Description
This indicator measures the government’s commitment to providing women and men with the same legal ability to access legal and public institutions, own property, go to court, and get a job; and measures the extent to which the law provides girls and women legal protection from violence.
Relationship to Economic Growth
This indicator draws on all eight areas of the World Bank’s Women Business and the Law (WBL) report (http://wbl.worldbank.org/) including: Mobility, Workplace, Pay, Parenthood, Marriage, Entrepreneurship, Assets and Pensions. It also draws from WBL’s 2.0 dataset for information on safety and child marriage.
- Mobility (WBL): These questions explore women’s legal access to physical mobility within a country. Studies show that legally sanctioned discrimination against women has a significant negative impact on a country’s economic growth, because it prevents a large portion of the population from fully participating in the economy, thus lowering the average ability of the workforce.99
- Workplace (WBL): These questions explore specific barriers to women’s opportunities in the workplace. Sexual harassment and violence in the workplace can undermine women’s economic empowerment by preventing employment and blocking access to other financial resources.100 Research shows that when women have access to employment, investment in children’s health, nutrition, and education often increases, promoting higher levels of human capital.101
- Pay (WBL): These questions look at barriers to women’s pay equality. Restrictions that limit the range of jobs that women can hold can lead to occupational segregation and confinement of women to low-paying sectors and activities.102 Many jobs prohibited for women are in highly paid industries, which can have implications for their earning potential. Further, when women are excluded from “male” jobs in the formal sector, an overcrowding can occur in the “female” informal job sector. This leads to a depression of wages for an otherwise productive group of workers.103 Increasing women’s participation in the workforce alone is insufficient for increased economic growth.104 Women need access to the same job and pay opportunities in order to have an impact on economic growth.105
- Marriage (WBL): These questions look at the rights of women in marriage including questions on domestic violence, and child marriage. Research shows the earnings of women in formal wage work who are exposed to severe partner violence are significantly lower than women who do not experience such violence.106
- Parenthood (WBL): These questions look at the availability of parental leave and the rights of pregnant women. Childcare and parental leave increase workforce participation, leading to poverty reduction and increased economic growth.107
- Entrepreneurship (WBL): This area explores barriers to women’s ability to start businesses. When women receive fewer legal rights, the country’s potential labor force and potential pool of entrepreneurs decreases. Women’s ability to start businesses and create jobs is essential to increase economic growth and alleviate poverty.108
- Assets (WBL): This area analyzes women’s ability to own, control, and inherit property. Owning and having an equal say in their use of property not only increases women’s financial security; it is also associated with their increased bargaining power within the household.109
- Pension (WBL): This area examines questions of whether men and women have the same rights with respect to pensions, retirement, retirement age, and periods of absence from the workforce due to childcare. Having the same rights for pensions has been shown to reduce poverty, particularly for older women.110
- Child Marriage, Inheritance, and Women’s Safety (WBL): This area deals with women’s constitutional rights, and the status of Child Marriage. Due to the typically large age differences between girls younger than 18 and their husbands, child brides lack bargaining power in the marriage and have less say over their activities and choices, including education and economic activity.111 Child marriage—through reduced decision-making power, greater likelihood of school dropout and illiteracy, lower labor force participation and earnings, and less control over productive household assets—severely impedes the economic opportunities of young women.112
Methodology
Indicator Institution Methodology
The indicators are de jure measures, consisting of legal reviews of the questions assessed.
The first portion of this indicator utilizes the WBL index comprised of 35 questions from the Women, Business, and the Law initiative of the World Bank. These questions are divided into 8 categories, each of which receives a score based on the percentage of questions with no restrictions on women’s rights (so a country where women have 3 of the 5 rights measured in a category, would score 60 for that category (because 3 is 60% of 5)). Finally, the scores for all 8 categories are averaged together to create the index.
MCC adds a ninth category using data from the WBL 2.0 index creating a category from three questions: Does the law address child marriage? Do a woman and a man have equal rights to confer citizenship on their spouses and their children? Does the law address femicide? Countries receive a score on this component of the indicator based on the share of protections. For example, if a country has laws protecting all three components, that country would score 100 on this component (because 3/3 is 100%).
MCC Methodology
The WBL Index breaks its sub-indicators into eight phases of a working woman’s life, each phase containing 4-5 sub-indicators, which are averaged to create the index. To aggregate these sub-indicators with the WBL 2.0 sub-indicators, MCC creates a ‘ninth’ category focused on child marriage and constitutional protection, which is averaged with the original eight from WBL. This means the WBL 2.0 data is 11% of the Women in the Economy indicator and the WBL Index data comprises 89%. An illustrative example of this calculation is below.
MCC’s Women in the Economy Score = [ (WBL Index Score x (8/9)) + (WBL 2.0 Score x (1/9)) ]
For example, imagine a country scored 38.125 on the WBL index and 0 on the WBL 2.0 questions. To find the country’s Women in the Economy score MCC averages the eight WBL categories with the ninth category from WBL 2.0: (38.125 *(8/9))+ (0*(1/9)) = 33.9.
If a country is missing WBL 2.0 data, but not the WBL index it is given a zero score for the WBL 2.0 component of this indicator. If a country is missing WBL index data, it is given an N/A score.