Learn More About The Care Economy

Why should we invest in the care economy?

This article discusses the importance of the care economy and proposes care economy be a paid sector and become accessible and available to everyone. Reform in payment norms would also benefit women that can’t have other jobs and addressing the gender gap and idea that care workers are usually minorities, women and from low income and underserved areas as well as being able to expand care services to more people. World Economic Forum

“We need venture capitalists to see this space as an investable market opportunity. This world hasn’t been seen as an opportunity for innovation and to make money”-Bry, B. (2021).How entrepreneurs and investors are reshaping the ‘care’ economy.  The San Diego Union-Tribune

This article looks into a description of the ways in which the private sector must contribute to the care economy in order to improve it. As well as references to organizations one can contribute to. Wellthy.com is a digital platform to help families handle the logistical and administrative tasks of caregiving. This article also explores how many inventions and entrepreneurs have not paid attention to the care economy since this is a great investment opportunity that will create revenue.

“Will the American public accept a steady increase in the number of frail elders and other impaired persons whose care needs are not met?”- Polivka, L. J. (2018). Women and the crisis of care in the United States. Generations, 41(4), 29-35.

This articles explains how it is mainly women in households who provide long-term care to their families. Today it is mainly women who provide care in a formal and informal settings, paid and unpaid. Before the 90s many low-income families struggled to have access to formal care since often paying out of pocket wasn’t realistic. However, Medicaid has increased the availability of access to formal care by low-income families. But due to recent proposals to abolish public healthcare, there will be the issue of low-income families not having access to care, similar to prior to Medicaid. This will result in an even greater gap in the care economy and an increase in the gender wage gap.

“Public investment in social infrastructure makes economic sense, as it not only generates employment, but also contributes to gender equality and human development” - De Henau, J., Himmelweit, S., Lapniewska, Z., & Perrons, D. (2016). Investing in the Care Economy. A gender analysis of employment stimulus in seven OECD countries.

For this article, the author examines examples from other countries that have implemented investing opportunities in the public rather than in the private sector. They realized that investing in the public sector has stimulated economic growth and has also proven that providing for the public can be more effective in getting out of a recession. One of the examples that the authors used was the Republic of Korea.  Since 1997, the Republic of Korea has seen how important it is to invest in child care seeing the perception early childhood education is the best investment because kids get to learn at a young age. The Republic of Korea has also found that this type of investment helps families when they’re in financial need and increases women’s social and economic participation. As a matter of fact, a bigger society of child and elderly care w“Will the American public accept a steady increase in the number of frail elders and other impaired persons whose care needs are not met?”- Polivka, L. J. (2018). Women and the crisis of care in the United States. Generations, 41(4), 29-35.

Why is unpaid care work gendered?

“The assumption that workers have a spare room that can be readily converted into a home office, where they can work peacefully and productively, is far-fetched for most home workers”-Jenkins, F., & Smith, J. (2021). Work-from-home during COVID-19: Accounting for the care economy to build back better. The Economic and Labour Relations Review, 32(1), 22-38.

These authors focuses on policies that Presidents and the UN proposes that will help the economy and eventually the people. Although, the authors analyzed that these policies should be revised and develop better policies that can help care workers. The authors went over the “Building Back Better Act” stating that there should be added more things into this act. For example, the authors examined that this act should measure contributions to care, flexibility, and resilience these afford. Also, this act needs to focus on child care services, paid and unpaid, as the essential public infrastructure. The authors explained that the act should be revised due to the fact that women are the main ones who are responsible for care work and their economic vulnerability.

“It’s  always  been  a  farce  to  think  about care taking and family responsibilities as‘personal life decisions’that get handled outside of workhours. This current situation is almost prophetically designed  to  showcase  the  farce  of  our  societal approach to separating work and family lives”-.Power, K. (2020). The COVID-19 pandemic has increased the care burden of women and families. Sustainability: Science, Practice and Policy, 16(1), 67-7

The author examines how care workers, especially women, had to go under more stress since many families needed to raise and educate their kids without any financial support. The author compares the care economy with GDP and states that GDP disregards the care economy. Economists have introduced possible economic systems that care worker's work can be appreciated and ease a fairer share of domestic labor in the period of encouraging environmental and economic sustainability. After the author looked into the effects of the care economy, the author found out that 32% of fathers said that their mental health was getting worse; meanwhile, 57% of mothers reported that their mental health got poorer due to all the responsibilities.The author examined the United Nations economic policies that promotes government subsidies for care workers, more and extending unemployment benefits for care workers, and expanding access to paid family leave and paid sick leave. These Economic policies pointed out by the UN will promote greater jobs in the care economy and more people will be encouraged to go into the care economy. The author concludes it's statement that firms would benefit from more women getting into the labor force to keep balanced lives between gender.

“Care is also neglected because the deep-rooted nearly universal mindset that caring for dependents is a woman’s natural duty and a private family matter”-Connelly, R., Dong, X. Y., Jacobsen, J., & Zhao, Y. (2018). The care economy in post-reform China: feminist research on unpaid and paid work and well-being. Feminist Economics, 24(2), 1-30

The authors of this article looked into policy changes, care policies, deficits, and the men's and women labor market in China. They are stating how several care policies from other countries can influence China and make China a better place for the care economy. One of the most interesting things about this article is that these authors examined care policies in China that can promote these policies globally. For example, these authors question whether elderly people can have access to old-age pensions that will benefit the retired and taking care of their grandchildren. They used evidence from South Africa that an elderly who has access to an old-age pension, makes the grandmothers transfer their time from income-earning activities to caring for their grandchildren. In fact,  China introduced the New Rural Pension Program to give old-age security to rural residents.

Why are care workers leaving the care economy?

“Care workers can do better at a fast-food restaurant or at a warehouse. And that is so sad because all this caregiving skill is going to waste”-Brancaccio, D., Farrell, C., & Soderstrom, E. (2022). We should care about the troubled “Care Economy.” Marketplace

This podcast is very interesting by the commentators who said that the care economy is in trouble. Commentator Chris has said that many researchers have focused on a robust care infrastructure, it can increase the greater amount of labor participation rates and especially on women. One of the things that commentator Farell pointed out with facts is that many people who are in the labor force depend on a lot of caregivers because caregivers are in charge of taking care of the worker’s significant others and the care workers start to quit; thus, the market economy will be in trouble. Also, Farrel examines that care workers have been quitting with this tight market. In fact, Farrel said that care workers can make a lot of money and have better benefits at a fast-food restaurant or a warehouse and this is bad due to the fact that caregiving skills are going to waste.

“Women domestic workers from disadvantaged racial and ethnic groups have tended to provide care services to meet the needs of the more powerful social groups, while their own needs for care have been neglected or downplayed"-Maybud, S. (2015). Women and the Future of Work–Taking care of the caregivers. ILO’s Work in Progress series, Mar.

The author explores that the world’s population has been increasing rapidly and by 2050, the population will increase to 9 billion people. The author points out an important fact, when the world’s population goes up to 9 billion people, people who are aged over 60 years will have tripled and most of these people will require such care services. The author also examines how the care economy plays a big role in employment in the upcoming years (2050). In fact, increasing employment in the care economy will make gender equality stronger since this will be the fastest-growing occupation once the year 2050 comes. The author used a reference from the US Bureau of Labour Statistics that these occupations are expected to increase by 70% in the following years. The author also discusses policies that will help women to get into the labor force if firms give benefits to women rather than just focusing on men.

“Care work also became more important to job polarization over time. Care work jobs grew in a polarized pattern across all three expansions in the 1980s, 1990s, and 2000s, but care work increased as a percentage of job growth from the 1980s to the 2000s”-Dwyer, R. E. (2013). The care economy? Gender, economic restructuring, and job polarization in the US labor market. American Sociological Review, 78(3), 390-416.

This author examines the beginning of polarization of the care economy from the 19th century to the 21st century. The author demonstrates that care work jobs contributed to a great number of polarization from 1983 to 2007. The author then states that even if the care economy will keep reinforcing job polarization or if it will bring more opportunities and bring back the middle-wage jobs and stronger. On page 401, the author shows that when more care work jobs were added from 1983 to 2007, it grew in a polarized manner rather than a normal distribution. Care work job growth was more heavenly weight to the bottom quintile than to the top.

“Most care workers in the United States receive limited monetary rewards and many struggle to make ends meet. The median base hourly wages for in-home care providers in the United States are $9.75 and the median weekly earnings are $315.00.”-.Hess, C. (2013). Women and the care crisis: valuing in-home care in policy and practice. IWPR Briefing Paper, (401).

 This article explains how the ongoing care crisis mostly affects women. The demand for care work has always gone up but the wages and there are still a number of challenges present in the current care economy. The wage gap between female-dominated care work and male-dominated jobs is further exacerbated by gender discrimination. Women play a critical role in the care economy, providing the majority of in-home care services to individuals who are unable to care for themselves. However, despite the crucial role that women play in providing care, they often face challenges and barriers that can make it difficult for them to provide high quality care.