Gender-Responsive Enabling Policies for Employment in Indonesia

8/2/2019 Gender-Responsive Enabling Policies for Employment in Indonesia

1/21

Gender-Responsive Enabling

Policies for Employment in

Indonesia

Asep Suryahadi & Widjajanti Isdijoso

SMERU Research Institute www.smeru.or.id

Workshop on Education, Employment, andEntrepreneurship ADB & OECD

Manila 27-28 February 2012

The views expressed in this paper are the views of the author and do not necessarily reflect the views or policies of the Asian

Development Bank (ADB), or its Board of Governors, or the governments they represent. ADB does not guarantee the accuracy ofthe data included in this paper and accepts no responsibility for any consequence of their use. The countries listed in this paper donot imply any view on ADB's part as to sovereignty or independent status or necessarily conform to ADB's terminology.


2/21

Policy Area Formal Institution: Biased laws/regulations

Informal Institution: Social norms on care and

market works Market: Differential access to labor market

Household: Differential allocation of time and

resources

2


3/21

Formal Institution: Biased laws/regulations

Labor Law No. 13/2003 (1)

Key features against gender equality:

No stipulation on rights to equal payment for equalqualification

No prohibition on violence and harassment againstwomen at work place

No explicit punishment for violation of womens rights No legal recognition of domestic workers

No safeguarding from unintended adverse impact of labormarket institutions on women (e.g. the disemployment

impact of an increase in minimum wage is higher for

women than men)

3


4/21



Minimum Wage Elasticity of Employment

Type of Workers Elasticity t-value

All workers -0.112** -3.031

Male -0.065 -1.874

Female -0.307** -4.642Adult -0.066 -1.801

Youth -0.307** -3.349

Educated -0.017 -0.480

Low educated -0.196** -3.787

White collar 1.000* -2.086

Blue collar -0.140 -0.699

Full-time -0.086* -2.248

Part-time -0.364* -2.560Note: ** significant at 1%

* significant at 5%

Source: Suryahadi et al. (2003)


5/21



Recommendations:

Explicit prohibition of both horizontal and vertical sexsegregation and discrimination of work

Stipulation on threshold limit values, physical work loads,and risks within female-dominated occupations Requirement for provision of information and education

about womens occupational health and safety risks

Establishing law on domestic workers

5


6/21


Labor Union Law No. 21/2000


No affirmative action for women low representation ofwomen in labor unions

Recommendations: Supporting and facilitating womens equal access to

unionization

Union-sponsored activities should take into accountwomens special needs, such as family-friendly schedules

Within unions, womens committees should be formed tostimulate discussion on womens specific needs

6


7/21


Migrant Worker Law No. 39/2004


Fail to protect women working in domestic works Recommendations:

Strengthening cooperation with receiving countries inproviding protection for women working in domestic works

Ratifying UN convention on the protection of the rights ofmigrant workers (in progress)

7


8/21


Income Tax Law No. 36/2008 (1)


Non-taxable income to husband only Based on assumption that women are secondary earners

Serious implication for female headed households (many ofthem are not officially divorced from their husbands)

Recommendations:

Developing a system that provide more flexibility for

husband and wife to have own tax account and decidewho should have discounted tax rate (taking into account

the dependents)

8


9/21



9


10/21



10


11/21


market works (1)


Women are viewed as responsible for care work, whileearning family income is the responsibility of men

Care work has low market recognition and valuation Recommendations:

Public education on revaluation of care work to widen theunderstanding of the economy to include the reproductive

sector and to recognize care as a crucial social investment Developing subsidy programs for early childhood and

elderly care, in particular for poor families

11


12/21


market works (2)

12


13/21

Market: Differential access to labor market (1)


Womens participation in the labor force (51%) is far belowmens (84%)

Underemployment is much more common among women(37%) than among men (22%)

A large majority of overseas migrant workers are women(74% ), most of them work as domestic helpers (90%)

Ratio of unemployment rate between women and men isimproving but still higher than one

13


14/21

Ratio of Female to Male Unemployment Rate

0.00

1.00

2.00

3.00

15-24 25-49 50+ All Ages

2001

2002

2003

2004

2005

2006

20072008

2009



15/21


Recommendations:

Strengthening family-friendly policies such as providingsupport for child care, maternity and paternity leave,

support for women during maternity and on return to work,facilities for nursing infants, flexible working hours, flexibleleave arrangements and career-break schemes, tele-working, and home-working.

Preventing irregular and unpredictable work schedules,over which the employee has little control

Imposing quotas on the number of women on companyboards

Promoting gender equality in education

15


16/21


Number of Women in the Board of Directors of10 Largest Companies (%)

PT Telkom 0 out of 8

Bank BCA 1 out of 7

Bank Mandiri 1 out of 10

Bank BRI 1 out of 10

Bank BNI 1 out of 9

PT Bumi Resources 0 out of 5

Bank Danamon 3 out of 8

PT Gas Indonesia 0 out of 6

PT Semen Gresik 0 out of 6

PT Bukit Asam 0 out of 6


17/21

-35

-30

-25

-20

-15

-10

-5

0

5

10

15

Percentile 25 Percentile 50 Percentile 75 Percentile 90

Difference in Net Profit between Male & FemaleEntrepreneurs by Expenditure Level (%), 2008

Control variables: Experience, age, education, marital status

Source: Toth (2010)



18/21

Source: Matsumoto (2011) 18



19/21

Gender wage gaphas declined by

15% between1996 and 2009

Source: Matsumoto (2011)

Age19%

Education51%

IndustrialComposition

7%

Urbanization3%

Residualfactors20%

Factors Contributing to Declining Gender Wage Gap 1996-2009

19



20/21

Household: Differential allocation of time and

resources


Double burdens for women who do market work as they

are still responsible for all or most household works

Working as unpaid family workers is more pervasiveamong women (32.4% ) than among men (8.1%)

Recommendations:

Providing child- and out-of-school hours care support

Development of an integrated set of work-family balancesupports for families with children

Investing in physical and social infrastructure to helpwomen access labor markets

20


21/21

Thank You

[email protected] [email protected]

It is through gainful

employment thatwoman traversed most

of the distance thatseparated her from themale; and nothing elsecan guarantee herliberty in practice.(Simone de Beauvoir,1949)

Gender-Responsive Enabling Policies for Employment in Indonesia

Documents

Transcript of Gender-Responsive Enabling Policies for Employment in Indonesia