Gendered laws and labour force participation

ABSTRACT

The laws that discriminate against women represent one of the most prevalent forms of gender inequality, hindering women’s empowerment and economic outcomes. In this regard, this paper sheds light on the relationship between legal constraints on women and various labour force outcomes. Based on a global sample of countries over 1970–2019, the results show that legal gender equality helps countries bridge the gender gap in labour force participation. More-gender equal laws (i) translate into a larger share of women in the workforce, and (ii) do not have a negative effect on that of men. As a result, legal gender equality also boosts labour force participation on aggregate. These patterns are long-lasting for upwards of 10 years. The findings point to a win-win situation As countries repeal the laws that discriminate against women, which could be achievable in the shorter term, they can attain more inclusive and higher economic growth. This is even more important in the post-Covid-19 period, considering the adverse effects of the pandemic on gender inequality and economic growth. © 2022 International Monetary Fund.