The Pak Banker

Women in leadership

- Hadia Majid

Only 5.7 per cent of managerial positions are occupied by women in Pakistan. A common argument for explaining this low statistic is that there are just not enough qualified women. True, women on average see lower educationa­l achievemen­t than men.

Similarly, women also enter and remain in the labour market at much lower rates. But, labour force participat­ion rates for women with tertiary levels of education are about 32pc. Why then do such low numbers make it to managerial (and higher) positions? Is this really a supply-side problem or are there other factors at play?

Conducting in-depth interviews with women in Lahore shows women opting out of high-pressure jobs and roles. Here, most of the higher-income, highly educated women interviewe­d cited care burdens, mother’s guilt and a desire to spend more time with family as some of the primary reasons why they have cut back on working hours or passed up on promotions. This ‘motherhood penalty’ has been welldocume­nted within the literature.

The high-time poverty faced by such women also means that when given the choice, they would be unwilling to enter and stay in the labour market unless they are wellcompen­sated. Unfortunat­ely, gender wage gaps are pervasive across all labour market sectors.

Using 30 years of the Pakistan Labour Force surveys, we found evidence of wage difference­s between men and women with similar levels of education who occupy similar positions on the occupation ladder. Can difference­s in experience help explain these wage gaps? Women on average take more breaks in their career and avail less training opportunit­ies, negatively affecting their on-the-job experience.

Besides, higher care work burdens and frequent career breaks translate into less time spent both at work and workrelate­d events. This, in turn, affects the types of social contacts and networks women are able to build. Indeed, women have lower, less diverse networks. This negatively impacts the extent and type of mentoring that they receive as well as the informatio­n flows that they can tap into for career advancemen­t. That these difference­s would then be penalised in the form of lower lifetime earnings relative to men is unsurprisi­ng.

Yet, women may also be purposely locked out of opportunit­ies and networks. This gatekeepin­g is partly driven by the gender-segregated nature of our society and the separation in social activities and circles that this inevitably leads to. But, also by the high incidence of discrimina­tion against women documented for the Pakistani labour market.

Careful disaggrega­tion performed on labour market outcomes shows that gender gaps cannot entirely be explained by such characteri­stics as age, education, experience, etc and that there are unobservab­les such as biases and sociocultu­ral norms at play. Obvious examples of discrimina­tion include harassment, institutio­nalised lower wages for women, or prejudice against hiring or promoting women because of stereotypi­ng. More covert examples are seemingly well-meaning policies that perpetuate cycles of disadvanta­ges specific to women and market segmentati­on where we find women (and men) confined to certain profession­s based on their gender.

In Pakistan, we typically find women’s concentrat­ion in careers that are extensions of their caregiving roles such as teaching and nursing. What is telling here is that not only are female-dominated profession­s systematic­ally lower paid than male-dominated ones, a difference which cannot be entirely explained by considerin­g observable characteri­stics, but that even in these female-dominated fields we often find men in more senior positions and at higher pay. Thus, there is an additional layer of discrimina­tion embedded within the already segmented market.

That women are locked out of certain profession­s, and equally qualified women are paid lower wages than men, goes against the pillars of just remunerati­on: Employment and equal pay for work of equal value are internatio­nally recognised as fundamenta­l human rights.

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