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| Stay-at-home mothers a drain on the economy? Actually, the problem might lie with men | Stay-at-home mothers a drain on the economy? Actually, the problem might lie with men |
| (35 minutes later) | |
| A report from the OECD last week on women’s participation brought out some pretty silly coverage that allowed the outrage level to get turned up to 11. But rather than seeking to destroy family life, the report only reflects what has been a longstanding issue for governments across the western world – how to prevent women from being lost to the workforce after having children. | A report from the OECD last week on women’s participation brought out some pretty silly coverage that allowed the outrage level to get turned up to 11. But rather than seeking to destroy family life, the report only reflects what has been a longstanding issue for governments across the western world – how to prevent women from being lost to the workforce after having children. |
| The OECD report came with a pretty dull headline of “Key issues for raising labour market participation in Australia”. But dull headlines don’t do much for readership and viewer numbers, so pretty quickly the report was spun into a suggestion that stay-at-home mothers were a drain on the economy. | The OECD report came with a pretty dull headline of “Key issues for raising labour market participation in Australia”. But dull headlines don’t do much for readership and viewer numbers, so pretty quickly the report was spun into a suggestion that stay-at-home mothers were a drain on the economy. |
| This hot take allowed people to get nicely outraged because either they or their partner chose to stay home raising their kids, and how dare anyone suggest that is wrong. | This hot take allowed people to get nicely outraged because either they or their partner chose to stay home raising their kids, and how dare anyone suggest that is wrong. |
| Problem is the report wasn’t suggesting that. | Problem is the report wasn’t suggesting that. |
| What the report addressed is that many women with children have significant barriers to work – such as the cost and lack of access to childcare, and long periods out of the workforce – which see such women in effect left behind in their careers despite a generally above-average education attainment. | What the report addressed is that many women with children have significant barriers to work – such as the cost and lack of access to childcare, and long periods out of the workforce – which see such women in effect left behind in their careers despite a generally above-average education attainment. |
| It also noted that Australia’s economy would be improved were we to raise women’s participation in the workforce. | It also noted that Australia’s economy would be improved were we to raise women’s participation in the workforce. |
| This is hardly revolutionary talk – indeed it’s been government policy for nearly half a century. And what’s more it has been a successful policy. | This is hardly revolutionary talk – indeed it’s been government policy for nearly half a century. And what’s more it has been a successful policy. |
| Fifty years ago little over a third of all women aged 25 to 64 were in the labour force, now nearly three-quarters are: | Fifty years ago little over a third of all women aged 25 to 64 were in the labour force, now nearly three-quarters are: |
| And the key issue with raising women’s participation has always been women from the ages of 25 to 35 – that is, the years they are most commonly mothers with young children. | And the key issue with raising women’s participation has always been women from the ages of 25 to 35 – that is, the years they are most commonly mothers with young children. |
| The reason it is such an issue is that it is tougher to return to work than to stay in work, and the big drop-off in women’s participation in their 20s and early 30s flows into lower numbers of women working in their 40s and 50s, and women also working in lower paid work. | The reason it is such an issue is that it is tougher to return to work than to stay in work, and the big drop-off in women’s participation in their 20s and early 30s flows into lower numbers of women working in their 40s and 50s, and women also working in lower paid work. |
| So it is not just about fewer people working for the economy, it is about the effect leaving the workforce has on women and their families over the course of a life – less income, less superannuation for retirement, less independence. | So it is not just about fewer people working for the economy, it is about the effect leaving the workforce has on women and their families over the course of a life – less income, less superannuation for retirement, less independence. |
| Things certainly have changed. | Things certainly have changed. |
| In the early 1980s 70% of women in their early 20s were in the workforce, but this fell to 55% in their late 20s. Now the level is relatively flat around 75% to 77% across women from 20 to 55: | In the early 1980s 70% of women in their early 20s were in the workforce, but this fell to 55% in their late 20s. Now the level is relatively flat around 75% to 77% across women from 20 to 55: |
| But the OECD report found that while the percentage of men employed in Australia was around the middle of the OECD countries, the percentage of women employed was in the bottom third and lower than nations such as Canada, the UK and New Zealand: | But the OECD report found that while the percentage of men employed in Australia was around the middle of the OECD countries, the percentage of women employed was in the bottom third and lower than nations such as Canada, the UK and New Zealand: |
| Rather curiously the report also noted that while the employment rate of women without children was high relative to the OECD, those with children was rather lower: | Rather curiously the report also noted that while the employment rate of women without children was high relative to the OECD, those with children was rather lower: |
| So any government seeking to raise the participation rate of women clearly needs to look at mothers rather than try to get more non-parent women working. And the report also found that while two-thirds of women with partners work, the 50% of single mothers who work is among the lowest in the OECD: | So any government seeking to raise the participation rate of women clearly needs to look at mothers rather than try to get more non-parent women working. And the report also found that while two-thirds of women with partners work, the 50% of single mothers who work is among the lowest in the OECD: |
| There’s no particular reason why Australia should have such a low level of single mothers in work, and the report merely sought to come up with ways to have Australia more in line with other nations. And suggesting that work “coupled with the provision of affordable childcare” for such women is hardly treating stay-at-home mothers with disrespect. | |
| The reality is a vast majority of mothers already do work. And the changes in women’s participation in the workforce can been seen by comparing the life experience of women now aged 30, 40, 50 and 60. | The reality is a vast majority of mothers already do work. And the changes in women’s participation in the workforce can been seen by comparing the life experience of women now aged 30, 40, 50 and 60. |
| A women born in 1956 was most likely to be working when she was in her 40s – and only 55% of her peers were working in their late 20s, compared with nearly 75% of such aged women born 20 years later in 1976: | A women born in 1956 was most likely to be working when she was in her 40s – and only 55% of her peers were working in their late 20s, compared with nearly 75% of such aged women born 20 years later in 1976: |
| But one issue the report has identified is that Australian women are much more likely to work part-time than mothers in other OECD nations: | But one issue the report has identified is that Australian women are much more likely to work part-time than mothers in other OECD nations: |
| This however is not just about mothers but is a long-term issue in the labour market. | This however is not just about mothers but is a long-term issue in the labour market. |
| While women born after 1956 have been much more likely to be in the workforce than their now 60-year-old colleagues, the likelihood of women working full-time has not improved by similar amounts. | While women born after 1956 have been much more likely to be in the workforce than their now 60-year-old colleagues, the likelihood of women working full-time has not improved by similar amounts. |
| A 40-year-old woman is now as likely to be working full-time as was a 40-year-old 20 years ago: | A 40-year-old woman is now as likely to be working full-time as was a 40-year-old 20 years ago: |
| It is part of the broader trend in Australia away from full-time work – and applies to men as well as women. | It is part of the broader trend in Australia away from full-time work – and applies to men as well as women. |
| And while the OECD report suggests greater provision of childcare is one way to enable women to gain more hours of work, the trend since the GFC away from full-time work suggests the issue might be deeper than just working while raising a child. | And while the OECD report suggests greater provision of childcare is one way to enable women to gain more hours of work, the trend since the GFC away from full-time work suggests the issue might be deeper than just working while raising a child. |
| The measurement of unpaid childcare and work at home has always been a issue for economists. As the economist Paul Samuelson use to joke, if a man married his maid, then all other things being equal, GDP would fall. | The measurement of unpaid childcare and work at home has always been a issue for economists. As the economist Paul Samuelson use to joke, if a man married his maid, then all other things being equal, GDP would fall. |
| But the key with talk of improving growth by increasing women’s participation is that that unpaid work is either now paid for –through things such as paid childcare or a paid cleaner – or that the unpaid work is still done. | But the key with talk of improving growth by increasing women’s participation is that that unpaid work is either now paid for –through things such as paid childcare or a paid cleaner – or that the unpaid work is still done. |
| And it is here we come to perhaps the biggest barrier to increasing women’s participation and hours of work – the culture of who does the unpaid work at home. | And it is here we come to perhaps the biggest barrier to increasing women’s participation and hours of work – the culture of who does the unpaid work at home. |
| The 2014 Household, Income and Labour Dynamics in Australia survey found that women do much more of the housework and childcare than men, regardless of whether they earn less, the same or more than their partner: | The 2014 Household, Income and Labour Dynamics in Australia survey found that women do much more of the housework and childcare than men, regardless of whether they earn less, the same or more than their partner: |
| Perhaps the uncomfortable truth is that one big barrier to mothers working more paid hours is fathers not doing enough unpaid work. | Perhaps the uncomfortable truth is that one big barrier to mothers working more paid hours is fathers not doing enough unpaid work. |