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Government policies can have a modest effect on
raising fertility—but broader social changes lowering fertility are
stronger
Since 1989 fertility and family formation have
declined sharply in Central and Eastern Europe and the former Soviet Union.
Fertility rates are converging on—and sometimes falling below—rates in
Western Europe, most of which are below replacement levels. Concerned about
a shrinking and aging population and strains on pension systems, governments
are using incentives to encourage people to have more children. These
policies seem only modestly effective in countering the impacts of
widespread social changes, including new work opportunities for women and
stronger incentives to invest in education.
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The #MeToo movement brought heightened attention to sexual harassment and a search for new approaches to combat it
Workplace sexual harassment is internationally condemned as sex discrimination and a violation of human rights, and more than 140 countries have enacted legislation prohibiting it. Sexual harassment increases absenteeism and turnover and lowers productivity and job satisfaction. Yet, it remains pervasive and underreported, as the #MeToo movement starkly revealed in October 2017. Standard workplace policies such as training and a complaints process have proven inadequate. Initiatives such as bans on confidential settlements and measures that support market incentives for deterrence may offer the most promise.
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A range of other policies and changes are needed
for childcare expansion to increase mothers’ labor supply
In 2002, the EU set targets for expanding
childcare coverage, but most of the post-socialist countries are behind
schedule. While childcare expansion places a heavy financial burden on
governments, low participation in the labor force by mothers, especially
those with children under the age of three, implies a high potential impact.
However, the effectiveness of childcare expansion may be limited by some
common characteristics of these countries: family policies that do not
support women’s labor market re-entry, few flexible work opportunities, and
cultural norms about family and gender roles shaped by the institutional and
economic legacy of socialism.
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The legacy of apartheid and demand for skills
have resulted in high, persistent inequality and high unemployment
The South African economy was on a positive
growth trajectory from 2003 to 2008 but, like other economies around the
world, it was not spared from the effects of the 2008 global financial
crisis. The economy has not recovered and employment in South Africa has not
yet returned to its pre-crisis levels. Overall inequality has not declined,
and median wages seem to have stagnated in the post-apartheid period. Labor
force participation has been stable and although progress has been made,
gender imbalances persist.
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Harnessing the benefits of diversity is essential for
encouraging entrepreneurship in the transition region
Entrepreneurship is an important lever for spurring transition
in the economies of the former Soviet Union and Central and Eastern Europe. Utilizing
diversity, in terms of religion or gender, can positively affect entrepreneurial development.
Programs that encourage entrepreneurial initiatives (such as business start-ups) in culturally
diverse localities should rank high on the policy agenda. Prompting women to start a business,
along with female-friendly measures (including targeted legislation), can positively affect
entrepreneurial behaviour and the performance of existing enterprises.
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If ignored, the motherhood wage penalty may
threaten the effectiveness of policies targeting fertility
The motherhood wage penalty denotes the
difference in wages between mothers and women without children that is not
explained by differences in human capital characteristics and labor market
experience. As part of the gender pay gap, the motherhood wage penalty can
represent a significant cost to being female and having children. If
ignored, it may undermine policy initiatives aiming to increase fertility
rates in post-socialist countries, such as the costly “baby bonus,” which is
a government payment to new parents to assist with the costs of
childrearing.
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An unequal distribution of resources within the
family is a special concern for female poverty
Transition to a market economy is accompanied by
a period of greater economic uncertainty. Women are likely to suffer
substantial disadvantages from this uncertainty compared to men as they are,
for example, more likely to lose their job. This not only implies a monetary
loss for the entire family, but also degrades female bargaining power within
the household, possibly further aggravating their well-being. When
intrahousehold inequality—an unequal distribution of resources among family
members—exists, female poverty might be significantly larger than what can
be deduced using standard household-based poverty measures.
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Government policies can stimulate female labor
force participation if coherent and well thought-out
Increasing women's labor force participation is
important to sustainable economic development, especially in economies with
highly educated women and an aging population. Women's participation varies
across transition countries, driven by such economic and social factors as
traditional views of gender roles and limited government support for
caregivers. Still, in all countries there is clear scope for policies aimed
at increasing women's participation. In particular, in countries where
women's educational attainment is already high, policies to support a better
work–life balance and female entrepreneurship look particularly
promising.
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