Gender Equality and Development: The Role of Legislation

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1 Gender Equality and Development: The Role of Legislation Mamta Murthi The World Bank Group 28 November 2013 THE WORLD BANK

2 Outline Gender gaps in Europe and Central Asia Gender and development Understanding the root causes of gender equality Framework Legislation and access to economic opportunities Labor laws Beyond labor laws Policy discussion

3 I. Gender gaps in ECA Small gaps in human capital endowments 8% Gaps in gross enrollment rates: male enrollment female enrollment The gender gap in education in ECA is minimal 4% 0% -4% EAP ECA EU LAC MNA SAS SSA World -8% Source: World Development Indicators, 2011 Primary Secondary

4 I. Gender gaps in ECA but significant and persistent gaps in access to economic opportunity 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 100% 80% 60% 40% Persistent employment segregation by sector Female Male Large gaps in participation rates 20% 0% Female Male Agriculture Industry Services Source: World Bank GenderStats, Notes: population 15+ Source: World Bank GenderStats, 2010.

5 II. Gender and development Gender equality matters for development in its own right Because of its impact on the wellbeing and prosperity of societies. Gender inequality Has economic costs Shortchanges the next generation Leads to institutions and policies that are unrepresentative

6 III. Framework for understanding gender equality How do we explain gender inequality Underlying causes of gender inequality policie s INFORMAL INSTITUTI ONS Gender Equality ECONOMIC OPPORTUNITIES MARKETS HOUSEHO LDS AGENCY ENDOWMENTS FORMAL INSTITUTIONS

7 IV. Labor laws Half of countries in the region impose restrictions on women s employment 1.6 billion women live in economies with restrictions on the types of jobs they can do

8 IV. Labor laws and restrictions are associated with lower labor force participation and access to jobs The average female labor force participation rate in economies with restrictions on the types of jobs women can do is 53% The average female labor force participation rate in economies without restrictions on the types of jobs women can do is 66% Source: Women, Business and the Law database, World Development Indicators database

9 IV. Labor laws An example: Russia Women are restricted from working in 456 different jobs As a results significant sector and occupational segregation in employment with women clustering in low productivity sectors This translates into lower earnings and ultimately a gender wage of 31% Education Education Health Health and social work and social work Wholesale and retail and trade; retail repairs trade; repairs Real estate, renting, and business activities Real estate, renting and business activities Manufacturing Manufacturin g Public administration and defence and defense Agriculture, hunting hunting, and forestry and forestry storage and communications Transport, storage, and communications Construction Sector segregation 0% 50% 100% *raw gender wage gap, 2010 Source: KILM 2008 Source: OECD employment database and RLMS

10 V. Beyond labor laws Non-labor legislation can also impact women s access to economic opportunities Length of paid parental leave (weeks) Length of paid maternity leave (weeks) Legislation does not specifically addresses domestic violence (% of countries) Non-pregnant and non-nursing women cannot do the same jobs as men (% of countries) Europe and Central Asia OECD Sons and daughters have equal inheritance rights to property (% of countries) Source: Women, Business, and the Law 2013

11 V. Beyond labor laws Gender neutral laws can be gender blind and legislation can have a transformative impact Gender Neutral During the 1990s, several countries including Finland, France, and Hungary, made it possible for parents to stay home with their children for up to three years. In both France and Norway, these policies have led to a significant reduction in maternal employment rates during the set leave periods. An OECD study also shows that the provision and gradual lengthening of paid leave have contributed to a widening in the gender pay gap of full-time employees. Transformative Policies that provide both paternity and maternity leave and make the former mandatory (as in Iceland, Norway, and Sweden) have the advantage of not being biased against women while also helping to shift the underlying norms about care. Source: Farre, Lidia. Critical literature review Source: World Development Report 2012

12 VI. Policy (Female) champions make a difference Effects are strong both in cross-country comparisons and in trends within In this study of 100 countries, effects on labor constraints countries over-time are strong both in cross-country comparisons and in trends within countries over-time Hallward-Driemeier, Hasan and Rusu, 2013

13 VI. Policy discussion What should we do to close the gaps? Focus on gaps that do not disappear with growth Target determinants of gender inequality (sometimes multiple e.g. employment segregation) Remember that gender neutral can be gender blind

14 VI. Policy discussion Specific policy areas to increase women s economic opportunities Formal Institutions Reform family and inheritance laws that restrict women s property rights and secure enforcement mechanisms Eliminate institutional barriers, e.g., reforming labor laws that treat men/women differently Households Provide affordable quality child care Promote flexible work arrangements: part-time, home-based work Informal Institutions Promote paternity leave to make parental leave a gender-neutral affair Markets Target discrimination in labor markets to increase women s participation in male occupations/sectors, and formal employment Expand of access to formal credit (beyond microfinance), combined with training

15 VI. Policy discussion What can the WBG do to support this process? Advancing global knowledge. This means: helping to fill major data gaps, which can help to link legal reform to positive economic outcomes for women Strengthening the evidence-base on what works, and what doesn t, to improve gender equality and women s empowerment in the world of work Production of public goods (e.g. the generation or dissemination of new knowledge) Facilitation of knowledge sharing and learning Channeling resources from rich countries to developing countries Support coordination across different national and international actors to promote adoption and enhance effectiveness of policies.