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Inclusive social development: The next generation of policies for overcoming poverty and reducing inequality in Latin America and the Caribbean

The Latin American and Caribbean region has achieved notable social development in the past decade. However, much remains to be done. The persisting challenges of defeating poverty once and for all and significantly reducing inequality are not only ethical imperatives but also conditions for making progress toward sustainable development, consistently with the recently adopted 2030 Agenda for Sustainable Development. Although the global economy is more complex and uncertain now than in previous years, and prospects for the region are not —in the short term, at least— particularly bright, it is crucial to secure the progress made in social development in the past decade and lose no time in tackling unresolved issues in areas where progress has been insufficient.

The Latin American and Caribbean region has achieved notable social development in the past decade. However, much remains to be done. The persisting challenges of defeating poverty once and for all and significantly reducing inequality are not only ethical imperatives but also conditions for making progress toward sustainable development, consistently with the recently adopted 2030 Agenda for Sustainable Development.
Although the global economy is more complex and uncertain now than in previous years, and prospects for the region are not —in the short term, at least— particularly bright, it is crucial to secure the progress made in social development in the past decade and lose no time in tackling unresolved issues in areas where progress has been insufficient.

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<strong>Inclusive</strong> <strong>social</strong> <strong>development</strong>: <strong>the</strong> <strong>next</strong> <strong>generation</strong> <strong>of</strong> <strong>policies</strong> <strong>for</strong> <strong>overcom<strong>in</strong>g</strong> <strong>poverty</strong>...<br />

Paid domestic service accounts <strong>for</strong> a high proportion <strong>of</strong> women’s<br />

employment <strong>in</strong> Lat<strong>in</strong> <strong>America</strong> <strong>and</strong> <strong>the</strong> <strong>Caribbean</strong>. It is work that<br />

is little valued, with low wages, precarious work<strong>in</strong>g conditions,<br />

greater <strong>in</strong><strong>for</strong>mality, low levels <strong>of</strong> <strong>social</strong> protection, a high<br />

<strong>in</strong>cidence <strong>of</strong> child labour <strong>and</strong>, <strong>in</strong> most <strong>of</strong> <strong>the</strong> countries, fewer<br />

rights than wage earners <strong>in</strong> such basic areas as m<strong>in</strong>imum wages,<br />

maternity leave, rest days <strong>and</strong> paid leave (<strong>in</strong>clud<strong>in</strong>g holidays)<br />

(ILO, 2011; ECLAC, 2008; Loyo <strong>and</strong> Velásquez, 2009; Valenzuela<br />

<strong>and</strong> Moras, 2009; Bl<strong>of</strong>ield, 2012). This situation reveals explicit<br />

patterns <strong>of</strong> discrim<strong>in</strong>ation, based on <strong>the</strong> fact that this k<strong>in</strong>d <strong>of</strong><br />

work is associated with <strong>the</strong> underappreciated care <strong>and</strong> <strong>social</strong><br />

reproduction functions <strong>of</strong> households <strong>and</strong> families (ECLAC, 2008).<br />

In 2013, domestic work accounted <strong>for</strong> 11.5% <strong>of</strong> total female<br />

employment <strong>in</strong> Lat<strong>in</strong> <strong>America</strong> <strong>and</strong> was situated on one <strong>of</strong> <strong>the</strong><br />

lowest levels <strong>of</strong> <strong>the</strong> earn<strong>in</strong>gs scale <strong>in</strong> those countries. That same<br />

year, <strong>the</strong> average <strong>in</strong>come <strong>of</strong> women domestic workers was<br />

equal to 50% <strong>of</strong> <strong>the</strong> average <strong>in</strong>comes <strong>of</strong> employed women as a<br />

whole; never<strong>the</strong>less, <strong>in</strong> spite <strong>of</strong> <strong>the</strong> pronounced differential, that<br />

figure has evolved positively s<strong>in</strong>ce 1990, when it stood at 41%<br />

(ECLAC, 2014a, statistical appendix, figures <strong>for</strong> urban areas).<br />

In <strong>the</strong> region, domestic work is an essentially female<br />

occupation: <strong>in</strong> 2010, over 95% <strong>of</strong> paid domestic workers were<br />

women (ECLAC, 2013a). <strong>The</strong> proportion <strong>of</strong> men is limited or<br />

Box I.3<br />

Paid domestic work<br />

almost non-existent, <strong>and</strong> male domestic workers chiefly serve<br />

as butlers, residential security guards, gardeners <strong>and</strong> drivers,<br />

<strong>and</strong> <strong>the</strong>y receive a higher <strong>in</strong>come on average <strong>for</strong> <strong>the</strong>se jobs<br />

than female workers, who per<strong>for</strong>m mostly domestic <strong>and</strong> care<br />

work <strong>in</strong> private households.<br />

<strong>The</strong> high proportion <strong>of</strong> women <strong>in</strong> this k<strong>in</strong>d <strong>of</strong> work is an<br />

expression <strong>of</strong> <strong>the</strong> horizontal segmentation <strong>of</strong> jobs; <strong>the</strong>se are<br />

generally women who wish to per<strong>for</strong>m paid work <strong>and</strong> whose<br />

only experience <strong>the</strong>y can carry over to <strong>the</strong> labour market is <strong>the</strong><br />

unpaid work <strong>the</strong>y do <strong>in</strong> <strong>the</strong>ir own homes. That constra<strong>in</strong>s <strong>the</strong>ir<br />

possibilities <strong>of</strong> entry <strong>in</strong>to <strong>the</strong> labour market on a good foot<strong>in</strong>g,<br />

<strong>in</strong> contrast with o<strong>the</strong>r workers with more work experience,<br />

tra<strong>in</strong><strong>in</strong>g, contact networks <strong>and</strong> o<strong>the</strong>r advantages.<br />

A proxy <strong>for</strong> <strong>the</strong> level <strong>of</strong> discrim<strong>in</strong>ation by race or ethnicity<br />

<strong>in</strong> this type <strong>of</strong> employment can be seen <strong>in</strong> <strong>the</strong> follow<strong>in</strong>g figure,<br />

which contrasts non-<strong>in</strong>digenous, non-Afro-descendent women<br />

with those <strong>of</strong> <strong>in</strong>digenous <strong>and</strong> African descent. Large <strong>in</strong>tragender<br />

disparities are also evident between Afro-descendent <strong>and</strong><br />

non-<strong>in</strong>digenous, non-Afro-descendent women can be seen,<br />

with an overrepresentation <strong>of</strong> <strong>the</strong> <strong>for</strong>mer group <strong>in</strong> work <strong>of</strong> this<br />

k<strong>in</strong>d. Similarly, albeit somewhat less markedly, <strong>in</strong> four <strong>of</strong> <strong>the</strong><br />

eight countries <strong>the</strong> <strong>in</strong>digenous population is also engaged <strong>in</strong><br />

work <strong>of</strong> this k<strong>in</strong>d.<br />

Lat<strong>in</strong> <strong>America</strong> (8 countries): proportion <strong>of</strong> <strong>in</strong>digenous, Afro-descendent <strong>and</strong> non-<strong>in</strong>digenous,<br />

non-Afro-descendent women employed <strong>in</strong> domestic work, 2011<br />

(Percentages)<br />

35<br />

30<br />

30<br />

25<br />

20<br />

15<br />

10<br />

5<br />

0<br />

14<br />

Non-<strong>in</strong>digenous,<br />

non-Afro-descendent<br />

22<br />

Indigenous<br />

12<br />

Non-<strong>in</strong>digenous,<br />

non-Afro-descendent<br />

17<br />

Indigenous<br />

12<br />

Non-<strong>in</strong>digenous,<br />

non-Afro-descendent<br />

15 15 14<br />

Indigenous<br />

Non-<strong>in</strong>digenous,<br />

non-Afro-descendent<br />

Indigenous<br />

9<br />

Non-<strong>in</strong>digenous,<br />

non-Afro-descendent<br />

11<br />

Indigenous<br />

Uruguay Chile Brazil Paraguay Mexico<br />

6<br />

Non-<strong>in</strong>digenous,<br />

non-Afro-descendent<br />

5<br />

Indigenous<br />

6<br />

Non-<strong>in</strong>digenous,<br />

non-Afro-descendent<br />

4<br />

Indigenous<br />

6<br />

2<br />

6<br />

12 12<br />

20<br />

14<br />

Chapter I<br />

Non-<strong>in</strong>digenous,<br />

non-Afro-descendent<br />

Indigenous<br />

Non-<strong>in</strong>digenous,<br />

non-Afro-descendent<br />

Bolivia<br />

(Plur. State <strong>of</strong>) Peru Ecuador Ecuador Brazil Uruguay<br />

Afro-descendants<br />

Non-<strong>in</strong>digenous,<br />

non-Afro-descendent<br />

Afro-descendants<br />

Non-<strong>in</strong>digenous,<br />

non-Afro-descendent<br />

Afro-descendants<br />

Source: Economic Commission <strong>for</strong> Lat<strong>in</strong> <strong>America</strong> <strong>and</strong> <strong>the</strong> <strong>Caribbean</strong> (ECLAC), on <strong>the</strong> basis <strong>of</strong> special tabulations <strong>of</strong> data from household surveys conducted <strong>in</strong> <strong>the</strong> countries.<br />

Source: Economic Commission <strong>for</strong> Lat<strong>in</strong> <strong>America</strong> <strong>and</strong> <strong>the</strong> <strong>Caribbean</strong> (ECLAC), Social Panorama <strong>of</strong> Lat<strong>in</strong> <strong>America</strong> 2007 (LC/G.2351-P), Santiago, 2008; M.G. Loyo<br />

<strong>and</strong> M. Velásquez, “Aspectos jurídicos y económicos del trabajo doméstico remunerado en América Lat<strong>in</strong>a”, Trabajo doméstico: un largo cam<strong>in</strong>o hacia<br />

el trabajo decente, M.E. Valenzuela y C. Mora (eds.), Santiago, International Labour Organization (ILO), 2009; M.E. Valenzuela <strong>and</strong> C. Mora (eds.),<br />

Trabajo doméstico: un largo cam<strong>in</strong>o hacia el trabajo decente, M.E. Valenzuela y C. Mora (eds.), Santiago, ILO, 2009; M. Bl<strong>of</strong>ield, Care, Work <strong>and</strong> Class:<br />

Domestic Workers’ Struggle <strong>for</strong> Equal Rights <strong>in</strong> Lat<strong>in</strong> <strong>America</strong>, Pennsylvania State University Press, 2012; International Labour Organization (ILO),<br />

Notas OIT. El trabajo doméstico remunerado en América Lat<strong>in</strong>a y el Caribe, Santiago, 2011.<br />

5. Young people <strong>and</strong> <strong>the</strong> labour market<br />

<strong>The</strong> demographic transition currently underway <strong>in</strong> Lat<strong>in</strong> <strong>America</strong> <strong>and</strong> <strong>the</strong> <strong>Caribbean</strong> still <strong>of</strong>fers an opportunity <strong>for</strong><br />

<strong>development</strong> <strong>in</strong> <strong>the</strong> <strong>for</strong>m <strong>of</strong> a “demographic dividend”. Thanks to fall<strong>in</strong>g fertility rates, <strong>the</strong>re is a low percentage<br />

<strong>of</strong> children <strong>and</strong> older persons (but not yet very elderly) compared to <strong>the</strong> work<strong>in</strong>g-age population. This situation is<br />

highly favourable <strong>for</strong> <strong>development</strong>, s<strong>in</strong>ce <strong>the</strong> viability <strong>of</strong> sav<strong>in</strong>gs <strong>in</strong>creases (<strong>for</strong> example, with contributions to <strong>social</strong><br />

security), productivity <strong>and</strong> <strong>in</strong>vestment can <strong>in</strong>crease <strong>and</strong> levels <strong>of</strong> well-be<strong>in</strong>g among <strong>the</strong> population can rise (ECLAC/<br />

UNFPA/OIJ, 2012; Cecch<strong>in</strong>i <strong>and</strong> Uth<strong>of</strong>f, 2008), provided that <strong>policies</strong>, markets <strong>and</strong> <strong>in</strong>stitutions exist to support <strong>and</strong><br />

encourage that growth.<br />

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