Female Labour Force Participation in Jordan – Policy Paper
ECONOMIC AND SOCIAL COUNCIL – POLICY PAPER
FEMALE LABOUR FORCE PARTICIPATION IN JORDAN1
EXECUTIVE SUMMARY
Despite impressive gains in women’s health and education indicators in Jordan, women’s
participation in the labour force has not kept pace and remains very low at 14.9 percent.
Women entering the labour force in Jordan face a host obstacles related to lack of opportunity,
discriminatory practices as well as prohibitive social norms.
Economic necessity might be instigating a change in attitudes towards working women;
nevertheless it is important to establish whether low female participation in the labour force is
dictated by personal choice, discriminatory practice or a combination of both.
BARRIERS TO FEMALE PARTICIPATION IN THE LABOUR FORCE:
1) High fertility rates and marriage: marriage contributes significantly to preventing women
from entering the labour force while childcare and domestic responsibilities increase women’s
reservation wage to enter the labour market.
2) Unemployment: There is a general lack of jobs, coupled with a gender-bias in recruitment that
places young, educated women at a disadvantage.
3) Underemployment: The average women worker is likely to have 12.3 years of education,
compared to 9.3 years for a male counterpart holding the same job. This lowers remuneration
expectations among women and can dissuade educated women from seeking jobs.
4) Wage differentials and lower returns on employment: Women working in the private sector
experience greater wage discrimination than their counterparts in the public sector. While the
public sector may not out rightly discriminate in wages according to gender as it is governed by
the Civil Service Bureau salary scales, there is pronounced vertical discrimination (commonly
known as the glass-ceiling) whereby women in top ministerial and government positions form a
visible minority. Furthermore, unequal nonwage benefits and tax structures force women to
accumulate less social benefits than their male counterparts.
5) Occupational segregation: Social norms on what is appropriate work for women means that
women in Jordan have fewer industries to enter and so enter overcrowded, female dominated
This policy paper has been prepared for the Economic and Social Council by Yasmeen Tabbaa, Social Policy
Analyst. For more information please contact [email protected]
1
Address: 48 Abu Hamed Al Ghazali Street, Amman, Jordan
Tel: + 962 6 5675325 Fax: + 962 6 566258, www.esc.jo
Female Labour Force Participation in Jordan – Policy Paper
sectors. Almost three quarters of employed women work in the education, health/social work
sectors or manufacturing.
6) Private sector employment: Higher wages along with social benefits such as extended
maternity leave, shorter working hours and secure tenure has made public sector employment
much more appealing for women and has addressed their reservation wage. Health and safety
risks as well as social barriers that prevent many women from assuming night jobs, long working
hours and mixed work environment continue to limit women’s options in the private sector.
Furthermore the provisions of protective labour laws related to women working in the private
sector have created disincentives to hiring young women among private firm owners.
7) Cultural barriers: Barriers to women’s entry into the labour force also lie in deep rooted and
firmly prescribed gender roles including the male role as sole breadwinner, women’s modesty
and honour and unequal power in the private and public sphere.
8) Overall low female representation in decision-making: the low number of women top officials
in Government and other decision-making bodies has limited gender mainstreaming related to
labour market policies in Jordan.
POLICY RECOMMENDATIONS
•
A national commitment to the promotion of equal opportunities in employment and the
possibility of following an incentive scheme to promote the employment of women.
•
More efforts need be made to bring married women to the work force. Legal
institutions within marriage (e.g. husband’s permission to work, family laws) may be a
binding factor.
•
Creating more employment opportunities for women ‘in the middle’ either by levels of
education (secondary education) or by social class. Much of current efforts focus on
microfinance for poor women or higher educated women.
•
Pay discrimination and vertical discrimination in the private and public should be
addressed through conducting gender-neutral job evaluations in selected sectors.2
•
Conducting a gender impact assessment of nonwage social benefits and labour policies
to understand their effect on women’s employment and their entry into the labour
force.
•
Universal provision from taxation or social security of maternity leave and childcare so
that all of the population shares this responsibility. This will address issues related to
2
See the following for more details: ILO (in press),“Policy Brief on Pay Equity in Jordan”, Beirut: ILO
Regional Office for Arab States.
2
Female Labour Force Participation in Jordan – Policy Paper
private sector reluctance to hire women, as an unintended consequence of protective
labour laws. 3
•
An in-depth analysis of male-dominated sectors and non- national labour dominated
sectors and how to make them more appealing to Jordanian women seeking work.
•
An educational environment that fosters more career-oriented women and revising the
curriculum to remove gender stereotyping and promoting positive role models for
women.
CURRENT SITUATION IN JORDAN
Over the past decades, Jordan has achieved impressive results on a host of social indicators,
among them women’s high literacy and the bridging of gender gaps in education.4 Yet, women’s
participation in the labour force has not kept pace with these impressive gains, mainly due to a
host of barriers that women face related to available opportunities, working conditions and
social norms and culture.
Figure15
With a female labour force participation rate of 14.9 percent6, Jordan is on par with the MENA
region and consistently below similar lower middle-income countries. Given women’s gains in
education and health, their labour force participation is expected to be higher.
3
See the ILO Maternity Protection Convention 2000 (No. 183)
World Bank (2005) “The Economic Advancement of Women in Jordan: A Country Gender Assessment”
5
All data taken from the Al Manar Human Resources Development Information System project hosted at
the National Centre for Human Resources Development unless stated otherwise. All data is for 2009.
6
National Centre for Human Resource Development (2009), “Human Resources Indicators in Jordan 2008
– 2009”
4
3
Female Labour Force Participation in Jordan – Policy Paper
Figure 2 7
Low female participation in the labour force has several implications on the socioeconomic
situation of households; most evidently it creates an increased dependency ratio. The current
ratio of working to non-working individuals in Jordan is 2.6, or 2.1 when correcting for age and
population structure.8 Such a high dependency ratio is becoming increasingly difficult for
households to sustain in light of the rising cost of living, leading more working age women to
enter the labour force. Economic necessity might be instigating a change in attitudes towards
working women; nevertheless it is important to establish whether low female participation in
the labour force is dictated by personal choice, discriminatory practice or a combination of both.
What are the barriers of entry into the labour force that women face?
1) High fertility rates and marriage
While women’s fertility rate in Jordan declined from 6.8 births in 1980 to 3.7 births currently,
this remains a high rate that continues to play a role in limiting women’s entry into the labour
market. Gender norms and stereotyping in Jordan emphasizes the role of women as caretakers
in the private sphere and this is reflected in the exit of women from the labour market after
marriage in Jordan. A comparative household survey conducted by the World Bank in Amman,
Cairo and Sana’a (2008) shows that marriage contributes significantly to preventing women from
entering the labour force.9 Legal and institutions within marriage (e.g. husband’s permission to
work, family laws) may be a binding factor here.
The cost of childcare increases a woman’s reservation cost above that of men. Reservation
wage is the average wage at which an individual is exactly indifferent between working or not
working.10 Normally, for women this is at least high enough to cover the cost of childcare and
domestic services. Thus there are more disincentives for women to seek work.
7
M. Hendessi (2007), “Jordan Gender Country Assessment”, Amman: USAID
The World Bank (2005), Op. cit.
9
S. Muzi, H. Ahmed and N. Chamlou, “Women Labour Force Participation, Education and Non-Economic
Factors: The Case of Middle East and North Africa Countries”, World Bank MENA Region Chief Economist
Office, DC: 2008.
10
Ibid
8
4
Female Labour Force Participation in Jordan – Policy Paper
2) Unemployment
Unemployment in general is high in Jordan at 12.9 percent for the population as a whole and
24.1 percent for women in specific.11
Figure 3
There is a general lack of jobs, coupled with gender-bias in recruitment which places young,
educated women at a disadvantage.
Figure 4
3) Underemployment
Underemployment results when employees accept positions that are below their educational
and skill qualifications. This affects women more than men in Jordan; estimates show that the
average women wage – earner is likely to have 12.3 years of education, compared to 9.3 years
for a male counterpart holding the same job.12 This lowers remuneration expectations among
women and can dissuade educated women from seeking jobs.
11
12
Department of Statistics (2009) Employment and Unemployment Survey – Annual Report
ILO (in press), Op. cit.
5
Female Labour Force Participation in Jordan – Policy Paper
4) Wage differentials and lower returns on employment.
Wage differentials between men and women exist everywhere in the world, however what sets
the MENA region apart (and Jordan in specific) is that more educated women tend to hold the
same positions as less educated men.
Generally, women working in the private sector experience greater wage discrimination than
their counterparts in the public sector. While the public sector may not out rightly discriminate
in wages according to gender as it is governed by the Civil Service Bureau salary scales, there is
pronounced vertical discrimination (commonly known as the glass-ceiling) whereby women in
top ministerial and government positions form a visible minority.
Wage differentials alone might not dissuade women from seeking work, however coupled with
other factors such as the reservation wage and social pressure; they can contribute to making
employment unattractive for women.
Nonwage benefits and tax structures also lower women’s return on employment. Women’s
social security and pensions cannot be passed on to their husbands and children after their
death. Furthermore, women cannot apply for a family allowance unless they are able to prove
that the father is diseased or disabled or that they are the primary family breadwinners. A lower
mandatory retirement age for women, while designed to protect women, also forces women to
accumulate less social benefits than their male counterparts.
5) Occupational segregation
Along with vertical segregation women in Jordan face horizontal segregation or occupational
segregation. Social norms on what is appropriate work for women limit their options and force
them to enter overcrowded, female dominated sectors. Almost three quarters of employed
women work in the education, health/social work sectors or manufacturing.13
Despite being female dominated sectors, women continue to face pay discrimination here.
According to the ILO, female professionals in the education sector earn one third less than male
professionals; female professionals in the health/social work sector earn 38 percent less than
male professionals while female professionals in the manufacturing sector earn 24 percent less
than female professionals.14
13
14
Department of Statistics (2009), Op. cit.
ILO (in press), Op. cit.
6
Female Labour Force Participation in Jordan – Policy Paper
Figure 6
Opening up more industries to women will promote great gender equality and create more
options for women seeking work.
6) Private sector employment and impediments
The promotion of women’s employment in the private sector has been a priority for the
Government; however there are many obstacles to overcome:
a. Competition with the public sector: the civil service remains the largest employer of
women in Jordan, accounting for 48 percent of employed women. Higher wages along
with social benefits such as extended maternity leave, shorter working hours and secure
tenure has made public sector employment much more appealing for women and has
addressed their reservation wage.
Table 2: Public versus private sector benefits15
Labour Requirement
Public Sector
Minimum wage
150 JOD
Working hours
7 hours
Tenure
Secure
Paid maternity leave
90 days
Cost covered by
Government
Lactation leave
Nursery care
15
1 hour per day
None prescribed
Private Sector
150 JOD
8 hours
Contractual
70 days
Private sector
employer
1 hour per day
Fully-funded on-site
once 20 married
women are employed
M. Hendissi (2007), Op.cit.
7
Female Labour Force Participation in Jordan – Policy Paper
b. Indirect impact of protective labour laws: an unintended impact of extended maternity
leave for women in the private sector (to be paid for by the employer) as well as the
mandatory availability of on-site nurseries for firms that hire 20 married women or
more has created disincentives for private sector employers to hire women. Firms prefer
to hire unmarried women and will cap female employment at 19 employees.
c. Nature of available jobs: Health and safety risks as well as social barriers that prevent
many women from assuming night jobs, long working hours and mixed work
environment continue to limit women’s options in the private sector.
7) Gender stereotyping and cultural barriers
Barriers to women’s labour force participation also lie in deeply rooted and firmly prescribed
gender roles for men and women including the male role as the sole breadwinner, women’s
modesty and honour and unequal power in the public and private sphere.
A comparative household survey conducted by the World Bank in Amman, Cairo and Sana’a
(2008) shows that social norms and conservative attitudes play a significant role in preventing
women from entering the labour force.16 According to the findings 17 percent of men in Amman
oppose women’s work outside of the household and 19 percent would allow women’s work
outside of the household with some conditions. Surprisingly younger men (under the age of 44
years old) are more opposed to women’s work outside of the household. In contrast, only 5
percent of women in Amman opposed women’s work outside of the household. 56 percent of
men cited “social norms and traditions” as their main reason for concern with female workers
outside of the household while 79 percent of women cited fears over the quality of family life as
their main reason for concern. Less than 10 percent of women living in households with a
member that opposes their work actually do participate in the labour market.
8) Overall low female voices in representation and decision-making
While government efforts at increasing women’s representation in decision-making bodies have
been set in place (and have made considerable gains), the low number of top women officials in
Jordan has limited the gender perspective at the national level and tailoring policies to
specifically address women’s issues related to labour force participation.
9) The informal economy as an alternative?
The perception is that if women are not working in the formal economic, they are economically
active in the informal sector. However World Bank research shows that the incidence of
informality in Amman was much less than expected at only 2 percent for women in 2008. 17
While numbers may increase in governorates outside of Amman, it is clear that there is no
substitute for formal opportunities to increase women’s labour force participation.
16
17
S. Muzi, H. Ahmed and N. Chamlou (2008), Op. cit
Ibid.
8
Female Labour Force Participation in Jordan – Policy Paper
POLICY RECOMMENDATIONS AND AREAS FOR FURTHER RESEARCH
18
19
•
A national commitment to the promotion of equal opportunities in employment and the
possibility of following an incentive scheme to promote the employment of women.
•
More efforts need be made to bring married women to the work force. Legal
institutions within marriage (e.g. husband’s permission to work, family laws) may be a
binding factor.
•
Creating more employment opportunities for women ‘in the middle’ either by levels of
education (secondary education) or by social class. Much of current efforts focus on
microfinance for poor women or higher educated women.
•
Pay discrimination and vertical discrimination in the private and public should be
addressed through conducting gender-neutral job evaluations in selected sectors.18
•
Conducting a gender impact assessment of nonwage social benefits and labour policies
to understand their effect on women’s employment and their entry into the labour
force such as:
o
Social security laws that are based on the principle of women as dependents on
working men.
o
Address issues related to pay determination and nonwage benefits in public
sector and how they impact women’s employment in the private sector.
o
Restrictions on women’s night work and overtime shifts.
•
Universal provision from taxation or social security of maternity leave and childcare so
that all of the population shares this responsibility. This will address issues related to
private sector reluctance to hire women, as an unintended consequence of protective
labour laws. 19
•
An in-depth analysis of male-dominated sectors and non- national labour dominated
sectors and how to make them more appealing to Jordanian women seeking work.
•
An educational environment that fosters more career-oriented women and the revising
the curriculum to remove gender stereotyping and promoting positive role models for
women.
See the following for more details: ILO (in press), Op. cit.
See the ILO Maternity Protection Convention 2000 (No. 183)
9
Female Labour Force Participation in Jordan – Policy Paper
Annex 1
Definitions
• Labour force: the whole of the economically active population, including employed and
unemployed Jordanians.
• The labour force participation rate: the ratio of the labour force to the working age
population, expressed in percentages.
• Employment rate: The employment rate represents the number of employed persons as
a percent of the labour force.
• Unemployment rate: The unemployment rate represents the number unemployed
persons as a percent of the labour force.
• Inactive persons (or the non-labour force): All persons who are not classified as
employed or unemployed are defined as inactive.
• Discouraged workers: Discouraged workers constitute one group of inactive workseekers. These are persons who, while willing and able to engage in a job, are not
seeking work or have ceased to seek work because they believe there are no suitable
available jobs.
10
Female Labour Force Participation in Jordan – Policy Paper
Annex 2
Stock Taking: Literature Review
M. Hendessi (2007), “Jordan Gender Assessment”, Amman: Sustainable Achievement of
Business Expansion and Quality (USAID)
ILO (in press), “Policy Brief on Pay Equity in Jordan”, Beirut: ILO Regional Office for Arab States.
S. Muzi, H. Ahmed and N. Chamlou, “Women Labour Force Participation, Education and NonEconomic Factors: The Case of Middle East and North Africa Countries”, World Bank MENA
Region Chief Economist Office, DC: 2008.
D. Peebles, N. Darwazeh, H. Gosheh and A. Sabbagh (2007), “Factors Affecting Women’s
Participation in the Private Sector”, Amman: Al Manar Project (National Centre for Human
Resources Development)
M. Shteiwi (2008), “The Economic Marginalisation of Jordanian Women”, Amman: UNIFEM
World Bank (2005) “The Economic Advancement of Women: A Country Gender Assessment”,
Amman: Economic and Social Development Group - MENA
11