaining power. Furthermore, offering pensions, health insurance, and maternity benefits to informal caregivers would integrate them into the formal economy, enhancing their economic stability.
• Recognize Unpaid Work in Macroeconomic Policies: Utilizing data from the Time Use Survey conducted in 2019 can help quantify the value of unpaid care work. Integrating this data into macroeconomic measures would help redefine care work as a productive economic activity rather than merely a domestic responsibility. Gender-sensitive policies designed using this data could alleviate the unpaid work burden on women, allowing them more opportunities for paid employment or education.
• Challenge Social and Cultural Norms: Destigmatizing unpaid care work is essential for altering gender stereotypes. Public campaigns and educational programs can promote men’s active involvement in caregiving, while government policies can encourage paternity leave and parental leave, normalising the idea of men as caregivers.
• Interdependence of Policy Revisions: These policy revisions are interdependent which means building care infrastructure alone will not suffice if the resulting jobs remain undervalued. It is essential to ensure that care work is recognized and compensated fairly, establishing social safety nets to protect workers. The role of the state is vital in creating a landscape where care work is both inclusive and equitable.

Conclusion:

Prioritizing the care economy presents a significant opportunity for India to enhance its economic framework while promoting gender equality and social justice. By recognising the critical role of care work in economic development and implementing comprehensive policy revisions, India can pave the way for a more inclusive and sustainable growth trajectory.

As India continues to evolve economically, the integration of the care economy into mainstream discussions will be essential for fostering a balanced and equitable society. Embracing the value of care work not only benefits women but also enhances the overall health of the economy, ensuring that all citizens have the opportunity to thrive.