WPS6617 dd ee zz riri oo hh utut AA e e Policy Research Working Paper 6617 rr uu ss oo clcl ss DiDi c c blibli uu PP dd ee zz riri oo hh utut AA e e Women’s Legal Rights over 50 Years rr uu ss oo clcl ss DiDi c c What Is the Impact of Reform? blibli uu PP Mary Hallward-Driemeier dd Tazeen Hasan ee zz riri Anca Bogdana Rusu oo hh utut AA e e rr uu ss oo clcl ss DiDi c c blibli uu PP dd ee zz riri oo hh utut AA e e rr uu ss oo clcl ss DiDi c c blibli The World Bank uu PP Development Research Group Finance and Private Sector Development Team September 2013 Policy Research Working Paper 6617 Abstract This study uses a newly compiled database of women’s rights, including 28 countries that had eliminated all property rights and legal capacity covering 100 countries of the constraints monitored here. In the cross-section over 50 years to test for the impact of legal reforms and within countries over time, the removal of gender on employment, health, and education outcomes gaps in rights is associated with greater participation for women and girls. The database demonstrates of women in the labor force, greater movement out of gender gaps in the ability to access and own property, agricultural employment, higher rates of women in wage sign legal documents in one’s own name, and have employment, lower adolescent fertility, lower maternal equality or non-discrimination as a guiding principle and infant mortality, and higher female educational of the country’s constitution. In the initial period, 75 enrollment. This paper provides evidence on how the countries had gender gaps in at least one of these areas strengthening of women’s legal rights is associated with and often multiple ones. By 2010, 57 countries had important development outcomes. made reforms that strengthened women’s economic This paper is a product of the Finance and Private Sector Development Team, Development Research Group. It is part of a larger effort by the World Bank to provide open access to its research and make a contribution to development policy discussions around the world. Policy Research Working Papers are also posted on the Web at http://econ.worldbank.org. The author may be contacted at [email protected]. The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the International Bank for Reconstruction and Development/World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent. Produced by the Research Support Team Women’s Legal Rights over 50 Years: What Is the Impact of Reform? Mary Hallward-Driemeier, Tazeen Hasan and Anca Bogdana Rusu1 JEL Codes: K37; N40; O1 Key terms: Law; gender; property rights; legal capacity; employment; health; education; empowerment. 1 World Bank, Development Research Department. The authors gratefully recognize financial support from the UK’s Department For International Development (DFID). The opinions expressed here do not necessarily reflect the position of the World Bank, its Board of Executive Directors or the member countries they represent. Special thanks go to Sarah Iqbal who, along with Tazeen Hasan, supervised the data collection effort, and to the team members from the Women, Business and the Law who contributed to the database: Garam Dexter, Khrystyna Kushnir, Lourdes Lizarraga Ortega, Nayda Almodovar Reteguis, Paula Tavares, Thibault Meilland and Yasmin Klaudia bin Humam. In addition, Abhinav Goel, Ashley S. Zohar, Erin F. Rogers, Lindsey Scannell, Sarah Knapp, Shazia Akhter, Tatyana Chursova, Yulia Dovgaya and Zachary Walter conducted research for the database as part of their internships with the World Bank Group. Comments can be sent to [email protected]. Introduction Rights matter. They matter in themselves. The question here is what is the evidence that they matter for other outcomes of interest – namely the ability to pursue economic opportunities, and health and education outcomes? Existing research shows that strengthening women’s economic and legal rights has a real and positive impact on women’s labor force participation, investment and agricultural productivity. However, most of the literature focuses on a particular country, examining differences in property rights across groups of individuals or looking at a particular reform episode. The “50 Years of Women’s Legal Rights Database” offers an opportunity to expand the analysis – with comparable indicators across 100 countries and covering 50 years. The legal rights focused on here can be grouped into three broad categories. The first regards the ability to access and own property. This can mean land, but it also means other types of assets more generally. The second is legal capacity, whether women have the same ability as men to enter into legal agreements in their own name. The last is the approach to principles of equality and non-discrimination within the constitution. Such principles can be recognized in general, or with enumerated groups (e.g. non-discrimination based on gender or sex). But in some countries laws governing property, marriage and inheritance can be explicitly exempt from these principles in the constitution. The database highlights the extent to which gender gaps in these three areas have been widespread, recognized in all regions and across all income groups. But the time dimension also shows that there has been change. Not only countries, but entire regions have eliminated the constraints examined here. Today’s rich countries of the OECD had their share of gender gaps in the 1960s and 1970s. However, today, they have removed all of the ones covered in this 2 study. In the countries of Eastern Europe and Central Asia, only Turkey had some gender gaps in these laws; it no longer does. In Latin America, there are now only two exceptions to the laws on legal capacity and property rights. And Sub-Saharan Africa, the region with the highest rates of gender gaps in the initial period, has removed more than half of them by 2010. Progress towards women’s equal rights is possible (see companion paper for a more detailed discussion of legal reforms and the factors that help trigger reforms). At the same time, there are still countries with gender gaps in these rights. And some countries have increased the number of constraints since the 1960s. On net, both in South Asia and the Middle East & North Africa, the net number of constraints has remained fairly stable, with both some reforms and some new constraints being introduced. Given the variation in the legal rights both across countries and over time, how are they correlated with outcomes? We focus on employment, health and education as these are traditionally areas where women and girls have not enjoyed the same benefits and access as men and boys. They are also key indicators of well-being. The paper begins by looking at comparisons across countries. This has the advantage of allowing a wider range of outcome variables to be examined. Unfortunately, gender disaggregated data are not available for many of the indicators except in recent years. However, there are indicators for employment that go back 30 years, and there are some health and education indicators that cover the entire 50 years. For those indicators for which we have sufficient time variation that straddle reform episodes, we look at the impacts of the law within countries over time. Finally, we examine whether the effects of legal reforms vary either by level of development or by the strength of the rule of law. Is it that having formal recognition of rights is only important once countries reach a 3 certain level of development, or do de jure rights have little benefit in a society that does not uphold the law? This is important in understanding where reforms are likely to have the greatest impact and where the lack of reform can be the most costly. The following section reviews the literature on rights and women’s empowerment outcomes. The next section describes the data in more detail. The methodology is explained and then the results are discussed. The final section concludes. Review of the Literature Interest in the importance of property rights stretches back centuries. Adam Smith was one of the first to argue forcefully about the economic benefits that come from securing people’s incentive to invest and exert effort. The extent to which it is formal rights that matter, however, is still a matter of debate, particularly in countries with larger rural populations, lower levels of education and pluralist systems for resolving disputes. However, what laws are on the books does determine the rules and whose interests will be protected. They send important signals as to what is acceptable or not, even if parties never make it to a court. And as arms-length transactions become more common, the formal legal system plays a larger role. Many cross-country studies aimed at analyzing how laws and regulations affect employment, including entrepreneurship, look at business regulations. Botero et al. 2004, Klapper et al. 2006 and Djankov et al. 2003 point to the importance of these regulations in explaining cross-country patterns of employment, firm start-ups and use of courts. But they do not look at gender disaggregated results. Indeed, legislation to register property, enforce contracts or access credit is largely gender neutral. However, these laws presuppose one can own property or enter contracts in the first 4 place. The law that determines who has control over assets and thus affects the types of economic opportunities that are available is family law. Family law covers issues of marriage, but also of marital property and who can control it – within the marriage and at its end, whether through divorce or inheritance. And it is here that gender gaps can be—and still too often are— explicit. There are also several country specific studies that find significant impacts of the reforms to family law. In studies that analyze the impact of the Hindu Succession Act Amendment of 2005, equal inheritance rights for girls and women are shown to be correlated with increased educational attainment, higher household investment in girls as well as higher age at marriage (Deininger, Goyal, and Nagarajan, 2010). Equal inheritance rights for women are also associated with higher women’s autonomy (Roy 2008). Assessments of changes in divorce laws in the Unites States show that women were more likely to initiate a divorce in states where women’s position was strengthened. Also the changes in divorce laws were correlated with a fall in domestic violence in these states. As illustrated by Gray (1998) and Stevenson and Wolfers (2006), part of the effect may come from shifts in intra- household bargaining power. Similarly, changes in the family law in Ethiopia were associated with a substantial shift in women’s economic activities (Hallward-Driemeier and Gajigo, 2013). As of 2000, Ethiopia requires both spouses’ consent in managing marital property, enabled women to work outside the home without needing permission from their spouse and raised the minimum marriage age for women. The reform, which is now applicable across the country, was initially rolled out in select regions and cities. Using two nationally representative household surveys, one in 2000 just before the reform and one five years later, Hallward-Driemeier and Gajigo (2013) find that 5 women’s participation in occupations which require work outside the home, full-time hours, and higher skills rose more where the reform had been enacted (controlling for time and location effects). Property rights can be set out in family law as well as in land law. Here too the literature has found significant gender impacts from differences in the strength of rights to land. Secure property rights to land are fundamental to agriculture and rural economic activity. Without secure rights, the incentive to invest is diminished, as it is not clear the rewards of the investment can be enjoyed. In addition, the lack of such rights undermines the land owner’s ability to use it as collateral, leading to credit constraints. Besley (1995) demonstrates that individuals in Ghana vary their investment across plots depending on the security of their rights. Goldstein and Udry (2008) show that in a society where land rights are not secure, it is those at the top of the local hierarchy—those with the more tenured rights—that benefit the most. A number of other empirical studies point to increased agricultural productivity as a result of women controlling larger shares of resources (Saito, Mekonnen, and Spurling 1994; Udry and others 1995; Quisumbing 1996; Besley and Ghatak 2009). More resources in women’s hands is also associated with a decline in poverty (World Bank 2001). And the benefits can transfer across generations. Duflo’s work in South Africa showed that when women received additional resources, the spending on education and food, particularly for girls, went up (Duflo 2003). Indeed, many of the conditional cash transfer programs, inspired by the results of Progresa in Mexico, now specifically target women as recipients (Skoufias and McClafferty 2001). Beyond general principles that give everyone equal access to own property, how property rights are implemented can be important. Even when a household has secure property rights, 6 titling has too often been under a single name, that of the male head of household. As a consequence, many women have been excluded from ownership. Some countries, such as Ethiopia, have tried to address this unbalance by mandating joint titling of land, thus increasing women’s control over land. (Deininger et al. 2008). The benefit of such policies is apparent from Field’s (2007) study of a titling program in the slums of Peru, where she finds a strong impact on labor supply, especially for women. Without the need to physically protect plots and dwellings, women have more time to work away from their home. Thus the literature shows that economic rights can affect women’s employment, health and education outcomes in particular countries and for particular reforms. This paper contributes to the literature by expanding both the country coverage and time dimension of legal indicators available for analysis. It also broadens the set of outcome variables analyzed. It provides further evidence of the scope for legal reforms to expand women’s wellbeing and empowerment. But it also shows that benefits are not automatic. This is true both as rising country incomes is not necessarily associated with closing gender gaps in these economic rights, and because the impact of giving women and girls equal rights is shown to vary by level of development and rule of law. Ensuring women and girls obtain and benefit from stronger protections of the property rights and legal capacity is an active agenda. Data and Methodology The paper uses the newly compiled “50 Years of Women’s Legal Rights” database. The methodology is explained in more detail in the appendix. It draws on the constitutions as well as family, succession and land laws to look at three sets of legal rights for women. The indicators are based on an assessment of de jure rights based on the reading of the constitutions and 7 statutes. There may well be a gap between what is on the books and what happens in practice, but this database focuses on the former as the measures are objective and provide an easy way to benchmark countries across issues, countries and time. The indicators are generally 0-1 measures of whether women and men have the same right. They do not attempt the measure the degree of the inequality, nor are the indicators weighted or aggregated into an index. Access to and control of assets is examined between unmarried men and women and between married men and women. In addition, indicators include whether sons and daughters are treated equally in inheritance, and another whether wives and husbands are treated the same in determining their inheritance shares when the other spouse dies.2 A second set of indicators concerns legal capacity. These largely stem around ‘head of household’ statutes, both in terms of recognizing a head and who the head can be, and the rights the head can exercise. Gender gaps include the inability of women to be recognized as the head of household. And statutes can give the husband, as head of household, the right to deny permission to his wife to work or pursue a trade or profession. His signature may be required for her to open a bank account, to sign a contract or to initiate legal proceedings. A third set looks at the approach to equality before the law. By 2010 all the countries with a constitution have this principle enshrined in it. Many further have a non-discrimination clause that explicitly enumerates discrimination based on gender or sex as something that is protected against.3 However, the principle is not universally applied across all areas of the law in some countries. The two most common exceptions come from the formal recognition of 2 Additional measures of the default marital property regime and whether joint titling is allowed are included in the database. As these indicators remain almost unchanged for countries, they are not included in the time series analysis. 3 It should be noted that it is not necessary to enumerate gender or sex if the constitution already has an equality provision. In fact, its presence can sometimes be an indicator of perceived weakness of women’s rights that such a clause was deemed necessary. 8