Report No. 50077-LB Lebanon Gender-Based Differences among Enterpreneurs and Workers in Lebanon December 7, 2009 Social and Economic Development Group Middle East and North Africa Region Document of the World Bank FOR OFFICIAL USE ONLY TABLE OF CONTENTS ACKNOWLEDGEMENTS ........................................................................................................................................................ v EXECUTIVE SUMMARY ....................................................................................................................................................... vii INTRODUCTION ........................................................................................................................................................................ 1 CHAPTER ONE: MALE AND FEMALE ENTREPRENEURS I THE LEBANESE PRIVATE SECTOR N .......... 5 . PARTIWHATARETHE DIFFERENCES BETWEENA FEMALE AND A MALE ENTREPRENEUR I LEBANON? N ......................... 5 DEFINITIONOF ENTREPRENEURS ...................................................................................................................................... 5 LEGAL STATUSAND OWNERSHIP .......................................................................................................................................... 6 CAPABILlTY OF BEINGAN E R~. u P ........................................................................................................................... 7 CONSTRANS FACEDBY FIRMOWNERS I THE INVESTMENTCLIMATEBASED N ONTHEIR GENDER ............................... 9 PART 1 . THE ROLE OF FEMALE ENTREPRENEW ON FEMALELABOR 1 FORCE PARTICIPATIONI THE PRIVATE SECTOR 11 N CHAPTER TWO: MALE AND FEMALE WORKERS I THE LEBANESE PRIVATE SECTOR N ........... 17 . PART 1 COMPARISONSBETWEEN FEMALEAND MALE EMPLOYEES I N THE PRIVATE SECTOR ........................................... 17 AGE AND EXPERIENCE......................................................................................................................................................... 17 MARITAL STATUS ................................................................................................................................................................ 18 EDUCATION.......................................................................................................................................................................... 18 TYPES OF JOBS ...................................................................................................................................................................... 19 EMPLOYMENTREGISTRATION AND PASTEMPLOYMENT HISTORY .................................................................................... 19 TRANSPORTATION TO woRK ............................................................................................................................................... 19 WORKING HOURS AND FLEXIBLE WORK TIME .................................................................................................................... 20 WORKERS REGISTRATION ................................................................................................................................................... 20 ABSENTEEISM...................................................................................................................................................................... 20 PART 1 . PATTERNS OF EMPLOYMENT 1 ACROSS SECTORS AND OCCUPATIONS ..................................................................... 22 EMPLOYMENT SECTOR .................................................................................................................................................. 22 BY AGE ...................................................................................................................................................................................... 22 MARITAL STATUS ................................................................................................................................................................ 23 EDUCATION.......................................................................................................................................................................... 24 EMPLOYMENTBY OCCUPATION ......................................................................................................................................... 24 1. PART 1 1 FACTORSTHATAFFECT WOMEN'SDEMAND FOR EMPLOVMENT ........................................................................ 26 CHAPTER TWO ANNEX METHOD~LCGY QUANllTATIVE ANALYSIS ...................................................................... FOR THE 31 CHAPTER THREE: WAGE DIFFERENTIALSBETWEEN FEMALE AND MALE EMPLOYEES IN THE PRIVATE SECTOR .................................................................................................................................................................. 33 . A DESCR~PTIVE RESULTS ................................................................................................................................................ 33 B. R G E SO E RSI N RESULTS ................................................................................................................................................. 35 C. THECONTRIBUTION OF THE DIFFERENT VAR~ABLES THE OBSERVED TO WAGEGAP ............................................ 36 C H A p m THREE ANNEX................................................................................................................................................................... 38 CHAPTER FOUR CONCLUSIONSAND POLICY RECOMMENDATIONS .......................................................... 41 A . CHALLENGES FACING FEMALE ENTREPRENEW ..................................................................................................... 41 B. THE SUPPLY OF FEMALE LABOR THEPWAE SECTOR ....................................................................................... IN 45 1 ANNEXES .................................................................................................................................................................................... 47 ANNEX: 1........................................................................................................................................................................... 49 ANNEX: 2 ........................................................................................................................................................................... 53 ANNEX: 3 ........................................................................................................................................................................... 57 ANNEX: 4 ........................................................................................................................................................................... 59 ANNEX: 5 ........................................................................................................................................................................... 47 REFERENCES ........................................................................................................................................................................... 97 FIGURES FIGURE 1: PERCENTAGE LEAVE REQUESTSDENIED BY GENDER OF THE EMPLOYEE ............................................................... OF FIGURE 2: FEMALE EMPLOYMENT BY SECTOR AND AGE .............................................................................................. FIGURE 1.1:PARTICIPATION OF ENTREPRENEURS BY GENDER OF FIRM OWNER ......................................................... FIGURE1.2: REASONS FOR BEING INVOLVEDINTHE CURRENT BUSINESS .................................................................................... 8 FIGURE 1.3 (A, B): ENTREPRENEURS PLANS TO EXPAND THE BUSINESS, BY GENDER ....... ................................................... 8 FIGURE 1.4: PERCENTAGE OF ENTREPRENEURS PERCEIVING SELECTED CONSTRAINTS AS T A PROBLEM, BY GENDER .......9 FIGURE1.5: ACCESS TO FINANCE AND SOURCE OF FINANCE BY GFlVDER........................................................... FIGURE 1.6: WOMEN ON THE BOARD OF COMPANIES BY GENDER .............................................................................................. 11 FIGURE 1.7: ADVANTAGES DISADVANTAGES OF HIRINGWOMEN AS REPORTEDBY ENTREPRENEURS............................. AND 12 FIGURE 1.8: SERVICES PROVIDEDTO THE EMPLOYEES AS REPORTEDBY THE FIRM OWNERS.................................................... 13 FIGURE 1.9: PERCENTAGE OF FEMALE EMPLOYEES' LEAVE REQUEST APPROVED BY GENDER OF THE OWNER OF THE FIRM..13 FIGURE1.10: PERCENTAGE OF LEAVE REQUESTSDENIED BY GENDER OF THE EMPLOYEE........................................................ 14 FIGURE 1.11: DIFFERENCE N I THE PERCENTAGE OF LEAVE REQUESTS DENIED BETWEEN FEMALEAND MALE EMPLOYEES BY THE GENDER OF THE FIRM OWNER ................................................................................................................. 15 FIGURE 2.1 : PERCENTAGE DISTRIBUTION WORKERS B Y AGE AND GFl\IDER .......................................................................... OF 17 FIGURE 2.2: DISTRIBUTION WORKERS BY MARITAL STATUS AND GENDER ........................................................................... OF 18 FIGURE 2.3: EDUCATION WORKERS BY GENDER AND A T ..................................................................................................... OF CE 18 FIGURE2.4: JOBTYPES ................................................................................................................................................................. 19 FIGURE 2.5: MEANS TRANSPORTATION TO WORKBY GENDER .............................................................................................. OF 20 FIGURE 2.6: AVAILABILITY OF FLEXIBLEWORKING HOURS FOR DIFFERENT GROUPS ............................................................... 20 FIGURE 2.7: NUMBER TIMES A WORKER I S ABSENT FROM WORK LAST YEAR AND LAST MONTH BY GENDER OF THE OF EMPLOYEEAND OWNER OF THE FIRM ................................................................................................................... 21 FIGURE 2.8: REASONS MENTIONED FIRST BY WORKERS FOR ABSENCE FROM WORK OVER THE PAST YEAR BY GENDER ........ 21 FIGURE2.9: TOTAL EMPLOYMENTBY SECTOR ........... .................................................................................................. 22 FIGURE 2.10: INDEXOF SECTORAL DISSIMILARKY BE EMALE AND MALE EMPLOYEES BY AGE .................................. 23 FIGURE 2.1 1: PERCENTAGE OF WOMEN EMPLOYED BY AGE AND SECTOR ................................................................................. 23 FIGURE2.12: PERCENTAGE OF WOMEN EMPLOYEDBY SECTOR & MARlTAL STATUS ................................................................ 24 FIGURE 2.13: INDEX OF OCCUPATIONAL DISSIMILARITY BEITWEN FEMALE AND MALE EMPLOYEES BY AGE, MARITAL STATUS, AND EDUCATION ...................................................................................................................................... 25 FIGURE 2.14: FACTORS AFFECTTHEDECISION TO WORKORTO STAY AT THE CURRENTJOB.......................................... 26 THAT FIGURE 2.15: FEMALE &MALE EMPLOYEES WHO MENTIONED VARIOUS FACTORS AFFECTING THEIR DECISIONTO WORK ....26 FIGURE 2.16: AVERAGE RANK OF FACTORS BY GFl\TDER ............................................................................................................. 27 FIGURE 2.17: REASONS FOR JOB SATISFACTIONOR DISSATISFACTION........................................ ................................. 28 FIGURE 2.18 : PERCENTAGE OF EMPLOYEESDISSATISFIEDWITH THEIR WORK BY GENDER AND FIGURE 2.19: REACTIONOF FEMALE AND MALE EMPLOYEES TO THE LABOR LAW................................... FIGURE 3.1: GENDER WAGE DIFFERENTIALBY SECTOR AND OCCUPATION................................................................................ 34 FIGURE3.2: MALE-FEMALEWAGE GAP BY AGE, MARlTAL STATUS, AND EDUCATION.............................................................. 34 FIGURE 3.3: SUMMARY OF THE GENDER WAGE GAP DECOMPOS~ION ........................................................................................ 35 FIGURE3.4: DECOMPOSII~ON GENDER WAGE GAP .......................................................................................................... 36 OF THE FIGURE 4.1 : FEMALEENTREPRENEIJRSHIPAND FEMALE UNEMPLOYMENT EASE DOING BUSINESS ............... OF ......43 TABLES TABLE1: SURVEY DATA ENTREPRENEURS . ............................................................................................................................... vii ... TABLE 2: SURVEY DATA WORKERS ......................................................................................................................................... vlll - TABLE 4.1: ENTREPRENEURS PERCEPTION OF OBSTACLES AFTER THE WAR .............................................................................. 42 .. 11 TABLE4.2: AREAS THE LABOR LAW THAT DISCRIMINATEAGAINST WOMEN ........................................................................ IN 46 TABLE A.1: DISTRIBUTION FIRMS SAMPLEDBY SECTOR. SIZE AND GENDER OF O OF ~ ...................................................... R 51 TABLE A.2: DISTRBLITION SAMPLEDEMPLOYEESBY SECTOR, SIZE AND GENDER OF THE EMPLOYEE ............................... OF 51 TABLE A.3 : WEIGHTS OF SECTORS............................................................................................................................................... 52 TABLE A.4: WEIGHTS OF WORKERS ............................................................................................................................................ 52 BOXES BOX 4.1 :KAFALAT LOAN GUARANTEES SMES .................................................................................................................. FOR 44 MAP. LEBANON 33433 IBRD .................................................................................................................................................... 99 ... 111 iv ACKNOWLEDGEMENTS This report was produced under the guidance o f Farrukh Iqbal Sector Manager (MNSED) by a team consisting o f Randa Akeel, Team Leader (TL) Economist (MNSED), Abay Asfaw Getahun Consultant, Silvia Muzi ETC (MNACE), and Ramadan Hamed Mohammad Consultant (The American University o f Cairo Department o f Statistics). Preparatory research and consultation support was provided by Francesca Lamanna Social Protection Economist (LCSHS), and Talajeh Livani ETC (MNSED). The team would like to acknowledge the contribution o f Nadereh Chamlou Senior Advisor (MNACE) at the initiation o f the report and o f INFOPRO with regards to the implementation o f the two surveys in particular Jennifer Abu-Mrad, the Project Manager. This report was peer reviewed internally by Andrew Stone Lead Private Sector Development Specialist (MNSED), John Speakman Lead Private Sector Development Specialist (SASFP), and Thomas Jacobs Program Manager, Leasing & Credit Bureaus (IFC). Other review comments and valuable feedback and support were received from: Demba Ba, Zeina El-Khalil, Sebnem Akkaya, Mark Blackden, Julia Brickell, Mayra Buvinic, Fatou Fall, Laila Al-Hamad and Mona Ziade. Nada Abou Rizk, Krisztina Mazo and Angela Hawkins provided team assistance. The team would like to extend its thanks to the Ministry o f Education, Ministry o f Finance, Ministry o f Social Affairs and Ministry o f Economy and Trade for providing feedback and comments on the report. The team i s also grateful to several individuals in the private sector, academia, civil society and various international organizations in Lebanon who contributed to the concept design o f the report and provided valuable information and consultations throughout i t s preparation in particular: Professor Mona Khalaf (Lebanese American University), Mrs. Hanan Saab (Founder and President o f the Lebanese League for Women in Business), Mrs. Lamia Osseiran (Lebanese Council for Women), and Dr. Josiane Sreih (Director Institute o f Family and Entrepreneurial Business, Lebanese American University). Thanks are also owed to Lina Abou -Habib (Executive Director CRTDA), Randa Abousleiman Baladi (Chief Lawyer, Abousleiman & Partners, Law OEce), R a m i A1 Hafez (InfoPro), Hazar Caracalla (Economic Team o f MP Saad Hariri), Judge Arlette Jreisatti, Abla Kadi (Lebanese Council for Women), Leila Karami (President - Lebanese Business Women Association), Elie Boujaoude and Pierre Madani (Kafalat), Fadoi Mansour (Les Associations des Banques du Liban), and Chadia El Meouchi (Managing Partner, Badri and Salim El Meouchi Law firm). From the private sector thanks are extended to Ms.Maya Karanouh, Rima Beydoun, Dima Al-Husseini, Joumana Klat-Ayoub, Leila Obeid, Mariam Chahine, Nawal Mudallali, Sawsan Wazzan-Jabri, and Mounir Tabbara. V vi EXECUTWE SUMMARY i. Are there signifcant differences between the perceptions and labor market experiences o f male and female entrepreneurs and workers in Lebanon? Are such differences important to the optimal deployment o females in the workforce? This report approaches these issues empirically f through two surveys conducted in 2007.' The first was a survey o f 235 formal sector firms2 (109 female owned and 126 male owned) and the second, a survey o f 615 workers (342 females and 273 males). ii. Careful attention waspaid to sampling and definitions to get reliable results. The samples for both surveys were stratified by sector o f activity3 and firm size4 (defined by number o f employees). Sample sizes were large enough to allow for statistically rigorous comparison between the t w o gender groups. Also, attention was paid to ensure that the definition o f entrepreneur captured those n who are operationally active in the management o f their companies. I some earlier surveys, share ownership was used t o define entrepreneurs. T h i s can mislead since some businesses are registered under the name o f female owners who have no active role in company management. MAIN FINDINGS Entrepreneurs The survey o f entrepreneurs revealed the following key findings (see Table 1): Table 1: Survey Data - Entrepreneurs Proportion of workforce that is female (YO) 47 34 Proportion of firms offering family health insurance (%) 50 37 Maternity leave requests of female workers approved (%) 80 72 Annual leave requests of female workers rejected (YO) 0.53 6 Annual leave requests of male workers rejected (%) 0.1 0.5 Firm owners who consider female workers to be more skilledlproductive than male workers (YO) 40 32 Proportion of firms with 20% - 50% of Board members female 73 36 Firms with access to a bank loan to finance capital or operations (%) 48 64 'While the survey was held nationwide, most of the substantiveresponses came f7om the Greater Beirut area. Two thirds of business activities in Lebanontake place inthe Greater Beirut area *Although weights were developedto achieve populationrepresentation,it should be notedthat the firm samples do not provide a statisticalincidence of female entrepreneurship inthe Lebanese private sector per se, however, given the small number of female entrepreneursand employers in Lebanonas shown by other sources it can somewhat reflect the situationon the ground - Annex 1 (of the main report) provides a detailedbreakdown and explanation of the sampling and the data and to what extent it reflectsthe population. Manufacturing, trade, services, construction, IT, and hotel & restaurants. +, I Small ( >=5, < medium (20-99), Large (100 and over). vii a. Female entrepreneursprovide greater employment Opportunities to other females than do male entrepreneurs. On average 47 percent o f the labor force in female owned enterprises was composed o f women compared t o 34 percent in male owned enterprises. b. Women entrepreneursprovide better treatment to workers and are especially sensitive to the needs o female employees. The survey data show that 50 percent o f female-owned firms f offered family health insurance coverage t o workers compared to 37 percent o f male-owned firms. Eighty percent o f female employees were given maternity leave upon request in female-owned f i r m s compared to 72 percent in male-owned firms. Finally, in male owned f i r m s more than 6 percent o f female employees' requests for annual leave were rejected compared to less than 0.5 percent o f such requests by male employees. However, in female owned f i r m s only 0.53 o f annual leaves submitted by women and 0.1 percent submitted by male employees were denied5. C. Female entrepreneurs have a better perception o female workers: 40 percent consider f female employees as more skilledproductive compared to 32 percent o f male entrepreneurs. d. Female entrepreneursprovide greater professional opportunities other females than do for male entrepreneurs. Seventy-three percent o f female owned f i r m s had Boards with 20-50% female members as compared t o only 36 percent o f male owned firms. e. Female entrepreneurs are more sensitive to financial and regulatory constraints. They listed such constraints higher among investment climate challenges than did male counterparts. T h i s may be related to their differential access to finance. Sixty four percent o f male entrepreneurs who financed their capital or operations had access to a bank loan compared to only 48 percent o f female entrepreneurs. Workers The survey o f workers revealed the following k e y findings as shown in Table 2: - Table 2: Survey Data Workers Pede m i Workers who have completed college education or above (YO) 65 46 Number of days absent With small children (under age 7) 10 5 Without small children (under age 7) 5 5 Leave requests (Annual, sick and other) - YO With small children (under age 7 ) 69 65 Without small children (under age 7) 65 65 7 Rejection of all leave requests (Annual, sick, and other) - YO With small children (under age 7) 0.55 0 Without small children (under age 7) 5.35 0.82 Rejection of all leave request (Annual, sick, and other) - 90 Never married 5 0.46 Married 4 0.78 The data also shows that women with young children (less t a 7 years o f age) ask for more leave than all other groups, however, hn neither these women, or their male counterparts with young children have hadtheir requests for annual or other leave re-jected(sick leave i s an exception where more women with children t a men face rejection). Those facing the highest rejections to their leave requests hn (annual, sick, and other) are *omen without children. ... Vlll a. Female workers are Figure 1: Percentage of leave requests denied by gender of the employee . _ I _ ^ ^ -. . . - - better educated than male __ - - workers. Sixty five percent o f female workers have completed college education or above compared to 46 percent for males. b. Female workers tend to be single and younger. The average age o f female workers i s 31 years, while Other leave Annual leave Sick leave that o f male workers i s 35. female * male Among female workers 68 percent are single and 29 percent are married. The corresponding numbers among male workers are 47 percent and 51 percent. C. Female workers face more challenging working conditions than do male workers in some respects. A female employee's request for leave for unexpected travel or hneral attendance i s five times more likely to be rejected compared to the same request by a male employee. The rejection rate for sick leave requests by female workers i s 11 times higher than that for male workers (Figure 1). A closer look at the data shows that "leave discrimination" occurs mostly for un-married females without small children. Leave rejection rates for female and male workers with small children are practically non-existent and almost the same (0.55 percent versus 0 percent respectively). d. The degree o sector f Figure 2: Female employment by sector and age segregation among 120 women has declined 0 IT over time. Thus, while 100 older women (between 0 Hotel & restaurant 51 and 70 years o f age) a, 80 are heavily M rn Construction m .v C concentrated in the a, 60 Y , Commerce , manufacturing sector, a, Q younger women tend 40 Service to be more evenly 20 e Man. spread across the main sectors o f economic 0 activity (see Figure 2). 18-30 31-40 41-50 51-70 e. Female workers Age in years emphasize non-wage factors more than male workers in their decision to work. Although income stability and high position are relevant to both female and male workers, non-wage conditions are especially important for women. When asked to prioritize female workers stressed availability o f flexible work, ix proximity to the home, n o child at home, and availability o f nurseries while male workers listed monetary factors such as fixed salary, benefits, and availability o f social security (NSSF) coverage. f. Female workers face wage discrimination. Nearly 27 percent o f the wage difference6 between male and female employees i s shown by statistical analysis to be plausibly attributable to discrimination. Wage gaps exist even within the same sector and occupation even after controlling for different levels o f education'. g. However, wage discrimination varies by age and is non-existent for younger female workers. The survey data show that the gender wage gap does not exist for younger workers (under 30 years o f age) while at the same time women are just as likely as men to get promotions. REMARKS CONCLUDING iii. The findings o this report show that compared to males, female entrepreneurs tend to f hire more women and to provide better working conditions to them (as well as to male workers). Thus making it easier for more women to become entrepreneurs should make a positive contribution both t o female labor force participation and t o working conditions in the country. Public policy should focus in particular o n t w o key constraints that female entrepreneurs face: access to finance and complex regulations. iv. Loan guarantee schemes for small businesses such as the one offered by Kafalat in Lebanon can be an effective mechanism to ease access to financing for SMEs. Setting up such a program that focuses on supporting female entrepreneurs could be explored. Similarly loan guarantee programs for individual loans such as those offered to students could be structured to support women wanting to pursue private sector related initiatives. With regards to reducing regulatory proceedings some countries have set up service centers (usually at the Chamber o f Commerce) that provide assistance in navigating all regulatory processes and agencies. Locating these centers within officially recognized and high profile associations such as the Chamber o f Commerce would allow investors options other than resorting to unmonitored or unlicensed agencies and individuals where there i s a high risk o f not getting the fidl process done. V. I n terms o areas for further research, a gender based analysis o financing could f f highlight the ways by which women face these issues differently than men. In the Lebanese banking system, loans are highly collateralized and typically provided under an individual's name than to a company. Women are less likely than men to own assets or to have assets registered in their name (such as land or housing) which can inhibit their ability to borrow. vi. f The findings o this report also show that some categories o female workers (such as f single women) find it more difficult to get leave for various reasons. Married women (especially those with children) appear t o struggle in maintaining the same level o f work commitment compared to those not married, exhibiting high absenteeism and leave requests. In addition, the l o w level o f Data i s for wages only hence this does not refer to earnings. 'Differences in working hours: variables such as sex, age, and marital status affect the number o f working hours. After controlling for these variables, there appeared no statistically significant difference in the number o f working hours between female and male employees. X married female workers in the sample suggests that more women choose not to participate in the labor force when married. To support work for women with children government could support initiatives for childcare such as extending the school day, early childhood education, after school programs and publicize preschools in poor and needy areas. Specific important services are nurseries8, training o f nannies, and transportation including child transportation. In addition, revisions to the labor law should focus o n facilitating flexible and part-time employment regulations and conditions. vii. The above findings pertain to formal sectorfirms. It would be useful to complement these with a survey o f the gender characteristics o f the informal and micro enterprise sectors as well. Ninety percent o f Lebanese f i r m s are in the informal sector and are micro enterprises in size and nature. * Regarding opening of childcare centers in the work place care must be taken to ensure that this does not become a burden on private companies in a way that would drive them to discriminate further in their hiring o f women. Examples kom certain countries where companies were requiredto open a childcare facility based on a specific (minimum) number o f female workers with children showed that employers would limit their hiring o f women to below the minimum stated to avoid having to set a childcare center at their expense. Best practices relatedto supporting childcare centers at work include making it a requirement based on a certain number o f total employees (male and female) hence not tying it to women only and at the same time providing equal benefit to male employees with children to have a childcare center. Other best practiceexamples include facilitating the growth o f the private sector childcare industry and public-private partnerships to develop joint childcare centers in work communities rather than making it a sole burden on private sector firms. xi xii INTRODUCTION BACKGROUND COUNTRY 1. f Lebanon has faced a continuous series o economic setbacks fueled by mounting political uncertainties and war over the decades. The recent global financial crisis compounded the levels o f uncertainty and anxiety facing households with regards to their future security. The need for earned income and employment i s therefore higher than ever and an increasing number o f women are entering the labor market as a means o f generating additional income for themselves and their families. 2. Women in Lebanon enjoy high social indicators both in education and health. The female to male ratios in secondary and tertiary enrollment are 110 and 116 percent respectively'. However, women's participation in the economy whether in the labor market or private sector investment i s relatively low, especially when compared to their female counterparts in other similar middle income countries. Female labor force participation in Lebanon i s 3 7 percent compared to 84 percent for men" and according to the Lebanese National Survey o f Household Living Condition (2004) - which includes information o n 20,000 individuals across Lebanon - female employers account for only 1 percent o f total economically active females compared to almost 7 percent o f males who are '. categorized as employers' There are some clear indications that women business owners contribute positively to private sector employment in addition to investmentI2. However, there remain limited availability o f in depth information about women entrepreneurs and the dimensions that male and female entrepreneurs play on private sector employment, particularly for women. OBJECTIVE 3. f Given the important role o the Lebanese private sector in job creation combined with an interest to increase income earning opportunities for women, this report seeks to explore the working environment for females and the conditions as well as, barriers that women entrepreneurs face in the business and investment environment. All the analyses will be gender based comparing male and female indicators. 4. The analyses will examine the hypothesis that women entrepreneurs contribute more positively than male entrepreneurs to female employment in Lebanon and that women in general do not operate at a level playing jield as the men in the private sector. The report will suggest recommendations that would help address the barriers faced at a higher level by female World Bank database. IO Female labor force participationin Argentina i s 62%, in Croatia it i s 58%, and in Malaysia it i s 49%. In Turkey it i s 29%. 11 The National Household survey also shows that self employed females (both with and without assistance fiom other household members) are about 11% comparedto more than 33% of self employed males. See "Women's Entrepreneurship in the Middle East and North Africa", The World Bank, 2008. 1 entrepreneurs, as well as, improve the working environment for women in view o f the factors that affect their demand for employment in the private sector. 5. For this purpose the specijk objectives will be to: 0 Determine what constitutes a female entrepreneur and a male entrepreneur in Lebanon and highlight their role (by gender) to factors related to the supply o f employment particularly for women; 0 Highlight the different characteristics and working conditions faced by female and male workers in the private sector including factors that influence the demand o f women for private sector jobs; 0 Identify the barriers perceived in the business environment by female and male entrepreneurs; and 0 Determine any particular challenges that are faced by women workers based on institutional and regulatory environment in the private sector. SCOPE 6. f The scope o the report is on employment and entrepreneurship in the private sector and does not includepublic sector employment. The prevailing trend i s that women are generally drawn to the security and favorable benefits offered in public sector jobs however, Lebanon relies heavily n on a dynamic private sector for economic growth and employment creation. L the competitive environment o f the private sector more women than men find it difficult to break through and attain the same level o f opportunities. Hence, after consultations with stakeholders it was decided to focus the scope o f the study o n the barriers that women face in the private sector compared to those faced by men and to provide recommendations that would address challenges faced by women in this sector. AUDIENCE 7. This report is intendedfor stakeholders and decision makers who can make policy, legal and structural changes necessay to achieve equal employment and investment opportunities in the private sector in Lebanon. It would include the Ministries of: Education and Higher Education; Finance; Social Affairs; Labor; and Economy and Trade. The judiciary, Parliament, the Chamber o f Commerce, associations, banks, and the private sector are also amongst the target group as they can have strong influence o n policy making and initiating reforms. Similarly, civil society organizations and NGOs can use the information provided in this report to support their advocacy and awareness campaigns to promote gender equality; other development and international organizations (including the World Bank Group) and donors will have an instrument that would inform and guide them in addressing gender inequalities in the formulation o f their assistance and aid programs for Lebanon. 2 DATA METHODOLOGY AND 8. Two surveys were conducted in 2007 specijlcally for this analysis covering the Greater Beirut areal3. Thefirst was a survey o 235 formal sectorprms (109 female owned and 126 male f owned) with similar levels o engagement and participation in the management o their business f f (Le they were all engaged and were active business owners). The second survey was conducted o n a sample o f 615 workers (342 females and 273 males). The selection o f the samples for both surveys was stratified at two levels: sector o f activity14 and firm size15 (defined by number o f employees). The sample selections were designed so as to allow for an un-biased comparison to the extent possible between each o f the gender groups and provide clear answers o n whether each group faces similar challenges or behaves differently based o n gender. Although weights were developed to achieve population representation, it should be noted that the study does not provide information about the incidence o f female entrepreneurship in the Lebanese private sector per se, rather for the purpose o f this analysis two non random sample groups o f male and female entrepreneurs each were selected t o highlight the gender dimensions ". 9. The analysis examines data from both the workers survey and thefirm survey. The workers survey includes detailed information o n the characteristics o f workers and on their familyhousehold background. When combined with the corresponding firm data it allows for a comprehensive examination o f gender disparities from the perspective o f the employees, the household, and the employers. 10. The methodology for analyzing the data involves looking at descriptive statistics to highlight the characteristics and differences between male and female entrepreneurs and workers. The analyses o f the employee data uses diagnostics using the index o f dissimilarity (ID) to determine the underlying factors for any disparities in sector and occupational segregation. The Mincerian wage regression and the Oaxaca-Blinder mean wage gap decomposition method, examine the level o f wage differentials between female and male employees and the impact o f endowments and discrimination o n observed wage gaps. 11. Chapter one covers the characteristics o female and male entrepreneurs including f differences in their treatment o male and female employees, and highlights their observed f constraints in the investment climate The differential characteristics between female and male business owners are determined in terms of: ownership status, entrepreneurial ability, h o w they started their business, the extent and source o f financing used, and structure o f the company Board (familyhon-family partnership). Differences in the treatment o f workers looks at the different work leaves granted and benefits offered by firm owners according to their gender. The last part looks at the constraints faced in the investment climate as reported by the firm owner and makes a gender based comparison. f 12. Chapter two focuses on the workers and their characteristics in terms o age, experience, education, skills, and marital status. I t examines the different work patterns o workers and f 13 While the survey was held nationwide, most o f the substantive responses came from the Greater Beirut area. Two thirds o f business activities in Lebanon take place in the Greater Beirut area. 14 Manufacturing, trade, services, construction, IT, and hotel & restaurants. 15 Small ( >=5, <=9), medium (20-99), Large (100 and over). 16 Annex 1 provides a detailed breakdown and explanation o f the sampling and the data. 3 identifies the distribution o male and female employment across sectors and occupations to f understand the dimensions o sex segregation in private sector employment. Factors that influence f the demand o f women for labor participation will be examined by looking at the various aspects in employment that women value compared to men such as benefits, flexible work arrangement, transportation, childcare etc. 13. f f Chapter three quantifies the level o the gender gap and identifies its sources in view o the different demographic characteristics o the worker. Chapter four lays down the conclusions, f examines the related policy and regulatory environment, and provides recommendations. Detailed data and supporting research are attached in the Annexes. 4 CHAPTER ONE: MALE AND FEMALE I N THE LEBANESE ENTREPRENEURS PRIVATE SECTOR __ - _ - This chapter examines the data from the firm survey that was conducted for this report. I t is divided into three parts. The first part highlights the different characteristics o f male and female entrepreneurs, and highlights the constraints in the investment climate that they face. Part t w o examines the role that female entrepreneurs play o n female employment as compared to male entrepreneurs. WHAT ARE THE DIFFERENCES PART I. BETWEEN A FEMALE A M A L E ENTREPRENEUR AND IN LEBANON? Definition of Entrepreneurship: 1.1. I n the theoretical and empirical literature, there is a proliferation o definitions and f taxonomies o entrepreneurship and entrepreneurs. In the early theories, entrepreneurs are defined f as those individuals that earn uncertain profits from the difference between a known buying price and an uncertain selling price bearing the risk (Cantillon, 1755). Stressing the relevance o f the entrepreneurial ability as having good judgment, Say (1767-1 832) identified entrepreneurs more with the managers than with the owners o f capital or firms. Later theories defined the entrepreneurs as residual claimant optimizing agents continuously seeking for opportunities to minimize costs (Marshall, 1964) or as innovators who move the system out o f the static equilibrium by creating new products or production methods (Schumpeter, 1949) and assume the consequences o f uncertainty related to those events (Knight, 1942). Recent theories highlight the presence o f enterprising skills (Shane and Venkataraman, 2000) and ability in decision-making (Casson, 2003). Despite the absence o f a generally accepted definition, it i s clear that an entrepreneur's role involves multiple aspects which include business ownership, risk bearing, innovation, opportunity seeking, and management. 1.2. Despite being quite widespread, the use offirm ownership as a proxy for entrepreneurshipis not free from drawbacks. Indeed, problems are related to the existence o f different degrees o f participation in ownership (e. g. sole proprietorship, majority shareholder, minority shareholder or partnership) as well as to the real involvement o f the enterprise's owner in running the business. The main question in the case o f this analysis i s whether or not the enterprise's owner has the real decision-making power in running the activity, or, even better, whether or not the owner i s the "real player" in the private sector. At the empirical level, there i s the opportunity o f considering the f i r m ' s management rather than the f i r m ' s ownership - given the idea that the manager daily interacts with the investment climate - or, even better, to combine information collected on both the owner and the manager. 1.3. These issues, which are already relevant in the analysis o entrepreneurship in general, f become essential when a gender-disaggregated analysis o entrepreneurship is carried out. A f situation that i s often found in the MENA region i s that many companies have a woman as a registered owner but in most cases it i s by name only while the actual entrepreneur and decision maker i s a male (often a spouse or relative) and also vice versa. Only when the real players in the 5 private sector are identified does it become possible to see if male and female entrepreneurs face the same investment barriers or not. 1.4. For the purpose o this report an entrepreneur is defined as an individual who owns either a f majority shareholding (51 percent), a minority shareholding (49 percent), or is a partnedmanager who can be liable and who may or may not own some shares in the company but is not the registered owner. These individuals, regardless o shareholding status as previously defined have f to be actively involved in the running o the business by being dynamically involved in the f enterprise's activity providing tangible and intangible resources and taking part in the decision making process (i..~ managing, being a decision making member o the Board, andor a decision f maker within the company in general). Figure 1.1: Participationof entrepreneurs by gender of firm owner Legal Status and Ownership: 1.5. I n Lebanon more men than women are likely to be sole proprietors o their fi r m (24 f percent compared to 16percent). Women are more likely than men to be majority shareholders in their companies (30 percent o f total female entrepreneurs compared to 21 percent for males). Although the differences 0 10 20 30 40 50 are small they are statistically percentage of firms significant. No differences are found with regards to minority - I shareholders and partners (figure- 1 .I). indicators show that in terms o f ownership, women who These are actively engaged in their own business tend to be more likely shareholders in their company (minority or majority) rather than sole proprietors. 1.6. Manufacturing accountsfor 21 percent o the 109firms run by female entrepreneurs, whilst f the remaining 79percent are in s e r ~i c es ' ~ . o f 126 firms run by male entrepreneurs, about 25 Out percent are in manufacturing whilst 75 percent are in services. Regarding size, the majority o f manufacturing enterprises in the sample are medium or large (hiring 20 or more employees) regardless o f the gender o f the entrepreneur. An equal distribution between small and mediudlarge enterprises i s found in services, again with no relevant differences between enterprises run by male and female entrepreneurs'* (see Annex 1 for details on form sampling). 17 The services sector in this case includes: printing services, construction, transportationicar rental, financial services, education, health and social action, research and testing services, advertising / marketing I media, cleaning and maintenance, security, service to individuals (beauticians, hairdressers etc.). 18 Not enough observations were available in the IT, trade, construction, and hotel and restaurants to allow for significant results 6 Capability of Being An Entrepreneur (entrepreneurial ability and access to finance): The capability o f the entrepreneur i s usually re resented by two main components, namely: i)the I? entrepreneurial ability; and ii)access to finance . 1.7. Entrepreneurial ability. Entrepreneurial ability is a wide term, which refers to the ability of an individual to perceive and exploit a business opportunity and can include a wide set o factors f . such as: . Experience - measured by the number o f years the entrepreneur has been in operation. . Education - measured by the highest educational level attained by the entrepreneur. Business contacts and motivation2' - not enough data i s available to allow for an examination o f business contacts however, motivation i s proxied by the reasons behind the entrepreneur's choice for engaging in the business (taking over a family business or initiating a new venture). Knowledge o f the market - measured by the entrepreneur's field o f study and experience . (previous work) in the enterprise's specialty. Opportunity seeking - measured by the entrepreneur's intention to expand his or her activity in the future. ': 1.8. Experience2 Female entrepreneurs are slightly younger and less experienced than male entrepreneurs. However, neither male nor, female entrepreneurs are in the very young age group and neither i s completely new in the market. The average age o f a female entrepreneur i s 45 years compared to 50 years for a male entrepreneur, whilst female entrepreneurs are characterized o n average with 13 years o f experience in the market compared to 19 years o f experience by male entrepreneurs. 1.9. Education22: Women entrepreneurs are as educated as men and even slightly more so as shown by the data although the difference is not statistically signipcant. The majority o f entrepreneurs regardless of, their gender, have a university degree or post university degree. The percentage i s slightly higher for female entrepreneurs (93 percent) than for male entrepreneurs (86 percent). 1.10. Motivation family business versus own undertaking): I n Lebanon family plays a crucial role in entrepreneurship, and is equally relevant for female and male entrepreneurs Gfigure 1.2). Family businesses in Lebanon constitute 85 percent o f the private sector.23 According t o this firm survey data, an enterprise where the board holds regular meetings, the percentage o f family members o n the board i s 56 percent in f i r m s run by male entrepreneurs compared to 47 percent in f i r m s run by female entrepreneur^^^. ''Evans and Jonovic, 1989. 20 See Burke, FitzRoy, and Nolan, 2002 for a broader description. 21 This data was taken from the same firm sample where 100 male entrepreneurs and 69 female entrepreneurs responded to this question. 22 Ibid. *' 24 "Family Business Consultations in Lebanon," Josiane Fahed Sreih, 2008. Differences are statistically significant. 7 1.11. Knowledge o the market: O f f Figure 1.2: Reasons for being invoked in the current business those initiating their own venture women have just as much knowledge as men o the market. Just as many f female entrepreneurs as male entrepreneurs (approximately 40 percent) first got involved in the business because o f their o w n entrepreneurial ability linked either to exploiting an idea in the market, a specific opportunity, or to considerations related to personal skill Male Female and/or comparative advantage (such as bs relat previous experience in the field or their field o f study). Figure 1.3: (A, B): Entrepreneurs' plans to expand the business, by gender 1.12. Pursuit o opportunity and risk f taking (intention to expand the business A. Male activity): The data shows that women have a lower tendency to take an investment risk but women also list financial and regulatory constraints higher than do men. M e n are more likely to report the political and economic situation as a constraint. If it i s true that entrepreneurial ability i s measured by "opportunity seeking" the data seems to support the common understanding o f the less risky attitudes o f female entrepreneurs (Jianakopolis B. Female and Bernasek, 1998). Figures I (A, B), .3 show that despite having lesser perceptions o f constraints and issues No constraints with regards to the political and Financial economic situation 30 percent o f Political & Lebanese female entrepreneurs had n o econ. situation plans to expand their business compared firmharket to 18 percent o f male entrepreneurs, with Regulahons the main reason being the absence o f any need for expanding. Nevertheless, although women appear as lower risk takers than men a significant number are likely to invest and expand (70 percent). 8 Constraints Faced by Firm Owners in the Investment climate Based on Their Gender: 1.13. According to the survey male and female entrepreneurs are characterized by very little differences in their perception o constraints, in the investment climate in Lebanon. During the f time that the survey for this analyses was done Lebanon had just experienced a violent conflict with Israel that brought a halt t o the economy and business operations for several months. Hence asking entrepreneurs for their perceptions o f the investment climate at the time would have been biased by the post conflict situation. Instead entrepreneurs were simply asked to indicate which indicators they found not to have become significantly constraining in their efforts to recover or continue operating after the war. Female entrepreneurs were less likely to report electricity, telecommunication, and labor regulation as a no obstacle constraint than f i r m s run by male entrepreneurs. In other words they found these indicators to have become particularly difficult for them to continue their operations after the war. However, male entrepreneurs were less likely t o report constraints like import-export, or dumping, as a n o obstacle i.e. those constraints loomed higher for male entrepreneurs as a result o f the war. 1.14. I n this analyses a Figure 1.4: Percentage of entrepreneurs perceiving selected constraints as stronger indicator of NOT a problem, by gende?5 investment climate barriers are the factors that were indicated as constraints in the decision of an entrepreneur, who is already in business, to -and his or her activity. Given the binding entry barriers, firms currently operating are likely to be among the better performers and may have a better perception o f the investment climate or more experience in h o w to navigate it. This i s true for both male- and female-owned firms. However, when asked about the constraints for their* decision not to expand their business more female firm owners than male stated financial constraints and regulatory issues indicating that women may have lower access to finance and are more affected by a cumbersome business environment. Access to Finance 1.15. Access to finance is an importantfactor that can allow an entrepreneur to translate his or her entrepreneurial initiative into action. Under such an assumption, Lebanese male entrepreneurs show, at a first glance, a stronger entrepreneurial skill than their female counterparts. However, a more complex picture emerges when information about the source o f financing i s analyzed. 25 As a result o f the 2006 war. 9 f 1.16. D@erences between male and female entrepreneurs are found in terms o access to finance (as measured by both the demand for finance and the kind offinancial instruments used). When asked the question "do you currently or did you at some point finance your capital or operation?", only 26 percent o f male entrepreneurs answered "no" compared to 38 percent o f female entrepreneurs26 1.17. Skty four percent o male entrepreneurs whofinanced their capital or operations had access f to a bank compared to only 48percent o female entrepreneurs (Figure 1.5). This difference i s also f confirmed after controlling for industry fixed effects. Female entrepreneurs are 17 percent less likely to have a bank loan when they finance their business than men. On the other hand, for women, personal savings are more relevant. Establishing a causal relationship to determine the linkages between lower access to banking instruments and lower access to finance with, lower female attitudes towards expanding i s difficult with the current data. However, an interesting question remains: "are female entrepreneurs in Lebanon less likely to have access to banking instruments because o f weaknesses in the demand for financing or because o f constraints on the supply side?" Findings from firm studies in other regions provide useful insights. Figure 1.5: Access to Finance and Source of Finance by Gender I Male Firm Owner Female Firm Owner I of those who financed I financed their capital their capital E yes banks yes other sources Iyes banks yes other sources * Differences behveen male andfemale entrepreneurs are statistically signifcant 1.18. Findings from an Enterprise Survey data analyses offirms in Eastern Europe and Central Asia by Muravery et al. (2007) show that women entrepreneurs are less likely than men to get a T h i s suggests that, even if certain factors indicate that women are lower risk-takers, actual constraints in the supply o f finance can play an important role in influencing women's "entrepreneurial spirit". 26The difference in attitude i s confirmed across size and sector. 27 Those findings were established when correcting for selection on whether the firm needs a loan, and controlling for the profit o f the firm, capacity utilization, age, and competition faced by the firm, as well as for industry and country fixed effects. 10 PART 1 . 1 OF THEROLE FEMALE ENTREPRENEURS ON FEMALE LABOR FORCE PARTICIPATION IN THE PRIVATE SECTOR 1.19. Female entrepreneurs are an important sourcefor boostingfemale labor force participation in the private sector in Lebanon28 either at the managerial or at the production level. For the purpose o f this analysis, female participation at the managerial level i s measured by the percentage of females on the enterprise's Board. 1.20. Firms run by female Figure 1.6: Women on the Board o f companies by gender entrepreneurs are more likely to have more women on the Board than firms run by male entrepreneurs. Seventy three percent o f female owned firms had Boards with 20-50 percent female members as compared to only 36 percent o f male owned firms. The left tail o f the kernel shows the distribution o f the percentage o f women Board 0 - *_ " _ _ ._ - _ x . I members in firms run by male and ; 20 40 60 80 1oc female entrepreneurs Figure 1.6, shows . _ _ -__.._I. percentage of women in the board _-- - - - _---_ rnale-cwned firms - . female-owned fimrs ._ 4 that a remarkably higher fraction o f enterprises run by male entrepreneurs have fiom 0 percent to 20 percent o f the Board composed o f women compared to a definitely smaller portion o f enterprises run by female entrepreneurs. On the other hand, for higher percentages o f female Board members, the kernel distribution o f firms run by female entrepreneurs always dominates those o f f i r m s run by male entrepreneurs. This i s true also when the sub-sample o f non-family business i s considered. 1.21. When controlling for family businesses the percentage o females on the Board o non- f f family female ownedfirms is higher than in non-family male ownedfirms (22 percent compared to II percent). More detailed data about the composition o f the male and female board members and their relationships i s needed to shed light on this issue. 1.22. Enteprises run by female entrepreneurs employ a higher percentage o women workers f compared to enterprises run by male entrepreneurs across all sectors. On average, 47 percent o f the labor force in enterprises run by female entrepreneurs i s composed o f women compared to 34 percent in enterprises run by male entrepreneur^.^^ 1.23. Female employees in female ownedfirms have an advantage both in how they are perceived as employees and in terms o no wage compensation. Male and female firm owners were f questioned about their perceptions and attitudes to employees and the results were compared with how they treated female and male workers through the benefits and services that they actually provide. 28 The same findings were found for female entrepreneurs in other MENA countries (see Women Entrepreneurs in the Middle East and North Africa, World Bank 2008). 29 Differences are statistically significant 11 1.24. Female entrepreneurs are more likely than male entrepreneurs to consider female workers as more skillert/productive in their work (40 percent compared to 32) or better because o personal f characteristics like more trustworthy, more dedicated, and more presentable (22 percent compared to 17).On the other hand, male entrepreneurs are more likely to find n o advantages in hiring women compared to female entrepreneurs (46 percent versus to 35 percent) - Figure 1.7. Figure 1.7: Advantages and disadvantages of hiring women as reported by entrepreneurs Advantages Disadvantages 100% /5 i personal l 100 Inot suitable characteristics 80% 80 less committed to l more i VI 260% the work L skilled/productive E is c ~ 6 0 y. a less ~40% *- less costly x skilled/productive 40 &family 20% 3 no advantages committement 20 0% no disadvantages Male Female 0 Male Female * Diflerences between male andfemale entrepreneurs are statistically sign8cant 1.25. A high percentage o entrepreneurs (4Opercent), regardless o their gender, directly mention f f family commitment as the major disadvantage in hiring women. M o r e male entrepreneurs (29 percent) than female entrepreneurs (17 percent) consider women as less committed t o their work for reasons such as higher exit from work, higher absence, and unavailability for working overtime. However, looking at the data on leave, absenteeism and overtime work request male firm owners are more likely to reject leave requests submitted by female workers baragraphs 42-45) and although 95 percent o f overtime requests are usually accepted for all employees, more women workers than men tend to have their request to work overtime rejected or ignored (see paragraph 47). At the same time women have a higher level o f absenteeism in male owned f i r m s than men although from the current data it i s difficult to determine if this i s related to the higher tendency o f having their leave requests rejected in those firms. 1.26. When asked to list services and benefts offered to their employees, female entrepreneurs appeared more likely to provide health insurance coverage for an employee's family (male and female and casual sick leaves than male entrepreneurs are). More male than female employees benefit from family health coverage. For benefits and services that can be u s e h l for work life balance, male entrepreneurs appeared more likely to provide maternity leaves for women and annual leaves however, the difference i s not statistically significant (figure 1.8). In addition as just mentioned previously, women have a higher tendency o f having their leave request, particularly gender related leave (maternity and childcare) rejected by male owned f i r m s than in female owned firms. 12 Figure 1.8: Services provided to the employees as reported by the firm owners 1-70 . . . - , . , . . , - . ~. . . . .. .- .- . -. . . . . .. . ., . -. Note: Stars indicate differences that are statistically significant at the 1 percent level or the 5 percent level. 1.27. There is no statistically significant gender difference in employees' job satisfaction between male andfemale owne#managedfirms. Although male employees are more likely to be dissatisfied in female ownedmanaged f i r m s (14.23 percent) compared to their female counterparts (8.02 percent) and compared to male employees in male ownedmanaged firms (10.76 percent). Leaves (gender related - maternitykhildcare and gender neutral - all other types of leaves)30: Gender Related Leaves (based on the workers' survey response) 1.28. Data on leaves that firms actually granted were tabulated as reported by the workers based on the number o leave requests that they requested over the past year and the results show that f female owne#managed firms are more likely to approve materniiy and childcare based leave requests for their female employees than do male ownedfirms. The cross tabulation results show that roughly two-thirds o f female employees' request for maternity, child care, and breast feeding leaves are approved. However, the data shows that there can be differences in the application o f these leaves in different firms such as female owned firms versus male owned firms, different sectors, and among firms with different sizes. Figure 1.9 presents the approval rate for different types o f leaves applied to female employees between female and male ownedmanaged f i r m s as reported by workers. As the figure clearly shows, female employees in female owned f i r m s have a higher chance o f getting their leave request approved compared to female employees working in male owned f i r m s and this holds true for all the three types o f leave requests. Figure 1.9: Percentage of female employees' leave request 30 Data findings are derived from the w o r k e r s ' survey 13 1.29. For example 80 percent o female approved by gender of the owner of the firm f employees who requested maternity leave 90 - - were approved in female ownedmanaged Jirnzs compared to only 72 percent in male ownedfirms. Thus, if male owned firms have a higher tendency t o offer maternity leave women workers are not benefiting as much from it. As the graph shows, the percentage difference increases as we move from maternity leave, to child care and one hour breastfeeding leave requests. In the Maternity Childcare Breastfeedinghhr case o f leave approval for one hour Gender related leave requests breastfeeding request, the percentage IFemale owned firm Male owned firm difference between female and male owned f i r m s i s more than 16 percent. Gender Neutral Leaves 1.30. Female and male $rm owners Figure 1.10: Percentage of leave requests denied by gender of the employee equally discriminate against women in non maternal type leaves indicating that 7 - - - all employers consider female workers as already getting too much leave due to maternity and childcare, Female workers have a significantly higher incidence o f rejection to their (non-maternal based) leave requests than their male counterparts in both female and male owned firms. Figure 1.10 clearly shows the differences. Annual leave Sick leave Other leave The annual leave request o f 3.5 percent o f female employees was denied compared to I Female worker M a l e worker the request o f 0.3 percent o f male employees. At the same time, the request o f female employees for other leave (such as unexpected travel or funeral leaves) is five times more likely to be rejected compared to the same request by male employees. This chance o f rejection i s much higher in the case o f sick leave. The chance o f female employees' request for sick leave t o be rejected i s 11 times higher than the chance o f a male employees' request. Hence, maternity leave comes at the cost o f other types o f leaves that women are entitled to and there i s no consistent and meaningful difference across different sectors and sizes o f firms. 14 Figure 1.11: Difference in the percentage of leave requests denied between female and male employees by 1.31. Although all types o (non maternal f the gender of the firm owner based) leave requests o female employees are f more likely to be denied in both male and ". . . .. female ownedmanaged firms the differences are more significant in the case o male f owned firms. Figure 1.11 presents the difference in the percentage o f female and male leave requests denied by the gender o f the owner o f the firm. Positive values show that requests o f female employees are more likely to be denied compared to requests submitted by Male owned firm Female owned firm male employees. As the figure clearly shows, the percentage difference in denial o f (other) leave request between female and male employees i s 3.24 in male owned f i r m s compared to only 2.33 in female owned f i r m s . 1.32. I n male ownedfirms more than dpercent o female employees' request for annual leave is f denied compared to less than 0.5 percent o requests by male employees (denoting a difference o f f 5.56percentagepoints). In female ownedmanaged firms o n the other hand only 0.53 percent o f the annual leave request o f female and 0.1 percent o f male employees i s denied (a difference o f 0.43 percentage points). Interestingly the data revealed that "leave discrimination" occurs mostly for un- married females without small children. Leave rejection rates for female and male workers with small children are practically non-existent and almost the same (0.55 percent versus 0 percent respectively). 1.33. More women than men tend to have their request to work overtime rejected or ignored. Workers were asked whether they work overtime and whether their employers grant it. Only 26 percent o f the employees (male and female) said that they can request to work overtime. Nearly half o f the workers in the survey (52 percent male and 47 percent female) request it and 94 percent o f the requests are usually accepted equally by both female and male firm owners. However, interesting variations are observed in the rate o f rejections o f overtime requests submitted by male and female workers. While only 3 percent o f the request o f male employees i s rehsed or ignored, more than 10 percent o f the request o f women employees i s r e f k e d or ignored and the difference i s statistically significant. T h i s implies that out o f 50 overtime applicants, the request o f only one and a half male employees i s rejected or ignored compared to five female employees. 1.34. I n firms and job categories where overtime work is applicable, nearly 30 percent o female f and 26 percent o male employees claimed that they could not refuse to work overtime if it was f requested o them Results also show that 59 percent o f the over-time hours worked goes unpaid. No f significant gender differences are observed in both areas. 15 K E Y SUMMARY POINTS 0 Compared to male entrepreneurs female entrepreneurs are slightly younger and consequently have less experience but they are equally educated even slightly more so. Women also have just as much knowledge as men o f the market. 0 More men than women are likely t o be sole proprietors o f their firm and family businesses play a crucial role in entrepreneurship in Lebanon, and i s equally relevant for female and male entrepreneurs 0 Women list financial and regulatory constraints higher than do men. Differences between male and female entrepreneurs are found in terms o f access to finance (as measured by both the demand for finance and the kind o f financial instruments used). 0 Female entrepreneurs are an important source for boosting female labor force participation in the private sector in Lebanon either at the managerial or at the production level. Firms run by female entrepreneurs are more likely to have more women on the board than f i r m s run by male entrepreneurs. Enterprises run by female entrepreneurs employ a higher percentage o f women workers compared to enterprises run by male entrepreneurs across all sectors. 0 Female employees in female owned firms have an advantage both in h o w they are perceived as employees and in terms o f treatment. Female entrepreneurs are more likely than male entrepreneurs to consider female workers as more skilledproductive in their work or better because o f personal characteristics like being more trustworthy, more dedicated, and more presentable. However, a high percentage o f entrepreneurs regardless o f their gender, directly mention family commitment as the major disadvantage in hiring women. 0 Although there i s no statistically significant difference in the number o f male and female firm owners who offer maternity leave, female owned firms are more likely to approve/grant the requests for their female employees than do male owned firms. Female entrepreneurs are also more likely to provide health insurance coverage for an employee's family (male and female and casual sick leaves) than male entrepreneurs. 0 Female and male firm owners equally discriminate against women in non maternal type leaves indicating that all employers consider female workers as already getting too much leave due to maternity and childcare. Although all types o f (non maternal based) leave requests o f female employees are more likely to be denied in both male and female owned firms the differences are more significant in the case o f male owned firms. 16 CHAPTER TWO: MALE FIQVALEWORKERS IN THE LEBANESE AND PRIVATE SECTOR This chapter covers three areas: 1) An assessment o f the differences and similarities between female and male workers in the Lebanese private sector in terms o f their characteristics, and w orking patterns; 2) The distribution o f female and male workers across sectors and occupations; and 3) A deeper analysis o f the factors that influence the demand o f women for labor force participation compared to men including a look at workers' perceptions regarding the labor law, and factors that affects their decision to workhtay in their job. . FEMALE MALE EMPLOYEES PRZVATE SECTOR P A R T I COMPARISONS BETWEEN AND IN THE Age and Experience: 2.1. Female workers are on average younger than male workers. Overall, 38.2 percent o f the sampled workers are female. The mean age o f female employees i s 31 years compared to 35 years for male workers. Figure 2.1 presents the distribution o f workers by four age categories. As the figure clearly shows, most female employees in the Lebanese private sector are very young compared to men and their share declines as age increases. 2.2. Fifty seven percent o female Figure 2.1: Percentage Distribution ofworkers by age and gender f employees are in the youngest age - . _-I . . - category (18-30 years) compared to only 3 7percent o male employees. f On the other extreme, 12 percent o f male employees are in the oldest age group (5 1-70 years) compared to only 2 percent o f sampled female employees. T h i s result indicates that more young female Lebanese have been joining the labor force 18-30 31-40 41-50 5 1-70 compared to their mothers. In addition, as expected when looking at the age composition o f workers, male employees have more experience than female employees. The difference in the mean for experience between male and female employees i s 1.2 years. The difference i s much higher when considering the median (3.5 years). 2.3. 17 Marital Status: 2.4. Marriage plays a high role Figure 2.2: Distribution o f workers by marital status and gender on women's work. Overall, 55 80 percent o f the workers interviewed 68 are single, 43 percent are married, and only 2 percent have been previously married (divorced, separated, and widowed). Among female employees, 68 percent are single and 29 percent are married. When looking at male employees however both married and single I ' Never married Married Married before males are on almost equal footing P Female IMale whereby, 47 percent are married and 5 1 percent are single (Figure 2.2). Education: Figure 2.3: Education of workers by gender and age ~- 2.5. Female workers are more educated than their male counterparts. More than 87 percent o f all the workers surveyed report having attended 3o secondary or university education (34 percent secondary and 53 percent ~ n i v e r s i t y ) . ~O f those ~ who attended high school and 18-30 31-40 41-50 51-70 18-30 31-40 41-50 51-70 university education, 64 percent have done so through private Male Female education establishments, which I Elementary highlight the importance o f the private educational sector in building the human capital in Lebanon. Interestingly, more men attended private education (54.5 percent) compared to women (45.5 percent). The percentage o f female employees with elementary level o f education is only seven percent compared to 17 percent o f male employees. Sixty five percent o f female employees have also completed college or above compared to only 46 percent o f male employees. This gap still holds after controlling for age differences. In the 18-30 age group, only 47 percent o f male employees completed university compared to 75 percent o f female employees (Figure 2.3). 31 At the time o f the survey, only 15% o f the employees were s t i l l attending schools or universities. 18 Types o f Jobs: 2.6. Females are highly involved in Figure 2.4: Job Types administrative jobs particularly in accounting, secretariaVreceptionist, Non-prod. and as assistant mangers. On the 14 other hand male employees are highly - Production involved in production and other 23 (non-production) occupation^^^ 8 (figure 2.4). Professional 21 Employment registration and past Administrano . *,,h BE n 42 employment history: 0 10 20 30 40 50 60 70 2.7. Women workers are less percentage aware or knowledgeable about employment registration. Eighty-five percent o f all workers surveyed have been legally registered since the start o f their employment, o f which 71 percent were registered within the first three months. Seventy four percent o f male employees have been legally registered within three months compared to 67 percent o f female employees. When explaining reasons for being a non-registered employee most male employees stated that they were either a part time or temporary worker, or that they did not have a Lebanese nationality. Female employees did not seem as knowledgeable and mentioned reasons such as "they would be registered soon", "they had started working recently", or they "did not k n o w about the issue". Eighteen percent o f employees that are not registered are non-Lebanese, 80 percent o f them are female. These findings indicate that efforts should be made to educate women about the labor laws, their rights and responsibilities. 2.8. Twenty ekhtpercent of employees were unemployed before getting their currentjob and there is a statistical& significant difference between female and male employees. Thirty seven percent o f female workers were unemployed before their current j o b compared to 22 percent o f male employees. Eighty-six percent o f all employees had spent up to a year looking for a j o b before finding employment, while 14 percent had spent more than a year doing so. Interestingly, there i s n o statistically significant gender difference in the number o f months stayed without a j o b (9 months for males and 8.5 months for female employees). Transportation to Work: 2.9. Generally, 82 percent o the respondents do not consider getting to work as being dijjjcult f (83 percent o male and 81 percent o female employees). However, women more than men f f consider good transportation as important for work and public transportation (government and private companies). W h i l e there i s no statistically significant gender difference in the percentage o f employees who use public transport, more male employees use private car (61 vs. 52 percent) and motorcycles (four vs. less than one percent) than their female counterparts. Female employees are more likely t o walk o n foot (1 Ivs. eight percent) and to use taxi cabs (1 3 vs. six percent). This may 32 I n the data set, jobs were classified as administration, professional, production, non-production & trainee 19 indicate that provision of public Figure 2.5: Means of transportation to work by gender . .__ - transport services by the government or private companies can be more beneficial for female . _. - - employees (figure 2.5). Female employees are also more likely to live near their work place as . - indicated by the relatively small amount o f time they need to arrive at work. a Gt p" ,. employees which can be explained by a vector o f individual and enterprise characteristics (XI & &): w, =( + + p2"X2," am p,"XmlT af ,f + p , f ~ l+p2`x2if+ p i J A.3.2. Where W, i s the wage level o f individual i, a i s the intercept, & ,82 are the parameters to be estimated, and p i s the error term. A.3.3. When equation (1) i s estimated we get the following results for male and female employees respectively. A.3.4. The average wage between male and female employees can differ due to three factors. First, the two groups can differ in their observed personal characteristics ( X " I + x x f l in, the ) (z"'2 xf characteristics of their enterprise may differ in their intercepts (a" observed characteristics (p"1 + pfl f, + and lor 2) , or in both. Second, p"'2 + ,8`2). male and female employees + a . Finally, the two groups may differ in their returns to their A.3.5. Using this logic, the wage difference can be written as difference in characteristics (difference inXs)and difference in returns (difference in coefficients) as: A.3.6. Based on this relationship, Oaxaca decomposes the wage differences as differences in endowments (called explained component) and differences in the coefficients (called unexplained components) as follows: W m - W f = (a" -a') +x"(pl-p']) +x'2(p2 D f 2 )+pm,(X",-X',)+p"2(x"2X f 2 ) (5)52. - - j2 The equation can vary depending on the weights used to value the differences in characteristics and in returns. 38 A.3.7. Where: fj7"l -fj7f is the total wage differential, (zm &f ) + T f l(pml pfl + Ff2(pm2 p f z ) measures the portion o f the wage difference due to - - - difference in returns (some times called unexplained difference or discrimination), and (PI Z f l + pm2 m 2 - Ffz) - (X measures the portion o f the wage difference due to different endowmentskharacteriistics. A.3.8. We use equation (5) to determine the existence, level, and sources o wage differentials f between male andfemale employees in the Lebanon modern private sector. A.3.9. Various individuaVfamily and enterprise level variables are identiped from the survey. Variables such as age, sex, marital status, experience, level o f education, family size are identified as individuaVfamily characteristics. The firm level variables include gender o f the owner, size, and sector. One o f the major problems in estimating equation (5) i s the endogeneity o f some o f the variables used in the regression equation. In this case, to examine the impact o f gender o n wage, w e have to control for education and marital status o f individuals in addition to several other variables. However, these variables may not be exogenous in the wage equation. Various researchers also pointed out that the estimated effect o f marriage o n the wage equation may be biased due t o unmeasured heterogeneity. Various factors that affect the marital status o f individuals, for instance, can be correlated with the error term o f the wage equation making the OLS result biased (see for instance, Becker, 1981 ;Korenman and Neumark, 1992). A.3.10.I n the absence o panel data, we use instrumental variable f (lvmethods to address this issue The main challenge o f using I V techniques i s finding valid instruments. In order for instruments to be valid two crucial conditions should be fulfilled. First, the instruments should be relevant, i.e., the instruments should be highly correlated with the education or marital status variables. Second, the instruments should be exogenous, i.e., the instruments should not be correlated with any unobserved factors that affect the wage level o f employees. The identification strategy therefore should rely on finding variables that are highly related to our potentially endogenous variables (education and marital status) but not directly related to the wage o f employees. A.3.11.Thus we use four personaVfamily and enterprise level variables as instruments, two that are related to the education variable and two to marital status. Though the validity o f these instruments i s an empirical issue, the theoretical justification i s given below: A.3.12.Education: Thefirst instrument is parenuspouse level o education. This variable i s more f likely to be correlated to the education level o f the individual but not directly t o the wage level. The second variable i s the labor law knowledge o f the workers. T h e survey collected information o n the opinion o f each worker about the labor l a w o f the firm. W e assume that more educated workers are more likely to read and understand the labor l a w and to give proper evaluation o f the law what ever their opinion m a y be. Their knowledge o f the labor law, however, i s less likely t o be correlated with their wage level. A.3.13.Marriage: the third variable we use is the percentage o income contributed by each f worker to the family expenditure as a proxy for marital status. The percentage contribution o f never married workers i s relatively small compared to married and married before individuals. However, this variable i s less likely to be correlated to the wage variable or to the error term o f the wage equation. Finally we use the availability o f health insurance in the company as an instrument to 39 the marital status variable. Married individuals are more likely t o have children and are therefore more likely to work in companies that provide health insurance coverage for their employees. Our data also confirms this tendency, A.3.14. These variables are expected to be highly correlated with the potentially endogenous f variables but not to the component o wage that cannot be explained by the explanatory variables. W e use heteroskedastic-efficient two-step Generalized Method o f Moments (GMM) estimator. T h i s method generates `coefficient estimates that are efficient in the presence o f arbitrary heteroskedasticity and arbitrary intra-group correlation' .53 A.3.15 .Before presenting the GMM estimator results o the instrumental variable model, we used f various speczjkation tests to examine the validity o the instruments. First, the coefficients o f the f instruments in the first stage regression are examined. The coefficient o f parent/spouse education and knowledge o f the labor variables are positive and statistically significant in the education equation. The availability o f health insurance in the firm and the share o f income contributed to the family also perform very well and take the expected positive sign in explaining the marital status variable. Second, we used an over identification test (Hansen's test) to examine whether the excluded instruments are jointly independent o f the wage error term. The P values o f Hansen's test revealed that we could not reject the null hypothesis that all instruments are uncorrelated with the estimated residuals. These test results indicate that we can safely examine the impact o f marital status and education o f employees o n the gender wage gap usingthe N technique 53 Baum, C.F., Schaffer, M.E., Stillman, S. 2003. Instrumental variables and GMM: Estimation and Testing. Boston College Department o f Economics working paper No. 545. 40 CHAPTER CONCLUSIONS AND P O L I C Y RECOMMENDATIONS FOUR: Thefindings in this report clearly indicate that there are certain issues in the private sector that women face which need to be acknowledged The Bank's Investment Climate Assessment (ICA), Doing Business Indicators, Foreign Investment Advisory Services (FIAS) and other reports are tools that provide comprehensive recommendations for the improvement o f the investment climate and labor conditions in general. However, given the evidence o f the positive contribution o f female entrepreneurs to female employment in particular, coupled with the increased human capital o f the younger generation o f women the following proposed recommendation will be important to foster this untapped market potential. These recommendations complement the overall assistance provided by the Bank, as well as by those o f other organizations, they can be added to the overall government private sector reform strategy or integrated where needed. A. FEMALE FACING CHALLENGES ENTREPRENEURS 4.1. Increasing access to finance and reducing cumbersome business regulatory processes are particularly important in supporting female entrepreneurs who play a more positive role in female employment. Pro active p r o g r d i n i t i a t i v e s to encourage f i r m s to hire more women should be developed and promoted. 4.2. Female entrepreneurs in Lebanon are important for boosting female labor and they contribute more positively to the work environment for women than do male entrepreneurs. However, it i s also clear that Lebanon suffers from a relatively l o w level o f female entrepreneurs. Hence an important question arises: "why do so few female entrepreneurs exist in Lebanon and what i s discouraging the entrepreneurial spirit o f so many women?' Looking at the constraints o f various variables in the investment climate as reported by the firm owners (table 4.1 and figure 4.1) do not tell us much. The fact that the firms are already in operation indicates that they enjoy a particular advantage in navigating and overcoming existing barriers in the market. 41 Table 4.1: Entrepreneursperception of obstacles after the wars4 Percentage o male andfemale-mvnedjrms reporting investment climate constraints as a hlajor or Very severe obstacle or f as No obstacle to business operation andgrowth after 2006 war, by sex o the entrepreneur f Telecom 7.6 7.9 75.9 69.7 IT and internet 8.2 3.7 74.8 72.1 Electricity 36.8 45.1 26.6 19.2 Natural gas 6.4 10.3 78.9 82.0 Water 7.4 6.6 78.8 83.8 Garbage disposal 7.2 2.6 76.3 79.2 Tax rates 12.7 9.0 74.9 76.0 Tax administration 7.1 10.1 76.4 79.5 Term of financing 27.3 33.2 51.1 49.0 Customs 8, trade 10.8 17.3 70.2 69.3 Export Import 42.8 29.3 37.7 55.4 Labor regulations 8.0 4.2 84.6 75.4 Unskilled workers 27.7 22.8 55.7 53.2 Skilled of workers 34.9 24.1 43.8 43.6 Business licensing 7.8 3.4 84.3 83.6 Macro Instability 37.0 43.8 34.1 28.7 Corruption 20.5 18.1 61.8 61.8 Smuggling or dumping 10.9 4.0 75.3 81.1 4.3. Findings from other studies reinforce the negative effect a difficult business environment has on female entrepreneurship. According to the World Bank's Doing Business 2008, countries with more cumbersome business environments have smaller shares o f women entrepreneurs and vice-versa (figure 4.2). 4.4. f Focusing on the common areas o constraints indicated by women (those that are related to finance and regulations), findings from the Doing Business indicators indicate that Lebanon performs worse in these areas when compared to other countries55. While Lebanon has done a good j o b in facilitating the number o f procedures and the number o f days it takes to start a business, it performs worse than the OECD average in terms o f the cost to start a business. In terms o f registering a property, both the number o f procedures and the cost i s higher in Lebanon than in the OECD and with regards to construction permits (number o f procedures, days, and cost) Lebanon also performs worse than OECD countries. Lebanon's performance on the getting credit indicators i s also lower than the average for the OECD. 54Growth after 2006 war 55-Comparisons not made with the MENA region as the level of female entrepreneurship in other MENA are countries i s as low and in most case lower than in Lebanon. In general, Lebanon performs better than the regional averages in most indicators. 42 Figure 4.1: Female Entrepreneurship and Female Unemployment Ease of Doing Business (world countries) t Source Doing Business Website (Accessed December 11,2008) 1 ill _- \\ i"n 4.5. Findings o the ICA and the F U S also highlight the high cost o finance and the f f cumbersome regulatory proceedings. The I C A specifies three reasons for the high cost o f finance in Lebanon: 1) commissions and fees add 2-4 percent to the effective interest rate and drive it up to 10- 12 percent; 2) collateral requirement i s high due to weak legal conditions for enforcement o f credit agreements; and 3) highly indebted firms that might exit (if the channels and incentives were stronger) linger o n with heavy reliance o n debt with limited opportunities for profit. High interest rates and high collateral requirements can be particularly problematic for women many o f whom do not have assets (homes or land) registered in their names. 4.6. Measures that would improve access to finance and reduce regulatory proceedings would have a higher impact for potential women entrepreneurs. Additional data and analyses would be needed in order to better understand if the l o w access t o finance by women in Lebanon i s related to problems in supply, such as discrimination, or i s due to factors o n the demand side (by women entrepreneurs themselves, as mentioned in Chapter Two). A study using the Business Environment and Enterprise Performance Survey (BEEPS) from Europe by Muravyev et al. (2007) found that female managed f i r m s have a 5.4 percent lower probability o f securing a bank loan than male managed firms. The study also found that female managed firms o n average pay 0.6 percent higher interest rates than their male counterparts. 4.7. One good example in Lebanon for facilitating access to finance is a government supported program called Kafalat. The government o f Lebanon in an effort t o support the growth o f small and medium enterprises (SMEs) has partnered with a loan guarantee agency Kafalat (box 4.1). Kafalat has been very successfbl and receives all applications regardless o f gender. However, due to its gender neutral approach Kafalat does not have data available with regards to the percentage o f female clients who have Kafalat guarantees. 43 Box 4.1: Kafalat Loan Guarantees for SMEs Source: uw.kafalat.com.Ib Recommendations to support female entrepreneurship: 4.8. Accelerate the overall reform efforts to reduce regulatory proceedings and cost o finance. f In addition to helping boost private sector investment as suggested by the ICA, pushing ahead with reforms in those two areas would provide particular benefits for women investors and would therefore support the increased participation o f this group. 4.9. Increase funding to support loan guarantee schemes for small businesses and for individuals similar to what is offered by Kafalat in Lebanon and for individuals. Such initiatives can be an effective mechanism to ease access to financing for SMEs. Loan guarantee programs for individual loans such as those offered t o students could be structured to support women wanting to pursue private sector related initiatives. 4.10. With regards to reducing regulatory proceedings some countries have set up one-stop shop type service centers (usually at the Chamber o Commerce) that provide assistunce in navigating f all regulatory processes and agencies. Locating these centers within officially recognized and high profile associations such as the Chamber o f Commerce would allow investors options other than resorting to unmonitored or unlicensed agencies and individuals where there i s a high risk o f not getting the fdl process done. 4.1 1. A gender-based study o formal micro enterprises and the informal economy can provide f additional clarity on the regulatory constraints faced by women entrepreneurs and would contribute to more effective private sector policy reforms. One o f the main reasons for why enterprises refrain from registering their business i s to avoid the complexity and administrative procedures embedded in the business regulatory regime. The survey used for this report looked at small enterprises with a minimum o f 5 - 9 employees56*whereas, the majority o f female businesses in Lebanon have an average o f 2 employees. According to the FIAS, 9 out o f 10 firms in the Lebanese private sector are micro enterprises and enterprises operating in the informal sector (without getting registered) constitute 34.1 percent o f GNP. To fblly capture women's contribution to the private sector in Lebanon an assessment that takes into account the gender dimensions in the formal, and informal micro enterprise sectors can provide critical information to fill in the gaps. 56 This was done in order to match the sample design o f the I C A (2004) which did not have micro enterprises. The I C A sample was designed to be representative o f the population and in order to construct weights for similar representation for the current surveys i t was necessary to apply the same categories as the I C A sample. 44 4.12. I n formulating incentivesforfirms to undertakepro active initiatives to increase their hiring o women additional knowledge on the contribution o female workers to f i r m productivity (a f f gender based workers produ&vity as well as a firm productivity analyses) could be undertaken. One observation i s that hiring more female workers and providing them with more favorable benefits and wages does not seem to have harmed the profitability o f female f i r m s otherwise they would not be in business. An interesting question however, would be to see if male owned firms are more profitable or more productive and t o what extent this i s related to the productivity o f their workers. Additional data would need to be collected on an equal number o f female and male owned f i r m s and workers to calculate productivity levels and conduct a gender comparison. Such an analysis should identify the comparative advantage o f female (and male) workers in Lebanon and highlight the gaps in skills in terms o f the needs o f the j o b market and thus help formulate policy to enhance education and human capital development. B. THESUPPLY OF FEMALE LABORTHEPRIVATE SECTOR N I 4.13. A detailed investigation o the labor law is needed in addition to providing incentives for f firms to reduce discriminatory practices and provide more flexible work terms. In addition, services (public and private sector run) to support work-life balance should be developed. 4.14. Women are making significant gains in the Lebanese labor market however there exist certain discouraging factors that are inhibiting participation o a wider pool o highly qualified f f women. Lebanese women are highly educated and are experiencing equal participation in all sectors and occupations. However, women are particularly affected when they get married and while some aspects may be related to socio-cultural factors, practical and structural changes in the working environment can go a long way in allowing women to accommodate the double responsibility o f work and childhome care and increase their labor force participation. 4.1 5. Most female workers indicate good nurseries, good transportation, good salary, and flexible work arrangements, as important factors for their decision to work. On the other hand, female workers pay a price in terms o f having non-maternal related leave rejected. These findings reinforce the perceptions by employers that women are less committed t o their work and that their income i s not o f primary importance to them or their family since they are not the main breadwinners. 4.16. Women workers view the labor law as unfavorable towards women. There are several areas within the labor law that discriminate against women summarized in table 4.2 below (Annex four has a more detailed l i s t o f the labor law in the areas related to women). Most are manifested from the view that society operates only with the traditional family framework which recognizes one sole breadwinner for the family who i s male and does not acknowledge the realities o f today. 45 Table 4.2: Areas in the labor law that discriminate against women A male employee can take family compensation but a female employee cannot even Social security though she contributes the same amount. A female employee's family cannot benefit from her pension except under specific conditions whereas for a male employee his family automatically receives it upon his Pension death. The family members of a female employee who works in the public sector does not Doctor visits and receive the same level of doctor visits and hospitalization as family members of a hospitalization male employee. Agricultural workers and The labor law and social security does not apply to agricultural workers or to those household help who work in homes the majority of whom are women. 4.17. According to the F U S report, many businesses consider that the labor code needs adaptation to accommodate part-time and temporary work. Employers have t o pay employee tax and social security o n a full time basis regardless o f the number o f hours a worker contributes hence it i s not within their interest to give flexible hours or part-time employment. f Recommendations to boost supply o female labor: 4.18. Review the labor law. Especially in the areas o f employee tax (those related to flexible work, and social security regulations). 4.19. Assess market supply and infrastructure for work-Age balance services. To support work for women with children government could support initiatives for childcare such as extending the school day, early childhood education, after school pro ams and publicize preschools in poor and needy areas. Specific important services are nurseries"training o f nannies, and transportation including child transportation. Family and children are a priority for women in Lebanon and high government oversight and quality control o f these sectors would help to raise their trust to take advantage o f these services. 57 Regarding opening o f childcare centers in the work place care must be taken to ensure that this does not become a burden on private companies in a way that would drive them to discriminate further in their hiring o f women. Examples from certain countries where companies were required to open a childcare facility based on a specific (minimum) number o f female workers with children showed that employers would limit their hiring of women to below the minimum stated to avoid having to set a childcare center at their expense. Best practices related to supporting childcare centers at work include making it a requirement based on a certain number o f total employees (male and female) hence not tying it to women only and at the same time providing equal benefit to male employees with children to have a childcare center. Other best practice examples include facilitating the growth o f the private sector childcare industry and public-privatepartnerships to develop joint childcare centers in work communities rather than making it a sole burden on private sector firms. 46 ANNEXES 47 48 ANNEX: 1 Lebanon Gender Dimensions in the Private Sector Data Design and Sample 1. f The primary objective o the sample design o both the enterprise and workers' surveys was f to provide estimatesfor enterprises and workers in Lebanon as a whole andfor major sectors. The design o f the samples used findings from the 2004 Investment Climate Assessment (ICA) survey. The I C A firm sample was designed proportional to the size in the population and the samples derived for the entrepreneurs and workers surveyed for this report were designed proportional to the I C A sample in order to achieve the same level o f r e p r e ~ e n t a t i o nHowever, due t o difficulties that were ~~. faced in getting the correct number o f respondents and sector coverage needed by gender it was not possible to apply the design o f the ICA sample resulting in variations in the frame o f the current samples. Weights were therefore developed to arrive at a population representation for both the enterprise survey and for the workers survey. 2. Specijically, the limitations that were found were in the sampling o female ownedJirms f described asfollows: a. The first limitation was in respect to using a sample o f f i r m s from the I C A 2004 survey which would have allowed for some comparability in addition to having representation. A preliminary screening across the I C A f i r m s revealed that few female owned firms met the definition o f ownership established for this report59.In addition many f i r m s did not want t o participate in the new survey. In order t o complete the sample size o f female firm owners while continuing to choose from the I C A survey firms, I C A enterprises that were owned by males but had indicated that the management o f the firm was by a woman were included and they were used as a proxy for active female entrepreneurs6'. Despite this inclusion still, the number o f observations fell short o f the sample size by a significant amount. T o fill the gap, additional female owned firms were selected from the master database from which the I C A sample was originally developed. b. Based o n the definition used for an entrepreneur the number o f female owned firms found both within the I C A sample and the master database (where all sampling o f f i r m s 58 The initial design had the objective o f randomly selecting 210 firms from the 2004 Lebanon ICA sample through a two-stage stratified sample design with sector o f activity and firms' size as the two levels o f stratification. 59 A person who owns a majority shareholding (51%), minority shareholding (49%), or, a partner who i s liable and who may or may not own some shares in the company but i s not the registered owner - all o f these individuals have to be actively contributing to the running o f the business and not only titled (e.g. manage, are decision making members o f their company's Board, and/or are primary decision makers within the company overall. 60 The argument behind this i s that in order to determine obstacles faced by male and female entrepreneurs the sample needed to include those owners that were active in the running o f the business, in Board meetings, and primary decision-making. Thus, women that were not listed as owners but were i n fact running the business and making the main decisions would also provide this perspective. In most cases these General Managers had some share holdings in the companies but another partner or majority share owner i s the one listed as the owner, therefore, the women would not appear as owners in the databases. In Lebanon as in other places in the MENA region due to various cultural, economic and/or regulatory processes many women open and operate a business but the actual registration i s made under the name o f a man (and in most cases a relative). 49 was derived) was small as explained in a. above. Add to that the rejection rate (firms who refused to participate in the survey) and the database for this group became just enough to meet the level o f responses necessary to generate findings with a 95% significance level. Therefore while the samples o f workers (males and females) and the sample o f male owned firms were randomly selected from a pool, for the female owned firms the survey simply questioned all the remaining f i r m s in the database that qualified and there was not enough room to apply a random selection. The weights developed make the distribution in the sample the same as the distribution in the population (Design Weights), but, the weights can not make a non-random selection a random one. However, since the number o f female/owned or managed f i r m s i s very small the probability o f selecting any o f them in the sample i s high (close to 1). In turn this will not affect the weights (the reciprocal o f the probability i s close to 1). Hence it i s assumed in the analyses that the findings do reflect what the population o f female entrepreneurs in Lebanon i s facing. c. n I addition to the difficulty in finding the level o f female owned f i r m s in a way that matched the I C A design sample frame, it was also not possible to find female owned f i r m s that were in the same sectoral and firm size distribution as those in the ICA. In order to conduct the gender analyses for this policy it was necessary to change the sectoral and firm size distributions o f male owned f i r m s as well, to match the sample distribution o f the female owned f i r m s and allow for proper comparability on a gender basis. d. Given the variations just explained, the final sample frame o f enterprises surveyed for this report i s different than that o f the firms in the ICA frame both in size and sectoral divisions and most o f the firms interviewed were not f i r m s that were interviewed in the I C A . Therefore, caution i s needed when comparing the two surveys as they may not be comparable. 3. Problems were also faced in getting the same sample for workers as speciJied in the original sample design. The reasons were that many o f the f i r m s would not allow their workers to be interviewed. Weights that were developed were derived so as to correct for these variations to allow the sample to be representative o f the original sample design. 4. f Despite these limitations, the database provides a valuable source o information for a proper gender-disaggregated analysis. Particularly, in the case o f female and male entrepreneurs where the relationship between ownership and management i s clearly identified; by setting the active participation o f the owner in running the business as a rule for inclusion in the sample, the database has the crucial peculiarity o f overcoming the concern about the real involvement o f female entrepreneurs in the business. In addition, the database includes an equal number o f male and female entrepreneurs and male and female workers overcoming the common problem o f having a disproportionate number o f males in the samples'. 5. Thefinal total sample size and distributions ofj7rms and workers are specified in tables A1 and A2 below. For the firm distribution, due to the l o w number o f firm observations in some sectors (especially female firms) the analyses for the firms used an aggregation o f the sample as shown in table A1 below. 50 Table A. 1: Distribution of firms sampled by seetor, size and gender of owner - aggregatedfor the analysis Table A. 2: Distribution of sampled employees by sector, size and gender of the employee Trade Services Construction Note: FW = female worker M W = male worker 6. I n order to achieve a level o representation for this data weights were developed as f explained below. Data Weights 7. Weights were developed and used in the analysis to compensate for the differential representation, in order to produce estimates that relate to the target population o firms in f Lebanon6'. For each of the surveys (entrepreneurs and workers) weights were adjusted to arrive at a total sample size equal to the total original designed sample size that was designed proportional to the size o f the ICA enterprise survey (which is representative). 8. Depending on the objective o the survey and the prior information available, the weight in f the survey consisted o two components: f 1- Weight for sectors for female owned and male owned firms. 2- Weight for workers (females and males) inside the sector (for female owned and male owned firms). 61 The weight for a responding unit in a survey data set i s an estimate o f the number o f units in the target population that the responding unit represents. 51 9. The weights compensate for the variations related to design, nun-response or any other unseenfactors. Tables A3 and A4 represent these weights. Table A. 3: Weights of sectors Food and Beverage 12 9 Textile and Clothing 12 17 Furniture 9 9 9 Construction 9 7 9 Hotels 11 3 Information Technology 12 7 11 Trade 18 21 Services 20 35 Table A. 4: Weights of Workers D Design S: Survey 52 ANNEX: 2 ADDITIONAL SURVEY DATA Table A2.1: Distribution of Employees by the Type accountant I fig ) 9.05 PSI 17.45 i *- human resource office Y61 0.46 PW 0.52 assistant manager 2.2 8.66 other administrative 4.68 5.36 chef (cook) 3.44 0.56 stock keeper 1.02 111 waiter 3.87 0.36 tailor or hair dresser 0.6 1.92 graphic designer 1.63 2.56 architecture 4.87 1.51 sales person 5.69 8.14 IT employee (non managerial) 0.84 0 marketing manager 1.27 1.68 general manager 0.24 0.2 purchasing manager 1.3 0 gardener 0.46 0 chief or executive or 1.3 3.77 driver or taxi driver 4.06 0 product manager 1.3 0.75 unskilled worker 13.4 5.02 sales or business manager 4.15 0.98 business developer or 0.6 0 operator or secretary 3.04 16.55 marcrobiotic engineer 0.48 0 financial analyst 0.93 0.69 maid 0 0.36 technician or mechanic 3.21 0.36 web or software development 1.73 1.18 factory supervisor 1.38 0.59 other administrative 1.41 0.72 other managers (head 8.99 6.48 skilled worker 8.85 2.12 Table A2.2: Occupational distribution of employees by gender and age Administration 39.72 68.11 36.6 66.24 47.6 57 54.12 49.32 Professional 20.94 21.06 18 15.28 29.1 15 20.7 20.07 Production worker 23.76 4.53 27.4 9.92 13.9 18.8 17.99 20.07 Other 15.58 6.3 17.9 8.56 9.37 9.29 7.19 10.53 53 Table A2.3: Sector of employment ofwomen employees by age and marital status -mb- itnoQcaurbrg 18-30 23.1 3140 24.74 20.19 43.58 5.49 2.54 3.45 Never married 12.81 2.9 41-50 34.64 10.9 38.76 0 51-70 57.85 15.17 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ -_0________ _ _ _ _ _ _ _ _ _ _0_ _ _ _ _ _ _ _ _ _ _ _ _____ 26.97 0 __ 18-30 23.9 19.7 44.57 4.09 6.31 1.43 Married 1 31-40 41-50 21.82 25.84 0 33.25 64.31 0 4.75 0 0 5.49 0 0 _ _ _ _ _ _ _ _ _ _ _ _ _ I _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 4.97 0 0 0 100 21.06 18.72 I 51-70 0 100 0 Table A2.4: Averages of Board Members in Female and Male owned Table A2.5: Benefitldetriment recipient across gender of the employee (in % O) Pay Increases 40 60 44 56 Pay Cuts 6 94 3 97 Appreciation 33 67 31 69 Warning or censures 2 98 3 97 Promotion 11 89 10 90 Training on new production skills 17 83 19 81 54 Table A2.6: Training fields, certification, improvement and benefits received across gender of employee Table A2.7: Health benefits across gender of employee Table A2.8: Basis upon which health payments and benefits are settled 55 56 ANNEX: 3 JULYWAR, LOSSES ASSISTANCE AND 1. Twelve percent o the businesses interviewed incurred physical damage as a result o the f f July war. Thirty-two percent o f the owners whose businesses incurred physical damage claimed that their businesses were highly damaged. When looking at figures from the firm survey, the average direct corporal damage to business was USD180,000 whereas the indirect damages averaged USD2,835,000. The construction sector was the only sector where the direct damages outweighed the indirect damages due to the fact that one company incurred total damage to i t s equipment and premises. Table A3.l:Value of direct and indirect damages of the July 2006 war, across sectors - 2. At the start o the war 53 percent o all firms had a loan o which 40 percent requested to f f f reschedule and 29 percent requested additional credit. Results indicate that o f businesses that requested to reschedule and those who required an additional credit 69 percent and 78 percent respectively received the terms that they had asked for. Across gender o f the business owner results show that o f the entire sample o f businesses that had a loan the majority were male owned at 62 percent. 3. Seventy three percent o jirms revealed that suppliers tried to impose new payment terms, f while 50percent o businesses requested a grace period for payment o taxes and VAT, 27percent f f requested a government subsidy or support and 24 percent requested a grace period for payments o utilities or electricity bills. Sixty t w o percent o f those who requested a grace period for taxes f received it while 38 percent received a grace period for payment o f utilities and electricity, and approximately 15 percent received government support. 4. When asked what sort o support, subsidy and graces would be most beneficial to the f different sectors in order to recover and maintain operations. The majority o f firm owners indicated political and economic stability, as well as financial relief from taxes and fees, rescheduling o f payments and refinancing o f loans and credits. 57 58 ANNEX: 4 LABOR CODE To SECTION RELATED WOMENWORKERS Box A4.1: Provisions of the Labor Code relevant to gender and employment 59 Box A 4 1 (continued) 1.htm Source. ILO website http://www.ilo.orglpublic/englishiemploymen~/gems/eeo/law/leb~o~act visited on December 12, 2008 60 ANNEX 5 QUESTIONNAIRES A. Enterprise's Questionnaire Enterprise's Code Questionnaire Number "Women Entrepreneurship in Lebanon's Formal Private Sector: a gender focused Investment Climate Assessment (ICA)" "Enterprise's Questionnaire'' The information obtained here is strictly confidential. and will be only used for purpose of scientific rewarch. 61 Fieldworker ID: Interview date: 2007 Interview Started I Hour: ~ 1 Minutes: Interview Ended I Hour: I Minutes: I The purpose of this survey is to identify the perspective of female entrepreneurs and the constraints that they face. In addition, the study will investigate the gender gaps in the work environment and conditions, security derived from work, stability, productivity and professionalism. Furthermore, the study will also explore, within- the surveys, the impact of the last Lebanon-Israel conflict on female entrepreneurs. Your answers should reflect only your experience of doing business in your country. Please note that the information obtained here will be treated strictly confidentially. Neither your name nor the name of your firm will be used in any document based on this survey. Commnv I Establishment name City Street Building name Floor number P.O. Box Telephone number Fax number E-mail Name of Interviewee Position 62 01 Completed 02 Not completed 03 Rejected 04 Manager not available 01 Random from records 02 Random from company 03 Compulsory selection 04 Selection from another worker Other, specify: Screening Questions 01 Female owned (active) Continue 02 Female managed Go to S3 03 Male owned I managed Continue 01 Manager 02 Active board member 03 Silent investor 01 Managing Director 02 Executive Officer I 03 I General Manager I 04 Vice President Other, specify: I 01 I Sole DroDrietor I I 02 I Maioritv shareholder I I 03 I Minority shareholder I I 04 I Partner I I 05 I Not applicable I Go to S7 I 63 01 Yes Go to S7 02 No Continue 03 Not applicable Go to S7 I I 01 I Yes I Continue 02 I No I GotoS11 I # of members: I S9a S9b S I Oa Slob $12- Do you c m d y or did you at some point finanee your fq&dw apcmtiorrS? - 01 Yes Continue 02 No Go to SI5 1 02 I Other sources I Continue I I 64 m 616. What w your w#strainto? Skip to S17b Yes fusane&-? ,6171,W~cOrnpanv 01 Continue I I 02 No Go to Q15a 01 Food and Beverage 02 Textile and Clothina E3O I Furniture 04 I Construction I I 05 I Hotels I I 06 I Information Technology I I I Other, specify: I 65 01 Manufacturing 02 Commerce 03 Services Other, specify: A. Impact of the War on the Investment Climate Telecommunications 0 1 2 3 4 97 92 IT and internet connectivitv 0 1 2 3 4 97 92 Electricitv I O I 1 1 2 1 3 / 4 1 9 7 1 9 2 Natural aas I O I 1 1 2 1 3 1 4 1 9 7 1 9 2 Water Garbane disposal I O I 1 1 2 1 3 1 4 1 9 7 1 9 2 Tax rates 1 0 1 1 I 2 1 3 1 4 1 9 7 1 9 2 Tax administration 1 0 1 1 I 2 1 3 1 4 1 9 7 1 9 2 Terms of financing and debt re. 0 1 2 3 4 97 92 structuring Customs and trade regulations 0 1 2 3 4 97 92 Export I Import 0 1 2 3 4 97 92 Labor regulations 0 1 2 3 4 97 92 Availability of unskilled labor 0 1 2 3 4 97 92 Availability of skilled I educated 0 1 2 3 4 97 92 workers Business licensing and operating 1 2 3 4 97 92 permits Macroeconomic uncertainty (e.g. 0 1 2 3 4 97 92 inflation, exch. Rate) Corruption 0 1 2 3 4 97 92 Smuggling or dumping 0 1 2 3 4 97 92 Other (specify) 0 1 2 3 4 97 92 I Continue I 02 I No I GotoA5 66 01 Slightly damaged 02 Moderately damaged 03 Hiahlv damaaed (USD): - 01 Yes Continue 02 No Go to A6a - A5b A5c A5d 01 Re-scheduling bank terms and agreements Yes No Yes No I O2 Receive additional credit I loan A6a I A6b I A6c I ReceivegovernmentsubsidyIsupport I Yes I No I Yes I No 1 Receive grace period for utility I electricity Yes No Yes No bills Receive grace period for payment of VAT 04 Yes No Yes No and other taxes 67 1 Relief from VAT or income tax obligations 2 Reschedulina Davments ~~~ 3 Refinancing (finance again with a new loan at lower interest rates) 4 Relief from social securityllabor tax obligations 5 Short-term workina capital finance (workinq capital is used for a businesses day to day operations) I I Other 1 , wecifv: I I Other 2, specify: I Ranking 1 Relief from VAT or income tax obligations 2 Rescheduling payments 3 Refinancing (finance again with a new loan at lower interest rates) 4 Relief from social securityllabor tax obligations Short-term working capital finance (working capital is used for a business's day to day operations) A8a A8b A8c A8d A& Wfwt percentage of your worM0rctb are .....7 (Aided) 01 Full-time employees %: 02 Part-time employees %: 03 Female employees %: 68 A9a A9b Yes I No Full-Time I Part-Time I Both I Part-time work I 01 I 02 I 01 I 02 I 03 I I Health insurance for the worker I 01 I 02 I 01 I 02 I 03 I I Meals I Compensation I 01 I 02 I 01 I 02 I 03 1 I TransportationsI Compensation I 01 I 02 I 01 I 02 I 03 I I Sickleaves Please describe skill level required using the following definitions: (numerator: read Persons who might be involved in the production process or normal company Unskilled Worker process and whom management considers to be unskilled. Skilled workers are technicians involved directly in the production process or at a Skilled Worker supervisory level and whom management considers to be skilled. Administrative support occupations, including all clerical-type work regardless of level of difficulty, where the activities are predominately non-manual through some manual work not directly involved with altering or transporting the products is Administrative included. Person who makes management decisions and sets policies and is a holder of a Managerial university degree. This category does not include supervisors. 69 AIOci 1 AlOcii I AlOd M 1 1 01 02 I 04 1 05 01 I 2- I 01 1 02 I 04 1 05 01 I 3- 01 03 01 02 1 01 1 02 I 04 I 05 01 03 01 02 1 1 01 02 1 04 1 05 01 03 01 02 I 6- 1 01 I 02 1 04 I 05 - 01 03 01 02 01 They are more productive 02 They are more dedicated 03 They are more trustworthy 04 The cost of hiring females is less 05 Absence is less 06 At the same level of skills and education, females have a higher level of training 07 No advantage Other, specify: 70 I 01 I They are more Droductive I 1 02 I They are more dedicated I I 03 I They are more trustworthy I I 04 I The cost of hiring females is less I I 05 I Absenceisless I 1 06 I At the same level of skills and education, females have a higher level of training I 07 No advantage Other, specify: 01 Home duties could make her less committed I less present at work 02 Exit from work is higher, thus they cannot be relied upon for long periods of retention 03 They are less productive 04 They are less trustworthy 05 Absence is higher 06 At the same level of skills and education, males have a higher level of training 07 Thev cannot be relied on to work overtime _ _ ~ ~ 08 Marriage and maternity affect their work 09 Their work is not accurate 10 Females cannot handle some hard Drofessions I 11 I Nodisadvantaaes I Other, specify: 71 01 Enabling females to work on a part-time basis 02 Providing nearby nurseries 03 Providing child care subsidy 04 Husband to participate in home duties 05 Using a piecework payment system (fixed monthly or weekly payment) 06 Payment according to productivity I or on a commission basis 07 Training Other, specify: Interviewer's Remarks 01 Bright 02 sufficient 03 Dim 04 I Natural 05 I Artificial 01 Renewed 02 Sufficient 03 Insufficient 04 Natural 05 Air-conditioned I 01 I Clean I I 02 1 Not clean I 03 Separate (males - females) 04 Have fresh water 05 Have no fresh water 06 Have no toilets I 01 I Yes I I 02 I No I I 03 I Not applicable I 72 01 Only for women 02 Only for men 03 Mixed 04 None I 01 I Protective shoes I I 02 I Protective glasses I I 03 I Gloves I I 04 I Maskfor mouth I I 05 I Fire extinguishers I I 06 I Emergencyexits I I 07 I Filters I 08 Guiding signs Other, specify: 73 74 B. Workers Questionnaire Enterprise's Code L l n I I n Worker's Code m Fieldworker ID: "Surveying the Status of Labor in Industrial Enterprises" Control Information REGION ENTERPRISE'S NAME City Street I Building name I Floor number P.O. Box Telephone number Name of employee Female 1 Gender Male 2 I Employees phone number I -I I I Household city I Household street 75 Household building Household floor number I Number of household members Respondents home 1 Place of interview Other (Specify) I Number of visits Completed 1 Employee is absent 2 I Result of final visit Interview rejected Not completed 3 4 Other (Specify) Start time: Time End time: 76 hl hl r hl hl hl hl b b U - i- f Q E i ! I 0 c 3 a - tn 3 0 I 0 c, tn hl m m b 3 0 0 0 0 Residence Properties & Household's Possessions 1 Separate room (entire family in one room) 2 Part of a house I 3 I Apartment in a building I I 4 I Seoarate house I 5 Villa 6 Common residence for workers I I Other (Specify) I I 1 I Rented I Skip to Q18 I 2 Common ownership Ask Q17 3 Owned by the household only Other (Specify) Skip to Q18 1 Yes 2 No (Specify) I I 1 Yes I 2 No 2 Not applicable 1 Yes- From the public network only 2 Yes- From a generator only I 3 I Both I 1 1 I Pipes connected to the house I 2 I Common faucet in a building 3 Faucet from neighbors 4 Public faucet I 5 I Pump I 6 Well Other, specifv: 78 Section 1: Respondent's Background I Current occupation 1 Administration 2 Professional 3 Production worker I (SDecifv) 4 Non-production worker I (Specify) 5 Trainee Other, mecifv: 1 Specify year: I LBP: I 1 Daily 2 Weekly 3 Monthly I Other (Specify) 1 Yes Continue 2 No Skip to Q l l O I Months: I 1 I Yes I 2 I No 79 I 1 I Yes I 2 I No 1 Yes 2 No I LBP: rrsmm?pbyu ttL%b.Amywf#gmmd 91tkmn3 1 I Yes I Continue 2 I No I Go to Q114b I 1 FUIItime employee 2 Temporary employee 3 Part-time employee Other, wecifv: 1 Yes 2 No I Months: I LBP: 1 Yes 2 No 80 1 Husband 2 Wife I 3 I Both I I I Other- Write the household person number from the household questionnaire I I 1 I Small amount of my salary I I 2 I Less than half I 3 Almost half 4 More than half I 5 I AII my salary I 6 I None I Skip to Q122a 1 Small amount of my family spending 2 Less than half of mv familv sDendina 3 Almost half of my family spending 4 More than half of my family spending 5 All mv familv sDendina 1 Percentage: I 01 I Yes I Continue I I 02 I No I GotoQ123 I I 122b I 122c I Single Joint I 1 I Checkina account I 01 I 02 I I 2 I Savinas account/ Profit and loss account I 01 I 02 I I I Other, specify: I 01 I 02 I 81 1 For my self-satisfaction 2 Familv saendina 3 I Children spending 4 For security and savings Other. saecifv: I 1 I Yes I Skip to Q126 I 2 I No I Continue 1 Work is too hard 2 I am old 4 Our religion prefers me staying at home 5 My family l spouse prefers me staying at home Other. saecifv: 11 Near the home 12 Availability of NSSF 13 Benefits offered by the companylindustry 14 Work is sirnpleleasy 15 The environment is only women Other, specify: 82 Section 2: Work Condition 1 Provide group transportation Continue 2 Does not provide group transportation . Skip to Q204 3 Cash money 1 Yes Continue 2 No Skip to Q204 1 Free Skip to Q208 2 Share in cost 1 By public transport 2 Mv own car I 3 I On foot I Skip to Q208 I I Other (Specify) I LBP: I I I Less than30minutes I 2 30 minutes - One hour 3 One hour - One hour and the half 4 One hour and the half - two hours I 5 I More than 2 hours I I I I Yes I I 2 IN0 I I I I Yes I Continue I 2 No I SkiptoQ216 83 1 For all 2 Only female employees 1 Free 2 Share in the cost Check Q6 and Q12, if respondent has children less than 6 years continue or else skip to Q216 1 Yes Go to Q214 2 No Continue 1 I have other arrangements 2 Service is bad Go to 4214 Other, sDecifv: 1 Husbandlwife 2 Family I 3 I Brotherslsisters I Go to Q216 4 Neighbors 5 Relatives I 6 I Private nursery I Continue I I Other, specify: I Go to Q216 I I I Yes I 2 No 1 Yes 2 No Number of hours: From AM To ~ PM I I I Yes I Continue I I Skip to (2.219 I I gt&fenwhrtfunn? I I Part-time 1I I 2 I FromHome I I I Other. soecifv: I I I I Womenonly I I 2 I Menonly I 3 Production workers 4 Managers I Administrators 1 5 I Forall I I I I Yes I 1 Yes Continue 2 No Skip to (2222 I 1 I Accept I I 2 I Refuse 1 I 3 I Ignored the request I I 2 INo I 1 Yes Continue 2 No Skip to (2229 85 I USD: I I Annual leaves I 1 1 2 1 1 1 2 1 1 1 2 1 I I UnspecifiedI other leave I 1 1 2 1 1 1 2 1 1 1 2 1 I I Maternity leave for women I 1 1 2 1 1 1 2 1 1 1 2 1 I I Child care leave for women I 1 1 2 1 1 1 2 1 1 1 2 1 I One-hour permission (for breastfeeding mothers) 1 2 1 2 1 2 Sick leaves 1 2 1 2 1 2 86 Section 3: Stability, productivity and professionalism 1 Year If none, skip to Q305 2 Month Parental care 02 02 Marital quarrels 03 03 Marriage I engagement 04 04 I Illness I 05 I 05 I Family problems 06 06 Exams I studying 07 07 Unexpected travel I attending funeral 08 08 I Other, specify: I Continue I I SkiptoQ305 I 1 Yes Continue 2 No Skip to Q307 I Continue I 2 I No 1 Skip to Q311 I 01 I Yes I I 02 I No I 87 1 Male 2 Female I Continue I 2 I No I Skip to 4316 1 I I Volunteer I I 1 I Yes I I 2 INo I I 1 I Director I I 2 1 Worker I 3 I Don'tknow 88 Training on new machines/ 1 LBP: Skip to Q326 1 Company 2 Me 1 3 I Both of us I I I Other, specify: I 89 I 1 I ComDanv (their own comDanv) I I 2 I Private comDanv (cornpanv SDecialized in aivina trainina) I I 3 I Social fund I I 4 I Local national organization I I 5 I Internationalorganization (from abroad) I 6 I Universities I research centers I 2 /No I ~-w~uouury~ --f)uisia9rtR*yrc#tac, 1 I The pay is suitable I 2 I I have the right skills for this work I 3 I have received the necessary training for this work 4 Because I am enthusiastic about this work 5 Because I am respected by my peers 6 Because I am appreciated by the administration 7 Because mv work is easv 1 8 1 The work conditions are not encouraaina I I 9 I Pressures at home affect mv Derformance I I 10 I Difficulties of comina to work affect mv work I I 11 I I do not aet alona with mv Deers I I 12 I I do not get alona with the administration I I I Other, specifv: I 1 I Payincrease 1 2 2 I Bonus 1 2 I 3 I Pavcuts I 1 I 2 I I 4 I Amreciation I 1 I 2 I I 5 I Warnina or censure I 1 I 2 I I 6 I Promotion I 1 I 2 I 7 New production skills 1 2 8 Annual leaves 1 2 9 Casual leave 1 2 1 I Verygood Continue 2 I Good 3 Bad Skip to Q329B 4 Verybad 5 I I can't specify Skip to (2331 6 I Don't know 90 Skip to Q330 1 Yes 2 No 91 92 Section 4: Insurance 1 Yes 2 No I SkiDtoQ405 I 1 Your company 2 Spouse 3 Other, specify: Check Q5, Q401 and Q402: If respondent is over 45 years old and is not registered continue, if not, skip to Q407 llg+w#&mmmrmmnml 7 1 1 Private business 2 Working spouse 3 Assetslinheritance 4 Children Other, specify: I 1 I Provide with health care coveraae I Continue I I SkiD to Q410 I I 3 I Cash money I SkiptoQ409 I I I I I 2 1 Part of an insurance scheme 1 2 I 3 I Throuoh direct oavment of visitation fees I 1 I 2 I 4 I Hospital stays 1 2 5 I Medications 1 2 I 6 I Coveraae for immediate familv I 1 I 2 I If answered no to all questions in Q408, skip to Q411 93 A Through direct payment of visitation fees 1 2 B Hospital stays 1 2 C Medications 1 2 I D I Coveraae for immediate familv I 1 I 2 I If answered by no to all questions then continue, otherwise skip to Q411 1 41Q Why noy) 1 Yes Continue 2 No Skip to Q413 I 1 1 EmDlover and emDlov other I I 2 t SelfemDloved I I 3 I EmDlovee workina with Dav I I 4 I EmDlovee workina with in-kind I I 5 I Emplovee working without Day I 6 Working with family without pay Other, specify: 1 Yes Continue 2 No Skip to Q415 I 1 I Holdina or Drooertv h o t thouah inheritance) I I 2 I Inheritance I I 3 I Bankaccount I I Other 1 Father I mother 2 Spouse 3 Brother I sister I 4 I Children I I I Other. sDecifv: I 94 1 I Yes I Continue 2 I No I SkiDtoQ419 I 2 I Cleanina I 3 Children care 4 Buying household and children needs 5 Taking care of an elderly person 6 Taking care of a sick person Other, specify: Hour: I SkiD to Q422 I ~*~oos]toornedtoct~~d#pou&rbscsl.n 1 I ComDlained to administration I 2 I ComDlained to Foreman I I 3 I Talked with a friend I I 4 I Talked with family I I 5 I Said nothinn I I Other (Specify): I 2 INo I I 02 I Nearhome I 03 Good transport 04 Good pay 05 Suitable working hours 06 Suitable career 07 Temporary working 08 Health care and social insurance 09 Leave babv with familv 95 I Other (Specify) Section 5: Impact of the War Residence 1 2 Major effect 2 Minor effect 3 Death 1 Household members 1 2 Major injuries 2 Minor injuries 3 Estimated value of losses: Household possessions 1 2 I n Lur D Destroyed 1 -" Workplace 1 2 Majoreffect 2 Minor effect 3 Length in days: Temporarily 1 Work stopping 1 Work conditions 1 2 1- I Salary 1 Increased 1 I Yo: Decreased 2 1%: Q Other, specify: 1 L I I 96 REFERENCES Anker, R. 1998. Gender and Jobs: Sex Segregation o Occupations in the World. Geneva: f International Labor Organization. Association des Banques du Liban, 2006. Almanac o f Banks in Lebanon. Baum, C., Schaffer, M., Stillman, S. 2003. Instrumental variables and G M : Estimation and Testing. Boston College Department o f Economics working paper No. 545. Becker, G. 1981. A treatise on thefamily. Harvard University Press, Cambridge. Bruce, D., 1999. Do husbands matter? Married women entering self-employment. Small Business Economics 13,3 17-329. Burke, A. E., F. R. FitzRoy and M.A. Nolan, 2002. Self-employment Wealth and Job Creation: The Roles o Gender, Non-pecuniary Motivation and Entrepreneurial AbiliQ. Journal o f Small Business f Management 19: 255-270. Caputo, R.K., Dolinsky, A., 1998. Women's choice to pursue self-employment: The role offinancial and human capital o household members. Journal o f Small Business Management 36,s-17. f Dunn, T., Holtz-Eakin, D., 2000. Financial capital, human capital and the transition to self- employment: evidencefiom intergenerational links. Journal o f Labor Economics 18,282-305. Evans, D. and B. Jovanovic. 1989. An Estimated Model o Entrepreneurial Choice Under Liquidity f Constraints. Journal o f Political Economy 97,808-827. Jianakoplos, N. and A. Bernasek. 1998. Are Women More Risk-Averse? Economic Inquiry 36, 620- 630. Korenman, S and Neumark, D. 1992. Marriage, Motherhood, and Wages. Journal o f Human Resources 27(2):233-255 Muravyev, A., D. Schafer and 0. Talavera. 2007. Entrepreneurs' Gender and Financial Constraints: Evidence fiom International Data. Discussion Paper, D I W Berlin, German Institute o f Economic Research. Parker, S. C. 2008. Entrepreneurship among married couples in the United States: A simultaneous probit approach. Labour Economics 15,459481. Sreih F. Josiane 2008. Family Business Consultations in Lebanon. Lebanese American University, Lebanon. World Bank. 2008. Women 's entrepreneurship in Middle East and North Afiica. Washington, DC: World Bank. .2007. Afiican Competitiveness Report. Washington, DC: World Bank. Wootton, B. 1997. Gender dferences in occupational employment. Monthly Labor Review, (April): 15-24. 97 98 IBRD 33433 35°30'E 36°00'E 36°30'E To To To Hims Al Hamidiyah Tall Kalakh Kabir LEBANON Qoubauyat Halba 35°30'N Funaydiq To Tripoli Abou Moussa Al Qusayr Zhgarta Hermel NORTH Chekka LEBANON Sib'il Qaa ntes Ihdin Amioun . O ro Bcharri Ja o s s. z Douma Qurnat n Al Labwah as Sawda' tn Aynata y M t (3,088 m) Mediterranean e n M l o n l a Sea Jbeil Al Aqurah a e b To An Nabk n V i -L o Ibrahim nt Afqa a n A a a k Baalbeck e b 34°00'N Jounie 34°00'N e B MOUNT L BEIRUT LEBANON BEKAA Antilyas BEIRUT Rayak Baabda Hammana Zahleh To Az Zabadani i an Damour L it Beit ed Dine Jieh To Ad Dimas Joub Jannine A w w a li Saida Qaraaoun Jezzine El Zahrani 34°30'N Rachaiya 34°30'N i an 0 10 20 30 Kilometers sb Ha 0 10 20 Miles Nabatiyeh Maryjayoun N A B AT I Y E H L it a n i Tyre SOUTH To Baniyas LEBANON To SELECTED CITIES AND TOWNS LEBANON Qiryat Hula Shemona Tibnine GOVERNORATE (MOHAFAZAT) CAPITALS NATIONAL CAPITAL Naqoura Bent Jbail This map was produced by the Map Design Unit of The To World Bank. The boundaries, RIVERS Rmaich Gadot colors, denominations and any other information shown MAIN ROADS To on this map do not imply, on Nahariyya the part of The World Bank RAILROADS Group, any judgment on the 33°00' N legal status of any territory, or any endorsement or GOVERNORATE (MOHAFAZAT) BOUNDARIES acceptance of such boundaries. INTERNATIONAL BOUNDARIES 35°30'E 36°00'E NOVEMBER 2004