EAP Gender FEBRUARY 2018 How to Address Constraints Underlying Gender Disparities in Mongolia’s Labor Market A Policy Note from the East Asia and Pacific Umbrella Facility for Gender Equality Photo: World Bank In Mongolia, gender inequality per- sists with regard to access to economic A s emphasized in Toward Gender Equality in East Asia and the Pacific: A Com- panion Report to the World Development Report (World Bank 2012), gender inequality in access to economic opportunities, earnings, and productivity persists opportunities, earnings, and produc- across East Asia and the Pacific. These disparities include wage gaps and the con- tivity. Qualitative research shows that centration of women and woman-led enterprises in less-remunerative jobs and sec- tors. This is problematic for at least three reasons. First, utilizing the full potential of constraints underlying these gender women in the labor market would likely result in greater macroeconomic efficiency, disparities include traditional norms all other factors being equal. Second, jobs can serve as direct instruments for the development and empowerment of women. Third, expanding opportunities for and values in the workplace as well as women in the labor market has the potential to produce tremendous positive spill- inadequate quality and quantity of overs on women’s overall agency, control, and power. eldercare and childcare facilities. This Compared with the majority of countries in the region, gender disparities in Mon- calls for initiatives to influence gender golia are relatively muted (figure 1). Even though Mongolian women on average show better income-generating characteristics in general-and higher levels of edu- norms and attitudes among employers cation in particular-significant gender disparities in access to economic opportu- and the wider population, with a focus nities, earnings, and productivity have been documented. More specifically, with the exception of a short period around 2006, women are relatively less likely to on implementing awareness campaigns, make use of their educational attainment by actively participating in the labor mar- discussions, training, and an expansion ket. Between 1996 and 2015, the gender gap in labor-force-participation rates more in the quality and quantity of avail- than doubled, from 4.8 to 12.6 percentage points. In addition, employed women have had consistently lower average earnings than employed men. In 2015, men able eldercare and childcare services to earned an average of 12.5 percent more per month than women (figure 2). Marked ensure the continuous participation of differences also exist in the types of jobs typically pursued by men and women. more women in the labor market. Figure 1. Gender Inequality Index of the United Nations Development Programme, by economy, 2015 0.7 0.6 UNDP Gender Inequality Index 0.5 0.4 0.3 0.2 0.1 0 ea ia a oa s ar nd Fiji m sia lia ina and lia an re rea R ine esi PD od anm tna o stra ngo uin Jap Sam lay aila Ch Ko gap eal on lipp mb Lao Vie Ma G Au Th Mo My of Ind wZ Sin Ca Phi ew lic Ne aN ub Rep u Pap Source: United Nations Development Programme (2016). Note: The United Nations Development Programme Gender Inequality Index captures gender disparities in the areas of reproductive health, empowerment, and labor- market participation. A greater index value denotes greater gender inequality. A relatively large share of women-particularly in rural areas- are employed in precarious informal work and unpaid fam- Methodological Approach A qualitative tool that can contribute to filling the knowledge ily work; their participation in entrepreneurial endeavors is far gaps was developed for the report on which this note is based: less than that of men; and the prevalence of men and women Perceptions of Precariousness-A Qualitative Study of Con- in various sectors differs. straints Underlying Gender Disparities in Mongolia’s Labor The constraints underlying these notable gender disparities Market (Schmillen and Weimann-Sandig 2017). Making use of in access to economic opportunities, earnings, and produc- methods of qualitative social science research, mainly focus tivity have long remained largely unclear, offering little guid- group discussions, as well as expert and biographic interviews, ance for program design. Moreover, there is scant empirical the tool uncovers answers to questions such as: evidence from Mongolia or elsewhere regarding the types of • What gender disparities can be identified or confirmed support people generally expect from labor-market policies, through qualitative research? particularly intermediation services, and little evidence on the effectiveness of this support in addressing gender-specific • What are the reasons underlying the gender disparities? constraints. • Are current government policies, including active labor market policies, effective in addressing gender dispari- ties? If not, how can their effectiveness be improved? 2 Figure 2. Labor force participation rates by gender, 1996–2015 and real earnings by gender, 2001–15 a. Labor force participation rate by gender b. Real earnings by gender (in thousands of Mongolian tughriks) Male 1,000 75 Female 800 70 Male 600 Percent Female 65 400 55 200 50 0 1 3 2 4 5 6 7 8 9 0 1 5 2 3 4 200 201 6 8 0 2 4 6 8 0 2 4 200 200 201 200 201 200 201 201 200 200 200 200 201 200 201 201 200 199 200 199 200 200 201 Quantitative research tests standardized hypotheses using difficulties in accessing jobs and career opportunities. Many statistical parameters, with the aim of achieving a represen- women who do have jobs feel trapped in precarious working tative and random sample. Qualitative research has different conditions, according to participants in focus group discus- objectives and relies on very different assumptions. It specifi- sions. They perceive their workplaces to be dependent on cally seeks to reconstruct typical cases by identifying contrasts norms and values that are traditional, hierarchic, and at times and common issues in individual experiences and perceptions. even authoritarian. Open mistrust and even fear of managers and employers is widespread. Many workers complain of the For the focus group discussions conducted for the Per- absence of long-term job security, secure wage payments, ceptions of Precariousness report, a professional survey access to health insurance, and pension systems. research firm was hired to prepare, implement, and docu- ment 22 distinct focus group discussions. Thirteen discus- In the public sector, employment opportunities and sions were conducted in Ulaanbaatar (Mongolia’s capital), advancement are widely seen as being influenced by nepo- seven in aimag centers (provincial capitals), and two in soum tism and party patronage; in the private sector, precarious centers (county seats). Experienced qualitative researchers employment situations are thought to be particularly wide- also conducted expert and biographic interviews. spread. Wage arrears are common, as are a lack of labor con- tracts and obligations of unpaid overtime. These problems Findings are reported to be especially common in construction and in the informal sector generally. Many focus group partici- The qualitative approach confirms the range of gender dis- pants, especially those in the informal or semiformal sector, parities in Mongolia’s labor market that had been identified describe employment relationships in terms of their employ- by existing quantitative research, painting a picture of wide- ers’ hire-and-fire mentality. spread precariousness in employment. Women of all ages and levels of education spoke of pronounced gender-specific 3 Photo: World Bank 4 Men and women alike are affected by precarious employ- as training programs, wage subsidies, and support for entre- ment, but some issues are very gender-specific. Importantly, preneurship. However, most of the focus group participants there is a widespread perception that working hours are with relevant experience made clear their sense that services insufficiently flexible, making it difficult for many women, and policies are often ineffective tools for addressing gender especially mothers, to participate in the labor market. This disparities, partly because they lack a focus on gender-specific is also perceived as a sign of employers’ disregard for the constraints such as the need to provide child care for the ben- concerns of female workers. eficiaries of employment training; and because they are insuf- ficiently transparent, client-focused, and demand-driven. Focus group discussions revealed that perceived reasons underlying gender disparities in the labor market include (i) norms, such as the prevailing views on the roles of men and Implications for Policy and women with respect to marriage, household and family-care Practice duties, and suitable career choices and jobs; (ii) deficiencies in The findings of the Perceptions of Precariousness report on the political environment; and (iii) the near-total absence of which this note is based improve our understanding of the government support services and programs. Three contribut- constraints that underlie gender disparities in Mongolia’s ing causes are considered salient: labor market. The study shows how in Mongolia-and poten- • A prevailing societal expectation of women is that they tially more broadly in the region-intermediation services and devote the majority of their adult lives to supporting other policies can be improved to better address those con- their husbands and raising their children. straints. It also suggests that the qualitative tool developed • Some women manage to combine fulfilling societal expec- and launched in Mongolia might potentially be used in other tations with maintaining successful careers, but many oth- countries. ers perceive the quality and quantity of eldercare and A summary follows of direct policy recommendations for childcare facilities as inadequate to make this possible. addressing the constraints underlying gender disparities in • Differential legal treatment of men and women appears to Mongolia’s labor market: cement the acceptance of traditional gender roles despite • Reform Mongolia’s legal environment and the implemen- the emphasis placed on gender equality in today’s market- tation and enforcement of antidiscrimination policies. based Mongolia as well as the preceding socialist period. Enforce nondiscrimination in hiring and other aspects of Incomplete information is another major constraint. Uncer- the law on gender equality. To aid in enforcement, step tainty about the skills demanded in the labor market is wide- up monitoring of gender-specific indicators. spread; and students, graduates of higher education, and • Strengthen the client orientation of labor-market inter- other job seekers (especially those who are young and female) mediation services and labor-market monitoring and do not know how to find a job without personal connections. analysis. Foster active labor-market policies in general, The legal environment may be a factor underlying gender dis- and improve their responsiveness to gender-specific parities in the labor market-as well as a potential solution. Like constraints. Active measures to close gender gaps in eco- many other countries, Mongolia implements labor-interme- nomic opportunity should specifically include the cre- diation services and other active labor-market policies, such ation of an enabling environment for gender equality in 5 employment and the dismantling of gender silos in the labor market. References Schmillen, Achim, and Nina Weimann-Sandig. 2017. Perceptions of Pre- • Expand support for microentrepreneurship to realize the cariousness-A Qualitative Study of Constraints Underlying Gender full potential of women as microentrepreneurs, including Disparities in Mongolia’s Labor Market. World Bank: Washington, DC. through the provision of finance and training for women- United Nations Development Programme. 2016. Human Development owned and -operated microbusinesses. Report 2016—Human Development for Everyone. United Nations Development Programme: New York. • Expand the quality and quantity of eldercare and, in par- World Bank. 2012. Toward Gender Equality in East Asia and the Pacific: ticular, childcare services to enable more women to par- A Companion Report to the World Development Report. World ticipate continuously in the labor market. Widen access Bank: Washington, DC. http://documents.worldbank.org/curated/ to early-childhood education by targeting the most en/270511468246373406/pdf/734380PUB0Box30ward0gender0equal underserved rural areas. ity.pdf. • Influence gender norms and attitudes among employ- ers, human-resource managers, and the wider population through awareness campaigns, discussions, and training on modern strategies of human-resource development and gender-sensitive and age-related work planning. Although the policy recommendations for Mongolia cannot be directly translated into advice for other countries, they nevertheless offer an exemplary set of measures with poten- tial applicability well beyond Mongolia. Moreover, the quali- tative tool developed and launched for the investigation of constraints underlying gender disparities in Mongolia’s labor market can be deployed to inform gender-specific policy design in other countries of the region, thereby contribut- ing to a reduction in the regional variance in access to eco- nomic opportunities, productive employment, and earnings of women and men. 6 Photo: Ingo Wiederhofer | World Bank 7 Acknowledgments The report on which this note is based was prepared by the World Bank’s Social Protection and Jobs Global Practice. It was written by Achim Schmillen and Nina Weimann-Sandig with guidance from James Anderson and Jehan Arulpragasam and input from Wendy Cunningham and Tungalag Chuluun. The report was peer-reviewed by Helle Buchhave, Social Urban Rural and Resilience Global Practice and Matteo Morgandi, Social Protection and Jobs Global Practice. This note was published under the EAP Gender Capacity Project led by the EAP Social Development Team of the Bank, with the objective to promoting learning of clients, partners and task teams on strategic regional priorities. Funding was provided though the East Asia Pacific Umbrella Facility for Gender Equality (EAP UFGE), a multi-donor trust fund. For more information, please contact Ludy Anducta, GSURR, at landucta@worldbank.org. 8