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The Economics of Violence Against Women

 

In the light of movements such as Me Too, violence against women (VAW) has been under the spotlight in recent years. But, despite an increase in conversations about it, there is still little evidence to support changes in policy.

Professor Sonia Bhalotra, from the Department of Economics, is working to uncover the impact and unexpected repercussions of violence against women, driving the argument for lasting change, both in the UK and internationally.

A quarter of all women in the UK have reported experiencing domestic violence, and the number of reported sexual harassment in the workplace is more than double, standing at 52%. On top of this, working women are further exposed as they commute to work; in the UK, stalking and harassment constitute a third of all police-recorded violence.

Unexpected repercussions

The repercussions of violence against women are vast. They do not only affect the individual but carry a significant impact to the economy and wider society.

At the individual level, VAW can cause distress, anxiety and depression with consequences for women’s health and work. At the economic level, it can cause a misallocation of talent, as women are less likely to enter and more likely to leave high-risk work environments. There is even some evidence from academia which indicates that men and women are less likely to collaborate at work since the Me Too movement.

Abuse and harassment can also impact bystanders who are not directly involved; children are commonly victims of domestic abuse. And, in the workplace, this behavior can lead to a toxic environment, with innocent, non-abusive men feeling misunderstood and misrepresented as a result.

The problem with policy

These alarming numbers and repercussions indicate that a change in policy is needed. But, it can be difficult to get it right. One example of this is the Prevention of Sexual Harassment (POSH) Act at Workplace India. It mandated firms to establish an internal complaints committee to encourage reporting with assurance of anonymity and redressal of workplace sexual harassment. The policy intended to improve the workplace environment, making it a safer place for women and, ultimately, increasing productivity.

However, the POSH policy misfired, and research revealed that it caused more firms to hire men instead of women. Those women who missed out were displaced into smaller organisations with lower wages and amenities and a higher proportion of men – therefore putting them at a higher risk of sexual harassment.

Whilst the policy intended to make a positive change, the results show that this type of legislation needs close monitoring to ensure it is robust, realistic and effective in its implementation.

A more proactive approach

Historically, policy around VAW has taken a reactive approach, but an increased focus on prevention could drastically improve the impact.

In order to implement an effective preventative approach, more understanding is required around the cause of domestic and workplace abuse. We need data not only on victims, but also potential victims.

Professor Bhalotra’s research seeks to bridge this gap, connecting data on VAW to relevant causal phenomena, and developing hypotheses for the causes or triggers for abuse. Scientific evaluation can reveal whether a policy works, but this is just the beginning. To implement real change, we also need to understand how it works or why it doesn’t, and take meaningful, continuous steps to improve based upon research.

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