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WP/22/37

IMF Working Paper

Legal Department

Tackling Legal Impediments to Women’s Economic Empowerment

Prepared by Katharine Christopherson, Audrey Yiadom, Juliet Johnson, Francisca Fernando, Hanan Yazid and Clara Thiemann

Authorized for distribution by Rhoda Weeks-Brown

IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

ABSTRACT: It is well established that a wide range of legal impediments in countries’ domestic laws have prevented women from achieving full economic empowerment, which in turn has negative macroeconomic implications. In many countries, laws often reflect and perpetuate gender norms that limit women’s economic participation, and removal of these impediments through legal reform has been shown to be an effective method to catalyze greater participation of women in the economy—along with the related macroeconomic benefits. Once legal barriers are removed and provisions for more equal treatment under the law are embedded, the law can also be employed as a powerful tool to incentivize women to pursue equal opportunities, change mindsets regarding the role of women, and hold institutions and individuals accountable for achieving results. Accordingly, it is imperative for countries to focus on eliminating existing legal impediments and designing appropriate incentives to increase women’s participation in the economy.

This paper goes beyond previous Fund work by categorizing the key sources of laws that impede women’s economic empowerment, as well as ways in which the law can be used as a tool to create behavioral changes and shifts in perceptions of women in the economy. Case studies of six countries (Iceland, Peru, Rwanda, The Philippines, Tunisia, and the United States) that rank high in gender equality in their respective regions demonstrate how legal reforms have been implemented in differing contexts to help achieve women’s economic empowerment. Given the relevance to the Fund’s mandate, the paper also notes the case for a stepped-up role for the IMF in advising on legal reforms that remove barriers to, and incentivize, women’s economic empowerment. Although this paper highlights dominant belief systems and cultural norms that have contributed to limiting the economic empowerment of women, it does not intend to render any judgment on these systems or norms.

JEL Classification Numbers:	D63, J30, J71, K36
Keywords:	gender and the law, gender gap, gender inequality, IMF and gender, inclusive growth, legal impediments, women’s economic empowerment

View Table

JEL Classification Numbers:	D63, J30, J71, K36
Keywords:	gender and the law, gender gap, gender inequality, IMF and gender, inclusive growth, legal impediments, women’s economic empowerment

Table of Contents

• ABSTRACT

• I. INTRODUCTION

• II. SOURCES OF LEGAL IMPEDIMENTS TO WOMEN’S ECONOMIC EMPOWERMENT

  • A. Sources of Laws Impeding Women’s Economic Empowerment

    • i. Constitutional Law and Civil Rights

    • ii. Family Law

    • iii. Property Law

    • iv. Labor Law

    • v. Tax Law

  • B. Impact of Cultural Norms, Traditions, and Belief Systems on Gender Equality

    • i. Cultural Norms and Belief Systems

    • ii. Plural Legal Systems

    • iii. Inherited Laws

  • C. Changing Behavior through Legal Reform

• III. PROMOTING WOMEN’S ECONOMIC EMPOWERMENT THROUGH LEGAL REFORM—SELECTED CASE STUDIES

  • A. Iceland

  • B. Peru

  • C. The Philippines

  • D. Rwanda

  • E. Tunisia

  • F. The United States

• IV. ASSISTING IMF MEMBERS IN TACKLING LEGAL IMPEDIMENTS TO WOMEN’S ECONOMIC EMPOWERMENT

  • A. Surveillance

  • B. Financial Assistance to Members

  • C. Capacity Development

• V. CONCLUSIONS

• REFERENCES

• BOXES

• 1. Gender Sensitive Tax Reforms

• 2. Iceland’s Equal Pay Standard

• 3. Gender Budgeting Laws

• ANNEXES

• I. Key Lessons from Selected Country Case Studies—Legal Reform Aimed to Improve Women’s Economic Empowerment

• II. Detailed Country Case Studies

• III. Legal Reforms in Spain, the United Kingdom, and France to Support Gender Equality

• IV. The IMF’s Contributions in Assisting Members to Address Gender Inequality