Policy Research Working Paper | Gender | World Bank

What explains big gender disparities in India ? local industrial structures and female entrepreneurship

2012-10-15T04:00:00.000Z

Despite rapid economic growth, gender disparities in women's economic participation have remained deep and persistent in India. What explains these huge gender disparities? Is it poor infrastructure, limited education, and gender composition of the labor force and industries? Or is it deficiencies in social and business networks and a low share of incumbent female entrepreneurs?This paper analyzes the spatial determinants of female entrepreneurship in India in the manufacturing and services sectors. Good infrastructure and education predict higher female entry shares. There are strong agglomeration economies in both manufacturing and services, where higher female ownership among incumbent businesses within a district-industry predicts a greater share of subsequent entrepreneurs will be female. Moreover, higher female ownership of local businesses in related industries (similar labor needs, input-output markets) predicts greater relative female entry rates. Gender networks thus clearly matter for women's economic participation. However, there is a need to develop a better understanding of how gender networks influence aggregate efficiency. There is no doubt that gender empowerment can be the escalator to realizing human potential and for creating a robust platform for growth and job creation.

Empowering women : evidence from a field experiment in Afghanistan

2012-11-19T05:00:00.000Z

In societies with widespread gender discrimination, development programs that encourage female participation in local governance can potentially redress gender imbalances in economic, political, and social outcomes. Using a randomized field experiment encompassing 500 Afghan villages, this study finds that a development program which incorporates mandated female participation increases female mobility and involvement in income generation, but does not change female roles in family decision-making or attitudes toward the general role of women in society.

The role of men in the economic and social development of women : implications for gender equality

2013-01-17T05:00:00.000Z

This paper is a critical review of the literature on the issue of how male behavior affects female outcomes in the promotion of gender equality. It employs the family as the main unit of analysis because a large part of gender interactions occurs within this institution. This survey first summarizes recent studies on the distribution of power within the family and identifies several factors that have altered the bargaining position of men and women over the last decades. It then reviews empirical work on the contribution of men, as fathers and husbands, to the health and socioeconomic outcomes of women in both developed and developing countries. Finally, it discusses a set of economic policies that have intentionally or unintentionally affected men's attitudes and behaviors. The main implication is that policies meant to achieve gender equality should focus on men rather than exclusively target women.

Intrahousehold bargaining and resource allocation in developing countries

2013-01-23T05:00:00.000Z

Many key development outcomes depend on women's ability to negotiate favorable intrahousehold allocations of resources. Yet it has been difficult to clearly identify which policies can increase women's bargaining power and result in better outcomes. This paper reviews both the analytical frameworks and the empirical evidence on the importance of women's bargaining power. It argues that there is sufficient evidence from rigorous studies to conclude that women's bargaining power does affect outcomes. But in many specific instances, the quantitative evidence cannot rigorously identify causality. In these cases, a combination of quantitative and qualitative evidence may suggest policy levers. Taken together, there are sufficient data in place to support a greatly expanded focus on intrahousehold outcomes and bargaining power. Additional data at the individual level will allow for further and more detailed research. A growing literature supports the current conventional wisdom -- namely, that the patterns of evidence suggest that women's education, incomes, and assets all are important aspects of women's bargaining power.

Children's health opportunities and project evaluation : Mexico's Oportunidades program

2013-01-30T05:00:00.000Z

This paper proposes a methodology to evaluate social projects from the perspective of children's opportunities on the basis of the effects of these projects on the distribution of outcomes. The evaluation is conditioned on characteristics for which individuals are not responsible; in this case, parental education level and indigenous background. The methodology is applied to evaluate the effects on children's health opportunities of Mexico's Oportunidades program, one of the largest conditional cash transfer programs for poor households in the world. The evidence from this program shows that gains in health opportunities for children from indigenous backgrounds are substantial and are situated in crucial parts of the distribution, whereas gains for children from nonindigenous backgrounds are more limited.

How subjective beliefs about HIV infection affect life-cycle fertility : evidence from rural Malawi

2013-01-30T05:00:00.000Z

This paper studies the effect of subjective beliefs about HIV infection on fertility decisions in a context of high HIV prevalence and simulates the impact of different policy interventions, such as HIV testing programs and prevention of mother-to-child transmission, on fertility and child mortality. It develops a model of women's life-cycle, in which women make sequential fertility decisions. Expectations about the life horizon and child survival depend on women's perceived exposure to HIV infection, which is allowed to differ from the actual exposure. In the model, women form beliefs about their HIV status and about their own and their children's survival in future periods. Women update their beliefs with survival to each additional period as well as when their HIV status is revealed by an HIV test. Model parameters are estimated by maximum likelihood with longitudinal data from the Malawi Diffusion and Ideational Change Project, which contain family rosters, information on HIV testing, and measures of subjective beliefs about own HIV status. The model successfully fits the fertility patterns in the data, as well as the distribution of reported beliefs about own HIV status. The analysis uses the model to assess the effect of HIV on fertility by simulating behavior in an environment without HIV. The results show that the presence of HIV reduces the average number of births a woman has during her life-cycle by 0.15. The paper also finds that HIV testing can reduce the fertility of infected women, leading to a reduction of child mortality and orphan-hood.

Is foreign aid fungible ? evidence from the education and health sectors

2013-01-30T05:00:00.000Z

This paper adopts a new approach to the issue of foreign aid fungibility. In contrast to most existing empirical studies, panel data are employed that contain information on the specific purposes for which aid is given. This allows linking aid that is provided for education and health purposes to recipient public spending in these sectors. In addition, aid flows that are recorded on a recipient's budget are distinguished from those that are not recorded on budget, and the previous failure to differentiate between on- and off-budget aid is shown to produce biased estimates of fungibility. Sector program aid is the measure of on-budget aid, whereas technical cooperation serves as a proxy for off-budget aid. The appropriate treatment of off-budget aid leads to lower fungibility estimates than those reported in many previous studies. Specifically, in both sectors and across a range of specifications, technical cooperation, which is the largest component of total education and health aid, leads to, at most, a small displacement of recipient public expenditures.

Political reservations and women's entrepreneurship in India

2013-02-13T05:00:00.000Z

This paper quantifies the link between the timing of state-level implementations of political reservations for women in India with the role of women in India's manufacturing sector. It does not find evidence that overall employment of women in manufacturing increased after the reforms. However, the analysis finds significant evidence that more women-owned establishments were created in the unorganized/informal sector. These establishments were concentrated in industries where women entrepreneurs have been traditionally active and the entry was mainly found among household-based establishments. This heightened entrepreneurship does not appear linked to changes in reporting, better access to government contracts and business, or improved financing environments. One interpretation of these results is that the implementation of the political reservations inspired more women to open establishments, and they did so at a small establishment scale in industries where they had experience and/or the support networks of other women.

Does a wife's bargaining power provide more micronutrients to females : evidence from rural Bangladesh

2013-02-19T05:00:00.000Z

Using calories in a unitary framework, previous literature has claimed lack of gender inequality in intrahousehold food distribution. This paper finds that while there is lack of gender disparity in the calorie adequacy ratio, the disparity is prominent among children, adolescents, and adults for a number of critical nutrients. Pregnant and lactating women also receive much less of most of these nutrients compared with their requirements. A wife's bargaining power (proxied by assets at marriage), as opposed to her husband's, significantly and positively affects the nutrient allocations of children and adolescents and of adult females. The bargaining effects remain significant after controlling for unobserved household characteristics and the potential nutrition-health-labor market linkage. The findings, which have important policy implications for the growing problem of micronutrient malnutrition in the developing world, also imply that perhaps the nutrition-health-labor market linkage as a key explanation for intrahousehold food distribution has been overemphasized in the previous literature.

Does gender inequality hinder development and economic growth ? evidence and policy implications

2013-02-21T05:00:00.000Z

Does the existing evidence support policies that foster growth by reducing gender inequality? The authors argue that the evidence based on differences across countries is of limited use for policy design because it does not identify the causal link from inequality to growth. This, however does not imply that inequality-reducing policies are ineffective. In other words, the lack of evidence of a causal link is not in itself evidence that the causal link does not exist. Detailed micro studies that shed light on the mechanisms through which gender inequality affects development and growth are needed to inform the design of effective policies.

Gender and agriculture : inefficiencies, segregation, and low productivity traps

2013-02-21T05:00:00.000Z

Women make essential contributions to agriculture in developing countries, where they constitute approximately 43 percent of the agricultural labor force. However, female farmers typically have lower output per unit of land and are much less likely to be active in commercial farming than their male counterparts. These gender differences in land productivity and participation between male and female farmers are due to gender differences in access to inputs, resources, and services. In this paper, the authors review the evidence on productivity differences and access to resources. They discuss some of the reasons for these differences, such as differences in property rights, education, control over resources (e.g., land), access to inputs and services (e.g., fertilizer, extension, and credit), and social norms. Although women are less active in commercial farming and are largely excluded from contract farming, they often provide the bulk of wage labor in the nontraditional export sector. In general, gender gaps do not appear to fall systematically with growth, and they appear to rise with GDP per capita and with greater access to resources and inputs. Active policies that support women's access and participation, not just greater overall access, are essential if these gaps are to be closed. The gains in terms of greater productivity of land and overall production are likely to be large.

Violent conflict and gender inequality : an overview

2013-02-21T05:00:00.000Z

Violent conflict, a pervasive feature of the recent global landscape, has lasting impacts on human capital, and these impacts are seldom gender neutral. Death and destruction alter the structure and dynamics of households, including their demographic profiles and traditional gender roles. To date, attention to the gender impacts of conflict has focused almost exclusively on sexual and gender-based violence. The authors show that a far wider set of gender issues must be considered to better document the human consequences of war and to design effective postconflict policies. The emerging empirical evidence is organized using a framework that identifies both the differential impacts of violent conflict on males and females (first-round impacts) and the role of gender inequality in framing adaptive responses to conflict (second-round impacts). War's mortality burden is disproportionately borne by males, whereas women and children constitute a majority of refugees and the displaced. Indirect war impacts on health are more equally distributed between the genders. Conflicts create households headed by widows who can be especially vulnerable to intergenerational poverty. Second-round impacts can provide opportunities for women in work and politics triggered by the absence of men. Households adapt to conflict with changes in marriage and fertility, migration, investments in children's health and schooling, and the distribution of labor between the genders. The impacts of conflict are heterogeneous and can either increase or decrease preexisting gender inequalities. Describing these gender differential effects is a first step toward developing evidence-based conflict prevention and postconflict policy.

Caught in a productivity trap: a distributional perspective on gender differences in Malawian agriculture

2013-03-11T04:00:00.000Z

In targeting poverty gains, sub-Saharan African governments have emphasized the alleviation of gender differences in agricultural productivity. The empirical studies on the gender gap, however, have frequently used data that were limited regarding geographic and topical coverage, and/or details on intra-household dynamics. The study provides a nationally-representative analysis of the gender gap in Malawi, and decomposes it, for the first time, at the mean and at selected points of the agricultural productivity distribution into (i) a portion driven by gender differences in levels of observable attributes (the endowment effect), and (ii) a portion driven by gender differences in returns to the same set of observables (the structure effect). Sequentially, the authors unpack the relative contributions of different factors towards the gender gap, and suggest future research priorities to inform policy interventions. The authors find that while female-managed plots are, on average, 25 percent less productive, 82 percent of this differential is explained by differences in endowments, mainly due to high-value crop cultivation and levels of household adult male labor inputs. The factors driving the structure effect include child dependency ratio and effectiveness of household adult male labor and inorganic fertilizer. The gender gap increases across the productivity distribution, ranging from 22 percent at the 10th percentile to 37 percent at the 90th percentile. While it is explained predominantly by the endowment effect in the first half of the distribution, the contribution of the structure effect towards the gender gap increases steadily above the median, standing at 34 percent at the 90th percentile.

Gender equality and economic growth in Brazil : a long-run analysis

2013-03-28T04:00:00.000Z

This paper studies the long-run impact of policies aimed at fostering gender equality on economic growth in Brazil. The first part provides a brief review of gender issues in the country. The second part presents a gender-based, three-period OLG model that accounts for women's time allocation between market work, child rearing, human capital accumulation, and home production. Bargaining between spouses depends on relative human capital stocks, and thus indirectly on access to infrastructure. The model is calibrated and various experiments are conducted, including investment in infrastructure, conditional cash transfers, a reduction in gender bias in the market place, and a composite pro-growth, pro-gender reform program. The analysis showed that fostering gender equality, which may partly depend on the externalities that infrastructure creates in terms of women's time allocation and bargaining power, may have a substantial impact on long-run growth in Brazil.

Measuring the effect of a community-level program on women's empowerment outcomes : evidence from India

2013-04-04T04:00:00.000Z

This paper uses primary data from rural north India to show that participation in a community-level female empowerment program significantly increases access to employment, physical mobility, and political participation. The program provides support groups, literacy camps, adult education classes, and vocational training for rural women in several states of India; the data are from Uttarakhand. The paper uses instrumental variables and truncation-corrected matching on primary data to disentangle the program's mechanisms, separately considering its effect on women who work, and those who do not work but whose reservation wage is increased by participation. The analysis also finds significant spillover effects on non-participants relative to women in untreated districts. It finds consistent estimates for average treatment and intent to treat effects

Financial inclusion and legal discrimination against women : evidence from developing countries

2013-04-19T04:00:00.000Z

This paper documents and analyzes gender differences in the use of financial services using individual-level data from 98 developing countries. The data, drawn from the Global Financial Inclusion (Global Findex) database, highlight the existence of significant gender gaps in ownership of accounts and usage of savings and credit products. Even after controlling for a host of individual characteristics including income, education, employment status, rural residency and age, gender remains significantly related to usage of financial services. This study also finds that legal discrimination against women and gender norms may explain some of the cross-country variation in access to finance for women. The analysis finds that in countries where women face legal restrictions in their ability to work, head a household, choose where to live, and receive inheritance, women are less likely to own an account, relative to men, as well as to save and borrow. The results also confirm that manifestations of gender norms, such as the level of violence against women and the incidence of early marriage for women, contribute to explaining the variation in the use of financial services between men and women, after controlling for other individual and country characteristics.

Building or bypassing recipient country systems : are donors defying the Paris declaration ?

2013-04-23T04:00:00.000Z

The 2005 Paris Declaration on Aid Effectiveness sets targets for increased use by donors of recipient country systems for managing aid. It also calls for donors to be more responsive to the quality of recipient country systems: the optimal level of their use, in terms of maximizing the development effectiveness of aid, is believed to vary with their quality. This study investigates the degree to which donors' use of country systems is in fact positively related to their quality, using indicators explicitly endorsed for this purpose by the Paris Declaration and covering the 2005-2010 period. The results of these tests strongly confirm a positive and significant relationship, and show it is robust to corrections for potential sample selection, omitted variables, or endogeneity bias. The result holds even when estimates are informed only by variation over time within each donor-recipient pair in use and quality of country systems. Moreover, donor-specific tests show that use of country systems varies positively with their quality for the vast majority of donors. These findings contradict several other studies that claim there is no relation and imply that donors in this respect are failing to live up to their commitments under the Paris Declaration. The author's interpretation of the available evidence on use of country systems is more favorable: donors' behavior over the measurement period is largely consistent with their commitments in this area. In this respect, at least, donors appear to have modified their aid practices in ways that build rather than undermine administrative capacity and accountability in recipient country governments.

Foreign wage premium, gender and education : insights from Vietnam household surveys

2013-04-24T04:00:00.000Z

This paper investigates the differential impacts of foreign ownership on wages for different types of workers (in terms of educational background and gender) in Vietnam using the Vietnam Household Living Standards Surveys of 2002 and 2004. Whereas most previous studies have compared wage levels between foreign and domestic sectors using firm-level data (thus excluding the informal sector), one advantage of using the Living Standards Surveys in this paper is that the data allow wage comparison analyses to extend to the informal wage sector. A series of Mincerian earnings equations and worker-specific fixed effects models are estimated. Several findings emerge. First, foreign firms pay higher wages relative to their domestic counterparts after controlling for workers personal characteristics. Second, the higher the individual workers' levels of education, the larger on average are the wage premiums for those who work for foreign firms. Third, longer hours of work in foreign firm jobs relative to working in the informal wage sector are an important component of the wage premium. Finally, unskilled women experience a larger foreign wage premium than unskilled men, reflecting the low earning opportunities for women and a higher gender gap in the informal wage sector.

A model of gendered production in colonial Africa and implications for development in the post-colonial period

2013-05-08T04:00:00.000Z

This paper proposes a model to analyze the implications of colonial policies for gender inequality in Sub-Saharan Africa. The model emphasizes segmentation of production under complete specialization. It shows that the colonial production model, underpinned by occupational job segregation in the agricultural sector and gender bias in the non-agricultural sector, exacerbated gender inequality by limiting employment opportunities for women outside the realm of home production and subsistence agriculture. Over the past few decades, the resilience of parameters underlying these models of colonial production has heightened the risks of macroeconomic volatility in the region, especially where the structural transformation from low to high-value-added activities has remained elusive.

The inequality possibility frontier : extensions and new applications

2013-05-17T04:00:00.000Z

This paper extends the Inequality Possibility Frontier approach in two methodological directions. It allows the social minimum to increase with the average income of a society, and it derives all the Inequality Possibility Frontier statistics for two other inequality measures besides the Gini. Finally, it applies the framework to contemporary data, showing that the inequality extraction ratio can be used in the empirical analysis of post-1960 civil conflict around the world. The duration of conflict and the casualty rate are positively associated with the inequality extraction ratio, that is, with the extent to which elite pushes the actual inequality closer to its maximum level. Inequality, albeit slightly reformulated, is thus shown to play a role in explaining civil conflict.