Working conditions/Access to work Equality Index
The objective of this index is assessing key variables that characterize access to work and working conditions. The index is based on three premises: 1) Measurement of gender gaps; 2) Easy to compute; and 3) The final value is bound between 0 (inequality) and 1 (equality) to facilitate comparisons and interpretation. It has two categories: 1) variables that characterize working conditions and 2) variables that describe access to work.
This index follows the empirical methodology used by Hausmann et al. 2012 as presented below.
1 step: Calculate ratios by gender for each variable i in each observation. For example, if working with production node (segment) and have information about 100 farmers, a ratio needs to be calculated for each variable i in each farm f.
2 step: Truncate at equality (1) when necessary. This is to have bounds between 0 and 1 where 1 means equal number of women and men.
3 step: Calculate sub-index scores (for each category of variables) For this, is necessary to calculate weighted average of the variables within each category to create two sub-indexes (one for working conditions, and other for access to work). As mentioned by Hausmann 2012, a simple average would implicitly give more weight to the measure that has more variability. So, he proposes to normalize the variables by equalizing their standard deviations. So, first, standard deviations for each variable need to be calculated and then, a 1% point change of that would be calculated as below:
Then, sum var_sd over each category j.
And then to construct the weight, dividing each var_sd over sumj.
Then, these values would be used as weights to calculate the weighted average of the four variables. In this way, a variable with a small variability of standard deviation, gets a larger weight, therefore when there is great gender gap in that variable it would heavily penalized.
4 step: Calculate final score An un-weighted average for each sub-index is taken to create the overall Working conditions/Access to work Equality Index. Sub-indexes are for: i) variables that characterize working conditions, and ii) variables that describe access to work. Indexes calculated could be roughly interpreted as a percentage value that reveals how much of the gender gap has closed. This tool could be applied to each node (segment) or to the entire value chain. It allows for comparisons between nodes and between value chains since it is based on ratios in contrast to levels, and in this way is independent from different levels of value chain development.
The methodology used by Hausmann 2012 is widely used by other organizations with some small changes.
- This tool will produce tables like this one:
- Suggested interpretation: In the production node, the Working Conditions/Access to Work Equality Index is 31% suggesting a large gap between females and males in working conditions and access to work. This implies that there is a gap of 69%.