OPINION | Kerala Care Economy Study: A Closer Look at the Care Sector’s Impact on the Economy

Known for its progress on human development indicators, Kerala often boasts about its achievements in education, healthcare and social welfare. However, one aspect remains largely overlooked – the care economy. In the vibrant economic discourse, the importance of care work, performed mostly by women, is often sidelined. It is high time we acknowledge and uplift this vital sector.

The care economy encompasses a wide range of unpaid and paid activities, including childcare, aged care and domestic work. In Kerala, where family ties are strong and community support is entrenched, much of this work is absorbed within households, often unnoticed and unappreciated. Yet it is the backbone of society, allowing other economic activities to flourish.

Kerala’s elderly population is witnessing a faster rate of ageing compared to the rest of the country. According to the Kerala Aging Survey (KAS) 2013, there are around 4.2 million people aged 60 and above in Kerala. It is worth noting that the elderly population in Kerala is growing at a rate of 2.3 per cent, which is in stark contrast to the overall population growth rate of 0.5 per cent. The Ministry of Statistics and Programme Implementation (MoSPI) under the Government of India indicates that the elderly dependency ratio in Kerala is 19.6 per cent, exceeding the national average of 14.2 per cent.

Moreover, there is a gender perspective regarding the growing elderly population in Kerala, with the majority being women. According to the Kerala Migration Survey (KMS) 2018, 13.7% of those above 60 years of age are women, while 12.2% are men. Moreover, in the 80+ age group, 42% of women are widowed, while only 8% of men are widowed. This significant discrepancy underlines the need to establish a care economy that is tailored to the growing needs of the elderly in Kerala.

KMS 2018 estimates that Kerala is home to approximately 2.1 million expatriates. While the state has benefited from migration, it is crucial to address the well-being of those who remain, including children, women and the elderly. Dr S. Irudaya Rajan, chairman of the International Institute of Migration and Development (IIMAD), estimates that around two million children and four million elderly people have stayed in Kerala due to migration.

The impact of parental migration on children left behind is profound, as they struggle with the absence of one or both parents. A study by John Soyuz and Dhanasekara R. Pandian delved into the behavioral patterns of these children. They analyzed case files from a specialized child counseling clinic in Malappuram. Their findings indicated that “children left behind by Gulf migrants are prone to developing behavioral problems, mental health disorders, and substance abuse.”

In households where husbands have migrated, women often take on the role of primary caregiver. However, this transition can be overwhelming, especially when managing multiple responsibilities, including caring for older family members. In such situations, women are burdened with a dual caregiving role, which can pose significant challenges and burdens on their well-being. The resulting “time poverty” is an obstacle to women’s human rights, health, and sustainable development.

According to rough estimates from KMS 2018, there are approximately 0.12 million domestic workers employed in Kerala, of which 93% are women. Issues such as low wages, limited access to health care, lack of bargaining power, workplace violence and job security concerns continue to impact domestic workers in the state. It is imperative that the state recognizes domestic workers as caregivers and includes them in the social security framework.

The Covid-19 pandemic has brought the care economy into sharper focus. As lockdowns and restrictions disrupt normality, the burden of care has increased, disproportionately affecting women. From juggling remote work and household chores to taking on more caregiving responsibilities, women have borne the brunt of the crisis. The pandemic has exposed the inherent inequalities in the care economy and underscored the urgent need for change.

Recognizing the value of care work is not only a moral imperative, but also an economic necessity. Investing in the care economy has multiple benefits, from improving social well-being to stimulating economic growth. Research, particularly that conducted by Nobel Prize-winning economist James Heckman, clearly shows that every dollar invested in early childhood care and education brings significant returns in the form of future productivity and lower social costs.

Kerala has already taken commendable steps towards recognizing the importance of care work. Initiatives like the Kudumbashree Mission, which empowers women through self-help groups and community-led development projects, serve as prime examples. However, more concerted efforts are needed to mainstream care policy into the state’s economic agenda.

First, there is a need for comprehensive data collection and analysis to better understand the dynamics of the care economy. This will help inform evidence-based policies tailored to the specific needs of caregivers.

Secondly, concerted efforts need to be made to reduce gender disparities in the care sector. This involves promoting women’s participation in the labor market, providing support structures such as affordable childcare facilities, and ensuring fair pay for care workers.

Third, public investment in social infrastructure, such as health care, education, and elder care services, is essential. Strengthening these basic services not only improves quality of life, but also creates job opportunities and stimulates economic growth.

Finally, supporting a cultural change in societal attitudes towards care work is crucial. By challenging traditional gender roles and stereotypes, we can create a more just and inclusive society where care is valued and respected.

Beyond pragmatic considerations, there is a deeply theoretical foundation that places the economics of care as key to understanding the dynamics of contemporary socio-economic structures. Feminist economic frameworks explain the inherent value of care work, arguing that it should be recognized not as peripheral but as fundamental to the functioning of the economy as a whole. Care work, often relegated to the private sphere and disproportionately performed by women, challenges traditional economic paradigms that privilege market transactions over non-market activities.

By incorporating insights from modern feminist theory, we can appreciate the care economy as a site of essential, yet invisible, work that sustains both the formal economy and social reproduction. This perspective requires reconfiguring economic policies to reflect the true value of care work, advocating for structural changes that promote gender equality, redistribute care responsibilities, and integrate care work into broader economic discourses. From this perspective, recognizing and supporting the care economy in Kerala becomes not only a matter of social justice, but a necessary step toward a more inclusive and resilient economic model that recognizes and compensates all forms of work in an equitable manner.

In summary, Kerala’s journey towards sustainable development must include a robust framework for nurturing a care economy. By prioritizing care policy and investing in the well-being of caregivers, we can build a more resilient and equitable society for future generations. It is time to recognize that care is not just a labor of love, but also a cornerstone of the political economy.

About the authors: Amal Chandra is the author of The Essential – On Healthcare (2023), a political analyst and commentator. He is currently serving on the Kerala Development and Innovation Strategic Council (K-DISC), Government of Kerala, where he is contributing his expertise to the development of Kerala’s economy.

Ajay P. Karuvally is a research fellow at the International Institute for Migration and Development (IIMAD).

The opinions expressed in this article are the author’s own and do not reflect the opinions or views of THE WEEK