TRAINING MANUAL THE UN WOMEN GENDER AND ECONOMICS TRAINING MANUAL © UN Women 2017. All rights reserved. This training manual on Gender and Economics is the result of extensive collaboration and consultation across UN Women. The preparation of the training manual was led by the Economic Empowerment Team in UN Women. Special thanks to Anuradha Seth and Mamadou Bobo Diallo for providing the leadership and support for this initiative. Invaluable support was provided by UN Women’s Training Centre and by the regional economic advisors for Europe & Central Asia and Asia & the Pacific. The contributions of Clemencia Munoz- Tamayo, Nilüfer Çagatay and Francisco Cos-Montiel are duly acknowledged. Thanks are also extended to Gabrielle Leite for production coordination, revision support and her attention to detail. The training manual benefited from the valuable inputs and feedback received from UN Women regional and country office programme staff: Sabawoon Ahmadzai (Afghanistan), May Babiker (Egypt), Erisa Cela (Albania), Ruangkhao Chanchai (Thailand), Alia El-Yassir (Turkey), Ramon Garlayee Garway (Liberia), Marie Laetitia Kayisire (Guinea Bissau), Jennet Kem (Sudan), Jamaluddin Khan (Pakistan), Loise Maina (Kenya), Enock Mugabi (Kenya), Amna Muharemovic (Bosnia and Herzegovina), Hadil Naser (Palestine), Da Barca Vieira Rosa Ondina Xavier (Mozambique), Dominika Stojanovska (Macedonia), Misrak Tamiru (Ethiopia), and Zhypargul Turmamatova (Kyrgyzstan). This initiative was made possible by financial support received from the Swiss Agency for Development and Cooperation (SDC). Their contribution is greatly appreciated. ISBN: 978-1-63214-092-0 Authors: Özge İzdeş Terkoğlu, İpek İlkkaracan, Emel Memiş and Yelda Yücel. Copy Editor: Kelly O'Neill Design: Dammsavage Inc. THE UN WOMEN GENDER AND ECONOMICS TRAINING MANUAL ECONOMIC EMPOWERMENT SECTION UN WOMEN New York, October 2017 LIST OF MODULES MODULE 1: INTRODUCTION TO ECONOMICS 8 MODULE 2: INTRODUCTION TO GENDER-AWARE ECONOMICS AND METHODS OF ANALYSIS 27 MODULE 3: GENDER AND MACROECONOMICS 51 MODULE 4: UNPAID WORK 79 MODULE 5: EMPLOYMENT, DECENT WORK AND SOCIAL PROTECTION 105 MODULE 6: GENDER, INCOME INEQUALITY AND POVERTY 129 MODULE 7: GENDER, PUBLIC FINANCE AND INVESTING FOR GENDER EQUALITY 159 MODULE 8: GENDER, TRADE, AND VALUE CHAINS 182 MODULE 9: ECONOMIC POLICYMAKING AND THE SDGS: HOW TO REACH THE GOALS 205 ACRONYMS ALMP active labour market policy GRB gender-responsive budgeting BoP balance of payments GVC global value chain CB central bank GWG gender wage gap CEDAW Convention on the HDI Human Development Index Elimination of All Forms of Discrimination against HDR Human Development Women Report CPI Consumer Price Index HLFS Household Labour Force Survey CSO civil society organization HOS Hecksher-Ohlin-Samuelson CSW Commission on the Status model of Women HPI Human Poverty Index D demand ICLS International Conference of E employment Labour Statisticians IDI Inclusive Development Eq equilibrium Index ECI elderly care insurance IHDI Inequality-adjusted Human Development Index EGS employment guarantee ILO International Labour scheme Organization EOI export-oriented IMF International Monetary industrialization Fund EU European Union INSTRAW International Research and Training Institute for the EWCS European Working Advancement of Women Conditions Survey ISI import substitution FDI foreign direct investment industrialization FX foreign exchange JGSI Jobs Gender Segregation Index GAD gender and development LF labour force GDI Gender Development Index LFP labour force participation GDP gross domestic product LIAE low income agricultural GEM Gender Empowerment economies Measure LIMTCP Levy Institute Measure of GII Gender Inequality Index Time and Consumption Poverty GNI gross national income LIMTIP Levy Economics Institute SME small and medium-sized Measure of Time and enterprise Income Poverty SNA System of National MDG Millennium Development Accounts Goal SPF social protection floors MEC mineral exporter country SSA sub-Saharan Africa MFA Multi-Fibre Arrangement TUS time use survey MoI means of implementation U unemployment MPI Global Multidimensional UN Poverty Index United Nations NGO non-governmental UNDP United Nations organization Development Programme NICS National Integrated Care VAT value added tax System of Uruguay NMEC non-mineral exporter W wage country WB World Bank OECD Organization for Economic Co-operation and WBGB well-being gender Development budgeting OGSI Occupational Gender WC Washington Consensus Segregation Index WEF World Economic Forum P price WID women in development PI portfolio investments WTO World Trade Organization PPP purchasing power parity PWW Progress of the World’s Women Q quantity QoL quality of life S supply SAP structural adjustment programmes SDG Sustainable Development Goals SIE semi-industrialized economies INTRODUCTION This manual on gender and economics is intended to The training course is divided into nine modules: provide basic and intermediate level training to de- velopment practitioners including governments and • Module 1: Introduction to Economics policy and programme staff in international develop- ment agencies. The overall objective of the course is to • Module 2: Introduction to Gender-aware Economics strengthen the capacity of technical advisors and pro- and Methods of Analysis gramme staff on the importance of gender-responsive economic policy. More specifically, the manual: • Module 3: Gender and Macroeconomics (1) introduces participants to economics in general • Module 4: Unpaid Work and presents feminist approaches to macroeconom- ics, microeconomics and international economics; • Module 5: Employment, Decent Work and Social Protection (2) exposes participants to critical analyses of global and regional economic trends, including those related • Module 6: Gender, Income Inequality and Poverty to economic crises; • Module 7: Gender, Public Finance and Investing for (3) enhances the skills of participants in formulating Gender Equality gender-responsive economic policy for programme implementation, policymaking, and advocacy; and • Module 8: Gender, Trade and Value Chains (4) strengthens the capacity of participants to net- • Module 9: Economic Policymaking and the SDGs: work with other development practitioners, scholars How to Reach the Goals and policymakers. INTRODUCTION TO ECONOMICS1 MODULE 1 TABLE OF CONTENTS CONTENTS 9 FIGURES, BOXES AND TABLE 10 LEARNING OBJECTIVES 11 1.1 WHY A DEVELOPMENT PRACTITIONER NEEDS TO KNOW ABOUT ECONOMICS 11 1.2 INTRODUCTION TO ECONOMICS IN MAIN- STREAM NEOCLASSICAL TEXTBOOKS 13 1.2.1 Thinking Like an “Economist” 13 1.2.2 What is Economics? 15 1.2.3 How People Make Choices: Assumptions About Human Behaviour 15 1.2.4 How Markets Work: the Invisible Hand 16 1.3 HETERODOX CRITIQUES OF NEOCLASSICAL ECONOMICS 21 1.3.1 A Brief Introduction to Feminist Critiques of Neoclassical Concepts 23 APPENDIX 24 REFERENCES AND RESOURCES 26 FIGURES, BOXES and TABLE FIGURES Figure 1.1 Circular Flow of the Economy 14 Figure 1.2 Movement Along the Demand Curve vs Shift of the Demand Curve 17 Figure 1.3 Movement Along the Supply Curve vs Shift of the Supply Curve 18 Figure 1.4 Movement Along the Labour Demand Curve vs Shift of the Labour Demand Curve 19 Figure 1.5 Movement Along the Labour Supply Curve vs Shift of the Labour Supply Curve 20 Figure 1.6 Labour Market Equilibrium 21 BOXES Box 1.1 Positive vs Normative Economics 15 Box 1.2 Axiomatic Assumptions About Human Behaviour 16 Box 1.3 Market Equilibrium 18 Box 1.4 Difference Between Orthodox and Heterodox Economics 21 Box 1.5 Gender Analysis of Neoclassical Economics: Fundamental Concepts/Assumptions 23 TABLE Table 1.1 Fundamental Properties of Different Schools of Economics 25 LEARNING OBJECTIVES Module 1: Introduction to Economics consists of two major sections. The first half of the module discusses the basic concepts, assumptions, methods and objectives of the discipline of eco- nomics by introducing the mainstream approach used in economics education and practice: the neoclassical framework. The second half of the module introduces a heterodox framework consisting of a series of alternative schools of economic thought distinct from, and critical of, mainstream economics. Module 1 also introduces the feminist critique of neoclassical econom- ics – a critique discussed in depth in Module 2: Introduction to Gender-aware Economics and Methods of Analysis. By the end of Module 1, participants are expected to have a basic understanding of the follow- ing key facets of mainstream economics: • the relevance of economic insights to the work of development practitioners; • basic economic concepts, assumptions, methods and objectives of the economics discipline, as presented in mainstream neoclassical economics; • the mainstream neoclassical account of how markets work through supply, demand, price mechanisms and equilibrium in markets; and • critiques of the neoclassical framework from alternative economic perspectives. 1.1 Why a Development Practitioner The overarching objective is to facilitate development Needs to Know About Economics practice that better reflects the needs and priorities of all people - leaving no one behind - including women Knowledge of economics contributes greatly to and girls. understanding and addressing development issues. The concepts and tools of economics are essential in The main debate over economic policy concerns the assessing the possible outcomes of competing policy best way to organize the relations of production, con- options.