How employment diversification affects labour competitiveness: A gender perspective

Abstract

As China’s population continues ageing, and the birth rate continues decreasing, the demographic dividend that the nation once had is gradually fading. Meanwhile, information technology is rapidly developing, and new forms of employment continue emerging, facilitating the diversification of China’s traditional employment forms. This study investigates how the diversified employment environment affects labour competitiveness in China from the specific perspective of gender difference. From a theoretical standpoint, we examine the mechanism of informal employment on men’s and women’s employment decisions and labour market competitiveness. We then construct a multi-value labour supply decision model and a nonlinear employment difference decomposition model to identify the key factors that affect individuals’ employment decisions, assessing those factors in terms of gender differences. We use micro-data from the China Family Panel Studies, finding that women’s labour competitiveness is lower than that of men. Family factors have a significant influence on women’s decisions regarding labour market participation, informal employment provides more options for women to balance occupational life and homecare, and severe gender discrimination and inequality are the primary obstacle to women’s entering the informal employment sector. In analysing these impacts, we seek to provide insights regarding how to elevate women’s competitiveness in the labour market, particularly in the informal employment sector.