Does Climate Change Affect Female Employment in South Asian Countries? The Interaction Effects of Income Inequality and Gender Inequality

Abstract

Background: Rural populations in low- and middle-income nations face significant developmental challenges due to climate change. Research indicates that increasing temperatures over recent decades have substantially reduced women's employment opportunities in South Asian countries. These communities face additional hardships from extreme weather patterns, including more frequent summer heat waves and severe winters. Projections suggest that shifts in temperature and precipitation patterns will continue to reduce women's employment prospects, particularly in India, Pakistan and Sri Lanka. Objectives: This research examines how climate change affected women's employment in South Asian countries between 2000 and 2022. The study also analyses how income and gender disparities interact with women's employment during climate change. The analysis incorporates economic indicators to provide comprehensive insights, including foreign direct investment, government spending, mobile phone adoption and financial integration. Data and Methods: The research utilises balanced panel data from eight South Asian countries spanning 2000-2022. Data availability determines the selection of regions, countries, and timeframes. Information was gathered from multiple sources, including World Development Indicators, Climate Change Knowledge Portal and KOF Swiss Economic Institute. The analysis employs quantile regression alongside the System Generalised Method of Moments estimation techniques. Major Findings and Policy Implications: Our analysis reveals that temperature variations negatively impact women's employment regionally, while increased rainfall shows positive effects. Inequality persists as a major barrier to progress. Rising income disparities lead to steeper declines in women's employment across sectors, with women facing disproportionate impacts during crises. Gender inequality further expands gaps in opportunities and wage discrimination regionally. Post-pandemic gender discrimination has significantly affected economies like India, Sri Lanka and Bangladesh across various sectors. Our findings suggest that climate adaptation strategies should incorporate gender considerations to address women's specific vulnerabilities. Additionally, improvements in women's education have notably enhanced their employment opportunities and prospects.