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
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