64
JOBS FOR SHARED PROSPERITY
TABLE 2.1 Percentage increase in female labor force participation in selected economies in MENA by age group, 1990–2010 percent Economy Jordan West Bank and Gaza Lebanon Iraq Tunisia Morocco Egypt, Arab Rep. Syrian Arab Republic
All (ages 15–64)
Ages 25–34
Ages 35–54
71.6 52.5 37.0 32.2 24.4 –2.6 –9.3 –27.9
78.0 72.4 55.3 13.3 55.7 7.1 –18.7 –17.2
48.0 44.1 45.0 65.9 51.1 12.7 9.7 0.6
Source: Based on International Labour Organization–Key Indicators of the Labour Market (ILO-KILM) database. Note: MENA = Middle East and North Africa.
the highest increase occurred among the age group of younger women who have likely completed their education (25–34), whose participation rates are much higher than those of older women (35–64). Despite this progress, rates of female participation in the labor force in MENA are not necessarily catching up with international levels. Figure 2.1 depicts rates in MENA in year 2010 (figure 2.1a) and their evolution compared to Europe and Central Asia (ECA) and Latin America and the Caribbean (LAC) (figure 2.1b). Results indicate that female LFP rates in MENA have risen at the same speed as in LAC and only slightly faster than in ECA. If rates continue to rise at this pace, it will take the region 150 years to attain the current world average (World Bank 2013).
Why is female labor force participation important? Higher rates of female LFP are instrumental to generating economic growth and reducing poverty. International experience indicates that greater economic equality between women and men is associated with poverty reduction, higher gross domestic product (GDP), and better governance (Bardhan and Klasen 2000; World Bank 2012b). Recent studies indicate that many
economies in MENA have lower female LFP rates than those expected given the education and demographic structure of the population. If female LFP in these countries were to rise to the level predicted by women’s age and educational structure, household earnings could increase by up to 25 percent (World Bank 2003). These effects occur because female employment brings extra income to the household, decreases women’s dependence on their spouses and other family members, and increases their intrahousehold decision-making power. At the same time, important externalities are linked to women’s economic empowerment. The literature has found that working women generally are more involved than nonworking women in making the right decisions about their children’s education, nutrition, and health (Angel-Urdinola and Wodon 2010). It is important to emphasize that this chapter does not advocate for increasing female participation at all costs. Rather, it explores the constraints faced by women who would like to participate in the labor force. This analysis is particularly important because many women in the region want to work. Younger and more educated women have positive views about the suitability of engaging in paid work and exhibit a stronger desire to join the labor market.