Why COVID-19 is a backwards step for gender equality - and what to do about it

The COVID-19 pandemic has killed more than 400,000 people worldwide and has generated a massive global economic crisis. The world economy is projected to contract sharply by 3% in 2020 (IMF 2020) and poverty is set to rise for the first time since 1998, bringing 40-60 million people into extreme poverty (World Bank 2020). However, unlike previous economic crises, this crisis will negatively affect women more than men, creating a significant blow for gender equality. Policymakers should step up their efforts to reestablish the path towards a more equal society for men and women.

A huge setback in the quest for gender equality

Gender inequality had diminished over the past 30 years. For instance, the gap between male and female labour force participation decreased by eight percentage points due to the large gains in female labour force participation, especially within advanced economies (Figure 1). Educational attainment gaps also narrowed around the world with 35 countries having achieved full parity, and 120 countries closing at least 95% of their educational gender gaps (WEF 2020). The maternal mortality ratio had dropped by about 38% worldwide.

This encouraging progress, however, is likely to suffer huge setbacks during the COVID-19 crisis. There are various reasons why the current crisis disproportionally impacts women. First, women are more likely than men to work in social sectors (such as hospitality, retail, restaurants, and tourism), which require face-to-face interactions (Figure 2). These are the sectors that are being hit the hardest by social distancing (Hupkau and Petrongolo 2020). For example, in the US, almost 74% of women work in social sectors, compared to 48% of men (in 2019). Further, data for the first four months of the year indicate that employment in these sectors shrank by 18%, compared to 10% in other sectors (Shibata 2020). In developing countries, women are also more likely to be employed in social sectors than men. Notwithstanding, an even bigger concern in many of these countries is that women often work in the informal sector more frequently than men, and therefore have less job security and social protection, as well as lower pay (ILO 2018). Second, women, who usually carry the highest-burden of housework (Alonso et al. 2019, Alon et al. 2020), are bearing most of the epidemic-related costs triggered by school closures and the health risks posed to elderly family members. Uncertainty about schools reopening and fears of contagion of the most vulnerable can lead to women exiting the labour force for a prolonged period of time, entailing long-term costs to their careers. Third, in developing countries, the burden on the healthcare system is reducing access to family planning and increasing the chances of maternal mortality (UNPA Women 2020). Finally, in many developing economies (where girls in normal times already feel the pressure to drop out of school), the COVID-19 crisis may induce even more female dropouts. Dropping out from school creates a permanent loss in human capital and narrows girls’ chances of improving their living standards.

The policy challenge: Gender equality, boosting growth, and reducing poverty and inequality

Policymakers around the world are focusing on responding to the crisis’ immediate effects, fighting the devastating impact of the pandemic on people’s lives and national healthcare systems (Deb et al. 2020, Queisser at al. 2020), as well as trying to maintain functioning economies. Nevertheless, policymakers must also plan for the future. How can we return to a path of sustainable economic growth and regain the lost ground in gender equality, while fighting poverty and inequality? These are daunting tasks – but gender-responsive fiscal policies can help. The appropriate set of policies will depend, among other things, on the country’s level of development. For example, ensuring access to caregiving support (when economic activities outside of the household resume) is crucial for women to be able to go back to work in the developed world. In developing countries, increasing efforts to keep girls in school is key for building and protecting future human capital.

As shown in our recent paper (Fabrizio et al. 2020), fiscal policies that address gender equality (such as investing in education and infrastructure, subsidising childcare, and offering parental leave) can create economic opportunities for women. These policies also generate economic growth and reduce poverty and inequality, while paying for themselves in the long run. For example:

Conclusion

The COVID-19 pandemic is affecting all countries, destroying jobs, increasing poverty, and putting at risk the hard-won gender equality gains of the last few decades. Policymakers around the world are rightly focusing on responding to the immediate crisis, fighting the devastating effects of the pandemic on healthcare systems whist trying to keep their economies alive. The next step is to find the tools to sustain economic growth, fight poverty, and regain the lost ground in gender equality―gender-responsive fiscal policies are a viable answer.

Disclaimer: the views expressed are those of the authors and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

References

Alon, T, M Doepke, J Olmstead-Rumsey and M Tertilt (2020), “The Impact of COVID-19 on Gender Equality”, Covid Economics: Vetted and Real-Time Papers 4, London: CEPR Press.

Alonso, C, M Brussevich, E Dabla-Norris, Y Kinoshita and K Kalpana (2019), “Reducing and Redistributing Unpaid Work: Stronger Policies to Support Gender Equality”, IMF Working Paper 19/225

Deb, P, D Furceri, J D Ostry and N Tawk (2020), “The effect of containment measures on the COVID-19 pandemic”, VoxEU.org, 05 June.

Fabrizio, S, A Fruttero, D Gurara, L Kolovich, V Malta, M M Tavares and N Tchelishvili (2020), “Women in the Labor Force: The Role of Fiscal Policies”, IMF Staff Discussion Note No. 20/03

Hupkau, C, and B Petrongolo (2020), “COVID-19 and gender gaps: Latest evidence and lessons from the UK”, VoxEU.org, 22 April.

International Labour Office (2019), Women and men in the informal economy: a statistical picture (third edition), Geneva: ILO.

International Monetary Fund (2020), World Economic Outlook: The Great Lockdown, Washington, DC.

Queisser, M, W Adema and C Clarke (2020), “COVID-19, employment and women in OECD countries”, VoxEU.org, 22 April.

Shibata, I (2020), “The Distributional Impact of Recessions: The Global Financial Crisis and The Pandemic Recession”, IMF Working Paper (forthcoming).

UNFP Women (2020), Impact of the COVID-19 Pandemic on Family Planning and Ending Gender-based Violence, Female Genital Mutilation and Child Marriage.

World Economic Forum (2020), Global Gender Gap Report 2020.