WOMEN IN THE HUNGARIAN LABOUR MARKET

Dr.Katalin Koncz
Associate Professor at
Budapest University of Economic Sciences
July,1995.

 
	Hungary and the other countries of the region are faced with a historically unparalleled
task. The changes in the political and economic system are taking place simultaneously. This
makes it necessary to put these countries on political and economic engagements radically
differing from their former ones. The changing over of societies, which have been turned into a
deadlock for four (or more) decades, to an essentially different economic and political
system, is taking place under unfavourable internal conditions and disturbing foreign
economic and market circumstances. The tensions accumulating for decades openly and
under the surface, coupled with the catharsis of the economic-political change-over, bring
about explosive situations in the countries of the area.

The transformation fundamentally rearranges the political, economic, family conditions of
the country and the human relations behind them. The most important elements of the
transformation are

*    the democratization of society

*    the transformation of ownership relations and

*    the gaining ground of the market rules.

The essence of the democratic system is to create and guarantee equal social opportunity for the
masses. The economic requirements of private property differ from earlier ones. The profit
motive presupposes the assertion of cost sensitivity, the efficient use of resources, which
transform the structure of the revealing of internal reserves, among them of labour reserves,
and through the liquidation of superfluous tied-up resources, primarily those having a worse
than average labour -market position, e.g. married women with small children. The
structural transformation of the economy depending on the character of this transformation
reveals its effect through the concentration of branches and professions differing in respect of
gender.

The most important characteristic of the market economy is the gaining ground of market
competition. The conditions of the competitive market are - following from the nature of
the market - identical for women and men. The success, however, of the adjustment to the
conditions is, owing to the different endowments and social roles of gender, divergent. It can
be formulated as a hypothesis that the requirements of the market competition - owing to
the specific features of women's social position - are unfavourable for them. As regards a
successful commitment in market competition, women are in a more unfavourable position
than men. This fact will expectedly weaken their labour market position and may, for lack
of defense, further increase their disadvantages in the market.

     These hypotheses need to be justified. In this study I am trying to answer the questions of
how the transformation of property - and of economic structure Ğinfluence the  employment
possibilities for women. Further on, do the labour market positions of women change with
the new market requirements coming into prominence? And finally will the counter-forces
limiting the increase of the disadvantages of women come into motion?
     
1. Women on the labour market
     
     Both the quantitative and qualitative characteristics of the genders' presence in the labour
market are equally worth attention. The most important quantitative criteria are the level
and structure of employment and of unemployment. Information on the quality of their
presence is provided by the labour market position.
     
1.1. The development of female employment
     
     The number and structure of employed women have been determined by the
characteristics of economic development in Hungary. Parallel with the industrialization the
number of employed women continually increased from the decade before the turn of
century until 1980, when the tendency changed, and a fall in the number of active earner
women began (CSO,1991:32).
     
     The problem of women's employment is - in my opinion - not primarily a result of the
"high" employment level. The basic problems are the character of employment (the
inflexibility) and the unfavourable conditions (lack of the households' infrastructure which
should co-ordinate the paid labour and the family-household duties).
     
     Female employment is inflexible in Hungary in a double sense. The indispensable
necessity to have two salaries compels both men and women with families alike to the
labour market, irrespective of their individual circumstances, demands, possibilities and
aspirations. The employment is inflexible in the almost completely exclusive character of
full-time work, and also owing to the limited availability of part-time jobs. The example of
the developed market economic shows that the material constraint on women to take up
paid work is lower there because of the higher average salaries, and the various part-time
possibilities at the disposal of the individuals (both men and women).
     
     The change of the political-economic system puts the economy on an market-oriented
situation. Under the new circumstances the forces of the continuous expansion of
employment cease to exist, the labour demand of the economy decreases. But looking upon
the supply side, a heavy pressure weighs on the labour market owing to the insufficiency of
the financial conditions needed to provide for the family. This results in an extremely fast
rate of increasing unemployment.
     
     Unemployment following and worsening the change of the economic system increasingly
needs to play the role of keeping the labour market in equilibrium. The requirement to force
women back into the households begins to find expression. This means, however, no
solution in my view partly for the lack of material possibilities, partly for the absence of
women's demands. According to an earlier CSO survey, three-fourths of the women asked
would not stop paid work even if they could afford it (CSO, 1988:11). Paid work has been
built into the value system of most women, who do not wish to renounce the advantages
offered by it, mainly in view of the progress of schooling, especially at its higher levels. A
significant part of those agreeing with female employment (according to the survey quoted
above) more than four-fifths (CSO, 1988:11) would like to work in the various forms of
part-time employment, and making use of the possibility of working at home.
     
     The dissemination of part-time work requires specific conditions in Hungary - differing
from those in the developed market economies. In the countries of Northern and Eastern
Europe part-time employment, along with the expansion of schooling, was the decisive
channel of their appearance on the labour market for a significant part of women. The
positive effects of the change were unambiguous. The incomes of the family increased, the
sphere of the women and their relations expanded in every respect. Paid work offered the
possibilities for many women to realize themselves and to implement careers. The part-time
work created favourable possibilities to perform their family and household work, for the
harmonization of the two roles. Under the Hungarian situation the transition to part-time
employment means lesser or greater loss of incomes, given a lower earning level than in the
developed market economies. Therefore its introduction can be realized exclusive either by
partial or full compensation by State.
     
     It should not be overlooked either that a number of discriminative elements can also be
found in part-time employment. Lower than the average wages, limited promotion, less
employment security are the characteristics of part-time employment. When regulating
entitlements, the governments of the developed market economics - on the pressure of
international organizations - try to limit the discrimination, while they often come into
conflict with the trade unions, which defend primarily the interest of full-time employees. In
Hungarian circumstances the warding off of discrimination emerges with special emphasis.
Such well-considered measures are needed which eliminate, as far as possible, the
discriminative elements of the system, and what is more, the positive discrimination (the
stimulation of employment) also becomes transitorily necessary. The elaboration of concrete
alternative requires a research specifically organized for this purpose.
     
     The solution of the inflexibility of employment, the improvement of the labour-market
equilibrium are equally important for better living and labour conditions of individuals and
families. It is expedient to make possible the choice by creating, parallel with it the
conditions needed for choosing(!), together with the possibility of finding paid work and
with the shorter or longer engagement of doing household duties. It is also advisable to
realize in the various stages or career the change without any difficulty within the different
formes of employment (full-time or part-time) adjusted to the special needs. With the
spreading of part-time employment the danger will presumably also arise in our country
that part of those choosing part-time work will undertake part-time job not spontaneously,
but because they have no possibility for full-time job. This is a form of hidden
unemployment which afflicts primarily women. I think that part-time employment is used
as a remedy for unemployment, because,according to international experience, this did not
prove to be viable elsewhere either.
     
1.2. The development and characteristics of women's unemployment
     
     As a result of the decreasing labour demand of the economy, unemployment rose at an
extraordinarily fast rate in the years following the political and economic change. The
National Labour Center registered 23 thousand in January 1990, unemployed and 551 thousand
in August
1994, which, compared to the economically active population, means an
unemployment rate of 11,0%2 (NCL, 1991:3;1994:27-28).
     
     The proportion of women within the registered unemployed has been settled for 1991-92
(42%) in comparison with the earlier higher level. In August 1994 it was 43,0%
(NCL,1994:46). This ratio is below their proportion within the active earners(44,5%). 46,0%
of the registered unemployed looking for their first job, are women (NCL, 1994:68). The
feminization of unemployment does not appear yet in Hungary, as in the majority of the
developed market economies and other East-European countries where women
predominate within the unemployed.
     
      Of the number of long-term unemployed approached by those subsidized for more than
365 days, 35,9% were women in August 1994 (NCL, 1994:55). Women's under-representation
appears here, also their labour-market reintegration chance is somewhat better
than that of men. The causes however, can only be guessed. Women are likely to be more
inclined to accept also the less favourable conditions offered. Their participation in the back
economy's less expanded than of men, which also compels them to accept the job offered.
     
     It is manual (blue-collar) workers, both men and women, who are most threatened by
unemployment. Within this sector the chances of unskilled workers to become unemployed are
the
greatest. Within the general tendency, the differences between gender are not significant.
     
     Young people are most affected by unemployment everywhere in the world. In Hungary
16,5% of the active earners were below 25 years (CSO, 1994:79) and 28,8% that of the
registered unemployed (NCL, 1994:42). Young women are transitorily protected by taking
advantage of the maternity allowances, which plays a decisive role in the lower women's
unemployment rate, in comparison with that of men.
     
     39,7% of registered unemployed were given unemployment benefits between July 20 and
August 20, 1994. The difference between men (37,6%) and women (42,6%) is minimal to the
advantage of women (NCL, 1994:55). There is a significant difference between gender in the
average of the daily and monthly subsidies, which is the consequence of income differences.
While men's average gross subsidy per month is 11.805 forints, women get 89,8% of that
sum, between may 20 and June 20,1994. The difference among those subsidized for more
than 365 days is somewhat less for women (88,9%) (NCL, 1994:54-55).
     
 2. Women's labour-market position
     
     The labour-market position is jointly determined by the preconditions of entering the
labour-market, the chances of the improving the labour-market value judgement comes to be
expressed in the interrelated system of owing positions, of the wage and income conditions
as well as of the prestige of professions.
     
2.1. Women's chances of starting work
     
     The chances of women's (and men's) entering work are determined by their preparedness,
by the flexibility of their adjustments and by the demand of the workplaces. Women are at
a disadvantageous position in the labour market to find a job. The level of their professional
skills is below that of men. Owing to the double burden deriving from their social position,
they find it difficult to adjust to themselves to the requirements of workplaces. For these
reasons and for the deeply-rooted traditions, the workplaces dislike female labour, and thus
men are at an advantage in finding jobs. The disadvantages of women after the
regime-change deteriorated.
     
     Though the educational level of the female population has shown lately a significant
upward trend, their labour-market positions have not improved proportionately. 8,7% of
women above 25 years (11,8% of men) have higher education. 38,5% of female population
above 18 years (40,3% of men) has secondary and higher qualification (CSO, 1992b:21). In
the case of the younger generations the superior educational level of women is already
outstanding; 15,7% of the female population of 25-29 years (11,2% of men) have higher
education, nearly half of them (48,1%) (one third of men) have both secondary and higher
education (CSO, 1992b:70).
     
     As a final result of the improvement of schooling, of the demographic exchange taking
place in the meantime, the educational level of the female active earners already  exceeds
today that of men. 12,7% of women (11,9% of men) have higher education, while 43,9% of
women and hardly one-third (31,5%) of men have both secondary and higher education
(CSO, 1992b:33).
     
     From the advantages attained in the field of education the conclusion would logically
follow that the labour-market positions of women, together with their chances of
employment, have improved, and their earlier disadvantage related to men has lessened or
disappeared. Practice refutes these hypothesis, partly because the educational level is only
one component of the labour-market position. Even at a level identical with that of men, a
number of limits are put - resulting from women's social positions - to their interest-asserting possibilities and chances.
     
     A role is played in weaker women's labour-market positions in comparison with men,
also by the fact that the market does not primarily appreciate schooling, but rather
vocational skills, experience and practice, and ranks the skills and professions to the
women's disadvantage. At the highest educational level the structure of female schooling, its
concentration in some qualification, the preponderance of women in certain educational
institutions forces them into a disadvantages position in the labour-market completion. At
the medium level, the segregation of education and qualifications further complicates the
overall picture. A significant proportion of women finishes secondary schools not offering
qualification. In 1991 two-thirds of the pupils finishing secondary school were girls
(CSO,1992b:252). In secondary vocational schools the number of girls surpasses that of
boys (their ratio is 51,2% - CSO, 1992:151), which ensures the supply of feminized jobs.
One third of children studying in lower vocational schools are girls (CSO, 1992b:252) who
bunch in skills preparing primarily for feminized occupations. This spoils their chances to
enter jobs, and becomes an important factor of wage and incomes differences.
     
     The engagement readiness of the institutions organizations, owing to objective facts
connected with female labour and because of survive of subjective inducement, is weak,
which is a particularly characteristic phenomenon in the private sphere. The change in the
economic system reorganized the ownership relations of the economy, which finds its
reflection in the changing organizational structure. Between 1989 and 1992 the number of
organizations and the ratio of those employed in the private sector increased significantly.
The rise in the number of the private organizations is very spectacular: the number of the
economic societies of legal ownership increased between 1988 and March 1992 58 times,
and within them the number of the Ltd-s (limited liability companies) rose 105 times. The
number of individual entrepreneurs and that of the economic organizations of not legal
ownership increased 1,8 times (Colossi-Robert, 1992:125-126,128). The ratio of the
employees continuously increases in favour of the private sector. In 1989 14% of the active
earners and in April 1992 16% of them worked here (Colossi-Sik, 1992:512).
     
     In the private sphere the profit motive has a strong effect on the recruitment and selection
of the employees. According to indications this presumably the employment chances of
women in the jobs of the private sector of higher prestige and incomes. The lack of the equal
chance of women is proved by the feminization of the lowest paying state employees (74%
of the state-employees are women) as well as the masculine character of the sphere of
private ownership (67% of the owners are men) (Kolosi-Sik, 1992:519).
     
     Very few information is available on entrepreneurs and on their distribution by gender.
TARKI's (Association of Social Research and Information) survey made in 1991 concludes
that women's ratio within entrepreneurs is lower than their population ratio (Kolosi-Robert,
1992:43). From this it follows that women's contractor chances are weaker than men's. This is
confirmed by surveys made in 1988 and 1990, according to which out of the 1000 people
asked 32% of men and 15% of women would like to be entrepreneurs (Kolosi-Robert,
1992:39). According to the newest data 39% of entrepreneurs are women. Women are
present rather within the individuals entrepreneurs (41%) than within the joint
entrepreneurs (NLC, 1992:38).
     
     In the past three years foreign capital inflow has accelerated. While in 1987 13, in 1991
already 9117 enterprises of mixed ownership functioned in the country (Peto", 1992:128).
The labour-force selection of the mixed ownership enterprises is profit-oriented, which - in
my view - deteriorates women's labour- market positions.
     
2.2 Women's mobility chances in the labour-market
     
     The mobility chances of gander deteriorated after the regime change because of the
disadvantageous labour market situation. Beyond this fact women's mobility is weaker than
that of men. Owing to their greater home- and household duties and grater stability demand
also arising from their personality, women do not significantly improve their career by
steadily changing job. In addition to their objective barriers, their preferences differing from
those of man also impede their promotion. Women insist more on what they are used to
(workplace, collective) the attraction of the new tasks are less strong for them than for men.
They start moving only if the repulsing factors transgress the scale they are ready to accept.
In the case of men, attraction is more dominant. For higher wages and positions they easily
change their jobs. This international and Hungarian experience is also justified by TARKI's
latest survey, which finds that between 1989 and 1991 42-43% of men and 57-58% of
women did not change jobs (Kolosi-Robert, 1992:46).
     
     Women's vertical mobility their promotion and chances of becoming managers are also
more limited in the economic sphere then they are in the case of men. The employment
structure of women at all levels and in all spheres can be characterized by a pyramid. Most
of them are at the lower part of the pyramid in badly paid, monotonous jobs, without any
chance of promotion and in unfavourable conditions. In the world of blue-collar jobs the
majority of women are semi skilled or unskilled workers. While almost two-thirds of men
(62%) are skilled workers, the ratio of skilled women is only 30%. One fifth (22%) of the
skilled workers are women (CSO, 1992:84-87).
     
     Though women's ratio among managers rose in the past decade, their
under-representation in that field is still remarkable. In 1990 45% of men employed in
white-collar jobs were, in managerial positions an and only 15% of women (CSO,
1992:84-87). The majority of women are in lower leading positions, the pyramid principle is
also valid here. Top management continues to be without their presence. Female
discrimination in society and leadership appears to be most conspicuous at the top to the
power which became stronger after the regime change. Women themselves keep away from
the leading positions. Their majority - owing to their family and household obligations - are
not able and do not want to accept and realize the unlimited labour-time and energy
investment of the management position. As a result of innervations for thousands of years,
the open practicing of power does not play such an important role in their case than that of
men. The social division of roles has expected and still expects men to struggle for power,
while women - owing to the survival of the traditional practice of socialization process -
continue to successfully apply the refined methods of hidden power practice.
     
     Competitive spirit needed for successful promotion,the indispensable self-confidence and
the steady, aim-oriented career-building are unknown to the majority of women. In these
specificities a role is also played by the personality features of women, which are decisively
of a social origin, the reflections of social value judgement. Society certifies for women day
by day that they are less talented (promotional limitations), that they perform less valuable
work (wage and income differences). This injures women's self-respect, which finally finds
expression in the efficiency of their work, justifying and confirming the prejudices and their
justice.
     
     An excellent example of self-justifying prediction is this process asserting itself to the
detriment of women.
     
2.3.Segregation in the labour-market
     
     Sex segmentation of the labour market, its segregation by professions is an important
characteristic of the labour market. Most of the typical women's and men's professions are
closed, entering them for the other sex is limited. The professional mobility between the
segments is a strongly one-way process, women are moving towards the masculine careers,
the opposite one rarely occurs. This phenomenon creates and stabilizes the feminization of
the expanding number of professions. The cause of feminization is a counter-selective
mechanism, which finds expression in the prestige loss and the relative wage disadvantage
of the feminized jobs. This repels those having a better labour-market position,
i.e.men,giving a further push to the feminization of employment.
     
     The expansion of women's employment is accompanied in the long term by two opposed
tendencies. On the one hand, women take increasingly more reserved earlier for men
(masculine jobs) into possession, while on the other, as a result of their mass inflow,
steadily more professions come into prominence(feminized jobs). The scale of feminization
depends finally on when and which tendency with what force becomes dominate in female
employment (Koncz, 1987).
     
     The speed of feminization by sectors and economic branches continually decreased from
1891 to 1949 as women gradually penetrated into the spheres reserved previously for men.
After 1949 this tendency turned round and until 1990, following women's mass inflow, the
rate of feminization increased. Between 1980 and 1990 the masculine character of blue-collar
jobs and the femininity of the white-collar jobs became more pronounced. In 1990 62% of the
blue-collar jobs were masculine and 70% of the white-collar jobs were feminine professions.3
This tendency continued in the last years.
     
 2.4.Wage and income differences in the labour market
     
          Another well-known incidence of women's labour-market disadvantage is the wage
and income differences to the detriment of women, though their income positions have
improved in the past decades. With the advance of age the wage scissors opened as a
direct consequence of women's limited promotion.
     
     Wage and income differences can also be found in the developed market economies. In
Norway women earned in 1986 60% of men's income, while in Finland and Sweden women's
ratio was nearly 70%. The earning differences are smaller everywhere in the case of young
people (below 25 years old) (Ostenberg-Hedman, 1989:13). In Western Europe the data in
1988- also implying comparative problems - in the nonagricultural sectors are spread from
60% (Luxemburg) to 77% (the Netherlands) while in Japan women earn half of what men
receive (BIT, 1990:34). The extensive part-time employment also play a significant role in the
earning differences in the developed market economies.
     
     In our country women earned 71% of men's gross average income in 1990 (CSO, 1991:53)
which did not change to fate. The difference is explained partly by objective facts and is
partly the consequence of the persistently surviving discrimination, which is significant
primarily in the case of the non - or not easily measurable activities. Women do not perform
work of the same quantity as men, and rarely undertake overtime jobs. Their work also
differs from that of men "qualitatively", since women's vocational skills are less developed
than that of men. The lower position taken by women in the employment hierarchy also
plays a role in wage differences. All these are the various manifestations of the
disadvantage of women's social position: their double role, and what is more important,
their overburdening coming from the insufficiency or lack of social help needed for the
harmonization of those roles. This strongly hinders to undertake social activities in
intellectual jobs with their higher than average requirements, which lessens the efforts and
performance capability of the individuals.
     
     The difference, which cannot be explained by objective facts, is he consequence of the
traditional discrimination of women. As an indirect form of discrimination, the labour
market appreciates men's jobs, while it depreciates the work done by women. Open
discrimination cannot be explained by arguments, it is exclusively the consequence of
distinction by gender. It finds an especially good breeding ground if the measuring of
achievements and the results of the work done cannot or can only be soled with difficulty -
as is the case in a significant part of intellectual activities.
     
     In the years of the radical change of the political system the feminization of poverty also
came to light. As the publications of statistics and of the results of the various research
work give a by far not satisfactory picture of the role played by gender, our account set-up
of fragmentary mosaics cannot be satisfactory either. Rising inflation is a phenomenon 
accompanying the change of the economic system. In 1992 compared to 1988 the price index
of consumption rose by 259, 1% and real wages fell to 88,0% (CSO, 1993:13). It is a sign of 
accelerating poverty that between 1991 and 1992 the number of people living under the
minimum necessary for live increased by 30 to 50%. All this impose great burdens on
households and families. Especially serious became the situation of families with children: in
April 1992 one-third of families with 1 to 3 children and 43% of those with four or more
children lived below the minimum standard (Kolosi -Sik, 1992:527).
     
     Subsistence-minimum calculations (Kolosi-Sik, 1992:526-527) refer to it that the fall
below the subsistence minimum affects women more than men. The survey maintains that in
1992, 22,8% of the population above 16 years (27% of the total) and 39% of those who was
on maternity allowances (99,3% of them were women) was living below the subsistence
minimum (CSO, 1993:72). one third (32%) of the semi-skilled and unskilled workers are also
living below that level and more than half of them (52%) are women (CSO, 1993:84-87).
17% of the pensioners live in conditions below the subsistence level. It is commonly know
that among women below the subsistence level in even higher.
     
     In March 1993 almost one quarter (27,9%) of men pensioned (together with old-age and
invalid pensioners) and almost half (49,3%) of women received pensions less than 10.000
Fts. At the same time, 16,5% of men and 6,6% of women had a pension more than 20.000
Fts. (CSO, 1993:242). The pension differences reflect the earning differences of the active
period.
     
     The households reacted to their deteriorating position mainly by increasing domestic
work and decreasing consumption (Sik, 1992:183). These conditions react directly and also
indirectly to the position of women. As the organization of the household is usually left to
the women the spreading out of the decreasing income, the revival of the money-saving
house-keeping, the slowing down or the impossibility of the exchange of the household
machines and the difficulties of using the household services aggravate their work. The
undertaking surplus work of men increasing women's anyway serious burdens. Today it
exists only in the worsening social public opinion that the loads aggravating families and
surpassing many families capability of bearing them manifest themselves. The constant and
steadily increasing stress will find expression - in my opinion - in the near future in the
anyway poor present health condition of the population and in the worsening of the tragic
mortality rate, in the rise of alcohol and drug consumption as well as of suicides.
     
     
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