Uzbekistan Quality Job Creation as a Cornerstone for Sustainable Economic Growth

 Macroeconomic Performance, Opportunities, and Challenges
21
Despite the decline in inequality, the elasticity of poverty reduction to GDP 
growth in Uzbekistan is relatively low, with a 1% increase in per capita GDP 
associated with a 0.5% decrease on average in the national poverty rate.
11
This 
elasticity of poverty reduction is less than the average for developing countries, 
consistent with the notion that the recent economic expansion has been by-
and-large jobless. But the best way for the poor to participate in the economy 
is through additional and better employment opportunities. The past policy of 
implicit subsidies to capital not only encouraged outward labor migration and 
hindered employment growth, but also put a break on poverty reduction. 
According to Ali and Zhuang (2007), three key initiatives are central to inclusive 
growth: creation of relatively high-productivity jobs, removal of discriminatory 
barriers to economic and social opportunities, and social protection including 
social insurance and welfare payments. The government needs to address all 
three areas, but (as argued in the previous section) employment creation will 
be critical. 
Another important aspect of inclusion and the removal of discriminatory 
barriers relates to gender equity. In terms of education, health, and social rights, 
few gender gaps exist. The main issue relates to economic empowerment. As 
a legacy of the Soviet system, women’s participation in the labor market is 
relatively high, with legal protections available such as maternity leave. Home-
based work is recognized formally and attracts pension and unemployment 
benefits. Nonetheless, the labor market suffers from both horizontal and 
vertical segregation in gender terms, with women overrepresented in fields 
such as education and health and underrepresented in the private sector, 
manufacturing, mining, and transport. Women are also underrepresented 
in all sectors at managerial and senior levels. This segregation creates an 
average wage gap of about 35% (ADB 2014). Full inclusion requires progress,