The Role of Unpaid Care Work in Shaping Women’s Labor Market Participation

Abstract

Unpaid care work represents a fundamental yet largely invisible component of economic and social systems, playing a critical role in sustaining households and reproducing human capital across generations. Despite its essential contribution, it remains excluded from national accounting frameworks such as gross domestic product (GDP), leading to its systematic undervaluation. This paper is based on a theoretical analysis and literature review approach to examine the role of unpaid care work in shaping women’s labor market participation. Drawing on labor economics and the “5R” framework (Recognize, Reduce, Redistribute, Reward, and Represent), the analysis explores how the unequal distribution of care responsibilities influences labor supply decisions. In particular, the paper highlights how intensive care obligations increase the reservation wage, reduce the likelihood of labor market entry, and contribute to higher participation in informal and precarious employment, as well as persistent penalties associated with motherhood. The study further examines the concept of time poverty and its implications for human capital accumulation, employment continuity, and long-term economic outcomes. By synthesizing international evidence and policy approaches, the paper argues that addressing structural imbalances in care provision—through public investment in care infrastructure, accessible services, and supportive labor market regulations—is essential for improving labor market efficiency and fostering sustainable economic development. The findings suggest that a reconfiguration of how care is recognized and allocated is necessary to achieve more balanced and inclusive labor market outcomes.