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Gender Dimensions of Inequality in the Countries of Central Asia, South Caucasus, and Western CIS*

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Gender Dimensions of Inequality in the Countries of Central Asia, South Caucasus, and Western CIS* Working Paper No. 858 Gender Dimensions of Inequality in the Countries of Central Asia, South Caucasus, and Western CIS* by Tamar Khitarishvili Levy Economics Institute of Bard College January 2016 * Background paper prepared for the United Nations Development Program’s 2016 Regional Human Development Report for Europe and Central Asia. The Levy Economics Institute Working Paper Collection presents research in progress by Levy Institute scholars and conference participants. The purpose of the series is to disseminate ideas to and elicit comments from academics and professionals. Levy Economics Institute of Bard College, founded in 1986, is a nonprofit, nonpartisan, independently funded research organization devoted to public service. Through scholarship and economic research it generates viable, effective public policy responses to important economic problems that profoundly affect the quality of life in the United States and abroad. Levy Economics Institute P.O. Box 5000 Annandale-on-Hudson, NY 12504-5000 http://www.levyinstitute.org Copyright © Levy Economics Institute 2016 All rights reserved ISSN 1547-366X ABSTRACT The collapse of the Soviet Union initiated an unprecedented social and economic transformation of the successor countries and altered the gender balance in a region that counted gender equality as one of the key legacies of its socialist past. The transition experience of the region has amply demonstrated that the changes in the gender balance triggered by economic shifts are far from obvious, and that economic expansion and women’s economic empowerment do not always go hand in hand. Therefore, active measures to enhance women’s economic empowerment should be of central concern to the policy dialogue aimed at poverty and inequality reduction and inclusive growth. In this paper, we establish the current state of various dimensions of gender inequalities and their past dynamics in the countries of Central Asia (Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan), South Caucasus (Armenia, Azerbaijan, and Georgia), and Western CIS (Belarus, Moldova, and Ukraine), and propose steps aimed at reducing those inequalities in the context of inclusive growth, decent job creation, and economic empowerment. Keywords: Gender Economics, Inequality, Transition Countries, Human Development, Western CIS, Central Asia, South Caucasus JEL Classifications: J16, P2 1 INTRODUCTION The collapse of the Soviet Union has initiated an unprecedented social and economic transformation of the successor countries and has altered the gender balance in a region that counted gender equality as one of the key legacies of its socialist past. The transition experience of the region has amply demonstrated that the changes in the gender balance triggered by economic shifts are far from obvious and that economic expansion and women’s economic empowerment do not always go hand in hand (Sattar 2012; Elborgh-Woytek et al. 2013; Woetzel et al. 2015). Therefore, active measures to enhance women’s economic empowerment should be of central concern to the policy dialogue aimed at inclusive growth and poverty and inequality reduction (Çagatay 1998). In this paper, we establish the current state of various dimensions of gender inequalities and their past dynamics in the countries of Central Asia (Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan), South Caucasus (Armenia, Azerbaijan, and Georgia), and Western CIS (Belarus, Moldova, and Ukraine) and propose steps aimed at reducing them in the context of inclusive growth, decent job creation, and economic empowerment. The 11 countries of Central Asia, South Caucasus, and Western CIS represent a heterogeneous group that includes energy-exporting countries (Azerbaijan, Kazakhstan, and Turkmenistan), agriculture-dependent economies (Armenia, Georgia, Moldova, Ukraine, Kyrgyzstan, Tajikistan, and Uzbekistan), and relatively diversified economies with a stronger industrial sector (Belarus). Gender inequalities tend to be smaller in the countries of Western CIS compared to the countries of Central Asia and South Caucasus. However, not all countries fit this pattern perfectly. On some measures, Moldova resembles the countries of the South Caucasus, Kazakhstan stands out among Central Asian countries, and Azerbaijan looks more like a Central Asian country than a South Caucasian one. Despite these differences, gender inequities are pervasive in many aspects of economic, social, and political participation in the whole region. 2 LABOR FORCE PARTICIPATION, EMPLOYMENT, AND UNEMPLOYMENT One of the most important domains in which gender inequalities manifest themselves is labor markets. Despite the economic expansion during the last two decades, robust employment growth for either men or women has been elusive. Indeed, the transition process has been associated with stable or declining labor force participation rates for men and women due to the high migration flows and the discouraged worker effects.1 In the process, the gender gaps in participation rates either remained stable or widened in most of the countries. Azerbaijan and Kazakhstan are exceptions as female labor force participation rates in these countries have caught up with the male rates and are the highest among all the countries in the region (figure 1). In fact, in Azerbaijan, the female youth participation rate surpassed its male counterpart in 2008. If the expanding energy industry is in part responsible for this change, it does not appear to be the case in Turkmenistan, another energy-rich country, in which the female labor force participation rate is the second lowest and the gender gap in labor force participation rates is the highest. Figure 1. Labor Force Participation Rates LFPR, female and male, 15+ and 15-24 ARM AZE GEO 80 60 40 20 BLR MDA UKR 80 60 40 20 KAZ KGZ TJK 80 60 40 20 TKM UZB ECS 80 60 40 20 1990 2000 2010 2020 1990 2000 2010 2020 1990 2000 2010 2020 15+ female 15+ male 15 - 24 female 15 - 24 male source: Gender Statistics 1 The particularly sharp decline in Moldova was due to the categorization of emigrants as inactive population. 3 Moldova is the most gender equal based on the labor force participation rates (figure 2); however this appears to be a reflection of the weak state of labor markets rather than an indication of a level playing field for both men and women, given that the labor force participation rates for both men and women are the lowest in the region. Figure 2. Labor Force Participation Rates, 2000–2013 Labor Force Participation Rates, by Gender 80 76.7 76.2 75.5 75.3 74.0 73.5 70.8 69.1 66.9 65.4 65.9 62.7 60 60.5 58.1 55.9 54.9 52.7 52.3 50.5 49.9 49.6 46.9 47.6 43.3 40 20 0 ARM AZE GEO BLR MDA UKR KAZ KGZ TJK TKM UZB ECS male female source: Gender Statistics; average for 2000 - 2013 The stable and declining labor force participation rate patterns can be linked to migration and the discouraged worker effect. However, weak employment growth has also played a role (figures 3 and 4). This is the case in Moldova, which experienced considerable declines in the employment rate of both men and women. Similarly, the increase in the female labor force participation rates in Azerbaijan and Kazakhstan appears to stem from the notable increases in the employment rates for working-age women so much so that the female employment rates in these countries are the highest in the region and are well above the average for Europe and Central Asia. The countries of the region have had varied success at tackling unemployment, especially Armenia and Georgia, in which the official unemployment rates remain well above 15 percent (figures 5 and 6). In Belarus, Moldova, and Ukraine, the unemployment rates tend to be lower than in Central Asia and South Caucasus and in these countries female unemployment rates are 4 below their male counterparts. In contrast, in Central Asia and South Caucasus proportionately more women tend to be unemployed compared to men. Figure 3. Trends in Employment Rates Employment to Population Ratio, female and male, 15+ and 15-24 ARM AZE GEO 80 60 40 20 0 BLR MDA UKR 80 60 40 20 0 KAZ KGZ TJK 80 60 40 20 0 TKM UZB ECS 80 60 40 20 0 1990 2000 2010 2020 1990 2000 2010 2020 1990 2000 2010 2020 15+ female 15+ male 15 - 24 female 15 - 24 male source: Gender Statistics Figure 4. Employment Rates, 2000–2013 Employment Rates, by Gender 80 71.7 70.7 66.0 67.2 64.6 65.5 63.0 60 61.1 59.4 60.2 57.9 56.0 55.8 52.2 49.6 48.6 48.1 48.6 45.9 45.1 42.3 40 41.0 41.7 37.6 20 0 ARM AZE GEO BLR MDA UKR KAZ KGZ TJK TKM UZB ECS male female source: Gender Statistics; average for 2000 - 2013 5 Figure 5. Trends in Unemployment Rates Unemployment Rate, female and male, 15+ ARM AZE GEO BLR 40 30 20 10 0 MDA UKR KAZ KGZ 40 30 20 10 0 TJK TKM UZB ECS 40 30 20 10 0 1990 2000 2010 2020 1990 2000 2010 2020 1990 2000 2010 2020 1990 2000 2010 2020 year_n 15+ female 15+ male source: Gender Statistics Figure 6. Unemployment Rates, 2000–2013 Unemployment Rates, by Gender 30 28.5 20.9 20 14.9 13.1 12.6 11.1 11.2 10 10.8 10.8 9.8 10.2 9.1 8.8 8.8 9.0 7.7 7.7 7.9 7.9 7.1 6.5 5.9 5.2 4.6 0 ARM AZE GEO BLR MDA UKR KAZ KGZ TJK TKM UZB ECS male female source: Gender Statistics; average for 2000 - 2013 Shifts in these labor market indicators can in part be attributed to the changing output composition of their economies.
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