Women, Business and the Law 2021: Women´s economic empowerment is critical to resilient recovery efforts

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The economic crisis resulting from the COVID-19 pandemic is having a profound detrimental effect for most people around the world. Yet, it has impacted men and women differently.  Women are more likely to work in health care, unpaid care, and domestic work, making them more susceptible to the consequences of the COVID-19 pandemic. Women still earn less than men for equally valued jobs, bear more of the childcare burden, and face a higher risk of violence in their homes. The pandemic has widened the gender gap in labor force participation, risking decades of progress for women as workers and entrepreneurs. As we write this, the COVID-19 pandemic is still claiming lives and livelihoods, and government policies to address the gender effects of the pandemic have not been enough given the magnitude of the challenge.

According to the World Bank’s Women, Business and the Law 2021 report published today, women still have only three-fourths the legal rights of men, on average around the world. This matters because better performance in the areas measured by the Women, Business and the Law index is associated with a narrower gender gap in development outcomes, more female policy makers, higher female labor force participation, and lower vulnerable employment. A legal environment that encourages women’s economic inclusion can also make them less vulnerable in the face of a crisis.

Figure 1. On average, globally, women have just three-fourths the legal rights of men

Figure 1

Women, Business and the Law measures how laws and regulations affect women’s economic opportunity in 190 economies. The 2021 edition covers reforms conducted between September 2019 and October 2020. The index analyzes economic rights during different milestones in a woman’s working life through eight indicators ranging from being able to move freely to rights in the workplace, through rights during marriage and after having children, how the law prevents or allows them to run their own businesses and manage assets all the way to retirement.

Figure 2. Laws affect women throughout their working lives

Figure 2

The global average score in 2020 is 76.1, up from 75.5 in 2019. In ten countries, women are on an equal legal standing with men across all areas measured – Belgium, Canada, Denmark, France, Iceland, Ireland, Latvia, Luxembourg, Portugal and Sweden. This year, Ireland joined the group by reforming parental leave and Portugal equalized rules for remarriage.

Twenty-seven economies implemented reforms aimed at equality of opportunity across seven of the eight indicators measured by Women, Business and the Law.  Economies in the OECD high-income and Middle East and North Africa (MENA) regions reformed the most. Yet, the MENA economies still have the most room to improve.

The reform effort is, however, insufficient in the vast majority of countries. Today fewer than half of economies worldwide (90) have mandated equal remuneration for work of equal value. And in 88 economies, laws restrict the jobs and hours that women can work, affecting 1.6 billion women. This leads to occupational segregation, which has resulted in women being overrepresented in jobs that are more affected by COVID-19 disruptions, such as education, retail, tourism, hospitality, and domestic services.  While the Pay indicator, which measures job restrictions and the right to equal pay, recorded the most improvement in scores in the new Women, Business and the Law 2021 report, it is also the indicator with the second-lowest performance out of the eight indicators.

Figure 3. Progress toward equality is uneven around the world

Figure 3 Progress toward equality is uneven around the world

The Women, Business and the Law website has various resources available, including the report, economy snapshots, current and historical data, new data visualizations, PowerPoint slides, and much more. We invite you to visit the website, browse the information and help us  disseminate the report’s findings. Reforming laws that hold women back from fully participating in the economy is more important than ever.

Over the next few months, we will continue to blog on the key findings from the report. We will explore:

  • Progress towards gender equality
  • Relationship between WBL indicators and other gender data
  • How to integrate Women, Business and the Law data in projects
  • Policy measures governments have implemented to address the gender effects of the COVID-19 pandemic 
  • Why Women, Business and the Law is considering new indicators related to laws governing childcare and measuring legal implementation 
  • New research questions which are needed to strengthen the economic case for gender equality

In March and April, we will be discussing the report’s findings, starting with a World Bank Live Event on March 1st 2021 at 8:30 AM (EST). Please post your questions for the panel and we hope you’ll join the conversation.

For more information sign up to our newsletter here.

Additional resources:

Website: Women, Business and the Law

Report: Women, Business and the Law 2021

Authors

Norman Loayza

Director, Global Indicators Group, World Bank

Peace Musiimenta
February 26, 2021

This is an important platform for me as a lecturer in the school of women and gender studies. It will improve my access to resources but also become an avenue where i can share my research findings.

Mohammed Al-Owaini
March 04, 2021

Its important to promote such vital reports which concentrates on women empowerment globally.
From my own perspective, INGOs need to unify efforts to support those vulnerable women by providing the needed technical/financial support.

Nwankwo Onyinyechi Rosemary
March 17, 2021

Good day.
I'm Rosemary from Nigeria and I've been following the world bank page and all the good things you have to offer and I am grateful and saying thank you for the good works towards empowering women. Pls, I want to use this opportunity to also ask that you use your good office to provide a good and working loan or grant opportunities for less privileged women like us. Thank you.

Theresa Taitt
September 09, 2021

This global platform is timely and insightful, it provides access to salient information on strides made in matters pertinent to the empowerment of women and gender support initiatives, critical to women like myself who live in developing countries.
It informs on the accessibility of resources and necessary support for vulnerable women and gives hope in the face of poverty, inequality and adversity.