Estimating Women’s Contribution to the Economy: The Case of Bangladesh

Abstract

The socio-economic conditions of women in Bangladesh have improved significantly over the years. Progress can be observed in a number of social indicators concerning education, health and empowerment. Indeed, this is a reflection of the increased participation of women in the labour force. Notwithstanding the dynamics of change in labour market composition, the contribution of women in official estimations of gross domestic product (GDP) is much lower than that of men. Under-representation of women’s contribution in national income accounting can be explained by women’s disproportionate engagement in the informal sector, where there is no or little monetary remuneration. Worldwide, according to the International Labour Organization (ILO), women account for about onethird of the workforce in the informal sector. In Bangladesh, only 3.25 per cent of employed women work in the public sector and 8.25 per cent work in the private sector. The remaining 89.5 per cent are employed in the informal sector with varying, and often unpredictable, earning patterns. Many of them work without compensation. Unpaid work of women in Bangladesh comes in many forms such as chores, child care and care of the elderly, sick and disabled people in the household, and volunteer work in the community (International Labour Office, 2006). The national accounting system based on the System of National Accounts (SNA) does not include such unpaid works, which are performed mainly by women.