Population aging results not only from people living longer but also from steadily declining fertility rates. Countries worldwide are tackling this issue through strategies that include structural reforms of pension systems or initiatives aimed at modifying young people’s preferences with economic incentives to start families, as seen in South Korea.
Latin America is no stranger to this demographic shift. In 2023, the fertility rate in the region was 1.8 children per woman, down from 5.9 in 1960. These figures show a deep and lasting change, driven by factors like higher educational levels among women and greater access to contraceptive methods. However, this shift also brings new challenges that require rethinking social, economic, and care policies.
One of the most important—and often less discussed—aspects of this process is its differential impact on men and women. Women, in particular, face greater pressures and responsibilities due to their lower income levels and the care burden they bear throughout their lives.
What’s Behind Latin America’s Aging?
Population aging did not happen overnight. It is the result of two major demographic transitions that have shaped modern history.
- First, the decline in mortality and fertility rates, resulting from advances in public health and the industrialization processes.
- Second, a revolution in family models, driven by increased autonomy for women and new ways of living in society.
As a result of these transformations, the region has experienced a decline of 1.5 children per woman between 1990 and 2023. The decrease in fertility and aging population in Latin America is, in many ways, good news. On the other hand, these achievements also present challenges that societies must urgently address, such as the pressure on pension and healthcare systems.
Nevertheless, there is a more overlooked—but no less urgent—challenge: care. As the population ages, the need for assistance increases. These tasks often fall either on care-sector workers—frequently underpaid—or on close family members of older adults, most often women. Available data from Latin America show that women in the labor market shoulder up to 80% of caregiving work including care for older adults at home. Population aging compels us to rethink how care is provided and who bears that responsibility.
Aging as a Woman: Inequality that Builds Up Over Time
Throughout their lives, many women take on unpaid caregiving responsibilities— of children, older adults, or family members with disabilities—that limit their participation in the formal labor market. Data show that women spend three times as much time as men on caregiving tasks.
This unequal distribution and the lack of accessible and universal care systems force many women to reduce their working hours or even leave their jobs to provide care. This affects their well-being and economic autonomy in the present, and compromises their future:
- Fewer years of contributions
- Less access to pensions
- Greater economic dependence in old age
Moreover, many of the women who do manage to enter the labor market often do so under informal conditions, without social protection, leave entitlements, or job security, and often with low or no income. This is reflected in a 16.1 percentage point gap in employment quality, measured by formality and wages, between men and women.
While men tend to reach old age with more stable career paths and, therefore, higher pensions, women face greater vulnerability: 70.3% of women without a pension have incomes below the poverty line, and this reaches 42.6% among those receiving a non-contributory pension.
For women, aging often means facing precarious conditions —with unstable incomes and no institutional support networks— and compounded inequality, accumulated over an entire lifetime of caring for others without being cared for themselves.
What Are We Doing at the IBD?
All indications suggest that population aging and declining fertility will persist in the short term, making it imperative for countries to adapt to this new reality in order to mitigate its effects in a sustainable way.
The lack of accessible and universal care systems perpetuates inequalities, limits women’s career advancement, and undermines their well-being in later life, affecting a group that represents up to 11% of all women in Latin America and the Caribbean. Moreover, a more equitable distribution of care responsibilities can enhance economic growth for countries, and the region as a whole.
Understanding care as an inherent dimension of development agendas, the Inter-American Development Bank (IDB) has been promoting various initiatives to strengthen this fundamental pillar of social well-being. One of them is IDB Cares, a regional initiative aimed at strengthening care systems for dependent populations in Latin America and the Caribbean, with the goal of fostering economic growth and reducing inequality through innovative and evidence-based solutions. In addition, the IDB leads RedCUIDAR+, a regional network of public care policies that facilitates the exchange of experiences, lessons learned, and best practices among countries, to advance towards comprehensive care systems.
These are just two examples of the approach to care systems, including governance and financing, services, cultural change, data availability, regulations, training, quality standards, and support for caregivers—both paid and unpaid. These initiatives, summarized in this interactive menu, represent a crucial step toward recognizing care as a vital component of social and economic development. Making care visible, professionalizing it, and redistributing it are key to building a fairer, more inclusive, and more sustainable economy.
Do You Want to Know More About IDB´s Work in Care Systems?
Join us on October 28th in this virtual event: Who Cares? Building Sustainable Care Systems in Latin America and the Caribbean. Register here.
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