Rebalancing the Economy of Care: Policy Pathways to Reduce Gendered Poverty

Abstract

Gendered poverty persists as a systemic and global inequity rooted in the disproportionate burden of unpaid care work shouldered by women. Worldwide, women perform over 76% of unpaid care work, contributing an estimated $10.8 trillion annually in invisible economic value (Oxfam, 2022). This invisible labour constrains women's access to formal employment, limits social and economic mobility, and reinforces poverty cycles, especially among single mothers and low-income households. This paper examines how comprehensive and accountable childcare and equitable parental leave systems and policies can redistribute care responsibilities, enhance women’s labour force participation, and reduce gendered poverty. Employing secondary research, the study draws on labour market data, policy frameworks, and literature review from three welfare economies—Sweden, Norway, and Canada—to explore the socioeconomic impacts of care-supportive policy ecosystems. Findings reveal that in countries with universal childcare access and non-transferable, paid parental leave for both parents, women’s labour force participation exceeds 75%, gender wage gaps fall below 12%, and child poverty rates are markedly lower. The paper advocates for the urgent integration of unpaid care work into national accounting and economic policymaking and agendas. It supports the global adoption of care-centred policies as a foundational strategy for achieving SDG-1 (No Poverty) and SDG-5 (Gender Equality). Ultimately, acknowledging and funding the care economy is not only imperative for gender equity, but it is an economic necessity.