Gender Disparity in Laws and Female Employment

Mohammad Amin, Enterprise Analysis Unit, FPDEA, World Bank

Abstract

In a large sample of firms in 66 developing countries, it is shown that gender specific disparity in the laws favoring males over females tends to lower the employment of females relative to males at the firm level. However, this relationship between gender disparity in laws and employment is driven by small and medium firms, and it does not hold for the sample of large firms. However, the relationship holds equally in rich vs. poor countries, small vs. large cities within countries and among firms with and without female owners. We also confirm a sharp negative effect of gender disparity in the laws on the absolute level of employment of females. In short, in the presence of gender disparity in the laws, suitable reforms or policy measures promoting female employment may be required to achieve greater employment of women and greater gender parity in employment.