Monday, December 29, 2014

Kasambahay Law (A Gender and Development Perspective)

Women comprise about half of the world’s total population but their contribution to economic development has always been low and continues to fall far below its potential. At present, “labor markets across the world remain divided along gender lines” having women account for most of the unpaid work, i.e., household work (or nonmarket production). [1]
 
            The importance of nonmarket production has been a recurring theme in the international community with some countries endeavoring to include this in their Gross Domestic Products or Gross National Products. In the United States, Simon Kuznets proposed such model to the U.S. Department of Commerce during the 1940s. However, they found it challenging to produce consistent and up-to-date accounts that would be useful to business and public policy, thus they were constrained to include only those goods and services that may be measured by money.[2]

In 2013, President Benigno Aquino III signed Republic Act (R.A.) 10361, also known as the “Domestic Workers Act” or “Batas Kasambahay”. The law was specifically enacted to protect the rights of domestic workers and to recognize their special needs in the labor force. Moreover, it served as the country’s compliance to the International Labor Organization (ILO) Convention No. 189 which was signed by the President and concurred to by the Senate in 2012. This Convention was the first to set the global standard for domestic workers.

But what is interesting about this law is that it does not only hit the labor aspect but also the gender gap as reflected in the country’s economy. The Department of Labor and Employment (DOLE) estimates that there are 1.9 million kasambahays all over the country.[3] As of December 13, 2014, the DOLE reported around 105,000 of them enrolled in the Social Security System (SSS), which is higher by 100,000 before the law took effect (only a year ago). [4]

Moreover, it may be possible that the Batas Kasambahay played a major role in the improvement of the Philippines’ ranking in the World Economic Fund’s (WEF) Global Gender Gap Index. In its 2013 report (the year the law was promulgated), the Philippines was ranked fifth and was the first time the Philippines entered into the Top 5 list. According to the WEF, this may be attributed to “small improvements in the Economic Participation and Opportunity subindexes"[5] which may have been captured— thanks to the new law.

It is important to note though that we may still need more years to determine the trend of kasambahay registrations and if it does impact the nation economically. Nevertheless, it is a perfect example of recording household work (with the help of SSS, Pag-IBIG, and PhilHealth, especially without taxes imposed on the kasambahays’ salaries). Recording household work was and still remains to be an abstract concept to many but our nation may have this as a starting point and a step closer in attaining gender equality.

               


[1] “Women, Work, and the Economy: Macroeconomic Gains from Gender Equity”. International Monetary Fund, September 2013. https://www.imf.org/external/pubs/ft/sdn/2013/sdn1310.pdf
[2]Accounting for Nonmarket Production: A Prototype Satellite Account Using the American Time Use Survey”. U.S. Bureau of Economic Analysis. http://bea.gov/papers/pdf/Landefeld__Nonmarket_Production_ATUS.pdf
[3] http://www.dole.gov.ph/files/Q & A on Batas Kasambahay (RA No 10361).pdf
[4] http://www.gov.ph/2014/12/13/dole-reports-on-status-of-kasambahay-law-implementation/
[5] “World Economic Fund: Gender Gap Report of 2013”. http://www3.weforum.org/docs/WEF_GenderGap_Report_2013.pdf

1 comment: