Gender Inequality and
Economic Growth
The communist party of China tries to stabilize its regime in China through achieving equality among population. However, there is still a great gender inequality in China. According to the UNDP (2013), it has a GII value of 0.213 this year. In this part, in addition to statistics, we would like to use some case studies to illustrate how women empowerment enhances the national income and economic growthin both urban and rural area. China’s GDP is raised by the increasing entrance of female into industry other than agriculture. Yet, at the same time, we still find some obstacle for women stepping up in urban workplace, since conservational ideas persist.
China



The gender gap in economic activity:
China has an abnormal sex ratio at births that more boy than girl, resulted in men overtaking women ranging from 0 to 64 years old (Index Mundi, 2012).The labour force participation of women and men is 75% and 85% respectively. The share of women employed in the non-agricultural sector is 39% of the total non-agricultural employment(World Economic Forum, 2013).
In China, women live in the city and the rural hold a quite different view on having job. In city, most women express that remunerated work should be their main occupation, since, with job, they can help improve family and own living standards. Most importantly, it is expected as an effective way to access gender equality.
“When comparing with farm work, women consider working in handicrafts, commerce, culture, education, and public health is better, as they generate more income and are offered more opportunities for social contact.”
But there are still many obstacles for Chinese urban women to survive under the male-dominated corporate culture. On one hand, women more often chose to work in less lucrative industries. For example, most of them are employed as factory workers in industrial sector. On the other hand, there is a particular nature of China’s modern business landscape, guanxi, which implies stoking a web of interlocking personal and professional connections according to the Lean in movement (Larson, 2013).
“Successful women in China must develop tactics to handle the male aspects of guanxi.”
In additions, 80% of the graduating college girl students said they were discriminated against in their job-hunting, according to a survey conducted by the Ministry of Labor and Social Security on students in Beijing and Nanjing. And, 9 out of 10 surveyed students said they heard about recruiting discrimination.
In rural district, on the contrary, women generally agree that their economic status can be progressed by participating in production, but they still think that women had another responsibility to look after their husbands and children.
“I wanted to allow our men to concentrate on paid work.”
The unemployment rate:
The 2010 census put the percentage of working-age women in the work force at 74. The figure is as high as the developed countries like the US, Australia, Sweden, etc. However, unlike the above countries, nearly 50% of this population is still rural (Fincher, 2013).
In urban area, the women unemployment rate for the working age population had climbed up comparatively higher than the male unemployment rate since the State-owned Enterprise reforms of the late 1990s. Recently, Fincher (2013) finds that China’s urban employment rate for working-age women dropped to a new low of 60.8% in 2010, comparing with 77.4% 20 years earlier. The 2010 rate was 20.3% lower than that of men.
There are 3 main reasons to lead to the trend:
China is undergoing a change into the market economy, this bring into a massive layoff since poor performance resulting in those collective enterprises, where had employed a large number of urban women in the era of the planned economy;
Under the rule of retirement, the retirement age for women is five years earlier than that for men. They have to leave their job earlier than men;
Above all, as an important boost to the economy, rural people are strongly encouraged to move to the cities under the top policy priority of China’s new leaders. Rural female are highly proportionate in secondary jobs in most enterprises. When the enterprises began to lay off the workers, they were first to be targeted.
Corresponding disparity in employment mode
AcrossChina, rural men are migrating from farms to cities for searching better living. As a result, women are increasingly on the front lines of the fight to sustain family farms, which is unpaid and unable to secure them from poverty and hunger (Schutter, 2013).
At the moment, there are 47 million “remain women”, who stayed in the rural areas while their family members went to the cities for work in China according to a study conducted by the China Agriculture University. The pressures of household life heavily placed on the shoulders of the women living in rural villages as their husbands are away from home for long periods of time for urban job while they have to stay at home to look after children and cultivate fields (Kwok, 2008).
But recently, as most of the cities in China experience fast development in profitable tertiary industries like finance, commerce, catering and hotel, the salary in these places surge greatly. Businessmen treat back to the rural areas to set up production lines and factories. For example, the labor-intensive industries, such as the garment industry, electronics manufacturing, and food and beverage processing industry, etc. They brought noticeable employment effects among rural female.
“Across the country, manufacturers have frequently preferred female employees, regarding them as more careful and less troublesome.”
This decreases the rural female unemployment rate as well as the women participation in farm work significantly. Below are the 2 cases from Asian Development Bank (2013) showing how rural women are benefited from the trend:
Case I
Ms. Cao Xinmei who formerly worked in the southern coast city of Fujian Province, where distances from her hometown around 120 kilometers, is now work in her home to wnat the Hangkai Wood Products to assemble little pet house. This job reunite her family and provide the Cao’s a more secure finance, earning a monthly income of RMB2,000-RMB3,000.She can takes better care of her family since she no longer need to stay away from it.
Case II
Nearby Lianxiangyuan Food Company in the Liancheng County presents a similar story. It was a small neighborhood workshop called Minlian Sweet Potato Factory before 2007. With a RMB 2.5 million loan and RMB 5 million raised privately, the workshop invested in 3,500 mu (233.33 hectares) of cropland, and a production line that can process 2,000 tons of dried potatoes every year.
JiaCui'e, who dries candy made of sweet potatoes there, has been worked there for more than a year. She has monthly income about RMB 2,000, which helps support her two children, who are attending high school.
“I like the job because it provides a stable income and the factory is not far from my home.”
The snack product is already generating around RMB150 million annually for the County, since Lianxiangyuan formed the Fujian LianchengHongxin Sweet Potato Corporation with 23 other county-level food companies and food-processing technology institutions in 2009.



Corresponding disparity in employment wages
Wage levels in China have increased continually over the last two decades as the economy has developed and the private sector has created new employment opportunities. However, World Economic Forum (2013) shows that 36% of women are working in informal employment other than agriculture.
The urban labour wage is commonly higher than that of the rural. Women usually cannot keep pace with men. Women’s incomes are falling relative to men’s. While per capita income tripled for rural residents from RMB 2,253per year in 2000 to RMB 6,977 in 2011, incomes in cities nearly quadrupled from 6,280 to 23,979 RMB during the same period, according to China’s National Bureau of Statistics. Rural women only earned 56% of what their male counterparts did in 2010, down from 79% in 1990. These gaps in money and power leave rural women vulnerable to exploitation.
The relation with the economic growth
A typical feature of developing economies is the transfer from agriculture to the industrial and services industries. China is one of the examples that plan to diversify her industry into more high-value ones, while agriculture has been a crucial component for her GDP.
In 2001, agriculture made up 17.7% of China’s GDP while industries and services sector took 49.3% and 33% respectively. No more than a decade, the significance of China’s agriculture has greatly shrunk to 9.6 percent of GDP, while the services industry experienced growth to 43.6 percent of China’s GDP in 2010. Though experiencing a slight reduction to 46.8% of China’s GDP in 2010, the industrial sector is still the main driver for economic growth in China.
Source: Economy Watch - Emerging and Developing Economies Industry Sectors
One-half of the women in China are still working in fields, however, from the 2 case studies, women left behind in rural areas, meanwhile, are seeing some improvements in their lives because of urbanization, and most of them have a more secure income, if they enter to the secondary industries.
The more flourish secondary industries can really increase the export of China, though China’s rapid urbanization is suppressing women especially hard since it is becoming increasingly difficult for them to find rewarding and lucrative work in urban areas.
We can see more women changing form agriculture can bring positive impact to economic growth. The advantage is shown by the trend below.

Corresponding disparity in employment wages
Wage levels in China have increased continually over the last two decades as the economy has developed and the private sector has created new employment opportunities.
The urban labour wage is commonly higher than that of the rural. Women usually cannot keep pace with men. While per capita income tripled for rural residents from RMB 2,253 per year in 2000 to RMB 6,977 in 2011, incomes in cities nearly quadrupled from 6,280 to 23,979 RMB during the same period, according to China’s National Bureau of Statistics. Rural women only earned 56% of what their male counterparts did in 2010, down from 79% in 1990. These gaps in money and power leave rural women vulnerable to exploitation.


Reference:
Asian Development Bank (2013). Bringing jobs back to the village in the PRC's Fujian Province. Retrieved November 11, 2013 from http://www.adb.org/features/bringing-jobs-back-village-prcs-fujian-province.
Fincher, L. H. (2013). China’s entrenched gender gap. Retrieved November 16, 2013 from http://www.nytimes.com/2013/05/21/opinion/global/chinas-entrenched-gender-gap.html?smid=tw-share&_r=0.
Index Mundi (2012). China demographics profile 2013. Retrieved November 14, 2013 from http://www.indexmundi.com/china/demographics_profile.html.
Larson, C. (2013). Why China needs a 'Lean In' movement. Retrieved November 15, 2013 from http://www.businessweek.com/articles/2013-05-20/why-china-needs-a-lean-in-movement.
Kwok, S. F. (2008). Rural women sexually deprived (L. Lin, Trans.). Retrieved November 16, 2013 from http://chinadigitaltimes.net/2008/12/47-million-rural-women-sexually-deprived/.
Schutter, O. (2013). The feminization of farming. Retrieved November 11, 2013 from http://www.nytimes.com/2013/03/04/opinion/the-feminization-of-farming.html?_r=1&.
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