Gender impacts of the crisis in Cambodia: new empirical evidence

1. Gender impacts of the crisis in Cambodia:new empirical evidence Lucilla Maria Bruni Andrew D. Mason Laura Pabón Alvarado Carolyn Turk World Bank – East Asia and Pacific

2. Outline • Approach • Gender dimensions of shocks to labor demand • Gender dimensions of adjustments in labor supply - How did workers adjust - How did other members of the household adjust • Welfare implications • Conclusions

3. Key messages • Common concern: women hit harder by crisis (garment) • Evidence: labor demand shocks directly affected a larger number of men than women (construction, tourism and garment) • However: indirect effect of shock on other members of the household such that both men and women (and children!) had to adjust in terms of labor supply and consumption, which in turn affects welfare

4. Data and Approach • Quantitative-qualitative approach • Integrated household survey data, nationally representative for 2004, 2007, 2008, and 2009 (CSES) • Only first semester  work in progress • Not all modules available (no data on consumption) • No data on unpaid domestic work • 3 rounds of rapid qualitative assessment – WB and local institute (CDRI) • Purposive sampling (groups assumed to be affected) • Focus groups and interviews • Close coordination and iteration between quantitative and qualitative work

5. How the crisis affected Cambodia GDP growth (%)

6. Two of these three sectors are male concentrated Gender composition of sectors most affected by crisis Construction and tourism workers are predominantly male. Garment is mostly female.

7. Shock on labor demand directly affected more men than women

8. Construction workers are more concentrated among the poor than garment and tourism workers Construction worker’s accommodation Garment factory workers accommodation

9. What happened in the labor markets as result of the crisis?

10. Unemployment

11. Net job creation has been larger for women Net job creation (in thousands) Higher number of jobs created for females. And higher number of jobs destroyed for men. Most job creation in agriculture.

12. Agriculture is employer of last resort for both Percent distribution of workers by category of employment (first job)

13. Fewer hours worked in primary job Average number of hours worked per week in primary occupation job

14. Fewer hours worked in primary job Qualitative evidence: Construction workers: halving of days worked per month in the last year. - Monthly income dropping by more than half between Sept 2008 and Nov 2009. - Accommodation is on-site, so without work, finding somewhere to stay becomes a real problem. The garment sector workers have seen their bonuses cut and they are living on about half their normal salaries. This has recently increased: in November 2009 they reported monthly incomes between $80-110 and being able to save $30-60 per month.

15. Wages decline sharply for both, but more for women Real average hourly wages

16. Wage gap increases Female to male ratio in hourly wages

17. How do workers adjust to the shock?

18. More than one job for both men and women… Percentage of workers with multiple jobs The share of workers with multiple jobs more than doubled over the last year, equally for both men and women. Women carry a larger burden of domestic work, hence have less time than men for multiple jobs.

19. Everyone works longer hours in the labor market… Average weekly hours worked in ALL jobs

20. Women enter the labor force Labor force participation rate by sex Between 2008 and 2009, the female labor force participation rate increases by 7% Qualitative evidence: taking up agricultural work, livestock raising, engaging in small-scale businesses (mostly in food and beverage)

21. Both move to informal sector, but women more Distribution of workers by category of employment (primary job) Men move from wage work to informal. Quality of jobs for men? Women move from unpaid family work. Qualitative evidence: unpaid domestic work now done by children or elderly people. Male Female

22. How do other household members adjust?

23. Spouses start working longer hours… Number of hours worked per week Garment Construction Tourism

24. …and take up employment. Share of employed spouses Garment (husbands) Construction (wives) Tourism (wives)

25. More children begin to work Share of children employed with parents working in affected sectors Garment Construction

26. Welfare: everyone cuts back, perhaps women more Focus groups: -Women reduce their own consumption to protect that of husbands and children, particularly in terms of food and health spending - Their husbands also decided to reduce their alcohol consumption since their income also remains low.

27. Consequences: poverty may increase Simulated percentage point change in poverty rate due to crisis, by main region and by sex of household head

28. What are the most important changes in the last 3 months? Garment workers Construction workers

29. Conclusions • Direct effects on men in construction and tourism, and on women in garment • Indirect effects on other household members substantial and involves men, women, boys and girls Considerations for ongoing monitoring • Women entering paid work could be empowering (contingent on: cultural issues, decent pay, working conditions, and domestic work) • Evolution of relative wages • Long run consequences of increased child labor