62657 Women, Business and the Law Measuring Legal Gender Parity for Entrepreneurs and Workers in 128 Economies © 2010 The International Bank for Reconstruction and Development / The World Bank 1818 H Street NW Washington, D.C. 20433 Telephone 202-473-1000 Internet www.worldbank.org E-mail feedback@worldbank.org All rights reserved This volume is a product of the staff of the World Bank Group and serves as a consultation paper for the development of a new indicator set. The findings, interpretations, and conclusions expressed in this volume do not necessarily reflect the views of the Executive Directors of the World Bank or the governments they represent. The World Bank Group does not guarantee the accuracy of the data included in this work. Publication was made possible with funding from the Gender Action Plan and the Norwegian Trust Fund. The opinions expressed herein are those of the authors and do not necessarily reflect the views of any of the Gender Action Plan donors. Rights and Permissions The material in this publication is copyrighted. Copying and/or transmitting portions or all of this work without permission may be a violation of applicable law. The World Bank Group encourages dissemination of its work and will normally grant permission to reproduce portions of the work promptly. For permission to photocopy or reprint any part of this work, please send a request with complete information to the Copyright Clearance Center Inc., 222 Rosewood Drive, Danvers, MA 01923, USA; telephone: 978-750-8400; fax: 978-750-4470; Internet: www.copyright.com. All other queries on rights and licenses, including subsidiary rights, should be addressed to the Office of the Publisher, The World Bank, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2422; e-mail: pubrights@worldbank.org. Foreword For men and women throughout the developing world, the chance to start and run a business or to get a good job is the surest hope of a way out of poverty. Creating the kind of environment in which this hope can flourish requires effort in a broad range of areas, from security and infrastructure to education and health. It also requires good business regulation—regulation that is fit for the purpose and streamlined, but also accessible—so that the chance to build a business, or to have a good job, depends not on your connec- tions or wealth or power, but on your initiative and ability. In recent years, we have seen an increasing number of governments focusing their efforts on creating a sounder business environment. Our Doing Business publication, which tracks reforms in business regulations important for small and medium-size domestic firms, highlights the energy of these efforts in countries as varied as FYR Macedonia and Rwanda, Colombia and Liberia, China and Egypt. And we see increasing evidence of the impact of these reforms on registration of formal firms, access to finance and job creation. But how to be sure that as governments improve business regulation, women entre- preneurs and workers benefit alongside men? Answering this question requires an understanding of many factors, from access to good basic infrastructure, education and healthcare, to social and cultural norms. But one piece of the puzzle are the laws, regula- tions and institutions that differentiate between women and men in ways that affect their incentives or capacity to work or to set up and run a business. Women, Business and the Law focuses on this piece of the puzzle, setting out in an objective fashion legal differentiations on the basis of gender in 128 economies around the world, covering 6 areas—accessing institutions, using property, getting a job, dealing with taxes, building credit and going to court. Our hope is that these data will both enable research on linkages between legal differentiation and outcomes for women, and help inform policy dialogue on things governments can do to expand women’s opportunities. And as this is the first of what we plan as an annual series of reports on this critically important topic, we especially welcome feedback. Janamitra Devan Vice President, Financial and Private Sector Development World Bank Group W O M E N , B U S I N E S S A N D T H E L AW 2 0 1 0 — S U M M A RY 1 2 W O M E N , B U S I N E S S A N D T H E L AW 2 0 1 0 — S U M M A RY Women, Business and the Law: An introduction In 1804 the Napoleonic Code broke ground in establishing civil Though some gender-based differentiations arose from tradi- rights in France. For instance, it granted freedom of religion and tions in which women were deliberately subjugated to men, forbade privileges based on birth. But the same code said that others were introduced with the intention of protecting women. wives were under the supremacy of their husbands. In England Documenting where laws stipulate different treatment of men and during the same period the law gave inheritance rights only to women—whatever the reason—can help improve understanding male heirs, leaving women with less access to property. Until the of how legal and regulatory environments shape opportunities for 1840s wives in the United States were legally subordinated to women and contribute to more informed policy discussions. their husbands and prevented from controlling their own property. What this report covers—and why Things have changed. French husbands and wives now have equal Like men, women consider entrepreneurship and employment standing in the eyes of the law. In the United Kingdom women can an important way of escaping poverty.2 Datasets such as the inherit property the same way as men. And in the United States Enterprise Surveys3 and Doing Business4 delineate the challenges women can control their property the same way as men. that all firms and entrepreneurs face in expanding their businesses In Latin America in 1888, Costa Rica—followed by El Salvador, and creating jobs. But female entrepreneurs and employees may Nicaragua and Honduras—expanded property rights for married face additional constraints in starting businesses and navigating women by allowing them to retain ownership and control over any the workforce. In 2009 the Global Gender Gap Index reported property they acquired prior to or during marriage, as the default that 96% of the gender gap in health and 93% of the gap in 1 regime governing marriage in the reformed civil codes. In Imperial education have been eliminated. But the gender gap for economic China married women were under the authority of their husbands. participation remains at 41%.5 Their role was summed up by the “three obediences,” with a Women, Business and the Law focuses on gender differentiations young woman expected to obey her parents, a married woman in legal treatment—one of many sets of factors that determine her husband and a widow her sons. In contrast, China’s current the course of women’s working lives. Covering 128 economies, it marriage law grants men and women equal rights in family life. establishes 6 indicators of gender differences in formal laws and institutions: Though there has been much progress Ñ Accessing institutions—explores women’s legal ability to toward legal parity between women and interact with public authorities and the private sector in the men, important distinctions still exist same ways as men. that may constrain women’s capacity to Lack of autonomy to interact with government institutions or conduct official transactions may limit a improve their own and their families’ woman’s access to resources and services and restrict well-being by working or by running her ability to be an entrepreneur or get a job. a business. Women, Business and the Ñ Using property—analyzes women’s ability to access and Law identifies gender-based distinctions use property based on their capacity to own, manage, in formal laws and institutions that control and inherit it. may directly or indirectly affect female The ability to access, manage and control property can workers and entrepreneurs. be especially important in developing economies, where W O M E N , B U S I N E S S A N D T H E L AW 2 0 1 0 — S U M M A RY 1 women are more likely to work in family enterprises and and distribute microfinance data. Having this record can their income can hinge on their access to property. allow women to graduate to larger loans. Ñ Getting a job—assesses restrictions on women’s work such Ñ Going to court—considers the ease and affordability of as prohibitions on working at night or in certain industries. accessing justice by examining small claims courts. This indicator also covers laws on work-related maternity Small claims courts can make it easier for small busi- and paternity benefits and on retirement ages. ness owners to access the legal system. That can help Some differentiations in labor law may increase women-owned businesses—which tend to be smaller— opportunities for women, while others may limit by making it cheaper and faster to resolve disputes. them. Parental leave policies are generally expected to generate a more equitable division of childrearing The first 3 indicators—accessing institutions, using property, and responsibilities, giving women the same opportunities getting a job—capture laws that have direct gender dimensions for career advancement. But restrictions on working and are based on a reading of such laws from the perspective hours or industries designed to protect women may of individual women. The 4th indicator—dealing with taxes— end up limiting their ability to get the jobs they want. examines the direct and indirect gender implications of tax policy Similarly, gender-differentiated retirement ages have the from the perspective of 4 standardized families with varying tax potential to affect career prospects, lifetime earnings, liabilities. pension benefits and retirement savings. The last 2 indicators—building credit and going to court—examine Ñ Dealing with taxes—examines personal income tax the ease of access to credit bureaus and courts to examine the liabilities, taking into account tax credits and deductions indirect effects that microfinance institutions and dispute resolu- available to women relative to men. tion have on women, who are more likely to rely on nontraditional financial services.6 The questions used to construct each indicator Gender differences in tax treatment may affect women’s were chosen based on data availability, economic relevance and decision to work. Women may have stronger incentives variation of regulation across economies. to participate in the labor market if tax rules favor an equal distribution of income. The Women, Business and the Law indicators complement a Ñ Building credit—identifies minimum loan thresholds in number of existing sets of gender indicators. These include: private credit bureaus and public credit registries and Ñ The Global Gender Gap Index, published by the World tracks bureaus and registries that collect information from Economic Forum, which examines global gender inequali- microfinance institutions. ties using criteria based on economics, politics, education and health. The index mainly uses quantitative outcome Low minimum loan thresholds mean more coverage variables such as the ratio of female to male labor force for small businesses—many of which are owned by participation. women—because they tend to take out small loans. Such loans can help these businesses build credit Ñ The Social Institutions and Gender Index, which provides a histories if credit bureaus and registries set low composite measure of gender equality based on the OECD’s thresholds for inclusion in their data. And because most Gender, Institutions and Development Database. The index microfinance users are women, they are more likely to includes 12 indicators on social institutions grouped into 5 benefit from credit bureaus and registries that collect categories: family code, physical integrity, son preference, civil liberties and ownership rights. These indicators are 2 W O M E N , B U S I N E S S A N D T H E L AW 2 0 1 0 — S U M M A RY based on expert assessments of what happens in practice Similarly, the indicator on accessing institutions does not include beyond the basic legal framework. They focus on policy laws covering affirmative action and voting rights. and input variables, such as inheritance regulation, and on outcome variables, such as access to credit. Though the report focuses on laws that govern the formal economy, many women in developing economies work or start businesses Ñ The United Nations Gender Info 2007, a database of gender in the informal economy. The report’s focus on the formal sector is statistics and indicators focused on policy areas such as driven by the difficulty of identifying the often unwritten rules of the population, families, health, education, employment and informal economy and by the premise that moving to the formal political participation. Using some of these indicators, economy provides women with more opportunities in higher-pay- the United Nations Development Programme produces ing industries, greater social protections and formal mechanisms for the Gender-Related Development Index and Gender recourse should their rights be denied. In practice, all the indicators Empowerment Measure, which are part of the Human other than getting a job and dealing with taxes cover regulations Development Index. All of these indicators are based on that affect women in both the formal and informal sectors. quantitative outcome variables. Customary law—based on the accepted customs or practices of Women, Business and the Law is the first attempt to measure the a particular group—can exist in parallel with common or civil law gender gap in policy variables using quantitative and objective data. regimes. Where such legal systems exist together, customary law can determine a woman’s rights in marriage or to property What this report does not cover and inheritance, often granting women different rights than they Equal opportunities for women in business and the workplace would receive under common or civil law. Women, Business and hinge on the interplay of various economic, social and cultural the Law does not cover customary law. Though customary law can factors. For example, unless women have opportunities to get an significantly affect a woman’s ability to become an entrepreneur or education or build their skills, equal rights to certain professions participate in the job market, difficulties arise in defining its rules. can mean little. Equalizing rights to work may not cause more women to enter the workforce if they are expected to be the In focusing on written legislation, the report recognizes the often primary care-givers for their children and access to child care is large gaps between laws on the books and actual practices: limited. Less direct factors such as infrastructure—for example, women do not always have access to the equality that formally safe transportation and good street lighting—may also affect should be theirs. But identifying legal differentiation is one step women’s ability and desire to work in certain locations or at night. toward better understanding where and how women’s economic rights may be restricted in practice. Of all the countries covered This report recognizes the many issues that affect women’s by this report, only 3—the Islamic Republic of Iran, Sudan and the economic opportunities but focuses on one area: aspects of the United States7—are not party to the United Nations Convention formal legal and regulatory environment that enable women to on the Elimination of All Forms of Discrimination Against Women open their own businesses or find jobs. The report represents a (CEDAW). Thus it would seem that the vast majority of women in partial effort on several levels, both in the selection of broad topic the countries that are party to the convention should have access areas and within the topic areas. For example, the indicator on to formal equality. But as the report shows, they do not. Moreover, getting a job does not cover equal pay for equal work laws even the majority of countries covered in this study grant equal rights though the existence of such laws may affect women’s spending under their national constitutions, making many of the gender power and lifetime earnings as well as employers’ hiring decisions. differentiated provisions highlighted throughout the report uncon- stitutional. The report’s focus on formal law is consistent with the W O M E N , B U S I N E S S A N D T H E L AW 2 0 1 0 — S U M M A RY 3 idea that improving the regulatory environment for women is one they are assumed to reside in each economy’s largest city for busi- step toward encouraging them to join the labor force, stimulating ness. This assumption may make a significant difference in federal business and job creation, and making businesses and the overall countries, where laws affecting women can vary by state. In addition, economy more competitive. where several sets of personal law apply, setting out different rights and obligations for different groups of women, the data focus on the The report does not test or analyze outcome variables of gender situation of the most restricted group of women. A detailed explana- inequality; it simply identifies whether the law is equal for women tion of the report’s methodology—including all the questions used and men—which can be a potential source of inequitable gender and assumptions made—is provided in the Data notes. outcomes. Assessing the potential benefits of equality—and when and how legal differentiation on the basis of gender helps What’s next or harms outcomes for women—requires additional analysis Future editions of this report will seek to expand coverage to beyond the scope of this report. But it is hoped that these new additional economies and expand or refine the current indicators. data will inform such analysis, foster discussions on advancing The indicator on accessing institutions will be disaggregated to women’s economic rights and provide policymakers with tools provide more detailed understanding of the extent of inequality in to identify potential ways to improve those rights. By focusing on this area and enable better comparisons of the differences in un- the law, which is tangible and concrete, the report aims to provide equal treatment across regions and income groups. Future reports policymakers with a starting point for dialogue and action. will also consider expanding the indicator on getting a job to cover equal pay for equal work and nondiscrimination in employment, Data and methodology as well as regulations on part-time employment. Further work is The data in this report were collected over two years ending in planned on options for addressing customary law. October 2009. The data are current as of June 2009. As progress is monitored on the 6 indicators, it will become The report’s indicators were constructed using codified sources of possible to identify which economies are more active in chang- national law—such as constitutions, marriage and family codes, ing laws on women’s economic rights. Thus future editions will labor codes, passport procedures, citizenship rules, inheritance contain more detail on legal changes and the processes associ- statutes, tax regulations, land laws and social security codes—as ated with those changes. well as responses from country practitioners. Wherever possible, data were gathered directly from the text of laws. The Gender Feedback is welcomed on all aspects of the report and can be Law Library and other online sources were used to access laws. provided through our website. In addition, responses from the Doing Business 2010 surveys were used to develop the indicators for dealing with taxes, building 1 Deere and León (2001). credit and going to court. 2 Narayan and others (2000). 3 See http://www.enterprisesurveys.org/. This pilot report collected data on 128 economies. More detailed 4 See http://www.doingbusiness.org/. data on each economy, including links to the legal sources used, 5 World Economic Forum (2009). are available on the Women, Business and the Law website (http:// 6 Coleman and Carsky (1996); Coleman (2000); Orser, Hogarth-Scott and Riding (2000). wbl.worldbank.org). 7 The United States signed the Convention, but has not ratified it. In comparing this large sample of economies, several assumptions are made about the situation of the women in question. For example, 4 W O M E N , B U S I N E S S A N D T H E L AW 2 0 1 0 — S U M M A RY Overview Millennium Development Goal 3 calls Improving the condition of women can have benefits for society that transcend the direct benefits to individual women. Women’s for promoting gender equality and independent earnings improve the well-being of families and empowering women. There are many communities, reduce poverty and stimulate economic growth.5 ways to pursue this objective. Improving Higher income for women and better access to and control over girls’ education, promoting women’s their resources also translate into better health and nutrition for children.6 In Bangladesh access to microfinance increases political participation, establishing household consumption when the borrower is a woman. Access maternal health initiatives, improving to credit also improves children’s health and nutrition.7 basic infrastructure and combating Expanding economic opportunities for women can benefit violence against women are all critical economies at all levels of development. For instance, in the ways of promoting gender equality and United States in the second half of the 1990s, companies with empowering women. Another way that more women in top management achieved better financial performance.8 women are empowered is by being able to work in a paid job or run their own It’s an unequal world business. Entering the formal economy In recent years many economies have taken steps to improve as workers or businesswomen allows regulatory aspects of their business environment, with the goal women to provide for themselves and of improving entrepreneurship and employment opportunities for their citizens. But many also retain legislation that treats women their families, and to play their part in and men differently in ways that may affect their opportunities as generating economic growth and job entrepreneurs and workers. creation. Only 20 of the 128 economies covered by Women, Business and the Law set equal rights for women and men in 9 key areas But in many economies finding a job or starting a business can (excluding parental benefits).9 None of the 20 is in South Asia, the be difficult for women, and their chances of success somewhat Middle East and North Africa or Eastern Europe and Central Asia. constrained. There are fewer women than men in the global labor Only 1—Botswana—is in Sub-Saharan Africa. Two are in East Asia market, and women in every economy are paid less for their work and the Pacific—Hong Kong (China) and Taiwan (China)—and 4 than men—with the wage gap averaging 17% in 2008.1 In Latin are in Latin America and the Caribbean—the Dominican Republic, America and the Caribbean men’s labor force participation is Peru, Puerto Rico and Uruguay. The remaining 13 are OECD about 30 percentage points higher than women’s at age 24, and in high-income economies: Canada, Denmark, Finland, France, South Asia 82% of men are active in the labor market—compared Iceland, Ireland, New Zealand, Norway, Portugal, Spain, Sweden, with just 27% of women.2 Women also own fewer businesses— the United Kingdom and the United States. only one-third of firms in 118 economies surveyed by the World Bank have female participation in ownership3—and businesses Differentiations between men and women may have a variety owned by women tend to have fewer employees and lower sales of motivations and take a variety of forms. For example, married and invested capital.4 women may be prevented or limited—by family codes or personal status laws—from functioning independently of their husbands. In W O M E N , B U S I N E S S A N D T H E L AW 2 0 1 0 — S U M M A RY 5 the Democratic Republic of Congo a married woman must obtain retirement ages for women—a protection that can have unintend- authorization from her husband before signing a contract or ed negative consequences given their longer life expectancies. 10 starting a business. In the Republic of Yemen a married woman cannot leave her home without her husband’s permission, though Equality and economic outcomes for women the law does say that a husband cannot bar his wife from leaving Does equality in the areas measured by Women, Business and the the house if she is going to attend to her financial affairs, perform Law actually relate to better outcomes for women? A key goal in her job or care for her parents.11 compiling these data is to enable research that tests the relation- ship between legal equality or differentiation and outcomes for When it comes to labor market participation, laws may be created women as business owners or workers. A first glance at the data with the goal of protecting women, but may limit their opportuni- indicates that there is a broadly positive association between ties in ways that not all women might choose. In the United equality in the law and more equal outcomes for women. This is Arab Emirates women cannot work at night except in limited not in itself an indication of causality, but does suggest the value circumstances.12 In Nigeria it is illegal for women to work at night of further research. in agriculture or manufacturing.13 And in the Russian Federation women are forbidden from working underground or in dangerous, Figure 1.1 shows the average percentage of female participation unhealthy professions.14 Such regulations may end up taking work in ownership and management in economies where women and away from willing employees and business opportunities away men have equal rights under the law in four areas covered by this from entrepreneurs. Some governments set earlier mandatory report—and in those where they do not. Legal differentiations are Figure 1.1 Equal rights are associated with more businesses owned or managed by women INDUSTRY RESTRICTIONS Female top manager Female participation in ownership OWNERSHIP RIGHTS Female top manager Female participation in ownership INHERITANCE RIGHTS Female top manager Female participation in ownership CAPACITY BY LAW Female top manager Female participation in ownership 0% 5% 10% 15% 20% 25% 30% 35% 40% % OF FIRMS Q Economies with equal gender rights Q Economies with unequal gender rights Source: Women, Business and the Law database; World Bank Enterprise Surveys database. Note: The bars represent the average female participation in ownership or management in economies where women have the same rights as men and where they do not. Equal rights for men and women are measured across 4 dimensions in Women, Business and the Law: capacity by law, inheritance rights, ownership rights and industry restrictions. The Enterprise Surveys database includes 86 economies with data on the percentage of firms with female participation in ownership and 34 economies with data on the percentage of firms with a female top manager. The Enterprise Surveys data are for 2002–09. 6 W O M E N , B U S I N E S S A N D T H E L AW 2 0 1 0 — S U M M A RY measured in 4 areas, assessing whether men and women can In addition, there is a significant correlation between the data in work in the same industries, have the same rights over property Women, Business and the Law and the OECD’s Social Institutions ownership, have the same rights over property inheritance and and Gender Index, which covers both policy and outcome have the same capacity by law. In all these areas equality by law variables (figure 1.3). is associated with a higher percentage of female participation in ownership and management. Gender inequality is a global phenomenon Every region contains economies with unequal rules for men and Comparing the Global Gender Gap Index,15 which measures women, with the extent of inequality varying by region (table 1.1). differences in outcomes for women, with the data from Women, In Sub-Saharan Africa all economies except Botswana impose un- Business and the Law shows that of the 20 “equal” economies equal rules for men and women in at least 1 of the following areas: listed above, 10 are in the top 20 of the Global Gender Gap Index. accessing institutions, using property, getting a job or dealing with Overall, economies with unequal legislation as shown by Women, taxes. This is also the region where the smallest percentage of Business and the Law tend to score lower on the Global Gender economies have small claims courts or credit bureaus that collect Gap Index and on its economic participation and opportunity information from microfinance institutions. sub-index in particular—meaning a larger gap between women and men in outcomes such as labor force participation (figure 1.2). Figure 1.2 Women, Business and the Law and the Global Gender Gap Index WORKING HR RESTRICTIONS Economic participation and opportunity sub-index Global Gender Gap Index INDUSTRY RESTRICTIONS Economic participation and opportunity sub-index Global Gender Gap Index OWNERSHIP RIGHTS Economic participation and opportunity sub-index Global Gender Gap Index INHERITANCE RIGHTS Economic participation and opportunity sub-index Global Gender Gap Index CAPACITY BY LAW Economic participation and opportunity sub-index Global Gender Gap Index 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 AVERAGE SCORE Q Economies with equal gender rights Q Economies with unequal gender rights Source: Women, Business and the Law database; World Economic Forum 2009. Note: The bars represent the average scores for the index and sub-index in economies where women have the same rights as men and where they do not. Equal rights for men and women are measured across 5 dimensions in Women, Business and the Law: capacity by law, inheritance rights, ownership rights, industry restrictions and working hour restrictions. The economic partici- pation and opportunity sub-index is part of the Global Gender Gap Index. A high score on both indicators means that there is a low gender gap in outcomes. The differences in the figure are statistically significant at the 1% level even after controlling for income per capita, except for the differences in ownership rights. The figure uses data for 112 economies. W O M E N , B U S I N E S S A N D T H E L AW 2 0 1 0 — S U M M A RY 7 The picture is similar in the Middle East and North Africa, where In Latin America and the Caribbean legal differentiation between all economies have some gender-differentiated rules in one or men and women exists in 16 of the 20 economies covered in more of accessing institutions, using property, getting a job or one or more of accessing institutions, using property or getting a dealing with taxes. Moreover, this region has one of the smallest job. But none of the economies differentiates between men and shares of economies providing the services described in building women on inheritance rights or dealing with taxes. Moreover, credit and going to court. this region has the highest percentage of economies where credit bureaus collect information from microfinance institutions. In South Asia differentiation between men and women is common in accessing institutions, using property and getting a job. There None of the economies in Eastern Europe and Central Asia and is no direct gender differentiation in dealing with taxes, and in OECD high-income differentiates between men and women small claim courts are common in the region. But in only 1 of the in accessing institutions, using property or dealing with taxes. region’s 5 economies covered by this report does the public credit The Republic of Korea is an exception in that its personal income bureau collect information from microfinance institutions. tax laws imposes a lower tax liability on women through specific deductions that apply only to working women. Otherwise, all the In East Asia and the Pacific there are different rules for men and legal differentiations between men and women in these 2 regions women in 10 of 13 economies in one or more of accessing institu- focus on labor regulations. tions, using property, getting a job or dealing with taxes.16 Figure 1.3 Women, Business and the Law and the Social Institutions and Gender Index 0.25 0.2 AVERAGE SCORE 0.15 0.1 0.05 0 WORKING HOUR INDUSTRY OWNERSHIP INHERITANCE CAPACITY RESTRICTIONS RESTRICTIONS RIGHTS RIGHTS BY LAW Q Economies with equal gender rights Q Economies with unequal gender rights Source: Women, Business and the Law database; Social Institutions and Gender Index (2009) by OECD Note: The bars represent the average score in the Social Institutions and Gender Index in economies where women have the same rights as men and where they do not. Equal rights for men and women are measured across 5 dimensions in Women, Business and the Law: capacity by law, inheritance rights, ownership rights, industry restrictions and working hour restrictions. A lower score on the Social Institutions and Gender Index means that there is more gender equality in both outcomes and policies. The differences in the figure are statistically significant at the 1% level even after controlling for income per capita, except for the difference in ownership rights. The figure uses data for 78 economies. 8 W O M E N , B U S I N E S S A N D T H E L AW 2 0 1 0 — S U M M A RY Table 1.1 Economies with gender differentiated laws across 9 questions East Asia Eastern Europe OECD Latin America Middle East South Asia Sub-Saharan Africa & Pacific & Central Asia high-income & Caribbean & North Africa Where do men and women Indonesia, None None Chile, Jamaica Algeria, Egypt, Arab Rep., Iran, Bangladesh, Benin, Burkina Faso, Cameroon, not have equal capacity Malaysia, Islamic Rep., Jordan, Kuwait, Nepal, Congo, Dem. Rep., Côte d’Ivoire, by law? Philippines Lebanon, Morocco, Oman, Saudi Pakistan, Ghana, Guinea, Kenya, Lesotho, Arabia, Syrian Arab Republic, Sri Lanka Madagascar, Malawi, Mali, Mauritania, United Arab Emirates, Yemen, Niger, Nigeria, Rwanda, Senegal, Rep. Sudan, Tanzania, Togo, Uganda Where do married men and Indonesia, None None Chile, Jamaica Algeria, Egypt, Arab Rep., Iran, Bangladesh, Benin, Burkina Faso, Cameroon, married women not have Malaysia, Islamic Rep., Jordan, Kuwait, Nepal, Congo, Dem. Rep., Côte d’Ivoire, equal capacity by law? Philippines Lebanon, Morocco, Oman, Saudi Pakistan, Ghana, Guinea, Kenya, Lesotho, Arabia, Syrian Arab Republic, Sri Lanka Madagascar, Malawi, Mali, Mauritania, United Arab Emirates, Yemen, Niger, Nigeria, Rwanda, Senegal, Rep. Sudan, Tanzania, Togo, Uganda Where do men and women Indonesia, None None Chile, Jamaica None Nepal, Cameroon, Congo, Dem. Rep., not have equal ownership Philippines Sri Lanka Mauritania, Togo rights over movable and immovable property? Where do men and women Indonesia, None None None Algeria, Egypt, Arab Rep., Iran, Bangladesh, Guinea, Kenya, Malawi, Mali, not have equal inheritance Malaysia, Islamic Rep., Jordan, Kuwait, India, Nepal, Mauritania, Nigeria, Senegal, Sudan, rights over movable and Philippines, Lebanon, Morocco, Oman, Saudi Pakistan, Tanzania, Togo, Zambia immovable property? Singapore Arabia, Syrian Arab Republic, Sri Lanka United Arab Emirates, Yemen, Rep. Where can women not Papua New Montenegro, Slovenia, Turkey, Ukraine None Costa Rica, Jamaica Algeria, Egypt, Arab Rep., Jordan, Bangladesh, Cameroon, Chad, Congo, Dem. Rep., work the same night hours Guinea, Kuwait, Oman, Saudi Arabia, Nepal, Madagascar, Mali, Mauritania, Nigeria, as men? Philippines Syrian Arab Republic, United Arab Pakistan, Senegal, Sudan Emirates, Yemen, Rep. Sri Lanka Where can women not China, Bosnia and Herzegovina, Montenegro, Belgium Bolivia, Colombia, Egypt, Arab Rep., Iran, Islamic India, Benin, Cameroon, Chad, Congo, Dem. work in all industries? Malaysia, Russian Federation, Serbia, Slovenia, Ecuador, Guatemala, Rep., Jordan, Kuwait, Lebanon, Pakistan Rep., Côte d’Ivoire, Ethiopia, Guinea, Mongolia, Turkey, Ukraine, Uzbekistan Jamaica, Panama Morocco, Oman, Saudi Arabia, Kenya, Lesotho, Mali, Mauritania, Papua New Syrian Arab Republic, United Arab Niger, Nigeria, Senegal, Sudan Guinea, Emirates, Yemen, Rep. Thailand, Vietnam Where can pregnant and China, Albania, Armenia, Azerbaijan, Belarus, Austria, Belgium, Chile, Colombia, El Israel, Jordan None Angola, Benin, Cameroon, Chad, nursing mothers not work Indonesia, Bulgaria, Estonia, Georgia, Kyrgyz Czech Republic, Salvador, Guatemala, Congo, Dem. Rep., Côte d’Ivoire, the same hours and in the Lao PDR, Republic, Moldova, Montenegro, Germany, Honduras, Mexico, Ethiopia, Ghana, Guinea, Madagascar, same industries as men Mongolia, Russian Federation, Serbia, Slovenia, Hungary, Nicaragua, Panama, Mali, Mauritania, Namibia, Niger, and other women? Thailand, Turkey, Ukraine, Uzbekistan Italy, Japan, Paraguay, Venezuela, Rwanda, Senegal, Tanzania, Togo Vietnam Korea, Rep., R. B. Netherlands Where are women China, Albania, Armenia, Azerbaijan, Belarus, Australia, Argentina, Brazil, Algeria, Iran, Islamic Rep., Jordan, Pakistan, Congo, Dem. Rep., Madagascar, expected by law to retire at Malaysia, Bulgaria, Croatia, Estonia, Georgia, Austria, Czech Chile, Colombia, Lebanon, Oman, Saudi Arabia, Sri Lanka Mauritania, Nigeria, South Africa an earlier age than men in Mongolia, Kazakhstan, Kyrgyz Republic, Latvia, Republic, Costa Rica, El Syrian Arab Republic, Yemen, Rep. the private sector? Vietnam Lithuania, Moldova, Montenegro, Greece, Italy, Salvador, Honduras, Poland, Romania, Russian Federation, Slovak Republic, Jamaica, Panama, Serbia, Turkey, Ukraine, Uzbekistan Switzerland Venezuela, R. B. W O M E N , B U S I N E S S A N D T H E L AW 2 0 1 0 — S U M M A RY Where do women face Indonesia None None None Lebanon None Burkina Faso, Côte d’Ivoire higher personal income tax 9 liability than men? Although income level is correlated with gender equality under without their husbands’ consent. In 2004 Botswana passed the the law (figure 1.4), unequal legal provisions exist in both Abolition of Marital Power Act, eliminating the husband’s position developed and developing economies. as head of household and giving spouses equal rights in managing and administering joint property. Laws are changing to increase equality Finland (in 2002), the Kyrgyz Republic (2008) and Moldova In recent years a number of the 128 economies covered by Women, (2003) are among the economies that have recently changed Business and the Law have adopted formal laws aimed at equalizing legislation to allow fathers to take extended parental leave.18 A the status of women and men. Though this report does not provide growing number of economies are also instituting paternity leave a comprehensive list of these reforms, the following examples policies, allowing fathers to take time off at the birth of their reflect the types of changes being made around the world. children. Exemplifying this trend in Latin America is Ecuador, which instituted new paternity leave laws in 2009. Such laws may In 1996 Botswana amended its Employment Act and Mines and encourage more equitable division of childrearing responsibilities Quarries Act to lift restrictions on the industries where women and enable women to pursue career opportunities that might not can work. In addition, retirement ages were set at 65 for both men otherwise be open to them. and women.17 Botswana also amended its Deeds Registry Act, enabling women to execute deeds and other legal documents Figure 1.4 Legal equality and income level 100% 90% 80% 70% % OF ECONOMIES 60% 50% 40% 30% 20% 10% 0% WORKING HOUR INDUSTRY OWNERSHIP INHERITANCE CAPACITY RESTRICTIONS RESTRICTIONS RIGHTS RIGHTS BY LAW Q Low income Q Lower middle income Q Upper middle income Q High income Source: Women, Business and the Law database. Note: The bars represent the percentage of economies with equal rights for men and women by income level in the each of the 5 areas named under the bars. The differences between the average for high-income economies and the average for low-income economies in the figure above are statistically significant at the 1% level except for the difference in industry restrictions. 10 W O M E N , B U S I N E S S A N D T H E L AW 2 0 1 0 — S U M M A RY In 1995 Morocco revised its commercial and contract law to of which restricted women’s ability to inherit such land. Other give women the right to start businesses and get jobs without amendments to the act included allowing married daughters to their husbands’ approval. In 2004 it changed the Family Code to live in their parental homes. Previously, married daughters could equalize the status of women within the family. Before the code not legally reside in their parental homes unless they were sepa- went into effect, Moroccan men were the heads of households rated, deserted or widowed. In addition, all daughters, regardless and women were bound by their decisions. Now spouses jointly of their marital status, have been granted the ability to demand a manage family responsibilities. And courts in Kuwait and Nigeria partition of joint family property—a right that had formerly been recently ruled as unconstitutional laws requiring married women granted only to the male line. Restrictions were also lifted on the to get spousal consent to obtain passports. ability of certain widows to inherit if they remarried. In 1996 Bolivia began a systematic land titling effort that recog- nized men’s and women’s equal rights to land. But the equalizing 1 http://www.unifem.org/gender_issues/women_poverty_economics. 2 http://siteresources.worldbank.org/INTGENDER/Resources/ legislation did not significantly increase women’s land titles, so 4pagerEqualityforWomen.pdf. the implementing agency amended its procedures to promote 3 Data from Enterprise Surveys on 118 countries (http://www.enterprisesurveys.org). joint titling, as opposed to titling under the head of household. 4 Bruhn (2009). Bolivia has since seen a sustained increase in joint titles, while 5 Morrison, Raju and Sinha (2007). individual titling to women has tapered off. 6 Duflo (2003, 2005). 7 Pitt and Khandker (1998). In Vietnam there is recognition that earlier statutory retirement 8 Catalyst (2004). 9 These are economies where the law provides an affirmative answer to the ages for women result in shorter working lives and thus lower following questions: Do men and women have equal capacity by law? Do pension accruals through pension contributions. To offset this married men and married women have equal capacity by law? Do men and women have equal ownership rights over movable and immovable difference, women in Vietnam—whose statutory retirement age property? Do men and women have equal inheritance rights over movable and immovable property? Can women work the same night hours as men? is 5 years lower than men’s—receive an additional transfer of Can women work in all industries? Can pregnant and nursing mothers resources to supplement their pensions at retirement relative to work the same hours and in the same industries as men and other women? Is the statutory retirement age in the private sector equal for men and their contribution levels. In addition, the Vietnamese government women? Do men and women face the same personal income tax liability? is working to raise the female retirement age from 55 to 60. 10 Democratic Republic of Congo Family Code, Article 448. 11 Yemen Personal Status Law No. 20, Article 40. 12 United Arab Emirates Federal Law No. 8 of 1980, Articles 27–28. In 2005 India amended the Hindu Succession Act to give daugh- 13 Labour Act of Nigeria, Article 55(1). ters equal inheritance rights over joint family property. Previously, 14 Labor Code of the Russian Federation, Article 253. separate property could pass equally to male and female descen- 15 World Economic Forum (2009). dants, but joint family property or ancestral property could only 16 We do not have full data for one of the economies covered in East Asia and Pacific. pass through the male line. Agricultural land was also included 17 Universal pension 1996, administered by the Social Benefits Division, in the amended act. Before, agricultural land had largely been Department of Social Services, Ministry of Local Government. 18 Finland: Employment Contracts Act, Kyrgyz Republic: Labor Code of the exempt and was governed by a kaleidoscope of state laws, several Kyrgyz Republic, Moldova: Labour Code of the Republic of Moldova. W O M E N , B U S I N E S S A N D T H E L AW 2 0 1 0 — S U M M A RY 11 Report coverage by region Region Number of Name of economies economies East Asia & 13 Cambodia; China; Hong Kong, China; Indonesia; Lao PDR; Malaysia; Mongolia; Papua New Guinea; Philippines; Pacific Singapore; Taiwan, China; Thailand; Vietnam Eastern Europe 23 Albania; Armenia; Azerbaijan; Belarus; Bosnia and Herzegovina; Bulgaria; Croatia; Estonia; Georgia; Kazakhstan; Kyrgyz & Central Asia Republic; Latvia; Lithuania; Moldova; Montenegro; Poland; Romania; Russian Federation; Serbia; Slovenia; Turkey; Ukraine; Uzbekistan Latin America 20 Argentina; Bolivia; Brazil; Chile; Colombia; Costa Rica; Dominican Republic; Ecuador; El Salvador; Guatemala; & Caribbean Honduras; Jamaica; Mexico; Nicaragua; Panama; Paraguay; Peru; Puerto Rico; Uruguay; Venezuela, R. B. Middle East & 13 Algeria; Egypt, Arab Rep.; Iran, Islamic Rep.; Israel; Jordan; Kuwait; Lebanon; Morocco; Oman; Saudi Arabia; Syrian North Africa Arab Republic; United Arab Emirates; Yemen, Rep. OECD high 26 Australia; Austria; Belgium; Canada; Czech Republic; Denmark; Finland; France; Germany; Greece; Hungary; Iceland; income Ireland; Italy; Japan; Korea, Rep.; Netherlands; New Zealand; Norway; Portugal; Slovak Republic; Spain; Sweden; Switzerland; United Kingdom; United States South Asia 5 Bangladesh; India; Nepal; Pakistan; Sri Lanka Sub-Saharan 28 Angola; Benin; Botswana; Burkina Faso; Cameroon; Chad; Congo, Dem. Rep.; Côte d’Ivoire; Ethiopia; Ghana; Guinea; Africa Kenya; Lesotho; Madagascar; Malawi; Mali; Mauritania; Namibia; Niger; Nigeria; Rwanda; Senegal; South Africa; Sudan; Tanzania; Togo; Uganda; Zambia 12 W O M E N , B U S I N E S S A N D T H E L AW 2 0 1 0 — S U M M A RY Acknowledgments The project to develop the Women, Business and the Law pilot indicator set was led by Rita Ramalho, under the general direction of Penelope Brook. The core research team comprised Antonio Garcia Cueto, Sarah Iqbal and Jennifer Yip. Karen Sarah Cuttaree, Patrick Fitzgerald, Oliver Lorenz, Caroline Otonglo and Tea Trumbic assisted with data collection. Professor Mohamed Mattar, Research Professor of Law at Johns Hopkins University School of Advanced International Studies, and Professor Susan Deller Ross, Professor of Law at Georgetown University Law Center, provided guidance on points of law, and Neville Howlett of PricewaterhouseCoopers aided with the dealing with taxes indicator. Dahlia Khalifa led the design of the Gender Law Library. The report team is grateful for valuable input and comments provided by colleagues across the World Bank Group and for the guidance of the World Bank Group’s Executive Directors. Paul Holtz edited the report. Corporate Visions designed the report and the graphs. The online Women, Business and the Law database (http://wbl.worldbank.org) is managed by Preeti Endlaw and Graeme Littler. Preparation of the report was supported by the World Bank’s Gender Action Plan and the Norwegian Trust Fund. W O M E N , B U S I N E S S A N D T H E L AW 2 0 1 0 — S U M M A RY 13 This page intentionally left blank 14 W O M E N , B U S I N E S S A N D T H E L AW 2 0 1 0 — S U M M A RY Women, Business and the Law 2010 is a pilot report examining laws and regulations affecting women’s prospects as entrepreneurs and employees. The report’s quantitative indicators are intended to inform research and policy discussions on how to improve women’s economic opportunities and outcomes. wbl.worldbank.org THE WORLD BANK GROUP