Fair Play—Equal Laws for Equal Working Opportunity for Women
IMF Blog, February 23, 2015
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Bibliographic details
- Authors: Christine Lagarde
- Published: February 23, 2015
Executive summary
- Leveling the legal playing field for women holds real promise in both human and economic terms.
- Almost 90 percent of countries have at least one important legal restriction that constrains women’s economic activity.
- When legal equity is reflected in law, female labor participation rates increased by at least 5 percentage points over the following five years in 50 percent of the countries studied.
- Removing legal restrictions can yield fast results in boosting female labor supply and can be consistent with sustained male employment.
Current legal barriers and their scope
- Examples of legal restrictions include:
- Requirement for women to seek their husband’s permission to work.
- Laws restricting women’s participation in specific professions.
- Constraints on women’s ability to own property, inherit, or obtain a loan.
- Geographic differences in female labor force participation:
- Women make up 40 percent of the global labor force.
- Only 21 percent of women in the Middle East and North Africa work outside the home.
- 63 percent of women in East Asia, the Pacific and sub-Saharan Africa work outside the home.
Evidence of impact from legal reforms
- In 50 percent of the countries studied, legal equity correlated with an increase in female labor participation of at least 5 percentage points over the following five years.
- Case study — Peru:
- In 1993, a new constitution granted equality between men and women under the law, eliminated discrimination by guaranteeing equal opportunities for work, and invalidated customary law that contradicted these rights.
- As a result, women's labor force participation increased by 15 percent.
Economic implications of raising female labor force participation
- Estimates of potential GDP increases from raising female labor force participation to the respective levels of men:
- United States: 5 percent increase in GDP.
- Japan: 9 percent increase in GDP.
- United Arab Emirates: 12 percent increase in GDP.
- Egypt: 34 percent increase in GDP.
- Other supportive policies that matter alongside legal reform:
- Demographics and education.
- Provision of child care.
- Maternity leave benefits.
Policy recommendations and institutional role
- Core recommendation:
- Eliminate legal discrimination against women to level the playing field and increase female labor supply.
- Additional policy guidance:
- Pursue a multi-pronged approach tailored to country conditions, social and religious norms.
- Combine legal reforms with policies that support female labor participation (child care, maternity leave, education).
- IMF engagement:
- The IMF contributes through analytical work and regular health checks known as Article IV consultations with member countries to address economic consequences of low female participation, especially where new sources of growth are needed.
Key takeaways
- Legal rights are fundamental to increasing women’s economic participation.
- Small sets of legal changes can produce large increases in female labor participation.
- Increasing women’s economic participation can boost growth, prosperity, and stability without necessarily reducing male employment.
Source: Fair Play—Equal Laws for Equal Working Opportunity for Women, Christine Lagarde, February 23, 2015
Content in this bundle
- 公平竞争——制定平等的法律，为女性创造平等的工作机会; iMFdirect博客; 2015年2月23日
- フェアプレー—女性に平等な雇用のための平等な法律を; iMFdirect ブログ ; 2015年2月23日
- Staff Discussion Note
- Staff Discussion Note
- Честная игра — равное положение перед законом для равных трудовых возможностей женщин
