BTL 900 - The Care Economy

 

The Banking Tutor’s Lessons

BTL 900                                                                                18-05-2026

The Care Economy

Care Economy is the sum of all paid and unpaid activities that provide care and support to people. Care Economy includes care for children, the elderly, and people with disabilities. Care Economy has the potential to generate huge employment in the future. Despite having vast potential, the care work across the countries remains plagued by low wages and non-compensation. 

The Care economy is a cornerstone of sustainable development and social well-being. By recognizing its value, investing in its infrastructure, and addressing systemic inequalities, societies can build more resilient and inclusive economies.

Care Economy Definition

The Care Economy, also known as the Purple Economy, encompasses both unpaid and paid caregiving activities. Unpaid work involves nursing or cooking for family members, while paid care work involves domestic workers providing services in exchange for remuneration. Traditionally, caregiving was solely women's responsibility, but it is now shared equally among all family members.

Care Economy Need

Care Economy’s need arises due to the necessity to focus on growth and at the same time cater to the demand of the elderly population. Care Economy also helps support the formal economy and bridges the gender divide. The details are as mentioned below:

Core of Growth: It helps in sustaining human activity for present and future generations by providing regular care work. According to estimates by the WEF, if unpaid work is compensated, then it would represent 9% of Global GDP.

Supports Formal Sector Employees: The employees working in the formal sector can sustain their work because their children, older parents, and loved ones are being taken care of by care workers.

Growing Elderly Population: The Care Economy supports the older population, who are its primary beneficiaries. As their numbers grow steadily, the demand for care services increases. 

According to United Nations Population Fund (UNFPA) estimates, by 2050, 20% of India's population will be aged 60 and above. This demographic shift further expands the need for a robust Care Economy.

Promoting Gender Equality: The care work traditionally fell on women disproportionately increasing inequality. It limited their participation in paid economic tasks leading to their limited growth.

Care Economy Features

The features of the Care Economy include it being women-centric and most of the workers work without remuneration. The details are explained below:

Unpaid Work: It forms a crucial part of the Care Economy as most of the work is not paid for as against paid work in a Monetized Economy.

Role of Women: The majority of work is still done by women in the Care Economy. They spend more time than men in care work. 

Women spend 3.2 times more time than men in care work.

Human Capital Development: It supports Human Capital Development by taking care of young children, the disabled, etc.

Care Economy and Monetized Economy

Care Economy can be distinguished from a Monetized Economy based on the idea that while a Monetized Economy involves activities that receive direct payments and are included in GDP on the other hand Care Economy includes activities that are either unpaid or paid low-wages.

Sekhar Pariti

+91 9440641014