MENA Women in the EconomyRabat, December 8-9, 2005

(Conclusions)

Nadereh ChamlouSenior Advisor to the Chief Economist

Economic and Sector WorkThe Middle East and North Africa Region

Where are we today and…Where are we today and…

……what progress have we made?what progress have we made?

““We are not where we were…we are not where we want to be”We are not where we were…we are not where we want to be”Rumi – Masnavi (Book VI, 831-847)Rumi – Masnavi (Book VI, 831-847)

Extensive investment in social indicators…because of shortfall in empowerment

indicators

Women remain an untapped resource

Actual: predicted ratioActual: predicted ratio

Note: AFR4 = Cameroon, Ghana, Kenya and Senegal. EAP4 = Indonesia, Malaysia, the Philippines and Thailand; EAC2 = Hungary and Poland and LAC4 = Argentina, Brazil, Chile, and Mexico. Bahrain and Kuwait estimates are based on total female participation in the labor force (which includes foreign workers)Source: World Bank staff estimates

Ratio of Actual to Predicted Female Participation in MENA and Selected Countries and Regions, 1980 and 2000Ratio of Actual to Predicted Female Participation in MENA and Selected Countries and Regions, 1980 and 2000

Characteristics of women in the labor market

Female Unemployment Rates by Educational Level in MENA Countries, Various YearsFemale Unemployment Rates by Educational Level in MENA Countries, Various Years

women leave the labor force when married and with children.

Why? Differential Treatment under the Law

• Unequal rights and powers in the private sphere

• Unequal access to public sphere as interaction with state may be mediated through a male kin:

– Centrality of the family– Concept of male breadwinner – Concept of equity rather equality – defined roles– Code of modesty - “Protection” of women’s honor

The Effect of Differential Sex-based Treatment under the Law

Example: Implicit cost can function like a sex-based minimum wage

A minimum wage is imposed for men. This divides the labor market into two segments.

Employment in the Covered Market with decline --- employment in the Uncovered Market will rise (assuming that men and women are perfect substitutes.)

Upward sloping female labor supply curve raises wages – to minimum wage level.

Results in decline in employment and the use of other factors of production, such as capital and energy. Increase, causing a leftward shift of the demand curve for male labor (form D0 to D1).

Total employment declines.

Source: The Economics of Gender (Joyce Jacobson)

minimum wage

S S

E0 E1

W0

W

D1D0

employmentE1 E0E2

D1 D0

W0

W

employment

wage wage

Men (covered) Women (uncovered)

minimum wage

S S

E0 E1

W0

W

D1D0

employmentE1 E0E2

D1 D0

W0

W

employment

wage wage

Men (covered) Women (uncovered)

Female labor force participation and higher overall employment

Empirical evidence does not support the claim that women’s Empirical evidence does not support the claim that women’s increased labor force participation increases unemploymentincreased labor force participation increases unemployment

MENA’s low female labor force participation has a high cost to society as well as families.

The highest dependency ratio in the world.

Ratio of 2:1, compared with East Asia, where it is nearly 1:1.

What needs to be done – next steps

• Advocate that gender equality is not just for the sake of women.

• It promotes the welfare of families, advances growth of the economy, and benefits society in general.

• Integrate gender agenda into the ‘New Development Model’ for the region.

• Consistency between constitutional rights and legislation.• Regulation to create a level playing field for men and women in

the workplace. • Education enhancement to create marketable skills.• Investments in infrastructure to support women’s work and

family duties.

Paid family leave is a crucial vehicle for securing working parents time for caregiving, especially during children’s

earliest years. Paid leave also affects gender equality. Access to paid leave raises the probability that a new mother will have returned to employment one year

after childbirth, and it raises the probability that she will return to the same employer.

Paid Family Leave: Fully Paid Weeks Allowed, Following Birth

(includes: national social insurance programs, earnings-related benefits)compared to Female Activity Rate as % of Total Female Population

42 4237

29

16 16 14 12

50

74%

81%77%

71%

56%62% 63%

52%

67%70%

Norway Sweden Denmark Finland Netherlands France Germany Belgium UK USA

Paid Family Leave

Activity rate of total female population

Early childhood education and care (ECEC) programs help parents balance the demands of employment and parenthood; quality care

enhances child well-being. ECEC programs also affect gender equality. When care is unavailable, unaffordable, or of insufficient quality, many women

forgo employment.

Early Chaildhood Education and Care:Enrollment in Publicly-Provided or Publicly-Subsidized Careand Female Activity Rate as % of Total Female Population

42

20

74

48

37

5 2

1722

6

99 9990

82 78 77 7771

53

6670

52

62

77 8174

63

67

5671

children aged 1-2children aged 3-4-5Activity rate of total female population

Days and hours of supervised care

Framework for Implementation

Pillar Pillar (1): (1): Access to public resources – Access to public resources –

gender policies and budgetinggender policies and budgeting

Gender equality is an Gender equality is an integral part of good integral part of good

governance: governance: Inclusiveness: Inclusiveness: (women’s (women’s

participation and gender issues participation and gender issues in decision making)in decision making)

Accountability:Accountability: (provision of (provision of appropriate services to women)appropriate services to women)

• Gender-inclusive growth strategy Gender-inclusive growth strategy – economic policies have – economic policies have different impacts on men and different impacts on men and women women

• Gender as a criterion for Gender as a criterion for prioritizing policy and prioritizing policy and investment choices (“gender investment choices (“gender budgeting”)budgeting”)

• Gender-inclusive “mapping” of Gender-inclusive “mapping” of stakeholdersstakeholders

Pillar (2) : Pillar (2) : Access to wage employment Access to wage employment

and benefits and benefits

Pillar (3) : Pillar (3) : Access to asset creating Access to asset creating

opportunitiesopportunities

Key entry pointsKey entry points

• Reducing gender barriers in and Reducing gender barriers in and to labor markets to labor markets

• Providing gender equal Providing gender equal pensions, laws and regulationspensions, laws and regulations

• Actual and potential labor force Actual and potential labor force participation rates, unemploy- participation rates, unemploy- ment and underemployment, ment and underemployment, gender gaps in wages and gender gaps in wages and benefits, and horizontal and benefits, and horizontal and vertical job segregationvertical job segregation

• Reduce gender-specific barriers Reduce gender-specific barriers to business and wealth creation to business and wealth creation

• Promote opportunities for Promote opportunities for women’s women’s

• Participation in the private sector Participation in the private sector as entrepreneurs, producers, and as entrepreneurs, producers, and investors; investors;

• Ability to effect gender-Ability to effect gender-responsive decision making responsive decision making

Entry Point (1) : Gender and GovernanceWomen’s Access to Public Resources

Gender equality is an integral part of good governance:

Respecting everyone’s rights and

taking everyone’s needs into account.

Twin pillars of good governance:

Inclusiveness (women’s political participation)

Accountability (state leadership)

Gender-intelligent Policies and Gender Budgeting

Entry Point (2) : The Private SectorWomen’s Access to Employment and

Pensions

• Private Sector discriminates more against women than the public sector understanding the reasons and putting in place mitigating measures.

• Removing unnecessary gender-based protection and benefits creating a level playing field.

• Using the reform agenda to put into question gender-based status quo and laws

Entry Point (3) : Self-EmploymentWomen’s Access to Asset Creation

• Women’s friendly investment climate• Access to information• Access to finance at all scales, not just micro• Access to networks• Work/family balance• Improved infrastructure

Competitive Markets—Essential Conditions

• Efficient markets – when

…the ‘right’ product is produced ….

….at the ‘right’ price ….

… by the ‘right’ worker.

Efficiency of Markets depends:

• All agents have equal access and control over assets

• All agents have equal access to information• All agents have equal freedom to act on this

information• All agents face equal institutional incentives and

constraints – rules of the game

Efficiency of Markets depends:

• All agents have equal access and control over assets

• All agents have equal access to information• All agents have equal freedom to act on this

information• All agents face equal institutional incentives and

constraints – rules of the game

Gender and Efficient Markets

• The tenets of efficient markets is congruent to definition of gender equality:

– Equal Access to opportunity– Equal voice – Equal treatment under the law

Thank you