Empowering Indian Women in Gig Economy: Unlocking Economic Growth and Gender Equality
“Empowering women in the gig economy is crucial for economic growth and gender equality. By addressing challenges such as gendered work, low wages, social security we can create an inclusive and supportive environment for women’s participation in the gig economy.”
Globalization has changed the way we look at labour participation. Earlier, it was characterized by localized workforce dynamics and limited international interactions. However, now there is a notable transition in the labour force, especially with the rise of gig economy. The Code of Social Security 2020 defines the term ‘gig worker’ as, “a person who participates in a work arrangement and earns from such activities outside of traditional employer-employee relationships”.
In India, there are around 15 million gig workers according to a report by ASSOCHAM.[1] Currently, women form 28% of the gig economy workforce.[2] A McKinsey report estimates that India’s economy could rise over by 25% of it’s current GDP, if the workforce participation rate of women increases by 10 percent by 2025.[3]
It is important to understand that gig economy represents a huge opportunity not only for economic growth but also getting more women back to work. However, there are a myriad of challenges that need to be taken into consideration to harness its potential.
· Gendered work- The occupational divide present in the traditional labour market is also evident within the platform based gig economy. Jobs like delivery and cab hailing still constitute only 1 percent of women.[4] This highlights the challenge that women are still largely seen as part of domestic or care-based sectors.
· Low wages- Low wages characterized by gender pay gap is discouraging participation of the women in work force. In gig economy, women are continued to be paid less than their male counterparts. There is an 8–10 per cent salary disparity between male and female delivery executives, ranging from Rs 15,000 - 30,000 per month.[5]
· Social Security- Issues such as access to social protection, safety, upward mobility and lack of effective bargaining power are some of the social security challenges faced by women. A study by Observer Research Foundation and World Economic Forum observed that 35 percent of the women were disinterested in joining the gig economy due to the lack of job security and uncertain employment status.[6]
· Digital divide-Due to reliance on technology, internet access and issues such as financial and socio-cultural restrictions, women continue to be outside the ambit of gig based economy. According to a report, only 16 percent of women in India are mobile internet users compared to 36 percent men.[7]
· Legal issues-Issues such as sexual harassment and maternity benefits remains unaddressed for female workers.For e.g., The POSH Act does not necessarily require an “aggrieved woman” to be an employee in case of a workplace, however, a platform worker providing services in a “dwelling place or house” would not be covered within the ambit of the POSH Act.[8] Since these platforms for gig economy have no specific policies for dispute redressal, it leaves women in a vulnerable spot.
To address these challenges, following steps could be taken to improve women’s participation in gig economy -
· Mentorship and Skill based training: To increase women participation in diverse roles and services, required skills can be imparted to them through various government run initiatives and collaboration with the appropriate platform.For e.g. ,PM Kaushal Vikas Yojana (PMKVY) can be adapted to provide skill development programs specifically tailored to women in the gig economy. These women-centric programs should focus on providing training, certification and support. It would promote gender inclusion in the gig economy by addressing their unique needs and challenges.
· Social Security: Introducing measures such as maternity benefits, creche facilities and subsidies to assist female gig workers in managing their caregiving responsibilities while pursuing their work. For e.g. Sweden has implemented gender-neutral policies for gig workers. These policies focus on issues such as pay equity, non-discrimination and creates an enabling environment for female gig workers.
It is important to recognize that the gig economy presents a significant opportunity for economic growth and women’s workforce participation. A NITI Aayog report estimates that in 2020–21, 7.7 million workers were engaged in the gig economy and it is expected to expand to 23.5 million workers by 2029–30. Increasing the participation of women in the labour force through the gig economy could have a significant impact on India’s GDP. The flexibility offered by gig work can serve as a pathway for their entry into the workforce provided that the concerns are addressed and a suitable working environment is facilitated .
References
[1] https://www.siliconindia.com/news/general/gig-economy-reshaping-the-future-workforce-in-india-nid-219133-cid-1.html
[2] https://www.indiatoday.in/education-today/jobs-and-careers/story/despite-rise-in-gig-economy-women-s-participation-still-less-than-30-1985236-2022-08-08
[3] https://www.mckinsey.com/featured-insights/employment-and-growth/the-power-of-parity-advancing-womens-equality-in-india
[4] https://www.equaltimes.org/india-s-gig-economy-is-failing
[5] https://www.outlookindia.com/national/harassment-discrimination-extra-burden-women-in-gig-economy-news-286360
[6] https://www.orfonline.org/research/gender-and-the-gig-economy-a-qualitative-study-of-gig-platforms-for-women-workers-65948/
[7] https://www.gsma.com/r/wp-content/uploads/2022/06/The-Mobile-Gender-Gap-Report-2022.pdf
[8] https://lawschoolpolicyreview.com/2023/03/03/female-workers-in-the-indian-platform-mediated-gig-economy-highlighting-a-need-for-a-comprehensive-policy-for-protection-from-sexual-harassment/