Legal barriers that prevent women from working or limit their opportunities to own a business are having a negative impact on global growth and economic equality, a World Bank study has found.
The absence of laws offering protection from domestic violence, and from sexual harassment in the workplace, has left women around the world at a disadvantage, according to a report published on Thursday.
As the #MeToo movement gathers pace across poorer countries, governments could step up legal reforms already being made in some regions, said experts.
The study, which looked at 189 economies, found that women continue to face widespread barriers that keep them out of jobs and prevent them from owning a business by restricting their access to credit or control over marital property.
“Unfortunately, laws are a straight line for men and a maze for many women around the world, and that needs to change,” said Sarah Iqbal, programme manager of the World Bank’s women, business and law project.
“There is no reason to keep women out of certain jobs or prevent them from owning a business. Our message is simple: no women, no growth.”
Equatorial Guinea is among a number of countries where laws are so regressive that a woman still needs her husband’s signature, or the blessing of a male relative, to secure a work contract, take out a loan, or buy a house.
In 104 economies, women are barred from working at night or in jobs including manufacturing, construction, energy or agriculture, negatively affecting the choices of more than 2.7 billion women, according to the women, business and law report, published every two years.
“No economy can grow to its full potential unless women and men participate fully,” said World Bank chief executive Kristalina Georgieva.
“Yet in more than half the world women are still prevented from working in certain jobs simply because of their gender. The report finds where there is gender equality in labour laws, more women work and earn more relative to men.”
Women are more likely to own their own businesses in countries where there is legal protection against harassment and abuse, yet 45 of the 189 economies examined – including Afghanistan, Myanmar and Russia – do not have laws on domestic violence, while 59 countries have no laws on sexual harassment in the workplace.
“The study calculates data up to 1 June 2017 but, as the #MeToo movement builds momentum in the developing world, we could see more progress and sexual harassment protections increase,” said Shanta Devarajan, the World Bank’s senior director for development economics.
“Giving women equal opportunity is a moral and economic imperative and rescinding discriminatory laws is an important first step,” he added.
Each economy evaluated for the fifth edition of the World Bank report was assigned a score from zero to 100 across seven categories. These included accessing institutions, using property, getting a job, building credit and protecting women from violence.
While no economy was given a perfect score, Britain, New Zealand and Spain were among the top performers.
Overall, 21 economies – many located in sub-Saharan Africa, the Middle East and North Africa – received a score of zero on protecting women from violence.
The study also found that only 76 countries mandate equal remuneration for work of equal value, while 37 economies have no laws protecting pregnant women from dismissal.
The report also charted some improvements since the previous data release. The Democratic Republic of the Congo, Iraq, Kenya, Tanzania and Zambia were among 65 countries that have made 87 legal reforms over the past two years.
“The Democratic Republic of the Congo is a country where there has been a lot of sexual violence, yet it has passed some sweeping legislation that makes women and men equal in nearly all aspects of entrepreneurialism,” said Devarajan.
In Kenya, meanwhile, laws have been introduced to protect women from domestic violence as well as sexual, psychological, and economic abuse from partners and former partners.
“There is no question these laws have a significant impact on women’s economic opportunity. The next critical step to improving the lives of women is implementing them,” said Devarajan.
The report cited dozens of other studies that illustrate how the implementation of such laws can have a significant impact on women’s earning power and agency.
It also highlighted research that shows gender gaps cause an average income loss of 15% in Organisation for Economic Co-operation and Development member countries, 40% of which is due to entrepreneurship gaps. Losses are estimated to be significantly higher in developing countries.