Women have played an active role in Myanmar’s labor force during a period of massive structural change and their growing importance is substantiated by their increasing involvement in manufacturing jobs near and away from home. In their research, Valerie Mueller, Emily Schmidt, and Dylan Kirkleeng use the Integrated Household Living Conditions Survey to evaluate the extent women were included in Myanmar’s dynamic labor transformation between 2005 and 2010 and the relative barriers that limited their inclusion.
The full publication by Valerie, Emily, and Dylan is available to view in the International Regional Science Review.
Background
Myanmar has witnessed important economic growth during the last several decades, and in particular, since moving towards a more market-oriented economy in 2010. As new industries are emerging and greater foreign direct investment is entering the country, urbanization and rising incomes are leading to greater opportunities for rural populations to seek out income diversification.
Given the high landless rate of the rural population, identifying employment opportunities for Myanmar’s rural population outside of the agricultural sector is critical to push forward the country’s structural transformation.
A shift away from complete dependence on agricultural work to a more diversified labor portfolio is also associated with an increase in overall household income and will support advancement in overall poverty reduction goals.
Given Myanmar’s recent expansion of the textile industry and the common practice of hiring women to fulfill 70 to 80 percent of their low-wage jobs, it is expected that manufacturing employment opportunities have risen for women.
In their research, Valerie, Emily, and Dylan use the Integrated Household Living Conditions survey to assess the extent women were included in Myanmar’s dynamic transformation process between 2005 and 2010 and the relative barriers that limited their inclusion.
Findings
Most women employed in manufacturing tend to remain close to their local residence. Lower participation rates in distant locations may be explained by the opportunity cost of having women engage in work outside of the household.
However, whether close to their local residence or in distant locations, women’s involvement in the manufacturing sector is based on necessity. This is supported by positive correlations between seasonal temperature and manufacturing employment being greater for women than men, especially in rural locations, which suggests that women’s involvement in the manufacturing sector may be motivated by household risk management strategies.
The findings suggest that women’s engagement in local manufacturing may be successful in mitigating this risk, as there are no changes in welfare associated with this activity. Thus, women may diversify their labor to help the household during unstable periods.
In contrast, there are large losses to household welfare when women migrate for manufacturing work, which may be attributable to a gender pay gap or losses to household production due to their absence.
Through their research, Valerie, Emily, and Dylan demonstrate that women play an active role in the labor force. The growing importance of women in Myanmar’s economy is substantiated by their increasing placement in manufacturing jobs in their local communities as well as in other destinations. However, preliminary evidence from panel household survey data suggests that the monetary returns may not warrant migration for women, perhaps due to suboptimal choices made by the household when managing risk.
Future investments in surveys in Myanmar will improve researchers’ ability to identify which factors systematically provide an enabling environment for female labor participation, mobility, and improvements in well-being. Evaluating women’s economic empowerment and its associated barriers and implications will be crucial, especially as Myanmar attracts more foreign direct investment and development assistance.
Valerie Mueller is an Associate Professor in the School of Politics and Global Studies at Arizona State University (ASU). Emily Schmidt is a Research Fellow in the Development Strategy and Governance Division (DSGD) of the International Food Policy Research Institute (IFPRI). Dylan Kirkleeng is a Research Assistant in the School of Politics and Global Studies at ASU.
This blog post was prepared by Michael Wang, Mickey Leland International Hunger Fellow in DSGD of IFPRI, based in Yangon. The analysis and opinions expressed in this piece are solely those of the authors.