Decent Work and Gender Equality

Christine Nathan Regional Workers Specialist, ILO Bangkok

Issues for discussion

ILO Guide on Work, income and gender equality in East Asia based on desk review in 8 Countries: China, Hong Kong SAR, Japan, Republic of Korea, Malaysia, the Philippines, Singapore, Thailand, Vietnam:

Gender equality in the labour market Gender pay gaps: size and reasons Legal framework and measures for equality Equal pay: good practice examples

Recommendations to promote pay equity and gender

equality
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1. Labour market - Education

Tertiary education: Higher enrolment rates for women than men 2000-2001 f/m ratios: Malaysia: 1.35 Thailand: 1.15 Philippines: 1.2 But continuing segregation in subjects: E.g. Philippines, f/m ratio Education 3.9 Law: 0.76 Architecture: 0.22
Female-to-male gross enrolment ratios in primary, secondary and tertiary education by region, 200203

Source: ILO. Equality at Work: Tackling the Challenges. Geneva, 2007

- Labour Force Participation

Womens LFPR are lower than mens in all of the countries covered The region has some of the highest female LFPR in the world:

Female and Male Labour Force Participation Rates (15+) China Hong Kong, China Malaysia Korea Japan Philippines Singapore Thailand Vietnam 0 20 40 Male 60 Female 53.7 46.5 50.2 48.3 54.7 50.6 65.6 68.8 70.8 81.7 73.9 73.6 83.1 76.2 80.8 72.2 78.1 80 100

Vietnam: 72 % China: 69 % Thailand: 66 %

82.4

However, in several countries, they are below or around 50 percent:

Malaysia: 47 % Japan: 49 % Korea: 50 % Singapore: 51%

Age-specific LFPR reveal the significance of childbearing and rearing on womens work, whether due to real or assumed family responsibilities and stereotypes linked thereto

Source: ILO, Economically Active Population Estimates and Projections (EAPEP) Database, 5th Edition, Geneva, 2006.

- Occupational Segregation
Horizontal and vertical job segregation persists: Women are over-represented in the 5 Cs (catering, cashiering, caring, clerical, cleaning) & many in informal economy Vertical segregation constitutes an obstacle to womens access to LSOM jobs
Proportion of Wom en and Men am ong Legislators, Senior Officials and Managers
Proportion of Wom en and Men am ong Clerical Workers China (2005) 69.7 26.6 39 49.4 33.2 35.3 23.9 34.7 49.8 0 10 20 30 40 Men 50 60 73.4 61 50.6 66.8 64.7 76.1 65.3 50.2 70 80 90 100 30.3

China (2005) Hong Kong, China (2005) Japan (2005)* Republic of Korea (2005) Malaysia (2003) Philippines (2005) Singapore (2005) Thailand (2005) Vietnam (2004) 0 10 20 30 Men 42.2

83.2 73.2 90.5 92.2 76.8 57.8 74 71.2 77.8 40 50 60 70 80

16.8 26.8 9.5 7.8 23.2 26 28.8 22.2

Hong Kong, China (2005) Japan (2005)* Republic of Korea (2005) Malaysia (2003) Philippines (2005) Singapore (2005) Thailand (2005) Vietnam (2004)

90 100
Women

Women

Source: Own calculations from ILO. Laborsta , Table 2C, Accessed 4/5/2007

2. Gender Pay Gap

The gender pay gap in East Asia is pronounced: Womens income amounts to:

less than or just 1/2 of mens income in Japan, Malaysia, Korea and Singapore between 60 and 80% of mens income in HongKong SAR, the Philippines and Thailand around two-thirds of mens income in China and Vietnam.

Trends on the evolution of the gender pay gap are ambivalent:

in general the gender pay gap has narrowed over the past few decades, However, in China & Japan pay differentials appear to be on the increase

Econometric studies show that discrimination accounts for a large share of the gender wage gap

Extent of the Gender Pay Gap - Proxy indicator 1: Earned Income Ratio
Ratio of estimated female to male earned income*
0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0
0.66 0.56 0.46 0.48 0.47 0.59 0.51 0.68 0.61

na Ko ng ,C hi na

Source: UNDP. Human Development Report 2005. *This measure is based on an estimate using the following: ratio of the female non-agricultural to the male non-agricultural wage; male and female shares of the economically active population; total male and female population; GDP per capita in PPP US$. Where data on the Wage ratio is not available, a ratio of 0.75 is used

Ho ng

Re pu bl

Ph ilip pi ne s Si ng ap or e Th ai la nd Vi et na m

Ja pa n

Ko re a of

ic

al ay sia

Ch i

Extent of the Gender Pay Gap - Proxy indicator 2: Manufacturing Wages

The gender wage gap is pronounced across the region: Womens wages as % of mens: Over 70%: Philippines, Thailand Below 65%: Hong Kong, Malaysia, Singapore Below 60%: Japan, Korea

F/M Ratio of Wages in Manufacturing, 1993/2003

90 80 70 60 50 40 30 20 10 0
Ko ng ,C
80 72 64 60 63 56 61

Ho ng

*As in source (specification of year not given) Note: Data on China and Vietnam are not available Source: United Nations (2005). The Worlds Women 2005.

Re pu bl

Ja pa n ic of Ko re a M al ay sia Ph ilip pi ne s Si ng ap or e Th ai la nd

hi na

Evolution of the GPG

Overall long term trend is towards a narrowing of the GPG:

Singapore: womens monthly earnings as % of mens rose from 68% in 1986 to 72% in 2001 Hong Kong: womens average earnings as % of mens increased from 60% in 1976 to 70% in 1991 Korea, womens average earnings increased from 47% in 1985 to 63% in 2002

In some of the countries where it has narrowed, there has been a widening in recent years:

Japan: womens scheduled cash earnings rose from 59% of mens in 1980 to 66% in 2000, but the wage ratio fell by almost 2 percentage points between 2004 and 2005

There is also evidence of a widening GPG over recent decades in some countries:

China: womens wages dropped from 83% of mens in 1990 to 70% in 1999 (note: data reliability is a constraint)

Data limitations for most of the countries (China, Malaysia, Philippines, Thailand, Vietnam)
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Variables influencing the gender pay gap (GPG)

Age: a growing GPG by age (larger gap among older than younger workers) Education: an ambivalent relationship, with some data pointing to a narrowing of the GPG with the level of education (Japan), while other data show the opposite, especially for older workers (Singapore) and/or in urban locations (Vietnam) Industrial sector and occupation: no clear cross-country trends for the GPG by sector/occupation but significant variation between sectors and occupations in countries covered Urban/rural: a higher GPG in urban areas than rural areas in Vietnam and Thailand (but not in China) Private/public sector: a wider GPG among workers than workers in the public sector, and Enterprise size: wider GPG in larger enterprises than smaller ones Informal Employment: a wider GPG in informal employment than formal employment. Migrant status: wider GPG among internal migrant workers than among nonmigrant workers

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1. Age
In general, data from the countries shows that: gender wage gaps are smaller for younger than older women young women sometimes earn more than their male counterparts

Ratio of Female to Male Average Monthly Wages by Age, Republic of Korea, 2004
120 100 80 60 40 20 0 19 & 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 Under
Own calculations based on KWDI Webpage, Statistics, accessed 19/4/06

60+

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2. Education
Ambivalent relationship: Japan: The higher the level of education, the smaller the gender wage gap
Gender Disparities in Scheduled Cash Earnings by Academic Background, Japan

Singapore: For 45-54 age group, the gender income gap is actually the largest among those with a university education
Vietnam: in urban areas, women with a junior college education were in the worst position after those with no education, earning only 64% of what men earn.

Source: CAWW (http://www.miraikan.go.jp)

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3. Occupation
A comparison of available data from national sources does not show definitive trends as concerns differences between occupations: E.g. Professional worker category: Korea & Malaysia: category with one of the largest GWGs Singapore & Hong Kong: category with one of the smallest GWGs The same inconsistency can be seen in data from international (ILO) sources: E.g. F/M wage ratio for professional nurses: Thailand: 114% Korea: 44%
Wage Ratio in Selected Occupations, Republic of Korea and Singapore

91 100 83.3 90 80 74.5 61.1 70 60 50 40 30 20 10 0

92.2

85.3 68.5 64.9 57.8 Republic of Korea (2004) Singapore (2003)

64

s rs ls ers e rs to r ge na k k r a r a o r i o n s e Wo es op Ma lW f e a o c e i in ric Pr e rv ch S Cle a d dM an n s a le nt Sa P la

Source: Korean Womens Development Institute (KWDI), http://www2.kwdi.re.kr/, (Accessed 19/4/06);CEDAW/C/SGP/3, 22 November

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4. Informal emplt & migrant status

Informal employment:

In China, in formal employment, womens income is 85% of mens, In informal employment it is less than 70% In Viet Nam according to a 2004 GSO-UNFPA study, womens mean monthly earnings were 87% of mens among non-migrant workers, but only 76% among migrant workers

Gender Gap in Wages among Migrants and Non-Migrant Workers, Vietnam

Migrant workers:

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5. Discrimination
The causes of pay inequalities between the sexes are related to: factual differences between men and women workers, for example, in years of schooling and work experience perceptions on the status of men and women in the family, the labour market and society

These facts and perceptions shape the labour market outcomes for both sexes.
They relate to: the biological differences between men and women, in particular womens reproductive capacity the different social or gender roles of men and women in each society
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Determinants of the GPG: Findings from Decomposition Studies

The GWG is often decomposed into an: explained part (differences in education, work experience, etc) unexplained component (discrimination) Studies reviewed show that discrimination is found to account for a large share of the gender wage gap, although the findings vary widely:

In China, the lowest value for discrimination found in the studies reviewed was approximately 20%, while the highest varied from 60 to almost 80%.
Studies in Korea, Malaysia and Thailand found that 33%, 46-50% and 68% respectively of the gender pay gap were due to non-productivity related, unexplained factors, i.e. attributable to discrimination in the labour market.

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Direct Discrimination
Direct discrimination exists when unequal treatment between workers of different race, colour, sex or any other ground stems directly from laws, rules or practices making an explicit difference between workers on these grounds.

Explicit laws or policies of setting different pay rates for workers on the grounds of

their sex for the same or similar jobs have been discontinued almost everywhere, although it still occurs: For example, in some collective bargaining agreements in agriculture in a few countries, sex continues to be a major criterion for determining wage rates.

Other examples of direct discrimination in law: legal restrictions or prohibitions exist barring women from overtime work, work at night or in a range of occupations deemed unsuitable to them Setting lower retirement age for women than for men In actual employment practice, direct discrimination is still quite common. Explicit or direct taste discrimination often occurs where employers select women for jobs only in fields where they consider that (young) women have a competitive advantage, for example because of their service mentality or customer preferences for women.
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Indirect Discrimination

Indirect discrimination in law and/or in practice is still quite common when men and women do different jobs of equal value through setting a different wage per hour, or using a different salary or payment system depending on whether the work is done by women or men. E.g. In the public sector in a South East Asian country, nursing attendants caring for sick people were reported to be paid less than motor pool supervisors in charge of the dispatch of drivers and vehicles.

Indirect wage discrimination is also very common because existing job classifications and job grading systems and the corresponding pay scales often contain gender bias due to the undervaluation of typically female jobs.

For example, womens productivity may be considered less because caring skills and multi-tasking in typically female jobs such as nursing and domestic work are not visible and go unrecognized.

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Feedback effects of Discrimination

Discrimination usually does not come as a stand-alone event but tends to have strong feedback effects.

Gender stereotypes on employment choices and suitable jobs for women and men do not exist only on the sides of employers and customers. Parents, training and career guidance institutions such as employment services stream young women in occupations considered suitable to them and many young women tend to go with the flow. This is interpreted by some as a sign of non-discrimination as if women make individual free choices in accepting second class type of work. Others consider that free choice has little to do with such decisions but that women per force have to adapt to gender biases in the labour market information about and/or experience with labour market discrimination are internalized and shape the training and job choices of women and men

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Costs of women workers

A common justification for pay differences are the purportedly higher costs of employing women. These costs consist of:

However, in East Asian countries, trends do not support this:

actual costs such as maternity protection benefits and replacement costs of child bearing workers; and perceived costs based on a range of assumptions and expectations on the behaviour and productivity of women workers at work because of their family responsibilities.

Results of ILO research in Latin America shows that actual costs are much lower than perceived costs: additional costs of employing a woman amount to less than 2 % of the monthly gross earnings of women.

In many EA countries women continue to work throughout reproductive years Absenteeism of women is presumed to be higher than mens due to care work, but actual data do not support this: e.g. ILO Vietnam Study: women had less days of sick leave than men.

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3. Policy and Legal Framework: International Commitments

Ratification of International Instruments
C100 C111 CEDAW CEDAW Optional Protocol -

China Hong Kong, China Japan Republic of Korea Malaysia

1990 1967 1997 1997

2006 1966 -

1980 1985 1984 1995

Philippines
Thailand Singapore Vietnam

1953
1999 2002 1997

1960
1997

1981
1985 1995 1982

2003
2000 -

Source: ILO Applis database, accessed June 2006; United Nations Division for the Advancement of Women website, accessed June 2006.

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National laws on discrimination and pay equity: contents

General Provisions on Non-discrimination and equal opportunities and treatment in employment Labour Laws of several countries in the region contain general prohibitions on discrimination between men and women in employment In a number of countries, laws on gender equality provide non-discrimination between men and women with respect to conditions of employment in aspects such as recruitment, promotion, or training (e.g. Equal Employment Opportunity Law of Japan) Provisions on Equal Remuneration Equal pay for equal work is provided for in China and Viet Nam. Provisions on non-discrimination with respect to wages are contained in the laws of Japan, Korea, Thailand, and Vietnam, but no indication of whether the prohibition refers to equal work or to work of equal value Equal pay for equal value is generally not contained in national legislation. Exceptions: Koreas Equal Employment Act (EEA) - although the concept is more restricted than in Convention 100, applying only to work within the same establishment. The Labour Code of the Philippines - although the definition given to work of equal value restricts the concept to identical or substantially identical work

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National laws on discrimination and pay equity: implementation

Monitoring of compliance with these laws is in general the responsibility of the labour inspectorate The capacity of labour inspectors is in often limited due to a lack of understanding of what ensuring equal pay for equal work or work of equal value entails. Very few specialized mechanisms to support the implementation of equality legislation have been instituted. Exceptions: In Hong Kong, China, discrimination complaints can be lodged with the Equal Opportunities Commission (EOC), which can investigate the case/provide assistance with conciliation/taking the case to court. In Korea, honorary equal employment inspectors can be commissioned by the Minister of Labour to promote equality at the workplace. The Equal Employment Act also provides for the setting up of tripartite Equal Employment Commissions at the local labour administrations to mediate disputes.

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Maternity Protection in East Asia

Length of Maternity Leave China Hong Kong SAR Japan Republic of Korea Malaysia Philippines Singapore Thailand Vietnam 90 days 10 weeks 14 weeks 90 days 60 days 60 days 8 weeks 90 days 4 to 6 months** Percentage of wages paid in covered period 100 4/5 60 100 100 100 100 100 for first 45 days then 50 for 45 days 100 Provider of Coverage

Employer Employer* Health Insurance or Social Security Employer 60 days, social security 30 days Employer Social Security Employer for first two children, Government for Third Employer for first 45 days then social security Social Security

*only to workers already under continuous contract for no less than 40 weeks and have complied with regulations in full; **depending on the working conditions and the nature of the work Source: UN. The Worlds Women 2005, Table A9, pp. 148-155; for Hong Kong SAR: IUF: Maternity Protection in International Law and Practice in North-East Asia.

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Maternity Protection in East Asia

Among countries covered: No ratifications of ILO Convention 183

Variation between countries:

length of leave and benefits granted: some more generous, some more restrictive than C183 and recommendation 191. Who is mainly responsible (employer; employees; state) for covering the costs of maternity protection

Available data points to weaknesses in the provision of maternity protection and continuing discrimination:

China: a survey carried out by ACWF shows that 21% of rural women in cities were fired after they became pregnant or had a child Korea: a poll by the job portal Incruit reveals that 33% of pregnant female workers decided not to take maternity leave for fear of discrimination, and 7% were told to resign after using maternity benefits
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Institutional Mechanisms
1995 Fourth World Conference of Women in Beijing: governments
worldwide committed to mainstreaming gender, i.e. addressing the priorities and needs of men and women in all policies and programmes

This has led to efforts to: Strengthen womens machineries and expand their mandates Create explicit gender mainstreaming capacity in other key line ministries In East Asia, the impact of these institutional changes is mixed:

Viet Nam: After 10 years of slow and uneven progress, the Government and the Vietnam Womens Union adopted the Gender Equality Law. The law stipulates that all governmental agencies should carry out a gender analysis of their laws, policies and programmes. Other countries: more incremental progress

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4. Equal pay: Examples of International Initiatives

Development of Job Evaluation Methods: Job Evaluation Methods (JEMS) which are free from gender bias can be used as a tool in individual establishments or sectors to assess jobs objectively to ensure that jobs are not undervalued and underpaid. ILO: development of manual and training on JEMS; support to hotel industry in Portugal for undertaking JEMS PSI: development of guide on JEMS; training stakeholders on JEMS (e.g. as part of PSI global pay equity campaign in the Philippines). Setting up online salary checks: the Wage Indicator concept uses internet based salary checkers to construct an information base on wages allowing workers to assess their salaries against those of others in the same occupation International PSI pay equity campaign (2002-2005): Promoting pay equity among PSI affiliates by raising awareness and building the capacity of unions in developing countries through training, the provision of expert services, and facilitating local campaigns. Campaigning for an Asian Floor Wage The Asia Floor Wage Campaign (led by the Asia Floor Wage alliance which consists of unions and civil society organizations), aims to promote the provision of a living wage to workers in global supply chains by defining a common Floor Wage band in Asia (calculated based on a Purchasing Power Parity (PPP) system using the US minimum wage as a starting point).

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Equal pay: Examples from East Asia

Guidelines for employers: Singapore: Guidelines on Fair Employment Practices were adopted by the Tripartite Alliance for Fair Employment Practices (TAFEP) with a view to root out discrimination in hiring and employment.

Japan: Voluntary guidelines for employers Guideline Concerning the Measures for Improving Wage and Employment Management for Eliminating Wage Disparity between Men and Women, issued by the Government in 2003. Thailand: Thai Labour Standard (launched in June 2003) aims to establish management systems which are in compliance with international labour standards, and contains a set of guidelines and certification procedure for establishments applying it.

Job appraisal/evaluation: Philippines: The Department of Labor and Employment (DOLE) has been developing appropriate methods to promote an objective appraisal of jobs on the basis of the work to be performed.

Korea: As part of its efforts to promote objective job appraisal, the Korea Womens Development Institute (KWDI) conducted a project on a standard mechanism for job appraisal.

Promoting pay equity in the public sector: Philippines (public service unions with support from PSI global pay equity campaign): Awareness raising activities & capacity-building workshops on gender pay equity in the health service Adoption of a Memorandum of Understanding on Quality Public Services and Performance, covering 1.5 million government employees (contains a number of pay equity provisions, including the development of a job evaluation process free from gender bias)

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Conclusions 1
The ILO studies show: Women in East Asia participate in the labour market in increasing numbers but do not benefit from their labour to the same extent as men. General lack of awareness that gender discrimination exists Womens disadvantaged position in the labour market and lower pay levels are seen as an outcome of women workers free will in the demand and supply chain. Womens disadvantaged position in the labour market will not disappear naturally due to social and economic development. There is no link between the level of countries economic development and the extent of the gender pay gap:

Wage/income differentials are the greatest in the more developed East Asian countries (e.g. the Republic of Korea and Japan, Singapore and Malaysia), and the lowest in the Philippines, Thailand, China and Vietnam. Indications also are that the pay gap is growing in countries such as China which is focusing on economic development.

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Conclusions 2
Given the societal aspirations of providing social justice and equity and the robust economic growth rates of the countries in the study:

It both makes good business sense and it is economically feasible to start treating men and women at work more equally and explicitly address gender discrimination in the labour market.

Countries need to utilize all human capital and investment in equal access to education will only pay off if these are translated in more equal labour market outcomes.
Labour institutions and gender networks need to join forces to carry out targeted action to reduce the gender pay gap and provide maternity protection to all working women, including those in informal employment.

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Recommendations 1 Key issues

Legislation - Legislation on equal pay should: be embedded in wider labour and non-discrimination laws include clear definition of key concepts e.g. indirect discrimination and the meaning of equal value ensure inclusion of gender pay equity in labour and wage-fixing mechanisms provide for effective enforcement, remedies and sanctions Also need to: Do away with provisions which affect womens income negatively Extend coverage of maternity protection

Reliable facts and knowledge for sound policy development Research and key indicators to measure progress: The gender pay gap The wage structure especially among men and women in the lower occupational categories and the (possible) effects of minimum wages among women and men in poverty Coverage of maternity protection schemes.
Explicit, integrated policies for gender equality at work and in social protection

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Recs 2 In-country research

Quantitative analysis of: the gender pay gap and pay gap determinants in selected industries and other key variables important in national contexts. The return on investment in education in relation to pay equity for women and men the costs of maternity protection and gender analysis of existing statistics on absenteeism, part-time and overtime work. Qualitative analysis of: the extent of gender imbalances in salaries and benefits of workers in informal employment through job evaluation case studies and interviews the extent of the belief in gender myths among both male and female employers/managers, and workers as well as relevant public and private sector agencies through Focus Group Discussions with these groups.
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Recs 3 Practical measures

Workplace measures

Tools for policy makers & workers

Codes of practice Job evaluation exercises

Institutional mechanisms

Wage indicator tool Campaigns such PSI pay equity campaign and the Asia Floor Wage campaign Labour inspectorate Need for gender and tripartite advocacy bodies
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ILO global gender initiatives

Domestic workers

Proposal for Standard setting item at the International Labour Conference in 2010 Technical cooperation projects General discussion at the ILC 2009 Preparatory trade union seminar in A/P?
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Gender at the heart of decent work

THANK YOU

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