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The lack of progress in secondary enrollment rates and the small, but persistent gender gap over the last decade are contrary to the expectations of countries seeking significant economic growth and sharp declines in poverty.
The second type of gender issue that should be addressed in the region is important mostly because of the implications for productivity and the health of labor markets. This type involves gender differentials. No single instrument is available that is appropriate for dealing with issues of this type, but a range of cross-sectoral policies can be effective. Though this report provides evidence on the causes of certain outcomes, more research in these areas is warranted. This second type includes three main issues, as follows: ◆◆
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Women’s labor force participation rates in the region lag behind the average in high-income OECD countries. Labor market participation is a personal choice that is often associated with financial circumstances. Women may not participate in the labor market because of their responsibilities in caring for dependents, their limited opportunities for part-time work, the early retirement options available to women, and the generous maternity leave in the formal sector. Thus, reforms in long-term dependent care, retirement legislation, pension reform, and social protection could all contribute to enhancing the labor market opportunities and long-term income potential of women. Occupational segregation that affects women may be the result of a choice women are making to achieve a better balance between work and other aspects of their lives. Occupational segregation may already be occurring as early as tertiary education when many men and women make their first career choices based on education. Professions that allow them to receive relatively generous benefits, have greater flexibility in hours worked, and are compatible with raising children may be more attractive to women. The choice of occupation is made within an environment in which the availability of childcare services is limited
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and women have greater household responsibilities, but also jobs are being offered, especially in the public sector, that are associated with benefits that are well suited to meeting these challenges. Given the economic importance of raising productivity and employment, research on the effects of improvements in the coverage of childcare services and nonmonetary benefits that ease women’s role in managing household responsibilities may be worthwhile at the country level. Women are underrepresented in private sector leadership. Data indicate that entrepreneurship is less common in Europe and Central Asia than in other parts of the world and that women play only a modest role. To understand why relatively few women enter business professions, more research should be initiated on the costs of business failure, the advantages of job mobility, household risk mitigation strategies, and the (risk-adjusted) returns to entrepreneurship among women relative to those available among men.91 Women entrepreneurs in formal sector firms appear, on average, to face more difficulty than men in obtaining credit (because of firm size).92 Whether any policies can be instituted to help the owners of small firms should be explored.
Addressing gender differentials is a complex, but feasible task. Important areas of analysis must still be addressed, especially to identify the causes and the motivations behind certain outcomes in the private and professional spheres. Governments in the region play an important role in determining how women interact with the labor market, women’s educational attainment, and even household fertility decisions. Government policies in what may be considered a marginal area can ultimately have a significant impact on a country’s economic future.
Do women pursue more stable jobs, while men take more risks? 92 The question that remains is whether the small size of women’s firms is also often due to lack of access to start-up capital or working capital. However, the data necessary for further analysis are lacking. 91
Summary of Findings
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