WORLD BANK GROUP GENDER THEMATIC POLICY
NOTES SERIES: EVIDENCE AND PRACTICE NOTE
INCREASING FEMALE LABOR
FORCE PARTICIPATION
Daniel Halim, Michael B. O’Sullivan, Abhilasha Sahay
OVERVIEW
Gender gaps in labor force participation persist worldwide. Closing this gap can
lead to sizeable gains for economies—a 20 percent increase in GDP per capita,
on average. Female labor force participation (FLFP) remains low due to lack of
skills, assets and networks, time-based constraints, limited mobility, gender
discrimination in hiring and promotion, and restrictive gender norms.
Effective evidence-backed policy options can increase FLFP. They include
providing childcare services, disseminating information on work opportunities
and returns to employment, training in socio-emotional skills, addressing norms
by engaging partners and family members, and targeting women via social
protection, safety net, and public-works programs.
The World Bank Group actively supports countries in boosting FLFP through
development policy lending, advisory and analytical work, and supporting
reforms to address constraining contextual factors, including legal barriers,
social norms, and gender-based violence. This note sheds light on an array of
policy options that are effective or show promise in improving FLFP. It offers the
following takeaways for policymakers:
Addressing one constraint is often necessary but insufficient.
•
Interventions that address multiple constraints (including norms) in
combination with policy reforms have the potential to shift women
and their economies to a new equilibrium.
Norms pose a barrier in all contexts, especially in countries where FLFP is
•
stagnant or declining. However, norms and attitudes are malleable.
Shifts in the demand for women’s work can spark an increase in supply.
•
Economy-wide demand shocks can erode restrictive norms around
women’s work outside the home and increase women’s human capital.
Legal reforms are an important pre-condition to fostering FLFP. They
•
need to be complementary to be successful, for example, pairing parental
leave mandates with measures to expand childcare coverage. Effective
communication and socialization of such reforms are also needed to
foster change.
A dearth of cost-effectiveness evidence prevents comparison of
•
alternative policies under constrained budget resources. This missing
ingredient is key to assessing the scalability of interventions.
Investing more in the human capital of girls is important but often not
•
sufficient to translate into employment. Nevertheless, expanding girls’
and women’s access to quality education and health care should remain
a top priority.
Regional differences and pre-existing conditions affect the levels and
•
growth of FLFP.
JANUARY 2023
TABLE OF CONTENTS
Introduction 1
SUPPLY-SIDE INTERVENTIONS TO INCREASE FEMALE LABOR FORCE PARTICIPATION 3
DEMAND-SIDE INTERVENTIONS TO INCREASE FEMALE LABOR FORCE PARTICIPATION 9
ECONOMY-WIDE POLICY REFORMS 11
Conclusions 13
Resources & References 14
This thematic policy note is part of a series that provides an analytical foundation for the World Bank
Group Gender Strategy (2024–2030). This series seeks to give a broad overview of the latest research
and findings on gender equality outcomes and summarizes key thematic issues, evidence on promising
solutions, operational good practices, and key areas for future engagement on promoting gender equality
and empowerment. The findings, interpretations, and conclusions expressed in this work are entirely those
of the author(s). They do not necessarily reflect the views of the World Bank Group or its Board of Directors.
This paper was written by a World Bank Group task team led by Daniel Halim, Michael B. O’Sullivan, and
Abhilasha Sahay. The team thanks Margaret Makepeace McClure for excellent analytical support. We thank
Kathleen Beegle, Sanola Alexia Daley, and Camilo Mondragon Velez and for their helpful, peer-review
comments. We also thank Girum Abebe, Kehinde Ajayi, Hana Brixi, Anna Fruttero, Isis Gaddis, Caren Grown,
Tazeen Hasan, Ana Maria Munoz-Boudet, Maria Beatriz Orlando, Laura Rawlings, Jennifer Solotaroff, Priyanka
Tayal, and Diego Ubfal for their helpful suggestions.
2
INTRODUCTION
A mounting body of evidence shows how costly it is for upply-side constraints include time constraints
•S
countries to rely on the talents of half of their population to from childcare and domestic work and mobility
achieve economic growth and shared prosperity. Removing constraints around work outside the home. Gender
the barriers to female labor force participation (FLFP) can differences in endowments—including technical and
be a central driver of inclusive economic growth (Pennings socio-emotional skills, assets, and networks—further
2022; Wodon et al. 2017; Kabeer and Natali 2013).1 However, circumscribe women’s entry into the labor market.
FLFP has stagnated in most regions of the world over the
past three decades and, in the case of South Asia, it has emand-side barriers include a mismatch in skills
•D
declined, even relative to men’s labor force participation and education needed for available jobs, gender gaps
(see Figure 1).2 In settings with relatively smaller gender and discrimination in hiring and retention, and a lack
gaps in participation, such as Sub-Saharan Africa, a large of benefits with inadequate support for childcare,
share of women in the active labor market engage in maternity leave, re-entry programs, and career
vulnerable employment with inadequate earnings and advancement.
poor working conditions (Bue et al. 2022). The COVID-19
ontextual factors include social and cultural norms,
•C
pandemic has compounded these challenges and
restrictive policies and laws, and risk and incidence of
triggered disproportionately larger losses in employment
gender-based violence, especially sexual harassment
and entrepreneurship for women across the globe (Kugler
at workplace. These factors reinforce each other,
et al. 2021; Alon et al. 2021; Fabrizio et al. 2021b; Liu et al.
as well supply-side and demand-side constraints,
2021; Torres et al. 2021).
binding women throughout their lives.
What factors drive the global gender gaps in labor force
participation? Multiple supply-side, demand-side, and
contextual factors constrain FLFP.
FIGURE 1. GENDER GAPS IN LABOR FORCE PARTICIPATION, 1990–2019
Notes: The top and bottom line in each sub-figure represent the proportion of men and women engaged in the labor market,
respectively. Source: Gender Data Portal (SL.TLF.ACTI.ZS)
1
er estimates from Pennings (2022) derived using the Gender Employment Gap index (GEGI), countries stand to gain as much as 20
P
percent of their GDP per capita if women’s employment was as much as men’s.
2
FLFP includes women’s engagement in wage work, self-employment, casual work, and family/home-enterprise work (both paid and
unpaid). It does not include unpaid domestic and care work.
1
This note draws on an exciting new body of rigorous This note focuses on measures to help women actively
research to identify policy solutions to increase FLFP. pursue and engage in employment, rather than equally
Evidence is presented along three dimensions: supply- important measures that affect women once they are
side measures to enable women to enter the workforce if employed, including occupational choice, informality, the
they want to, demand side measures to reduce firm-level gender pay gap, and promotion gaps.3 It complements
barriers to hiring women, and cross-cutting policy reforms scholarly evidence with relevant examples selected from
to help economies shift to a new equilibrium with more the broad range of operations being implemented by the
jobs for women. The state of evidence is categorized into World Bank Group and its client countries. While these
three groups: examples are illustrative, it is important to note that
contextual factors (such as a country’s level of development,
“Effective” indicates that there is more than one
• job availability, and social norms) and women’s welfare,
causal impact study demonstrating the effectiveness human capital levels, and fertility choices can blunt or
of the policy across contexts. amplify the effects of these interventions.
“Emerging” indicates that there is only one piece of
•
causal evidence, mixed results or a strong body of
descriptive evidence pointing to improvements in
the performance of women-led firms.
“Less promising” indicates that there is causal
•
evidence that demonstrates that the intervention
has limited or negligible impact. In this case, different
versions of the policy that could be more successful
are discussed.
3
O
ther policy notes in the series cover these topics. Thematic Policy Note on Closing Gender Gap in Earnings (Forthcoming) focuses on
women’s labor market outcomes at the intensive margin (i.e., earnings, occupational segregation, and career progression). Similarly, the
thematic policy note on What Works in Supporting Women-Led Businesses? (Forthcoming) delineates constraints faced by women
engaged in self-employment activities and offers solutions to overcome them.
2
SUPPLY-SIDE INTERVENTIONS TO INCREASE
FEMALE LABOR FORCE PARTICIPATION
A range of interventions have been shown to increase For example, new experimental results from Egypt
the supply of women’s labor by addressing, or even reveal very low levels of adoption (1–4 percent) among
circumventing, constraints related to time availability, skills, women offered childcare subsidy vouchers ranging from
and control over resources. 25 percent to 75 percent of the cost (Zeitoun 2022).5
At the same time, recent evidence from Burkina Faso
Childcare: Growing evidence demonstrates that daycare demonstrates substantial uptake of mobile creche centers
and preschool interventions can relax women’s time located at worksites (25 percent), which tripled the use of
constraints and circumvent social and cultural norms childcare centers for children aged 0–6 years (see Box 1).
around women’s care roles, though the magnitude of Evidence from Chile shows that increasing the duration of
effects varies by context (Evans, Jakiela, and Knauer 2021; school hours and providing afterschool care—essentially
Martinez and Perticara 2017; Halim, Perova, and Reynolds providing zero-cost childcare—can increase maternal labor
2021; Ajayi, Dao and Koussoube 2022). Addressing barriers participation outcomes (Contreras et al. 2012; Berthelon
to the uptake of these services—including attributes of et al. 2015; Martinez and Perticara 2017). Meanwhile, early
childcare centers, such as location, hours, and costs, and childhood development home visits do not have the
norms around outsourcing childcare—is critical to achieving same positive effects on FLFP, likely due to the competing
the desired outcome (Devercelli and Beaton-Day 2020). demands on parents’ time (Evans, Jakiela, and Knauer 2021).
Perceptions of what is acceptable with respect to childcare
are often influenced by broader social attitudes toward
women and work.4
BOX 1. MOBILE CRÈCHES FOR WOMEN IN PUBLIC WORKS PROGRAMS
The Burkina Faso Youth Employment and Skills Project (P130735) promoted FLFP by providing job opportunities
through a labor-intensive public works (LIPW) program. It reserved a percentage of the LIPW jobs for women,
provided training in female-dominated sectors, ensured flexibility working hours for women, and established
mobile childcare sites at LIPW work location.
The provision of mobile creches allowed women who reported having no childcare to participate in the LIPW.
Pregnant women and women with small, breastfed children, who might have otherwise been excluded, were also
able to participate in the LIPW as childcare providers. The mobile childcare pilot was subsequently scaled up to
20 sites. The project achieved a much higher proportion of female participants than originally targeted (64 percent
instead of 30 percent), with a total of 18,772 women participating in the LIPW. Women also accounted for 73–88
percent of the beneficiaries of urban LIPW training sessions, which consisted of literacy programs, vocational and
entrepreneurship training, and coaching.
An impact evaluation study conducted by the World Bank’s Africa Gender Innovation Lab demonstrates that the
establishment of mobile creches led to a significant increase in women’s employment, financial resilience, and
savings, as well as child development outcomes, such as improvements in fine and gross motor skills (Ajayi, Dao
and Koussoube 2022). These findings are noteworthy given that exposure was reduced to eight months (instead
of the planned duration of one year) due to the onset of the COVID-19 pandemic.
4
I
n a recent multi-country survey, most respondents agreed that employed mothers can have as warm and strong of a relationship with
their children as mothers who do not work; however, the level of support varied considerably between countries, from just over half of
adults surveyed in Chile; to closer to two-thirds of respondents in Argentina, China, and India; three-quarters of respondents in South
Africa; and more than eight in 10 respondents in France and Taiwan (Child Trends and Social Trends Institute, 2015).
5
The study identifies three key reasons for the low uptake: (i) women stated that nurseries were too far from home, despite the two-
kilometer radius of nurseries offered, (ii) several women lost their vouchers, and (iii) others believed that their children were still too
young to attend nurseries.
3
At the same time, less evidence is available on how While engaging men for women’s empowerment holds
relaxing elder care responsibilities, particularly in settings promise, attention should be paid to ensure that it does
with multi-generational households, can support women’s not give men veto power to prevent women from working
labor market (re)entry.6 (Lowe and McKelway 2021). Over the longer run, challenging
the gender attitudes of adolescent boys through classroom-
Information: The provision of information is a low-cost based discussions (which have been shown to be effective)
and scalable way to address social norms around women’s could have implications on the labor force participation
work and to help women choose sectors with higher of their future wives (Dhar, Jain, and Jayachandran 2022).
employment prospects. A few effective interventions There is less evidence on the impact of engaging men in
include the following: gender sensitization trainings in the workplace.
Engaging men, boys, and families: Targeting husbands
• • Targeting young women: In India, providing young
and extended families offers one promising path to women with information on sectors where demand
enhancing women’s access to employment. For example, is growing was found to significantly increase their
a study from Saudi Arabia shows that addressing men’s employment rates, delay marriage and childbearing, and
misperceptions about the acceptability of women’s work foster family investments in younger girls (Jensen 2012).
can facilitate women’s job search outside the home Evidence from the Republic of Congo (see Box 2) shows
(Bursztyn, González, and Yanagizawa-Drott 2020). New how providing young women with information on trade-
evidence from northern India reveals how promoting specific earnings can shift their preferences toward male-
women’s work opportunities through video testimonials dominated sectors (Gassier, Rouanet, and Traore 2022). A
to husbands and in-laws led to increases in women’s woman’s own aspirations also play a role in her decision
employment (McKelway 2021a). However, an experiment to engage in the labor force. New experimental work
with women teachers in southern India found that a from Saudi Arabia shows that providing female university
light-touch “family orientation” video targeted at the students with information on their female peers’ labor
women’s husbands and male relatives did not affect their force intentions can shift their own aspirations, leading
attitudes or women’s employment outcomes (Dean and them to increase their expectations of future employment
Jayachandran 2019), underscoring the “sticky” nature of (Aloud et al. 2021).
social norms.
BOX 2. BUILDING SKILLS AND SHIFTING PREFERENCES FOR IN-DEMAND JOBS
The Congo Skills Development for Employability Project (P128628) strives to boost workforce participation and
earnings among young men and women facing constraints related to skills, job search, and firm start-up in
the Republic of Congo. These barriers are especially salient for women due to gaps in skills and education. The
project is implementing an apprenticeship and functional literacy training program for out-of-school adolescent
youth, which is intended to address gender gaps in education that result in disparities in labor force participation.
Additional financing was provisioned to scale up life skills training to include prevention of early pregnancy and
sexual exploitation faced at educational institutions and the workplace.
The World Bank Africa Gender Innovation Lab is also helping the project address gender-based occupational
segregation. It is providing sector-specific information on earnings to address the information barriers faced by
women in making labor market decisions and to encourage girls’ participation in high-value, non-traditional
occupations. It is fostering a shift from, for example, tailoring and hairdressing to construction and machine
operation. Women who receive sector-specific information are 29 percent more likely to apply for a male-
dominated job, and both men and women are more likely to apply to more lucrative trades (Gassier, Rouanet, and
Traore 2022).
6
See Moussa 2019 for a review on the relationship between elder care and FLFP.
4
BOX 3. EASING ACCESS TO CREDIT BY REDUCING THE NEED FOR COLLATERAL
Launched in 2012, the Women Entrepreneurship Development Project (P122764) provides loans and business
training to increase earnings and employment of growth-oriented women entrepreneurs in Ethiopia. Considering
women have limited access to collateral and that is one of the key reasons why they are unable to get loans,
the project has introduced a new credit technology based on psychometric testing. It can predict the ability of a
borrower to repay a loan, thereby, reducing the need for collateral. By 2013, the project had created Africa’s first-
ever line of credit solely focused on women entrepreneurs. By March 2019, more than 12,000 women had taken
loans and over 16,000 women had participated in business training (Alibhai et al. 2020.)
Financial inclusion: Enhancing women’s control over setting where school-age girls can interact with peers—
financial resources and, thereby, strengthening their show enhancement in young women’s socio-emotional
bargaining power can reduce the risk of resource skills and a notable increase in self-employment (Bandiera
capture and increase their labor supply. For example, an et al. 2020; Buehren et al. 2017). Other evidence from soft
experimental study with women beneficiaries of a public skills training programs (i.e., effective communication, team
workfare scheme in central India found that giving them building, time management) is relatively weak: results were
direct deposit bank accounts in their own name (coupled not promising for female community college students in
with training) led them to increase their labor supply Jordan (Groh et al. 2016b), but short-term employment
(Field et al. 2021). This effect was concentrated among outcomes improved for women in the Dominican Republic
women whose husbands had the most conservative (Acevedo et al. 2020).
attitudes toward women’s employment. In Côte d’Ivoire, an
innovative “blocked” savings product that allowed women Cash+ and graduation approaches: Multi-faceted cash+
factory workers to shield their income from redistributive and graduation interventions for the extreme poor have
pressure increased their labor supply and earnings boosted women’s off-farm enterprise employment and
(Carranza et al. 2021). In Kenya, access to mobile money was labor supply in Sub-Saharan Africa and South Asia (Bedoya
found to be associated with women’s entry into off-farm et al. 2019; Bandiera et al. 2017; Bossuroy et al. 2022), as have
employment (Suri and Jack 2016). In Ethiopia, an innovative approaches that combine cash with training (Blattman et
psychometric testing platform is being used to assess al. 2016). This evidence stands in contrast to the findings
credit risk and increase women entrepreneurs’ access to from the broader cash transfer literature, which suggests
finance (see Box 3). that solely giving cash to women (or their households) does
not tend to yield increases in their labor supply (Baird,
Socio-emotional skills: Bolstering women’s socio- McKenzie, and Özler 2018; Orkin et al. 2022). A growing body
emotional skills, such as personal-initiative, problem- of work also cautions against unintended consequences of
solving, self-awareness, and negotiation, can increase cash transfer programs, such as exacerbated time poverty,
their likelihood of working outside the home. In India, a reinforced traditional gender norms of maternal roles,
psychology-based training program focused on helping and gender-based violence (Molyneux 2006; Chant 2008;
women increase their self-efficacy (e.g., by understanding Andrews et al. 2021). Given that most graduation programs
how their abilities could help them realize their goals). entail multiple components whose individual impacts
This led to short-term increases in women’s off-farm are difficult to assess, findings should be interpreted with
work (McKelway 2021b). Similarly, evidence from safe- care. Boxes 4 and 5 provide examples of cash+ safety net
space programs—which deliver vocational, empowerment, programs supported by the World Bank.
and soft skills trainings through community mentors in a
5
BOX 4. EMPOWERING WOMEN THROUGH GRADUATION PROGRAMS
The Targeting the Ultra-Poor (TUP) project (P148505)—a subcomponent of the Afghanistan Access to Finance
Project (P128048)—was based on BRAC’s graduation approach of helping the ultra-poor. It provided the primary
woman of the household a “big push” package of productive assets (cows), training, and stipends, among other
goods and services. This type of program has been extensively studied in other settings, with consistently positive
results found across the board.
The work in Afghanistan similarly delivered large positive impacts on multiple dimensions of well-being and
reductions in gender gaps for labor participation two years after the asset transfer (Bedoya et al. 2019; VoXDev
Podcast; blog by Ceyla Pazarbasioglu). Longer-term impacts of the program (4.5 years after the asset transfer)
are still being assessed but preliminary results confirm persistent impacts across all main outcomes, including
women’s empowerment in the context of concurrent shocks (escalating violence, drought, and COVID-19) in an
already fragile environment. Evidence from this project indicates that graduation programs may be an effective
tool for reducing gender gaps and improving women’s empowerment through economic interventions, in contexts
where women are particularly vulnerable and in conflict zones.
BOX 5. BOOSTING WOMEN’S WORK THROUGH SAFETY NET SUPPORT
The Niger Adaptive Safety Net Project 2 AF (P173013) provides access to safety nets to poor and vulnerable groups in
Niger to bolster their capacity to respond to shocks. It is encouraging investment in human capital and facilitating
skills development. In Niger, early family formation and restrictive societal norms impose significant barriers to
women’s participation in economic activities. Consequently, several activities in this project are designed to address
these barriers and boost women’s empowerment. These include a program to foster behavior change among
parents and boost parental investments in girls’ human capital and an early-childhood development program to
provide training on maternal and reproductive health and birth spacing. A productive inclusion package also offers
life skills training with dedicated modules on gender relations and women’s empowerment alongside targeted
mentorship to women to boost their self-confidence.
Behavioral interventions: Behavioral approaches, such as increase in their labor force engagement (Tewari and Wang
helping prospective applicants prepare a job search action 2021). On the other hand, programs such as provision of
plan (Abel et al. 2019), show promise in a limited number of direct public water supply show some timesaving impacts
contexts, but more evidence is needed to identify binding for women, but that does not translate into increases in
constraints and effective solutions for women. labor supply (Gross et al. 2018; Devoto et al. 2012).
Labor-saving technologies: There is some evidence that Safe and secure transport: While there remains a paucity
the expansion of labor-substituting technologies is linked of evidence on the impact of safe and secure transport
to increased labor force participation among women. For on FLFP, new research from Pakistan demonstrates that
example, the spread of home appliances in the United women-only transport can increase job search activity,
States during the 1960s (Coen-Pirani, León, and Lugauer highlighting the role of mobility norms and safety (Field and
2010) and Indonesia’s subsidized switch to cleaner cooking Vyborny 2021). Emerging evidence from the expansion of
fuel (Bharati, Qian, and Yun 2021) were both associated with the Delhi metro system (Seki and Yamada 2020) and Lima’s
expansions in FLFP. A rebate program for refrigerators and rapid bus system (Martinez et al. 2020) shows that even
washing machines in China also contributed to a reduction gender-blind transport infrastructure has the potential to
in the time women spent on household activities and an increase women’s employment relative to men’s.7
7
ender blind refers to an ideology that chooses to not acknowledge differences between genders. Specifically, it does not recognize
G
societal expectations for different gender roles and how these expectations disproportionally affect each gender.
6
Anti-harassment interventions: Despite the ample Conventional job and vocational training: A World Bank
evidence of harassment and abuse women face in Jobs Group review of the evidence finds an inconclusive
many workplaces, there is little evidence on the role link between standard training programs and FLFP (Pimkina
that reducing harassment can play in fostering women’s and de la Flor 2020), while a meta-analysis of vocational
entry into the workforce. However, descriptive evidence training finds only modest positive effects for women
from India and Bangladesh suggests that awareness and (Chinen et al. 2017). However, innovations to training
perceptions of the risk of sexual harassment and assault programs—such as conducting pre-training diagnostics to
constrain FLFP (Siddique 2022; Ahmed and Kotikula 2021). specifically identify challenges faced by women, imparting
New experimental work with female college students socio-emotional skills, certifying skills through training,
in India finds that four months after receiving training to providing mentorship opportunities, providing childcare
raise awareness on sexual harassment, young women were and transport provision to attend training, inviting women
less likely to accept a hypothetical job offer with teams to bring a friend to training programs, and providing online
composed primarily of men (Sharma 2022). While this training (see Box 7)—have yielded larger uptake and impact
study did not detect an impact on women’s labor market (Beegle and Rubiano-Matulevich 2020). Business training
aspirations or the likelihood of working, the results suggest programs have also been shown to help women start their
that reducing harassment could facilitate women’s entry own enterprises in some contexts (McKenzie 2021).
into male-dominated sectors. A study in Fiji recommends
workplace interventions to address domestic and sexual
violence (see Box 6).
BOX 6. BUSINESS CASE FOR WORKPLACE RESPONSE TO GENDER BASED
VIOLENCE IN FIJI
The IFC’s Business Case for Workplace Responses to Domestic and Sexual Violence in Fiji finds that domestic
and sexual violence cost Fijian employers almost 10 days of work per employee per year. Of those surveyed, 21
percent of women and 9 percent of men had experienced violence in the last 12 months. The most common
form of violence was emotional abuse, harassment or intimidation by a family or household member, followed
by physical violence.
Recommendations for businesses that arose from this study include developing firm policies and programs
to guide workplace response to domestic and sexual violence. This may involve the company’s approach to
allegations of domestic and sexual violence perpetrated by employees and the nonacceptance of violence in any
form and establishing small cross-departmental teams of men and women who are trained and supported to
assist employees affected by violence.
Following the publication of the report, IFC launched a program to coach trainers to help businesses across the
Pacific better support staff affected by domestic and sexual violence. It worked with over 30 companies in Fiji,
Papua New Guinea, and Solomon Islands to address workplace bullying and harassment, support employees
experiencing domestic and sexual violence, and prevent sexual exploitation.
7
BOX 7. WOMEN AND ONLINE LEARNING IN EMERGING MARKETS
IFC’s Women and Online Learning in Emerging Markets study examines the role online platforms can play in
supporting women’s access to job-relevant courses and credentials and, thereby, advancing their employment
opportunities. Online trainings represent a salient opportunity for women, who were more likely than men to
report that mobility (22 percent vs 14 percent), safety (26 percent vs 22percent), and family obligations (22 percent
vs 12 percent) are key factors when deciding where to study. Online training lowers some accessibility barriers for
women caregivers, 60 percent of whom would postpone or forgo studying if online learning was not an option.
While the platform examined in this study benefited women in absolute terms, the impact was lower relative to
men: 34 percent of women learners reported finding a new job, setting up a business, or improving their job
or business performance as a result of learning online compared to 40 percent of men. Women were slightly
less likely than men to report a new job or promotion (9 percent vs 14 percent), but they were more likely to
report improved performance and improved potential. The study also suggests that online learning can support
employee upskilling and progression: 13 percent of women learners who were currently employed reported
acquiring a new job or promotion (compared to 18 percent of men).
Non-transport infrastructure: The evidence on expanding and social support to women. They also contribute to
access to electricity (Lee, Miguel, and Wolfram 2020; improvements in health and financial inclusion. However,
Dinkelman and Ngai 2022) and clean water (Kremer et their impact on FLFP is largely inconclusive (Javed et al.,
al. 2011) in developing countries suggests that these 2022; Anderson et al. 2020). Certain aspects of women
infrastructure improvements have muted short-term collectives, such as vocational training, show more impact
effects on FLFP, with some exceptions (Dinkelman 2011). than others (Desai and Joshi, 2014), but, given that these
groups tend to provide multiple treatments simultaneously,
Women collective groups: Women collectives, such as it is difficult to determine which components are driving
chamas in Kenya, esusu in Nigeria, and self-help groups which outcomes.
in India, are a popular mechanism for delivering economic
8
DEMAND-SIDE INTERVENTIONS TO INCREASE
FEMALE LABOR FORCE PARTICIPATION
Even when supply-side constraints are alleviated and through a reference letter substantially increased callbacks
women enter the labor market to seek jobs, demand side for women relative to men (Abel, Burger, and Piraino 2020).
constraints can hinder women’s employment. Addressing Further, evidence from Cote d’Ivoire shows that credibly
these constraints can reduce discriminatory barriers to certifying an applicant’s skills can facilitate callbacks and
employment and increase the number of quality jobs employment (Carranza et al. 2020). Similarly, evidence
for women. There is a relatively small, but fast-growing, from Uganda reveals that combining skills certification
evidence base on interventions that can accelerate with vocational training led to large employment gains for
these changes. women and men three years post-intervention (Alfonsi
et al. 2020). At the same time, making the business
Signaling and inclusive hiring: Women may often face case to firms to promote gender diversity in hiring and
barriers to employment due to implicit or explicit biases retention can help alleviate demand-side constraints.
of employers. Providing credible information and signals to Box 8 highlights some initiatives aimed at adopting equal
hiring firms can reduce some of these barriers. Evidence opportunity practices.
from South Africa reveals that signaling one’s skills to firms
BOX 8. ADVANCING GENDER DIVERSITY THROUGH EQUAL OPPORTUNITY
RECRUITMENT PRACTICES
The IFC-Pakistan Business Council (PBC) is part of the global IFC Women’s Employment Program that provides
gender-smart business solutions to IFC clients in manufacturing, agribusiness, and services. When PBC found
that most of its firms had fewer than 20 percent women in their workforce, it partnered with IFC to advance
women’s employment.
Under this program, a packaging company in Pakistan introduced new equal opportunity recruitment practices in
2015, including recruitment drives at universities and targeted outreach to women job candidates. It established
new internal and hiring practices to set 50-percent gender quotas for shortlisted resumes and to invest in internal
training and capacity-building for women employees. The company also began using gender-neutral language in
its job postings and advertising its family-friendly policies on social media, such as door-to-door transportation
services for women employees and an on-site Ladies and Children Area, which includes a daycare. These practices
led to a slight increase in the share of women in its workforce (from 3 percent in 2017 to 4 percent in2018) and an
increase in the number of women job applicants, from 5–10 percent in 2016–2017 to approximately 20 percent in
2018. The gap between gender composition at the application and final hiring stage may indicate that outreach
activities need to be complemented with stronger, gender-transformative hiring policies, as well as suitable
supply-side interventions.
This partnership continues to draw on findings from other IFC projects to make the business case for increasing
workforce diversity. The Moving Toward Gender Balance in Private Equity and Venture Capital study, for example,
explores the link between financial returns and gender diversity, using data from more than 700 funds and 500
portfolio companies around the world. The study finds that private equity and venture capital funds with gender-
balanced senior investment teams generated 10–20 percent higher returns compared with funds that have
majority men or women leaders.
9
Student employment programs: Programs that provide Lowering search costs and improving matching: Firms
young women with temporary work experience in and women may both benefit from efforts to reduce the
low-quality occupations have limited effects on future transaction costs of finding employment. An experimental
employment outcomes (Beam and Quimbo 2021). study from Ethiopia, for example, finds that subsidizing
However, as evidenced in Uruguay, work-study programs application costs encourages high-ability women workers
offering higher quality jobs with a focus on human capital to apply for formal vacancies (Abebe, Caria, and Ortiz-
accumulation can significantly increase future formal Ospina 2021). Another study from Ethiopia finds that
employment and earnings and reduce the share of young transport subsidies triggered an increase in employment
women who are not in education, employment, or training for women and men (Franklin 2018), although these
(Le Barbanchon, Ubfal, and Araya 2021). Similarly, the short-term effects were not sustained four years after the
combination of classroom-based and on-the-job training intervention (Abebe, Caria, Fafchamps, Falco, Franklin, and
for poor youth in Colombia had an outsized impact on Quinn 2021). Similarly, facilitating access to information
women’s employment and earnings (Attanasio, Kugler, and on job vacancies and opportunities can lower search
Meghir 2011). costs. While the evidence from in-person job fairs in the
Philippines and Ethiopia suggests only modest effects on
Public works and employment guarantees: Public participants (Beam 2016; Abebe, Caria, Fafchamps, Falco,
works interventions have been shown to directly enhance Franklin, Quinn, et al. 2021), linking women to widely-used
employment and earnings for women across multiple digital platforms shows promise. For example, young
contexts (Alik-Lagrange et al. 2020; Franklin et al. 2021), jobseekers in South Africa (nearly two-thirds of whom were
although these gains do not typically sustain post- women) were given four hours of training on how to use
intervention (Brodmann, Galasso, and Devoto 2019; LinkedIn, which led to a sustained increase in employment
Orkin et 2022). Meanwhile, employment guarantee one year later (Wheeler et al. 2022).
schemes, such as India’s Mahatma Gandhi National Rural
Employment Guarantee Act, have led to disproportionately Wage subsidies: Temporary wage subsidies can spur
larger increases in women’s labor supply relative to short-term gains for women (Galasso, Ravallion, and Salvia
men’s (Sheahan et al. 2020; Afridi, Mukhopadhyay, and 2004), but as evidence from Jordan indicates, these effects
Sahoo 2016). do not necessarily serve as a stepping stone to long-term
employment for women (Groh et al. 2016a).
10
ECONOMY-WIDE POLICY REFORMS
Gender discriminatory laws can restrict women’s economic Parental leave and flex-work policies: It is pertinent
opportunities, including their labor force participation. The to examine the role of governments’ parental leave and
World Bank’s Women, Business and the Law database, flex-work policies on women’s workforce participation,
which measures legal and regulatory differences between since 45 percent of wage employees in low and middle-
men and women on accessing economic opportunities, income countries are engaged in public sector jobs and
indicates that addressing discriminatory legal barriers can are, therefore, under the purview of public sector policies.
increase FLFP and reduce the gender wage gap (Hyland, Most causal evidence on this topic stems from developed
Djankov, and Goldberg 2020). World Bank is programming economies and points to small impacts on women’s
development policy financing and other funding to help employment. The magnitude of impact depends on, among
countries create an enabling environment to promote FLFP other factors, the duration of the mandated leave (Olivetti
(see Boxes 9 and 10). and Petrongolo 2017; Rossin-Slater 2018).8 While causal
evidence from developing countries remains scant, some
Labor market and family law reforms: Some studies new descriptive research yields two key insights: (i) there is
suggest more women may be induced to enter the labor a positive correlation between duration of maternity leave
force with measures to remove legal restrictions for and FLFP (Amin and Islam 2022),9 and (ii) in countries where
women’s work in specific occupations or at specific times, there is greater disparity in parental leave (i.e., mothers
reduce discrimination in the hiring and dismissal of women, get much greater leave than fathers), FLFP is low (Hyland
and dismantle mobility restrictions. Other useful measures and Shen 2022). This sheds light on how, in some context,
include mandating equal pay for equal work, legislating pay leave policies may perpetuate unequal intra-household
transparency, and eliminating requirements for women distribution of care work. More research is needed on this
to obtain approval from their husbands for employment. topic to draw conclusive policy inferences.
New evidence from Saudi Arabia—a setting with gender-
segregated workplaces—suggests that gender-neutral Personal income tax reforms: Measures related to taxes—
hiring quotas for private firms can increase women’s such as neutral marginal tax rates for secondary earners
employment, even when the quotas are not binding (Miller, (relative to individual earners), tax credits for childcare (to
Peck, and Seflek 2022). Ethiopia’s Family Code reform, parents, employers, and childcare centers), and stronger tax
which removed restrictions on women’s work outside the incentives to share market work between spouses—tend
home and increased the legal age at marriage, prompted to be associated with an expansion in FLFP in developed
an increase in women’s work outside the home and economies (Fruttero et al. 2020; Coelho et al. 2022).10 The
formal employment, especially among younger women impact of these measures in developing countries would
(Hallward-Driemeier and Gajigo 2015). New evidence likely depend on the degree of formality in the workforce
from Denmark suggests that mandating pay transparency and ability of the government to collect personal income
among firm leads to 5 percent more women being hired at tax revenue.
middle and entry-level positions (Bennesden et al. 2019).
Causal evidence on such reforms is limited and from select Financial inclusion reforms: Allowing women to have
contexts. More research is needed to draw more conclusive a bank account in her own name and apply for a loan or
inferences on their effectiveness. open an account without their husband’s approval has
the potential to enhance women’s control over financial
resources and, in turn, increase their labor supply. However,
more evidence is needed to establish the causal impact of
these measures on women’s labor market outcomes.
8
T
his evidence stands in contrast to policies on expansion of subsidized childcare, which has been found to have stronger employment
impacts for working mothers (Olivetti and Petrongolo 2017).
9
The share of female workers in a firm increases by 2.08 percentage points for each log point increase in the number of days of paid
maternity leave.
10
For example, in Malaysia, childcare operators benefit from tax exemptions, while child allowances granted to employees by the
employer are also tax exempt for both employees and employers.
11
BOX 9. DEVELOPMENT POLICY FINANCING TO PROMOTE FLFP
World Bank development policy financing (DPF) is helping to eliminate regulatory barriers to women’s workforce
participation. The Jordan Second Equitable Growth and Job Creation Programmatic DPF (P168130) supported the
government in issuing new regulations to make work more flexible through part-time contracts and remote work
and to eliminate restrictions on the types of jobs and hours women can work. It also supported the Ministry of
Transport in issuing and enforcing codes of conduct (COC) to address women’s safety and harassment concerns
on public transportation. COCs introduced new service agreements with transport operators to regulate the
behaviors of passengers, drivers, and operators, and specified new grievance redress mechanisms against
harassment and gender-based discrimination. The Egypt Inclusive Growth for Sustainable Recovery DPF (P171311)
also focused on transportation measures and included an implementation mechanism for increasing women’s
labor in the transportation sector and preventing harassment.
Turkey’s Resilience, Inclusion and Growth DPF turned its attention to addressing the increased demand for
affordable childcare services by introducing tax incentives for private nursery schools. It also supported labor law
amendments that legalize formal temporary work contracts and various telecommuting work arrangements and
extend equal protections to temporary and part-time workers. Formalizing temporary contracts provides an entry
point for women who often lack work experience and employment history, due to childcare responsibilities and
other barriers. Introducing part-time work, remote and distance work, and telecommuting arrangements can also
address some of the economic and cultural barriers women face.
BOX 10. FACILITATING WOMEN’S ECONOMIC TRANSFORMATION
The Mashreq Gender Facility (MGF) (P168157) is a World Bank–IFC initiative that aims to enhance women’s
economic empowerment in Iraq, Jordan, and Lebanon by supporting these countries in achieving their targets of
substantially increasing FLFP by 2024.
In Iraq, the MGF supported analytical research on the gap between the country’s legal framework around
•
women’s economic participation and its implementation to inform action by policymakers.
In Lebanon, the MGF team is partnering with the National Commission for Lebanese Women to identify
•
and lift legal constraints restricting women’s access to the workforce, and to advocate for and assist in the
implementation of the Anti-Sexual Harassment Law, which was passed in December 2020, with a focus on
sexual harassment in the workplace.
In Jordan, the MGF is supporting the development of a roadmap on wage protection through digital
•
payments, with focus on how to address the legal and practical challenges that prevent low-income women
from engaging in the digital economy.
12
CONCLUSIONS
The focus of policy should be to remove barriers to allow with measures to expand childcare coverage. Further,
all women and men to pursue and achieve their goals and effective communication and socialization of such reforms
aspirations. This note attempts to identify measures that in the society are pertinent to foster changes in personal
allow women to flourish economically in a way that is in attitudes as well as community-wide norms.
line with their own preferences and life situation rather
than based on socially prescribed views of women’s roles at A dearth of cost-effectiveness evidence prevents
home and in the labor market. Based on the evidence and comparison of alternative policies under constrained
interventions reviewed, the following takeaways emerge budget resources. While an increasing number of impact
for policymakers. evaluations report cost-effectiveness measures for
downstream outcomes likes earnings, there are very few
Addressing one constraint is often necessary but that report cost-effectiveness estimates for women’s
insufficient. Even when one-off interventions effectively employment outcomes. Providing these estimates will be
address one constraint to increase FLFP, these effects a key ingredient to assessing the scalability of interventions.
typically do not persist over time. Interventions that address
multiple constraints (including norms) in combination with Investing more in the human capital of girls is important
policy reforms have the potential to shift women and their but often not sufficient to translate into employment.
economies to a new equilibrium. Enhancing women’s human capital does not automatically
trigger gains in her employment, as the relationship between
Norms pose a barrier in all contexts, especially in countries women’s education levels, fertility choices, and labor force
where FLFP is stagnant or declining, like in India (Klasen and participation varies across settings and sub-populations
Pieters 2015; Gupta 2022). However, norms and attitudes (Klasen 2019). Nevertheless, expanding girls’ and women’s
are malleable (Field et al. 2021) and those concerning the access to quality education and health care should remain
suitability of women’s employment and women’s roles a key priority for policy, given existing inequalities and the
within the household can be tackled directly (e.g., engaging economic payoffs of these investments.
men and families) or even circumvented (e.g., provision of
care services) to allow women to work. Regional differences are substantial and pre-existing
conditions matter. This note sheds light on an array
Shifts in the demand for women’s work can spark an of policy options that are effective or show promise in
increase in supply. Economy-wide demand shocks can improving FLFP. Yet, differences in levels and growth of
erode restrictive norms around women’s work outside this participation across countries could be shaped by an
the home and increase women’s human capital. For interplay of pre-existing characteristics, like institutions,
example, the growth of the ready-made garment sector economic structure, structural change, and persistent
in Bangladesh led young women to delay marriage and gender norms and values (Klasen 2019, Klasen et al. 2021).
childbearing, while increasing their education levels in
anticipation of employment (Heath and Mobarak 2015). The World Bank Gender Group aims to coordinate efforts
to raise awareness on the importance of facilitating FLFP.
Legal reforms are an important pre-condition to fostering This policy note is just a first step to setting the agenda
FLFP. Evidence from OECD economies underscores the and engaging with implementing partners, including
role that legal and policy reforms can play in giving women practitioners, researchers, organizations of women
and men equal opportunities in the labor market. Yet entrepreneurs, and other stakeholders. There is a need
many of these reforms need to be complementary to be for urgent policy action to remedy such gender gaps and
successful, for example, pairing parental leave mandates promote green, resilient, and inclusive development (GRID).
13
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