How do gender inequalities in developing countries affect women’s economic activity? This paper from the journal World Development introduces innovative indicators to measure constraints imposed on women by social institutions: laws, norms, traditions and codes of conduct. These are the most important factors in determining women’s participation in economic activities outside the household. Measures to improve women’s access to education and health will have limited impact while social institutions continue to discriminate against women.
Debates about women’s participation in economic activity tend to focus on links between gender inequalities and levels of development. But the economic role of women in developing countries is heavily influenced by laws, norms, traditions and codes of conduct. These social institutions can impose direct constraints on women, for example, by not allowing them to start their own businesses.
Two new indicators help estimate the importance of social institutions in creating gender inequalities. The first reflects four non-economic factors: genital mutilation, early marriage, polygamy and authority over children. The second incorporates the right to inherit from husbands, the right to ownership and freedom of movement and dress.
- These new indicators show that there is a clear link between social institutions that discriminate against women and a low rate of female participation in economic life.
- There are regional disparities in the role of social institutions. In South-East Asia and Latin America, polygamy is forbidden, early marriage infrequent, authority over children shared and inheritance laws egalitarian. In Sub-Saharan Africa, women are often disadvantaged in terms of inheritance and parental authority, and frequently have no access to land or property.
- There is evidence that gender inequalities in economic activities are higher in Muslim and Hindu dominated countries compared with Christian and Buddhist ones. However, there are exceptions suggesting that various interpretations of the economic role of women within dominant religions are possible.
- An institutional framework that disadvantages women hinders development. It reduces the possibilities of half of the population to participate in economic activities. It also reduces the formation of human capital, a major factor in economic growth.
Social institutions affect female participation in economic life. This calls for a more proactive approach from donors to address the root causes of gender inequalities.
- The current approach by donors to improve women’s access to education, health, and credit is important but not sufficient. The root causes of gender discrimination in countries with strong social institutions also need to be addressed.
- If custom forbids women from working outside the home, the enrolment of girls in primary schools can rise without it ultimately increasing female participation in the labour market. Similarly, if custom goes against women being in authority, the enrolment rate in universities can rise without it having any effect on the number of female managers.
- To increase the effectiveness of country and donor policies, measures to address institutional inequalities must be undertaken. Even in different settings influenced by culture, religion or economic roles, changes in favour of women are possible.
