Tackling Legal Impediments to Women’s Economic Empowerment

IMF Working Papers, February 18, 2022

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Authors: Katharine M Christopherson Puh, Audrey Yiadom, Juliet Johnson, Francisca Fernando, Hanan Yazid, Clara Thiemann
Published: February 18, 2022
Series: IMF Working Papers
DOI: https://doi.org/10.5089/9798400203640.001

Wide range of legal impediments in countries’ domestic laws have prevented women from achieving full economic empowerment, with negative macroeconomic implications.
Laws in many countries often reflect and perpetuate gender norms that limit women’s economic participation.
Removal of legal impediments through legal reform has been shown to be an effective method to catalyze greater participation of women in the economy, along with related macroeconomic benefits.
Once legal barriers are removed and provisions for more equal treatment under the law are embedded, the law can be employed to:
- incentivize women to pursue equal opportunities,
- change mindsets regarding the role of women,
- hold institutions and individuals accountable for achieving results.
The paper goes beyond previous Fund work by:
- categorizing the key sources of laws that impede women’s economic empowerment,
- identifying ways in which the law can be used as a tool to create behavioral changes and shifts in perceptions of women in the economy.
The paper highlights dominant belief systems and cultural norms that have contributed to limiting the economic empowerment of women, but does not intend to render any judgment on these systems or norms.

Legal reform is an effective mechanism to increase women’s economic participation and generate macroeconomic benefits.
Embedding provisions for equal treatment under the law enables the law to function both as a barrier-removal tool and as a positive incentive mechanism.
Designing appropriate incentives is imperative for increasing women’s participation in the economy.

Given the relevance to the Fund’s mandate, the paper notes the case for a stepped-up role for the IMF in advising on legal reforms that:
- remove barriers to women’s economic empowerment,
- incentivize women’s economic participation.