Economically Active Work Force

B. Economically Active Work Force

The accuracy of reporting on labor force participation rates in censuses and the definition of economic activity are two of the major issues that concern women's right activists internationally (Box 3). In Nepal, the problem is complicated further by varying definitions of economic activity rates among various censuses. In spite of these shortcomings, a fairly high proportion of women are reported as being economically active in Nepal (Table 3.2). Moreover, the sex composition of the economically active population shows an increasing proportion of women in the labor force.

From the gender perspective, one notable aspect is that, while male economic activity rates fell significantly between 1981 and 1991 due to definitional changes 25 (Appendix Table A3.1), female rates remained almost constant. This could be due to a more accurate recording of economic activity rates. It is quite possible that, in earlier censuses, all males were recorded as economically active, irrespective of working months, age or work status, while women were mostly recorded as homemakers. In 1991, the definitions may have been more accurate.

Table 3.2: Women in the Labor Force

(15-64 Age Group) (percent)

Badri Niraula (1994).

28 Country Briefing Paper—Women in Nepal

Country 1980 1995

High Income Countries

Low Income Countries

South Asian Countries

Sri Lanka

Source: World Development Report, 1997

Box 3

Lack of Data on Women’s Economic Activities

The lack of systematic information on women’s economic participation has been much debated. The underlying reasons are well summarized in the Platform for Action adopted during the United Nations Fourth Conference on Women (Beijing, 1995), as follows: Women contribute to development not only through remunerated work but also through a great deal of unremunerated work. On the other hand, women participate in the production of goods and services for the market and household consumption, in agriculture, food production, or family enterprises. Though included in the United Nations system of National Accounts and, therefore, in international standards for labor statistics, this unremunerated work — particularly that related to agriculture — is often undervalued and under-recorded. On the other hand, women still also perform the great majority of unremunerated domestic work and community work, such as caring for children and older persons, preparing food for the family, protecting the environment, and providing voluntary assistance to vulnerable and disadvantaged individuals and groups. This work is often not measured in quantitative terms and is not valued in national accounts. Women’s contribution to development is seriously underestimated, and thus its social recognition is limited. The full visibility of the type, extent and distribution of this unremunerated work will also contribute to a better sharing of responsibilities.

Moreover, women's economic activity rates even by conventional definitions are estimated to be much higher than those reported in the census data. A scrutiny of regional data clearly indicates a persistent reporting bias in economic activity rates. While the overwhelming majority of mountain (73.6 percent) and hill (57.9 percent) women were reported as economically active, only about 27 percent of the Terai women

were so reported. However, The Status of Women report series 26 shows that women in the Terai were equally active in the economic sphere, albeit invisibly, but that their activities were not reported as being economic. In fact, they were active in the household production system, e.g., in food processing and

Acharya and Bennett, 1981.

Economic Participation of Women 29

cooking for farm labor; postharvesting cleaning and storing of farm products; kitchen gardening; and cooking food for village shops run by male members of the family 27 . In addition, women performed domestic chores as unpaid labor, which is not reflected in any economic statistics.

Another point of concern is the declining economic activity rate of women in urban areas, shown to have fallen from 31.5 percent in 1981 to 20.3 percent in 1991. This decline and its association with the modernization process have also been noted in other countries. As distinction between activities outside and inside the household become clearer during the process of modernization and urbanization, women

tend to be driven towards the household, being confined to reproductive and consumption activities 28 . Such a "domestication of women" may cause a decline in women’s decision-making power inside the household 29 .