By How Much Is ‘Women's Work’ Undervalued in the Economy?*

Abstract

This paper investigates the extent to which ‘women's work’ – that is, work that societal norms assign to women – is systematically undervalued in the economy. Analysis of 2021 data for Australia detects that average hourly wage rates are 9.9 per cent lower in female-concentrated occupations compared with male-concentrated occupations, and 3.8 per cent lower in female-concentrated industries compared with male-concentrated industries. Looking at unpaid work that is invisible in national accounts, analysis of time use data finds that 55 per cent of women's labour contribution to the economy is in the form of unpaid work and care, compared with 31 per cent of men's. Adding unpaid work and care to paid work, and adjusting for the undervaluation of female-concentrated jobs and the male wage premium, sees women's share of total labour input expand from 36.8 per cent to 50.5 per cent. These findings are informative across a range of practical applications, including equitable wage settings, the division of household assets, and measurements of productivity. The relegation of this topic of inquiry as a specialist ‘feminist issue’ constitutes a structural gender bias within the economics discipline: ‘women's work’ needs to be fully recognised and valued as a core component of the economy.