October 2015
Legal barriers to women’s
participation in the economy
in the Kyrgyz Republic
The contents of this publication reflect the opinions of individual
authors and do not necessarily reflect the views of the EBRD.
This report was prepared by a team led by The Law & Development
Partnership directed by Clare Manuel for the European Bank for
Reconstruction and Development (EBRD). The lead author of the
report was Deborah Mansfield, who also authored the legislative
review with significant input from legal expert Anara Niyazova.
The economic cost study was written by Professor Stephan Klasen.
The study has been conducted under the overall guidance and
supervision of Elena Ferreras Carreras and Elena Ruiz Abril from
the EBRD Gender Team. Gabriella Borovsky and Michaela Bergman
(EBRD Gender Team) also provided input at various stages of the
research. This study was financed by the Taiwan Business-EBRD
Technical Cooperation Fund.
The authors wish to thank all contributors, informants and
interviewees.
Photos courtesy of ©EBRD. All rights reserved.
Contents
Acronyms Executive Summary
Introduction
1
2
4
Chapter 1
Legal barriers to
women’s participation
in the labour force
Chapter 2
The cost of the gender
gap in labour force
participation
12
Chapter 3
Conclusions and next steps
18
Annex A: Economic Cost Study
22
6
Acronyms
AWLI
Alliance of Women’s Legislative Initiatives
ADB
Asian Development Bank
CEDAW
Convention on the Elimination of all Forms of Discrimination Against Women
DFID
Department for International Development
GIZ
Deutzche Gesellschaft für Internationale Zusammenarbeit
EECA
Eastern Europe and Central Europe
EBRD
European Bank for Reconstruction and Development
GDP
Gross Domestic Product
ICCPR
International Covenant on Civil and Political Rights
IESCR
International Covenant on Economic, Social and Cultural Rights
IFC
International Finance Corporation
ILO
International Labour Organization
IMF
International Monetary Fund
IOM
International Organization for Migration
KGS
Kyrgyz Som
MDAs
Ministries, Departments and Agencies
NGO
Non-governmental organisation
NPA
National Plan of Action
OECD
Organisation for Economic Co-operation and Development
PPD
Public Private Dialogue
UAE
United Arab Emirates
UN United Nations
UNDP
United Nations Development Programme
UNFPA United Nations Population Fund
USAID
United States Agency for International Development
VTA
Vocational Training Agency
WESA
Women Entrepreneurs Support Association
WB
World Bank
WFP
World Food Programme
Legal barriers to women’s participation
in the economy in the Kyrgyz Republic
Executive Summary
There are legal barriers to women’s
labour force participation in the Kyrgyz
Republic
or dangerous conditions and from undertaking
heavy work; as well as forbidding the employment
of women in underground work (articles 218 and
303). A government resolution under the Labour
Code reserves up to 400 occupations or tasks for
men only.
Despite a strong and largely gender neutral legal
framework for employment, there are still legal
barriers to women’s participation in the labour
force in the Kyrgyz Republic. The barriers are
primarily related to jobs and tasks that women are
prohibited from carrying out such as “cement work
– laying and compacting of soil, rubble and gravel”
and “operating blast furnaces.” It is likely that they
were originally introduced with the intention of
protecting women’s health and family life, but
today are considered discriminatory.
The gap between women’s and men’s
participation in the labour force is
growing
There is a growing gap between men and women’s
participation in the workforce in the Kyrgyz
Republic. Today women comprise only 40 per
cent of the Kyrgyz workforce, compared with 44
per cent in 1990. Women’s participation in the
workforce decreased particularly sharply between
2002 and 2006, a period of economic decline.
Labour laws (principally the Labour Code and
the Law on Labour Protection) currently result
in unequal treatment of mothers with young
children. They also prevent pregnant women from
holding more than one job, and prevent women
from doing physically strenuous or dangerous jobs.
Specific provisions in the Labour Code prohibit
women (but not men) from working in harmful
The growing gender gap in the Kyrgyz Republic
contrasts with the trend in other transition
countries in Eastern Europe and Central Asia
(EECA) that have improved or reduced the gender
gap in labour participation since 1990 (see figure).
Figure 1: Trend in gender equality in employment in selected economies in EECA and regional average
Ratio of Female to Male
Labour Force Participation
0,90
Kazakhstan
0,85
Estonia
0,80
Russia
0,75
EECA region
0,70
Kyrgyz Republic
2
13
12
20
11
20
10
20
09
Source: Author’s own elaboration on World Development Indicators, 2014.
20
08
20
07
20
06
20
05
20
04
20
03
20
02
20
01
20
00
20
99
20
98
19
97
19
96
19
95
19
94
19
93
19
92
19
91
19
19
19
90
0,65
Executive Summary
The gender gap in labour force
participation is currently costing the
country up to 0.4 percentage points of
GDP per year
The econometric analysis undertaken in this study
shows that the Kyrgyz GDP would have grown
by between 0.2 and 0.4 percentage points faster
each year between 1990 and 2013 had the gender
gap in labour force participation stayed at its
1990 level. Even if the gender gap had stayed at
its (worse) 2000 level, the economy would have
grown by between 0.15 and 0.3 percentage points
faster. These findings stand up to triangulation
with the estimated economic cost of gender gaps
of neighbouring countries such as Kazakhstan and
Russia.
Lifting the legal barriers has the
potential to contribute to enhancing
women’s participation in the workforce,
which in turn may impact GDP
Legal barriers, together with economic and
social factors, as well as issues related to the
implementation and enforcement of the law, all
contribute to women’s low and falling workforce
participation in the Kyrgyz Republic. Lifting
legal barriers has therefore the potential to
open up greater employment opportunities for
women and improve labour force participation.
Such legislative reform can contribute to
changing attitudes towards women and women’s
employment, and can have even larger effects in
the longer run.
This research comes at a timely
moment to support the Ministry of
Labour’s initiative to fight gender
segregation in the labour market along
traditional gender lines
The government of the Kyrgyz Republic and
the private sector have a common interest in
increasing the availability of workers with the
right skills. More women in the labour force and
more women with the skills and legal access to
work in technical jobs in high wage sectors will
increase the size and relevance of the skill pool
available to investors. This is a current policy
priority of the government of Kyrgyz Republic
as well as private employers and provides an
opportunity to address the lifting of barriers
restricting women’s access to the labour force. The
linkage between the gender gap and economic
growth highlighted in the economic cost study
provides a useful focus for this discussion.
The research has also identified
opportunities for dialogue and capacity
building with the Ministry of Economy
on economic valuation of gender gaps
in Kyrgyz Republic
This study has used a widely accepted
methodology to quantify the economic cost of
gender gaps.1 The Ministry of Economy and the
National Statistics Committee have expressed
their interest in the methodology and have
requested to be trained in it, with a view to
undertaking further analysis on the economic
impact of women’s economic participation in the
Kyrgyz Republic.
1 Klasen, S., and Lamanna, F. (2009). “The impact of gender inequality in education and employment on economic growth: new evidence for a panel of countries”
3
Legal barriers to women’s participation
in the economy in the Kyrgyz Republic
Introduction
Purpose
This study has been commissioned by the EBRD to
(i) identify the legal provisions limiting women’s
participation in the labour force in the Kyrgyz
Republic; (ii) quantify the potential economic gains
in Gross Domestic Product (GDP) of increasing
women’s participation in the labour force in the
Kyrgyz Republic; and (iii) provide recommendations
on how to use these findings in a process of policy
dialogue.
Methodology
The methodology used comprised a gender
informed legislation review to identify legal barriers
limiting women’s participation in the labour force;
an analysis of country data; an economic cost study;
consultations with a wide range of stakeholders;
and a review of existing literature and surveys.
The economic cost study estimates how much GDP
would grow if female labour force participation
rates were to rise. It also identifies the determinants
holding back female labour force participation.
Report Structure
The report is structured in three chapters. Chapter
one sets out summary findings from the review
of the legal framework of the Kyrgyz Republic,
identifying legal barriers to women’s participation
in the formal labour market. Chapter two discusses
the findings of the economic cost study that
provides a descriptive analysis of the trends,
drivers and differences in women’s participation
across labour sectors in the Kyrgyz Republic and
estimates the impact on economic growth of
reduced female labour force participation in the
country. Chapter three summarises the findings
and recommendations. The economic cost study is
included in detail in annex A.
Context: Women’s participation in the
labour force in the Kyrgyz Republic
The gender gap in labour force participation in
the Kyrgyz Republic is widening. In contrast to its
neighbours, labour market opportunities for women
have decreased considerably since independence
in 1991. Whereas most countries in the Eastern
Europe and Central Europe (EECA) region have
improved or maintained their initial conditions of
gender parity in employment, the ratio of female
to male labour force participation in the Kyrgyz
Republic decreased by about 8 percentage points
between 1990 and 2013.
Currently, women account for 40 per cent of the
economically active population, the aggregate
of all employed and unemployed people2. This
compares with 70 per cent of economically active
men. Around 65 per cent of the population live in
rural areas where the gender gap in employment
is wider than in urban areas, despite slightly higher
employment rates.3
Women earn less than men in the Kyrgyz Republic.
Although the principle of equal wages for equal
work is guaranteed by law,4 the Kyrgyz Republic
has yet to achieve wage parity between men and
women. Women are paid, on average, only 63 per
cent of what men are paid.5
There is substantial gender segregation in the
Kyrgyz labour market. This is partly responsible
for the gender wage gap. Gender segregation in
the labour market in Kyrgyz Republic is high, with
women concentrated in non-technical jobs and jobs
in public service, which are in turn less well paid.
2 National Statistics Committee (2014), “Women and Men of the Kyrgyz Republic” p84.
3 46 per cent of the female population is employed in rural areas, in comparison with 41.8 per cent of women in urban areas. National Statistics Committee (2014),
“Women and Men of the Kyrgyz Republic”.
4 Art 19, Law of August 4, 2008 #184 “On state guarantees of equal rights and equal opportunities for men and women” (As amended by Law of July 14, 2011 #97).
5 National Statistics Committee (2014), “Women and Men of the Kyrgyz Republic, Bishkek.
4
Introduction
Conversely, women are greatly under-represented
in better paid sectors such as mining, energy and
gas sectors, as well as in sectors involving heavy
manual labour such as construction, transport
and storage of goods. In the mining industry, for
example, where women do not exceed 18 per
cent of the work force, the average monthly wage
is KGS 13,648. At the same time in the field of
education, where women make up 76.6 per cent of
all employees, the average monthly salary reaches
only KGS 7,318.6
Considerable vertical segregation in the labour
market is also a key factor in the wage disparity
between men and women. Few women occupy
senior positions, even in sectors where they
dominate the workforce.7
The low percentage of women employed in
technical jobs may be partly the result of the
low numbers of women undertaking specialised
vocational training and technical university degrees.
Both girls and boys aspire to university education
rather than vocational training but more girls
study subjects that lead to typically less well-paid
jobs,8 with very few girls studying traditionally
male dominated subjects.9 This trend contributes
to differences between men and women’s labour
force participation rates, pay gaps and limited
diversification in the labour market.
6 National Review of the Kyrgyz Republic in the framework of the Beijing Declaration and Platform for Action (informal translation). See
http://www.unwomen.org/~/media/headquarters/attachments/sections/csw/59/national_reviews/kyrgyzstan_review_beijing20_en.ashx (last accessed 30 March 2015).
7 Asian Development Bank (ADB) (2005), “The Kyrgyz Republic: A Gendered Transition, Country gender assessment 2005”.
8 Women account for 84.4 per cent of students studying education and 66.2 per cent of students studying social and behavioural sciences. National Statistics
Committee (2011), “Women and Men of the Kyrgyz Republic”, Bishkek p.80.
9 National Statistics Committee (2011), “Women and Men of the Kyrgyz Republic”, Bishkek p.80.
5
Chapter 1
Legal barriers to
women’s participation in
the labour force
Legal barriers to women’s participation in the labour force
Overview
This chapter sets out summary findings from the
legislative review. Overall, the findings indicate
that, despite a strong and largely gender neutral
legal framework for employment, there are
legal barriers to women wishing to participate
in the work force in the formal economy. These
include several discriminatory legal provisions in
addition to a list of 400 occupations or tasks that
women are forbidden by law to undertake in the
Kyrgyz Republic. Although this list appears to be
redundant in practice, it provides a useful entry
point for discussions with the Ministry of Labour
about legal barriers.
The legal framework enshrines
gender equality
The legal framework in the Kyrgyz Republic
recognises the importance of gender equality
and opportunity in all areas of life, including
employment, and provides remedies for
individuals against gender discrimination.
The Kyrgyz Republic has ratified key international
treaties on gender equality. International
obligations form part of national law.10
In addition, national laws have been enacted to
fulfil international obligations.
The Constitution, the overarching law, prohibits
discrimination on the basis of gender.11 The Law
on Equal Rights12 declares and regulates equal
rights and opportunities for men and women
in social, political, economic, cultural and other
spheres of life. It provides a framework for the
10
11
12
13
14
15
16
17
18
19
20
21
Chapter 1
development of policy and affirmative action to
ensure equality of women and men in the Kyrgyz
Republic and is the enabling legal framework for
the country’s Gender Equality Strategy.
Employment law provides a strong
protective framework for workers
including women
The Labour Code is the primary source for law
governing labour relations, rights and social
protection. Taken together with the Law on Equal
Rights, it is a framework that provides strong
protection for all workers.
The Law on Equal Rights, for example, contains
specific provisions on labour force participation
including: equal rights and equal opportunities
in advertising and recruitment for posts in the
public sector;13 the employer’s obligation to strive
for a gender balance in the workforce and the
right to use special measures such as positive
discrimination to achieve it;14 equal pay;15 equal
rights on dismissal;16 and sexual harassment.17
The Labour Code provides for maternity leave
and protects women from unequal treatment
due to pregnancy or having children.18 Relevant
provisions include those that: protect women from
being denied a job on the ground of pregnancy or
having children; provide for paid maternity leave
of 126 days;19 prohibit dismissal for reason of
pregnancy20 and give women the right to breaks
for breastfeeding.21
Article 6(3) of the Constitution
Article 16
Law of August 4, 2008 # 184 “On state guarantees of equal rights and equal opportunities for men and women” (as amended by the Law of July 14, 2011 N 97).
Article 10
Chapter 4
Article 19
Article 20
Article 21
Article 305
Article 306
Article 310
Article 309. In addition, the so-called Protection of Breastfeeding law (Resolution of the Government of the Kyrgyz Republic on 31 July 2008 #414 “On the procedure
for eligibility and payment of temporary disability benefits and maternity benefits.”) requires employers to provide a special room for working mothers to breastfeed
(Article 4(2)).
7
Legal barriers to women’s participation
in the economy in the Kyrgyz Republic
The Law on Equal Rights obliges employers
to make sure that women and men have
the opportunity to balance family and work
responsibilities.22 One example of how this has
been put into practice is in relation to childcare
leave. In addition to paid maternity leave, women
are entitled to up to 18 months childcare leave23
with retention of job and position that can be
extended until the child is three years old with
the consent of the employer. This benefit may
be taken in whole or in part by the child’s father,
grandparents or other relative or custodian who
actually takes care of the child with the same
protections in terms of returning to the same job
and position.24
But legal barriers to women’s
participation in the labour force exist
Table 1 overleaf details the principal legal
barriers to women’s access to employment in the
formal sector. It is likely that most of these legal
provisions were originally put in place to protect
women but, regardless of the original intent, they
discriminate against women. These “protective
provisions” can be categorised as (i) measures
intended to shield women from physically
strenuous or dangerous jobs and (ii) measures
intended to give women flexibility to balance their
work and family commitments.
22
23
24
25
(i) Women’s health and safety
Legal provisions intended to preserve women’s
health and safety do so by either prohibiting
women from carrying out specified jobs or tasks
or by setting clear limits for women in any job
in terms of the length of the working week in
dangerous conditions or the size of loads they
can work with. Examples include articles 218
and 303 of the Labour Code that prohibit women
from working in harmful or dangerous conditions
and from doing heavy work; international
commitments under ILO convention 45 that
restrict underground working for women; and a
law that establishes a shorter working week for
women working at high altitude or in remote,
inaccessible areas.25
Government resolutions under articles 218 and
303 set out more detail, with a list of up to 400
jobs and tasks reserved to men under article
218.26 Translated jobs/tasks from the list include;
“cement work – laying and compacting of soil,
rubble and gravel”, “operating blast furnaces.”;
“production of thermal insulation materials” and
“production of fibrous materials - work related
to the production of raw pulp, paper, paperboard
and articles thereof” (see box 1 below). Interviews
with stakeholders indicate that at least some of
the occupations on the list are now obsolete or
are jobs that, due to advances in technology and
working practices, could be judged to be no longer
dangerous or requiring physical strength.
Art. 18, Law of August 4, 2008 #184 “On state guarantees of equal rights and equal opportunities for men and women” (As amended by Law of July 14, 2011 #97).
In addition to and following on from maternity leave.
Art. 137 Labour Code
Art. 18, Law of August 4, 2008 #184 “On state guarantees of equal rights and equal opportunities for men and women” (As amended by Law of July 14, 2011 #97).
In addition to and following on from maternity leave.
26 Resolution of the Government of the Kyrgyz Republic on March 24, 2000 # 158 “On the list of industries, jobs, professions and positions with harmful and (or)
dangerous working conditions, which prohibits the employment of women”.
8
Legal barriers to women’s participation in the labour force
Chapter 1
Box 1: Examples of men-only jobs and tasks in the Kyrgyz Republic
Certain manufacturing jobs such as the production of synthetic hormones, testosterone, drug
derivatives, mineral wax, edible oils, alcohols, lubricating oil, thermal insulation.
Operating heavy machinery, such as blast furnaces and (oil) drilling equipment.
Heavy work in the construction industry such as laying cement and steel fixing (the installation of
steel reinforcing bars.
Other tasks such as repairs to engine accumulator/batteries; work involving high levels of heat,
such as production of metals, concrete etc.; work connected to production of paper and cellulose;
underwater work (divers); work in confined spaces; underground work; welding work in the foundry
industry; building, scaffolding and repair work; work in meat processing; manual work in open cast
mines, dumps, railways and metropolitan (underground stations); jobs connected to cutting trees and
climbing trees up to 4 metres; sugar and starch processing industries; leather-processing and furprocessing industries; jobs connected to brick kilns and other fire materials; jobs connected to glass
production.
(ii) Work/family flexibility
Other provisions in the Labour Code intended
to preserve women’s flexibility to balance work
and family life include those that give pregnant
women and women with young or disabled
children the option to refuse night work.27 In
addition, women with children under 3 years old
may refuse to undertake business trips or work
overtime, weekends or public holidays28 and
pregnant women are not permitted to have more
than one job at any one time.29
While preserving women’s flexibility to balance
family and work life, these provisions have the
potential to disadvantage women by presenting
them as less flexible in the labour market than
men, who do not have the benefit of these or
similar provisions. In some cases, such as the
27
28
29
30
shorter working week at altitude, it is more
expensive to employ a woman than a man, as a
full (40 hour) week’s wage is payable for fewer
hours of work.
Overall, there is a tension between the laws that
were originally intended to benefit women but
are today discriminatory, and laws that seek to
preserve equality in the workplace for men and
women. The legal framework for employment
in the Kyrgyz Republic strives for a balance
between equality of rights and opportunities
and protections for female workers against
harsh or strenuous working conditions. It is out
of this tension that barriers to women in formal
employment mainly arise. This tension has been
noted with respect to international labour norms
such as ILO standards.30
Article 97
Article 304
The Resolution of the Government of the Kyrgyz Republic on March 14, 2000 #135 “Regulation of workers with more than one job”.
See for example, Human Rights Watch “Discrimination against women in the Ukraine labour force 2003”, see http://www.hrw.org/reports/2003/ukraine0803/4.htm (last
accessed 30 March 2015).
9
Legal barriers to women’s participation
in the economy in the Kyrgyz Republic
The current ILO position emphasises however,
that, while pregnant and breast-feeding women
employees need special interventions and
protections, these should be strictly restricted
to maternity and not on stereotypes of women’s
professional abilities and roles in society.31
The ILO Committee of Experts also advises that
blanket bans on dangerous work as well as night
work and overtime for all women, however laudable
they may seem in terms of concern for health, are
contrary to the principle of equality of opportunity
and treatment in employment and occupation and
contribute to gender-based discrimination at work.32
Table 1: Principal legal provisions presenting barriers to women in formal employment
Law
Gender related provision
Article 97, Labour Code
Pregnant women, women with children under the age of 3 and workers
who have children with disabilities have the option to refuse consent
to work at night.
Article 304, Labour Code
Pregnant women are permitted to travel for work, work overtime, carry
out night work, weekend work and work on public holidays unless
prohibited for medical reasons.
Women with children under 3 years old may undertake business trips,
overtime, work at night, weekends and public holidays only with their
written consent and if not prohibited for medical reasons.
The Resolution of the
Government of the Kyrgyz
Republic on March 14, 2000
#135 “Regulation of workers
with more than one job”33
Prohibits pregnant women (together with workers under 18 and, with
some exceptions, civil servants) from holding more than one job at any
one time.
Article 18, Law on
state guarantees and
compensation for those
living and working in
high altitudes and remote,
inaccessible areas34
Establishes a shorter working week (36 hour as opposed to national
standard 40 hour) on full wage for women working at high altitude and
in remote, inaccessible areas.
Article 218, Labour Code35
Prohibits women (and workers under 18 and those with health
concerns) from working in harmful or dangerous conditions and from
heavy work.36
31
32
33
34
35
ILO (2014) “Maternity and paternity at work. Law and practice across the world.” p.89 Addati, Laura; Cassirer, Naomi; Gilchrist, Katherine.
Ibid (ILO 2014)
The Resolution of the Government of the Kyrgyz Republic on March 14, 2000 # 135 “Regulation of workers with more than one job”
Law of June 28, 1996 # 33 “On State Guarantees and Compensations for People Living and Working in the High Altitude and Remote, Inaccessible Areas”
“Labour Code of the Kyrgyz Republic dated August 4, 2004 N 106 .Art. 218 Limitation of heavy work and work in harmful or dangerous conditions. The employment
of women, persons under the age of 18 and people with health concerns is prohibited in heavy work and work in hazardous or dangerous conditions. The list
of heavy work and work in hazardous or dangerous conditions under which the employment of women and persons under the age of 18 years are prohibited is
approved by the Government of the Kyrgyz Republic” (Translation: Ст. 218 Ограничение выполнения тяжелых работ и работ с вредными или опасными условиями
труда. На тяжелых работах и работах с вредными или опасными условиями труда запрещается применение труда женщин и лиц в возрасте до 18 лет, а также
лиц, которым указанные работы противопоказаны по состоянию здоровья. Перечни тяжелых работ и работ с вредными или опасными условиями труда, при
выполнении которых запрещается применение труда женщин и лиц в возрасте до 18 лет, утверждаются Правительством Кыргызской Республики.).
36 Resolution of the Government of the Kyrgyz Republic on March 24, 2000 # 158 “On the list of industries, jobs, professions and positions with harmful and (or)
dangerous working conditions, which prohibits the employment of women”.
10
Legal barriers to women’s participation in the labour force
Chapter 1
Table 1: Principal legal provisions presenting barriers to women in formal employment
Law
Gender related provision
Article 303, Labour Code
Prohibits the employment of women (and workers under 18) in heavy
work and work in harmful and (or) dangerous working conditions and
underground work.
The list of maximum loads under this Article is set by government
resolution37.
Article 8, Law on labour
protection38
Restricts the employment of women in heavy and dangerous work.
Article 9, Law on State
Social Insurance Pensions39
Eligibility for a retirement pension is 63 for men and 58 for women.
The qualifying period for a full retirement pension is accordingly 5
years less for women than for men. Women have the option (but are
not required) to retire earlier than men.
Art 36, Law on service of
soldiers and officers of the
bodies and institutions of
the correctional system of
the Kyrgyz Republic40
Sets the upper age limit for service as a prison worker in penal
institutions: 40 for women and 45 for men (extendable in certain
circumstances). Women have the option (but are not required) to retire
earlier than men.
Beyond certain specific provisions justified
to protect pregnant women, the Kyrgyz legal
framework includes other discriminatory
provisions which do not have any objective base.
These include:
The provision forbidding pregnant women from
doing more than one job. There is no rational
explanation for this as the law does not refer to
the types of jobs. Even if the initial intent was to
protect pregnant women’s health, the provision
does not fulfil its intent and in practice limits
women’s opportunities in the labour market.
Provisions establishing a shorter week for
women working in remote areas, provisions
related to women doing heavy work and
working in dangerous conditions, and
underground work. There is no objective base
for this differentiation and these provisions only
limit women’s job opportunities.
In practice
Laws are only as good as their implementation. In
practice, employment laws in the Kyrgyz Republic
are widely flouted and capacity for enforcement is
low. However, it seems that those legal provisions
relating to work that is judged dangerous to
women’s health are generally observed. This is
likely to be due more to their close alignment
with social and cultural mores in the country
rather than knowledge of and compliance with
the relevant legal provisions, although there is
evidence of employers in male dominated sectors
in Kyrgyz Republic such as mining, referring to
these provisions as the reason not to employ
more women in the mining work force. However,
regardless of the reason behind ‘observance of
the law’, in practice, these legal provisions limit
women’s ability fully to participate in the workforce
in Kyrgyz Republic.
37 Resolution of the Government of the Kyrgyz Republic on December 2, 2005 # 548 “On approval of the maximum allowable load lifting and moving heavy objects
by hand by women and workers under the age of 18 years”.
38 Law of August 1, 2003 # 167 “On labour protection”.
39 Law of July 21, 1997 # 57 “On State Social Insurance Pensions”.
40 Law of January 9, 2006 #3 “On service of soldiers and officers of the bodies and institutions of the correctional system of the Kyrgyz Republic”.
11
Chapter 2
The cost of the gender
gap in labour force
participation
The cost of the gender gap in labour force participation
Overview
Chapter 2
The gap between women’s and men’s
participation in the labour force is
growing
This chapter discusses the findings of the
economic cost study (full study at annex A). The
study provides a descriptive analysis of the trends,
drivers and differences in women’s participation
across labour sectors in the Kyrgyz Republic and
estimates the impact on economic growth of
reduced female labour force participation in the
country.
There is a growing gap between men and
women’s participation in the workforce. Today
women comprise only 40 per cent of the Kyrgyz
workforce, compared with 44 per cent in 1990.
Women’s participation in the workforce decreased
particularly sharply between 2002 and 2006, a
period of economic decline.
The legislative review in chapter 1 identified
legal barriers which, together with low levels of
implementation and enforcement of laws that
support gender equality, contribute to women’s
low and falling workforce participation in
the Kyrgyz Republic. The economic cost study
identifies further factors that contribute towards
what is a growing gender gap in labour force
participation including characteristics of the
social, cultural and economic environment in the
Kyrgyz Republic.
The growing gender gap in the Kyrgyz Republic
contrasts with the trend in other transition
countries in Eastern Europe and Central Asia (EECA)
that have improved or reduced the gender gap in
labour participation since 1990 (see figure 1).
Ratio of Female to Male
Labour Force Participation
Figure 1: Trend in gender equality in employment in selected economies in EECA and regional average
0,90
Kazakhstan
0,85
Estonia
0,80
Russia
0,75
EECA region
0,70
Kyrgyz Republic
13
12
20
11
20
10
20
09
20
08
20
07
20
06
20
05
20
04
20
03
20
02
20
01
20
00
20
99
20
98
19
97
19
96
19
95
19
94
19
93
19
92
19
91
19
19
19
90
0,65
Source: Author’s own elaboration on World Development Indicators, 2014.
13
Legal barriers to women’s participation
in the economy in the Kyrgyz Republic
The gender gap in labour force
participation costs the country up to
0.4 percentage points of GDP per year
Using methods proposed by Klasen and
Lamanna,41 we estimate the effects that gender
inequality in employment has had on average per
capita economic growth between 1990 and 2000
and between 2000 and 2013.
The econometric analysis shows how the
difference in economic growth between the Kyrgyz
Republic and Kazakhstan, Russia, Estonia or the
EECA region can be correlated with their initial
differences in gender inequality in employment
(see results in table 2 below). The results suggest
that the comparatively larger gender gap in
employment in the Kyrgyz Republic plays a
moderate role in explaining growth differences
between it and other countries.
The gender gap has the potential to account for
a growth difference with other EECA countries
from 1990 to 2000 of between 0.004 and 0.2
percentage points per year. This is a moderate
effect but the effects are much larger if
considering the period 2000-2013. For example, in
the growth comparison with Kazakhstan, a country
that started with relatively low gender inequality
and increased women’s employment rates over
the last two decades, the Kyrgyz Republic has lost
0.5 per cent growth per year due to larger gender
gaps in employment. When compared with Russia,
however, the effects are relatively small. This is
probably due to the fact that both Russia and the
Kyrgyz Republic had similar size gender gaps in
2000. Whereas Russia was successful in reducing
the gap, in the Kyrgyz Republic the disparities
between women and men in the labour market
have been widening.
More striking are the results from Panel B in table
2. These estimate the growth costs of the fall in
the female-male ratio of labour force participation
that has taken place since 1990 in the Kyrgyz
Republic. The research finds that, had the gender
gap in labour force participation stayed at its
1990 level, the Kyrgyz Republic would have grown
by 0.2 to 0.4 percentage points faster per year
between 1990 and 2013. Had the gender gap in
labour force participation stayed at its 2000 level,
it would have grown by 0.15 to 0.3 percentage
points faster per year. Thus the growing gender
gap in the Kyrgyz Republic has generated rising
costs in terms of forgone economic growth. Our
estimates would imply that reversing this trend
would lead to higher growth.
41 Klasen, S., and Lamanna, F. (2009), “The impact of gender inequality in education and employment on economic growth: new evidence for a panel of countries”
Feminist economics, 15(3), 91-132.
14
The cost of the gender gap in labour force participation
Chapter 2
Table 2: Estimating the effect of gender inequality in employment on growth
Panel A: Estimating the effect of gender inequality
in employment on growth
1990-2000
2000-2013
Growth difference
2.14
3.03
Effect of gender inequality in employment (initial values)a
0.076
0.491
Effect of gender inequality in employment (initial values)b
0.042
0.270
0.51
1.58
Effect of gender inequality in employment (initial values)a
-0.026
0.176
Effect of gender inequality in employment (initial values)b
-0.014
0.097
Growth difference
12.12
0.59
Effect of gender inequality in employment (initial values)a
0.197
0.090
Effect of gender inequality in employment (initial values)b
0.108
0.050
5.77
1.22
Effect of gender inequality in employment (initial values)a
-0.224
-0.074
Effect of gender inequality in employment (initial values)b
-0.123
-0.041
Panel B: Estimating the growth costs of the rising gender gap
in labour participation in employment on growth
1990-2013
2000-2013
Fall in ratio of female to male labour force participation rate
-0.082
-0.054
Growth cost due to the increase of gender inequality in employment a
-0.441
-0.292
Growth cost due to the increase of gender inequality in employment b
-
0.242
-0.160
Kazakhstan
Russia
Growth difference
Estonia
EECA Region
Growth difference
Source: Author’s own calculations based on Klasen and Lamanna (2003) and on data from World Development Indicators, 2014.
15
Legal barriers to women’s participation
in the economy in the Kyrgyz Republic
How gender inequality in the labour
force impacts economic growth
Gender inequality affects economic growth
through several channels:42 Employers have an
artificially reduced skill pool from which they
can recruit; gender inequality in education and
employment has a demographic effect in that
fertility is driven upwards;43 countries which
discriminate against women in the labour market
cannot use cheap (often female) labour as a
competitive advantage;44 and studies have shown
that, in some circumstances, women may be less
prone to engage in corruption. Excluding a group
of less corrupt workers from the labour force may
negatively impact on growth.45 Lastly, households
of women who do not participate in the formal
labour market may be unable to invest as much
in health and education for the next generation
as households of women in employment. This can
result from unemployed women’s poor access to
and control over resources reducing household
bargaining power or, more broadly, from the lack
of an additional income in the household.46
There are significant economic, cultural
and social barriers to women’s equal
participation in the workforce in the
Kyrgyz Republic
Economic and social barriers to women’s
participation in the labour market are evident in
the Kyrgyz Republic. The econometric analysis
shows, for example, that in contrast to most of the
EECA countries, sustained high female education
levels in the Kyrgyz Republic has translated
into growing gender gaps in employment over
time, suggesting that women in this country
are encountering ideological, social or cultural
obstacles to join the labour force.
Current socio-cultural trends in the Kyrgyz
Republic are towards a greater polarisation of men
and women’s traditionally assigned roles. Women’s
roles are increasingly being seen as primarily
household and family based. Traditional values
and social norms related to what it is understood
to be a woman (and a man) continue to be present,
socially valued and reinforced and, as discussed
in chapter 1, these values are reflected in the
employment laws including those now identified
as discriminatory. Even where legal provisions
are gender neutral (in relation to childcare leave,
for example see Article 137 of the Labour Code)
societal expectations about women and men’s
roles mean that family responsibilities impact
more upon women’s ability to participate in formal
employment than on men’s. 47
This may contribute to the higher rates of
absenteeism seen in women when compared
with men - including planned absences, such as
maternity leave or childcare leave, or unplanned
absences such as illness or family obligations.
In terms of planned absences, higher rates could
indicate that women are being offered and are
using employment benefits such as paid maternity
leave. Yet it could also indicate that other benefits
such as childcare leave, which are extended to
men as well as women, are predominantly being
taken by women. These higher absentee rates
may also be a deterrent for employers to employ
women.
42 Klasen, S., and Lamanna, F. (2009), “The impact of gender inequality in education and employment on economic growth: new evidence for a panel of countries”
Feminist economics, 15(3), 91-132.
43 Promoting female education is widely recognized in the literature to be a significant lever to reduce fertility levels, reduce child mortality levels, and promote
the education of the next generation. Each of these factors will in turn positively affect economic growth. Thus gender gaps in education reduce the benefits to
society of high female education (see, inter alia, Lagerlöf, 1999, Galor and Weil, 1996, World Bank, 2001).
44 Seguino, S. (2000), “Gender inequality & economic growth: Cross-country analysis” World Development 28(7), 1211-1230.
45 Swamy, A., Azfar, O., Knack, S. & Lee, Y. (2001) “Gender and Corruption” Journal of Development Economics, 64(1):25-55.
46 See, inter alia, Thomas, Duncan (1997), ‘‘Incomes, Expenditures and Health Outcomes: Evidence on Intrahousehold Resource Allocation,’’ in Lawrence James
Haddad, John Hoddinott, and Harold Alderman, eds. Intrahousehold Resource Allocation in Developing Countries, pp. 142–64. Baltimore: Johns Hopkins University
Press and World Bank. (2001). “Engendering Development”. Washington, DC: The World Bank.
47 International Labour Organization (ILO) (2008), Work and family: the Republic of Moscow, see http://www.ilo.org/wcmsp5/groups/public/---europe/---ro-geneva/--sro-moscow/documents/publication/wcms_312651.pdf (last accessed 30 March 2015).
16
The cost of the gender gap in labour force participation
Chapter 2
Women with young children face larger
barriers to labour force participation
Age and ethnicity also influence
women’s labour force participation
Analysis of micro data in the Kyrgyz Republic
suggests that having young children (0 – 4 years)
is posing an increasingly substantial barrier to
women’s participation in the labour force. This
implies that the ability of mothers to combine
employment, and (according to the analysis)
particularly employment in the industrial sector,
with raising children is becoming more difficult
year on year. This is likely to be at least partly
related to the decline in access to pre-school child
care facilities since the early 1990s48 accompanied
by increased competition for the lower number
of child care places due to a rise in birth rate. 49
Having a spouse living in the same household
also decreases the likelihood that a woman will
participate in the labour force, although having
older children (5 – 6 years) seems to have no
impact.
The research has also identified significant age
and ethnic dimensions to female labour force
participation. Being Kyrgyz or Russian gives a
woman greater access to the labour market,
including at higher (tertiary) levels as compared
to being a member of a minority ethnic group
such as Dungan, Uigar, Tajik or Kazakh. There is a
typical age pattern of labour force participation:
participation initially rises with age, and then falls
as women approach the retirement age of 58.
At the micro level, social or cultural
factors may be more important than
economic factors
Overall, women’s participation in the labour
force is not affected by household finances.
Data analysis shows that the income earned by
other members of the household plays no role
in whether a woman is employed or not. This
could suggest that the decision to participate in
the labour force is driven by a woman’s interest
in working, rather than a financial need to work
or, more likely given the growing gender gap,
that cultural or social pressures not to seek
employment outside the home operate regardless
of the financial situation of the household.
The impact of social and economic
factors varies across labour sectors
Employment choices made by employed women
were analysed for primary, secondary and tertiary
labour sectors.50 Findings show that the effect
of factors such as level of education, presence
of spouse in the household and ethnicity vary
according to which sector a woman is employed
in. For example in the primary labour sector
(agriculture, fishing, mining), having a secondary
education has a positive effect on the likelihood
of labour force participation, while having a
tertiary education has a negative effect. In the
tertiary sector, as would be expected, completing
tertiary education increases a woman’s likelihood
of working in more skilled positions. In the
primary labour sector, having a spouse present in
the household increases the likelihood of working
(contrary to the finding for the country as a whole)
whilst in the tertiary labour sector, the presence
of a spouse reduces the likelihood of a woman
working. These findings are supported by national
data that show that unskilled workers tend to take
on roles as (often unwaged) contributing family
members rather than as waged employees.
48 International Labour Organization (ILO) (2008), Work and family: the Republic of Kyrgyzstan, Moscow, see http://www.ilo.org/wcmsp5/groups/public/---europe/---rogeneva/---sro-moscow/documents/publication/wcms_312651.pdf (last accessed 30 March 2015).
49 National Statistics Committee (2011), “Women and Men of the Kyrgyz Republic” p.45 : “An increase in the lowest cohort (0-4 years old) in comparison with the
next cohort (5-9 years old) is evidence of the birth rate growth within recent years”.
50 We classified labour sectors into three categories, primary, secondary, and tertiary. The primary sector includes agriculture, fishing, and mining. The secondary
sector includes manufacturing, energy and water, and construction. The tertiary sector is composed of trade and repair; hotels and restaurants; transport and
communications; finance; real estate; renting and business activity; public administration; education; health and social work; utilities, social, and personal
services; private households with employed persons; and extra territorial organizations.
17
Chapter 3
Conclusions and
next steps
Conclusions and Next Steps
There are legal barriers for women’s
participation in the labour force in
Kyrgyz Republic
Overall, the findings of this study indicate that,
despite a strong and largely gender neutral
legal framework for employment, there are legal
barriers to women wishing fully to participate in
the work force in the formal economy.
Beyond certain specific provisions justified
to protect pregnant women, the Kyrgyz legal
framework includes other discriminatory
provisions which do not have any objective base.
These include: provisions forbidding pregnant
women from doing more than one job; provisions
establishing a shorter week for women working
in remote areas; and provisions related to women
doing heavy work and working in dangerous
conditions, and underground work.
In addition, a government resolution under the
Labour Code reserves up to 400 occupations or
tasks for men only. Although this list appears to
be redundant in practice, it provides a useful entry
point for discussions with the Ministry of Labour
about legal barriers.
There are also significant economic,
cultural and social barriers to women’s
participation in the labour force in the
Kyrgyz Republic
Women with young children face barriers to
labour force participation. Specifically, analysis
of micro data in the Kyrgyz Republic suggests
that having young children (0 – 4 years) is posing
an increasingly substantial barrier to women’s
participation in the labour force.
At the micro-level, social or cultural norms may
be more important than economic factors, as
women’s decision to participate in the labour
force is driven by a woman’s interest in working,
Chapter 3
rather than a financial need to work. Given the
growing gender gap, cultural or social pressures
not to seek employment outside the home seem
to operate regardless of the financial situation of
the household.
Age and ethnicity also influence women’s labour
force participation. Regression results show that
being Kyrgyz or Russian gives a woman greater
access to the labour market, including at higher
(tertiary) levels as compared to being a member
of a minority ethnic group such as Dungan, Uigar,
Tajik or Kazakh. There is a typical age pattern of
labour force participation; participation initially
rises with age, and then falls as women approach
the retirement age of 58.
All these factors contribute to a
growing gender gap in the labour
market, which is slowing down
economic growth in Kyrgyz Republic
There is a growing gap between men and
women’s participation in the workforce. Today
women comprise only 40 per cent of the Kyrgyz
workforce, compared with 44 per cent in 1990.
Women’s participation in the workforce decreased
particularly sharply during 2002 - 2006, a period of
economic decline.
The gender gap in labour force participation is
currently costing the country up to 0.4 percentage
points of GDP per year. The econometric analysis
undertaken in this study shows that the Kyrgyz
GDP would have grown by between 0.2 and 0.4
percentage points faster each year between 1990
and 2013 had the gender gap in labour force
participation stayed at its 1990 level. Even if the
gender gap had stayed at its (worse) 2000 level,
the economy would have grown by between 0.15
and 0.3 percentage points faster. These findings
stand up to triangulation with the estimated
economic cost of gender gaps of neighbouring
countries such as Kazakhstan and Russia.
19
Legal barriers to women’s participation
in the economy in the Kyrgyz Republic
Legal barriers to women’s labour force
participation are also hindering current
government efforts to improve skills
of the labour force and diversify the
economy
The legal barriers that prevent women from
working in specified jobs and tasks, and from
doing what is classified as harmful, dangerous
or heavy work are a potential barrier to the
implementation of government policy aimed at
diversifying and upskilling the work force.
The government of the Kyrgyz Republic and
the private sector have a common interest in
increasing the availability of workers with the
right skills. More women in the labour force and
more women with the skills and legal access
to work in technical jobs in high wage sectors
increase the size and relevance of the skill pool
available to investors. This is a current policy
priority and provides an opportunity to address
the lifting of barriers restricting women’s access to
the labour force. The linkage between the gender
gap and economic growth highlighted in the
economic cost study provides a useful focus for
this discussion.
The Ministry of Labour is interested
in using the findings of this study to
review legal barriers to women’s labour
force participation
During interviews in Bishkek in January 2015, in
the context of this research, the Ministry of Labour
recognised that articles in the Labour Code that
limit women’s access to specific occupations
represent a potential obstacle to one of its current
priority initiatives; to encourage women to train
for jobs that are in high demand in the labour
market including those traditionally regarded as
men’s jobs. The Ministry is interested in using the
findings of this study to initiate a review of the
relevant legal provisions.
The economic cost analysis has also
opened up new opportunities for policy
dialogue and capacity building with the
Ministry of Economy
This study has used a widely accepted
methodology to quantify the economic cost of
gender gaps.51 The Ministry of Economy and the
National Statistics Committee are interested in
using this methodology and have requested to be
trained in it, with a view to undertaking further
analysis of the economic impact of women’s
economic participation in the Kyrgyz Republic.
Sharing this study’s economic methodology with
the Kyrgyz Republic government would contribute
to build local capacity to encourage reform that is
based on strong economic analysis.
Overall, there is also an opportunity
to raise awareness on the social and
economic costs of low women’s labour
force participation in Kyrgyz Republic
by disseminating the findings of this
study
The findings of this study should be disseminated
in relevant forums such as the Kyrgyzstan’s
Investment Council to promote dialogue on
lifting legal (as well as other) barriers to women’s
participation in the labour force as part of the
overall public-private policy dialogue in the
country. The results of the study can also be
used to raise public awareness of legal barriers
to women’s participation in the labour force by
working with the Vocational Training Agency, and
active donors in this area.
51 Klasen, S., and Lamanna, F. (2009). “The impact of gender inequality in education and employment on economic growth: new evidence for a panel of countries”.
20
Legal barriers to women’s participation
in the economy in the Kyrgyz Republic
Annex A: Economic Cost Study
Summary
The aim of this economic cost study is to provide
a descriptive analysis of the trends, drivers and
differences in female labour force participation
across labour sectors in the Kyrgyz Republic
and to quantify the growth cost in Gross
Domestic Product points of reduced labour force
participation in the country.
The study analyses gender gaps in female labour
force participation rates and employment in the
Kyrgyz Republic. Gender gaps in labour force
participation, which were low at the start of the
transition from Soviet rule in the early 1990s, have
increased substantially in the last 20 years. The
Kyrgyz Republic now has substantially larger gaps
than the regional average. Micro data analyses
reveal that having young children decreases the
likelihood of female labour force participation
suggesting that the ability of mothers to combine
employment with raising children is becoming
more difficult. Employment in the industrial
sector is particularly difficult for women with
young children. There is also an important ethnic
dimension to female labour force participation,
where Kyrgyz and Russian women are more likely
to be employed, relative to Uzbek and other
minority groups.
When estimating the impact of this falling labour
force participation rate in the Kyrgyz Republic on
economic growth, we find that the growth costs
amount to 0.1 - 0.4 percentage points of GDP per
capita per year. Similar results are obtained when
estimating the growth costs of gender gaps in
the Kyrgyz Republic by comparing with those of
neighbouring countries such as Kazakhstan or
Russia.
The study is structured as follows; Part 1
describes country-level trends in female labour
force participation in the Kyrgyz Republic
relative to neighbouring countries. It also
provides descriptive statistics by gender at the
employment-sector level, number of hours worked,
and wages earned. Part 2 shows and discusses
the results of a probit regression analysis used to
determine what factors contribute to increasing
female labour force participation and quantifies
the effect of gender inequality in employment
in terms of overall economic growth, and Part 3
concludes.
Part 1: Trends and differences in female
labour force participation across sectors
As shown in Figure 4, in the immediate aftermath
of the collapse of the Soviet Union the gender
gap in employment in the Kyrgyz Republic was
larger than in some transition countries such as
Estonia or Kazakhstan, but was still relatively
small compared to the regional average of
Eastern Europe and Central Asia (EECA)52. Over
the last two decades, however, whereas most
countries in the EECA region have improved on
or maintained their initial conditions of gender
parity in employment, the ratio of female to male
labour force participation in the Kyrgyz Republic
decreased by about 8 percentage points between
1990 and 2013.
The sharpest decline in the ratio came between
2002 and 2006, a time where labour productivity
overall was lagging other countries in the EECA
region leading to increasing economic problems
in many sectors, particularly the industrial sector
(see ADB 2014)53 and also discussion below). It
now stands (together with those of Uzbekistan
52 The countries included in the Eastern Europe and Central Asia are: Albania, Belarus, Bosnia and Herzegovina, Bulgaria, Croatia, Czech Republic, Estonia, Hungary,
Kazakhstan, Kosovo, Kyrgyz Republic, Latvia, Lithuania, Macedonia, FYR, Montenegro, Poland, Romania, Russia, Serbia, Slovak Republic, Slovenia, Tajikistan,
Turkmenistan, Ukraine, and Uzbekistan.
53 Asian Development Bank (2014). “The Kyrgyz Republic Strategic Assessment of the economy. Promoting inclusive growth”. Mandaluyong City, Philippines: Asian
Development Bank, 2014.
22
Economic Cost Study
and Turkmenistan) among the lowest values in the
region.54 This is of concern as it appears that, in
contrast to most other transition countries, labour
Annex A
market opportunities for women in the Kyrgyz
Republic have shrunk considerably.
Figure 1: Trend in gender equality in employment55 in selected economies in EECA and regional average
Ratio of Female to Male
Labour Force Participation
0,90
Kazakhstan
0,85
Estonia
0,80
Russia
0,75
EECA region
0,70
Kyrgyz Republic
13
12
20
11
20
10
20
09
20
08
20
07
20
06
20
05
20
04
20
03
20
02
20
01
20
00
20
99
20
98
19
97
19
96
19
95
19
94
19
93
19
92
19
91
19
19
19
90
0,65
Source: Author’s own elaboration on World Development Indicators, 2014.
Aggregated data masks substantial heterogeneity
in the distribution of female labour force
participation between the sectors, however. As
reported in Table 4, the most recent data from the
2013 Integrated Sample Survey of Households
Budget and Labour suggests that Kyrgyz women
are greatly underrepresented in the mining, energy
and gas sectors, as well as in sectors involving
heavy manual labour such as construction,
transport and storage of goods. These relatively
large gaps may reflect existing legal restrictions
on female employment in sectors classified as
hazardous to women’s health (including aspects of
mining, construction, transport and industry).
The data also suggests that barriers to female
employment exist (but to a lesser extent) in
agriculture, public administration, and in some
high-skilled sectors such as information and
communication or professional, scientific and
technical activities. The gender ratio in these
sectors is between 0.2 and 0.71, much higher than,
for example, in construction, where the ratio is
0.05 women for every man.
Conversely, female employment is relatively high
in the processing industry and in professions such
as in education, health, public services and real
estate transactions.
When considering the number of hours worked
per week (see Table 4), we see that women tend
to work slightly fewer hours than men. Compared
with men, women more frequently work less than
20 hours, and less frequently work more than 30
hours. This may partly reflect legal barriers that
limit women’s working hours at high altitude and
54 See also Ajwad, Mohamed Ihsan; Abdulloev, Ilhom; Audy, Robin; Hut, Stefan; Laat, Joost de; Kheyfets, Igor; Larrison, Jennica; Nikoloski, Zlatko; Torracchi, Federico.
2014. The skills road: skills for employability in the Kyrgyz Republic. Washington, DC: World Bank Group.
55 The ratio of female to male labour force participation rate (modelled ILO estimate) refers to population aged 15-64.
23
Legal barriers to women’s participation
in the economy in the Kyrgyz Republic
remote areas to 36 hours per week instead of 40
hours for men.56 Such policies may contribute to
the larger gender gap in work hours observed in
rural areas.57
It is also interesting to note that rates of
absenteeism are substantially higher for women
than for men. This may include planned absences
(such as maternity leave) or unplanned absences
such as illness or family obligations. In terms of
planned absences, higher rates could indicate
that women are being offered and are using
employment benefits such as paid maternity
leave. Yet it could also indicate that other benefits
such as childcare benefits, which are extended
to men as well as women, are predominantly
being taken by women. In either case, while
acknowledging that absenteeism may be an
indicator of a variety of issues (e.g. including care
responsibilities, illness or workplace problems
such as harassment), it is possible that these
higher absentee rates may act as a deterrent for
employers to employ women over men.
majority of sectors. However, on an aggregate level,
the gap has been shrinking over time from around
36 per cent to 27 per cent, particularly in sectors
where women tend to be under-represented, such
as construction or public administration.
It should also be noted that in the Kyrgyz Republic,
the average gender pay gap across all sectors is
larger than the pay gaps within each individual
sector in both years for which data is reported
(2009 and 2013). This suggests that occupational
and sectoral segregation for women and men
factors into the gender pay gap as follows;
although women within a given sector may not
earn that much less than men, they dominate in
sectors where the pay for a given qualification
is particularly low, such as in hotels, education,
or health. As a result, the average gender pay
gap in the entire economy is substantial. Such a
pattern is true in many countries, but in the Kyrgyz
Republic, it is particularly pronounced, where
women (at the aggregate level) are paid only 63
per cent of what men are paid.
Gender disparities in the labour market are also
apparent in terms of wage gaps (see Table 5).
Women tend to be paid less than men in the vast
56 Law of June 28, 1996 #33 “On state guarantees and compensation for people living and working in the high altitude and remove, inaccessible areas.”
57 The majority of the Kyrgyz Republic is remote and inaccessible: 80 per cent of the whole country is covered by the Tian Shan Mountains and 40 per cent of The
Kyrgyz Republic is at above 3000 metre of altitudes.
24
Economic Cost Study
Annex A
Table 3: Distribution of employed population by employment status, types of economic
activity and gender in 2014
Types of economic activity
Including
Employed population
(thousands of people)
For hire
Not for hire
Women
Men
Ratio
Women
Men
Ratio
Women
Men
Ratio
Total
900.8
1362.2
0.66
494.7
697.6
0.71
406.1
664.6
0.61
Agriculture, hunting, forestry and fishing
296.6
420.1
0.71
8.1
19.6
0.41
288.5
400.4
0.72
Mining
2.1
7.7
0.27
2
7.2
0.28
0.1
0.5
0.2
Processing industry
79.4
77.5
1.02
71.1
68.3
1.04
8.2
9.2
0.89
Generating and distribution of electric
energy, gas, steam and air conditioning
3.5
26.4
0.13
3.5
25.2
0.14
-
1.2
Water supply, cleaning, waste treatment
and recycling
4.4
11.5
0.38
4.4
11.5
0.38
-
-
Construction
10.1
234.8
0.04
7.4
187.7
0.04
2.7
47.2
0.06
Wholesale and retail trade, repair of
motor vehicles and motorcycles
154.1
205.8
0.75
60.1
114.6
0.52
94
91.1
1.03
Transport activities and storage of goods
6.7
135.5
0.05
5.6
44.6
0.13
1.1
90.9
0.01
Hotels and restaurants activities
52.5
27.3
1.92
49
25.2
1.94
3.5
2.1
1.67
Information and communication
6.3
19.3
0.33
6.2
19.1
0.32
0.1
0.3
0.33
Financial intermediation and insurance
9.9
12.5
0.79
9.9
12.2
0.81
-
0.3
Real estate transactions
6.3
1.2
5.25
6.3
0.7
9.00
-
0.5
Professional, scientific and technical
activities
6
10.2
0.59
6
8.3
0.72
0
1.9
0
Administrative and support activities
2.6
14
0.19
2.6
13.9
0.19
0
0.1
0
Public administration
31.1
64.7
0.48
31.1
64.7
0.48
Education
136.9
38
3.60
134.7
36.9
3.65
2.1
1.1
1.91
Health and public services for the
population
68.3
12
5.69
66.7
10.5
6.35
1.6
1.4
1.14
Arts, Entertainment, and Recreation
6.9
7.8
0.88
6.9
6.2
1.11
0
1.6
0
Other service activities
12.8
19.9
0.64
8.8
11.5
0.77
4
8.3
0.48
Activities of private households
4.3
16
0.27
4.3
9.5
0.45
0
6.5
0
Source: National Statistical Committee of the Kyrgyz Republic, ‘Women and Men of the Kyrgyz Republic, 2014. Ratios are
obtained from author’s own calculations.
25
Legal barriers to women’s participation
in the economy in the Kyrgyz Republic
Table 4: Distribution of employed population by hours actually worked per week
in a main job (in % against total)
Total population
Women
Men
100
100
1 to 20
26.4
18.1
21 - 30
10.6
31 - 40
Ratio
Urban
Women
Men
100
100
1.46
4.9
2.2
8.4
1.26
5
39.8
43.1
0.92
41 - 50
17.6
23.8
51 or more hours
3.4
Temporarily absent
Hours worked per week on average per
one employed person
Rural
Ratio
Women
Men
Ratio
100
100
2.23
39.1
25.8
1.52
2.9
1.72
13.9
11
1.26
55.5
52.5
1.06
30.6
38.7
0.79
0.74
26
34.6
0.75
12.6
18.7
0.67
5.8
0.59
6.7
7.7
0.87
1.4
4.9
0.29
2.2
0.8
2.75
1.9
0.4
4.75
2.4
0.9
2.67
32.1
36.1
0.89
40.5
43.1
0.94
27.1
32.7
0.83
100
100
100
100
100
100
1 to 20
26.1
18.1
1.44
5.2
2.5
2.08
37.8
25.6
1.48
21 - 30
10.4
7.3
1.42
4.3
2.7
1.59
13.9
9.5
1.46
31 - 40
45
52.1
0.86
60.1
59.8
1.01
36.5
48.5
0.75
41 - 50
14
16.6
0.84
23.1
27.3
0.85
8.9
11.4
0.78
51 or more hours
3.2
5.1
0.63
6.6
7.5
0.88
1.2
4
0.30
Temporarily absent
1.3
0.8
1.63
0.7
0.2
3.50
1.7
1
1.70
Hours worked per week on average per
one employed person
32.6
35.8
0.91
40.8
42.5
0.96
28
32.6
0.86
2011
Employed-total
Including hours worked per week
2012
Employed-total
Including hours worked per week
26
Economic Cost Study
Annex A
Table 4: Distribution of employed population by hours actually worked per week
in a main job (in % against total)
Total population
Women
Men
100
100
1 to 20
25.7
16.9
21 - 30
11.6
31 - 40
Ratio
Urban
Women
Men
100
100
1.52
7
3
9.5
1.22
4
43.6
48.4
0.90
41 - 50
13.1
18.5
51 or more hours
4.4
Temporarily absent
Hours worked per week on average per
one employed person
Rural
Ratio
Women
Men
Ratio
100
100
2.33
35.9
23.5
1.53
3.4
1.18
15.7
12.4
1.27
53.7
54.2
0.99
38.2
45.7
0.84
0.71
25.2
28.2
0.89
6.5
14
0.46
6.2
0.71
8.8
10.9
0.81
2.1
4
0.53
1.4
0.4
3.50
1.3
0.2
6.50
1.5
0.5
3.00
32.4
36.1
0.90
40.8
42.9
0.95
27.8
32.9
0.84
2013
Employed-total
Including hours worked per week
Note: National Statistical Committee of the Kyrgyz Republic, ‘Women and Men of the Kyrgyz Republic’ 2014. Ratios are obtained
from author’s own calculations.
27
Legal barriers to women’s participation
in the economy in the Kyrgyz Republic
Table 5: Average salary of women and men by types of economic activity (based on data obtained
from non-recurrent survey of enterprises and offices in November 2009 and November 2013)
Average salary, in KGS
2009
Correlation of
woman’s salary and
man’s salary, in %
2013
Women
Men
Wage Gap
Women
Men
Wage Gap
Women
Men
Total
4550
7118
0.639
9113
12440
0.733
63.9
73.3
Agriculture, hunting, and forestry
3386
3343
1.013
5235
5701
0.918
101.3
91.8
Fishery, fish breeding
3937
4454
0.884
3817
4970
0.768
88.4
76.8
Mining
5850
6391
0.915
13695
14403
0.951
91.5
95.1
Processing industry
6125
8172
0.750
9500
12136
0.783
75
78.3
Production and distribution of
electric power, gas, and water
7784
8522
0.913
15791
16428
0.961
91.3
96.1
Construction
5674
8283
0.685
10077
10556
0.955
68.5
95.5
Trade, fixing of cars, home
appliances, and items
of personal use
7134
9096
0.784
11543
15534
0.743
78.4
74.3
Hotels and restaurants
5753
7649
0.752
9878
11219
0.880
75.2
88
Transport and communication
7912
10967
0.721
14388
21013
0.685
72.1
68.5
Finances
13833
20787
0.665
21181
26902
0.787
66.5
78.7
Real estate transactions, renting,
and delivery of services to
consumers
6310
8232
0.767
11210
13162
0.852
76.7
85.2
Public administration
6026
7357
0.819
11787
13116
0.899
81.9
89.9
Education
3385
4049
0.836
7215
8411
0.858
83.6
85.8
Health and supply of social
services
3676
4207
0.874
9010
8641
1.043
87.4
104.3
Delivery of municipal, social and
personal services
4230
5323
0.795
8104
8890
0.912
79.4
91.2
Source: National Statistical Committee of the Kyrgyz Republic, ‘Women and Men of the Kyrgyz Republic’ 2014. Wage gaps are
obtained from author’s own calculations.
28
Economic Cost Study
A significant share of the working female
population is unwaged. Analysing data from
the 2012 Life in Kyrgyzstan Survey, a nationally
representative household survey, we find that
nearly 50 per cent of employed females between
the ages of 25-58 years do not receive wages for
their work (see Table 6). Among those that do not
Annex A
receive a wage, most are unskilled, contributing
family workers in the agriculture and fishing
sectors. Although working without receiving
wages is not only limited to female workers, the
percentage of women workers who do not receive
a wage was 36 per cent of the working female
population, as opposed to 23 per cent for men.
Table 6: Comparison of employed females (age 25-58) based on whether they receive a wage
Wage status
Wage > 0
Wage=0
Freq.
Percent
Freq.
Percent
0
0
421
57.28
employee
777
97.98
8
1.09
employer
0
0
3
0.41
contributing family worker
15
1.89
0
0
other
1
0.13
0
0
own-account worker
0
0
303
41.22
793
100
735
100
contributing family worker
Total
Sector
Wage > 0
Wage=0
Freq.
Percent
Freq.
Percent
30
3.78
541
73.61
7
0.88
3
0.41
manufacturing
79
9.96
20
2.72
energy and water
14
1.77
0
0
construction
11
1.39
1
0.14
trade and repair
75
9.46
133
18.1
hotels and restaurants
40
5.04
6
0.82
transport and communications
33
4.16
0
0
finance
37
4.67
1
0.14
agriculture and fishing
mining
29
Legal barriers to women’s participation
in the economy in the Kyrgyz Republic
Table 6: Comparison of employed females (age 25-58) based on whether they receive a wage
Sector
Wage > 0
Freq.
Percent
Freq.
Percent
real estate, renting and business activity
8
1.01
1
0.14
public administration
31
3.91
0
0
education
248
31.27
4
0.54
health and social work
137
17.28
5
0.68
utilities, social and personal services
37
4.67
9
1.22
private households with employed person
5
0.63
11
1.5
extra-territorial organizations
1
0.13
0
0
793
100
735
100
Total
Sector
Wage > 0
Wage =0
Freq.
Percent
Freq.
Percent
legislator, senior official, manager
11
1.39
11
1.5
professional
247
31.15
4
0.54
technician, associated professional
135
17.02
7
0.95
clerk
58
7.31
0
0
service worker, shop or market sales wo
92
11.6
63
8.57
skilled agricultural or fishery worker
1
0.13
22
2.99
craft and related trades
86
10.84
29
3.95
plant or machine operator or assembler
9
1.13
1
0.14
153
19.29
598
81.36
1
0.13
0
0
793
100
735
100
unskilled worker
armed forces
Total
Source: Author’s own analysis based on DIW Berlin Life in Kyrgyzstan for 2012.
30
Wage = 0
Economic Cost Study
Part 2: Drivers of female labour force
participation
To better understand the drivers of female
labour force participation, we estimated a probit
regression model58 in Table 7. Our dependent
variable is a categorical variable (a dummy)
that takes the value of 1 if the person is female,
between the ages of 25-58 years, and is working
(including non-wage earners) and takes the
value of 0 otherwise. Control variables include
dummies for final level of education completed
(primary, middle, secondary, and tertiary), logged
income (household income minus own wages),
age, dummies for social group (that are proxies for
attitudes towards women’s work), whether a male
partner lives in the household with them, and the
number of children living in the household (this
captures family obligations that can negatively
influence female labour force participation).
The results in Table 7 indicate that a tertiary
education significantly and positively impacts
the likelihood of working. Ethnicity and age also
have significant and positive effects on labour
force participation. Being Kyrgyz or Russian, as
opposed to being a member of minority groups
grouped under ‘other’ (these comprise some 10 per
cent of the population and include Dungan, Uigur,
Tajik, Kazakh, and other groups), is particularly
advantageous. An ethnic Russian woman is more
likely to participate in the labour force than any
other reference group, including Kyrgyz women.
There is a typical age pattern of labour force
Annex A
participation; participation initially rises with age,
and then falls as women approach the retirement
age of 58.
Factors that significantly decrease the likelihood
of labour force participation include having a
spouse living in the same household and having
young children (age 0-4 years). The number of
older children (age 5-14 years) seems to have
no impact on the likelihood of labour force
participation. Interestingly, the income earned by
other members of the household plays no role in
affecting women participation suggesting that
women’s decision to participate is mainly driven
by their own opportunities and constraints. This
indicates that female labour force participation
may be driven by an interest in working, rather
than a financial need to work. Additionally, there
may be other cultural or social pressure to stay at
home regardless of the financial situation of the
collective households. This is similar to findings
from OECD countries but different from findings
from neighbouring South Asia.59
Next, we analysed employment choices made
by those women in employment by primary,
secondary and tertiary labour sectors.60 We again
estimated the likelihood of working in a particular
sector using a probit regression analysis. Our
dependent variable is a dummy where we assign
the value of 1 to females between the ages of
25-58 who are working in either the primary,
secondary, or tertiary sector (and the value of 0
otherwise). Results are shown below in Table 8.
58 A probit regression is an econometric method that models dichotomous outcome variables. In our case, the outcome variable is whether one participates in the
labour force or not. The results of a probit analysis is interpreted as the probability of the outcome variable taking the value of 1 or 0.
59 See Klasen, S. and Pieters, J. (2015). What explains the stagnation of female labour force participation in urban India? (forthcoming in World Bank Economic
Review 2015).
60 We classified labour sectors into three categories, primary, secondary, and tertiary. The primary sector includes agriculture, fishing, and mining. The secondary
sector includes manufacturing, energy and water, and construction. The tertiary sector is composed of trade and repair; hotels and restaurants; transport and
communications; finance; real estate; renting and business activity; public administration; education; health and social work; utilities, social, and personal
services; private households with employed persons; and extra territorial organizations. A breakdown of the concentration of females in each labour sector is
provided in Table 3.
31
Legal barriers to women’s participation
in the economy in the Kyrgyz Republic
Table 7: Probit regression - Overall female labour force participation
Female Labour Force Participation
Own education (Ref. = Primary)
Middle
Secondary
Tertiary
Log income
Partner present
-0.0593
(0.144)
0.0102
(0.136)
0.540***
(0.145)
0.0204
(0.0347)
-0.110*
(0.0643)
Female Labour Force Participation
Social group (Ref. = Other)
Kyrgyz
Uzbek
Russian
Age
Age^2
Children 0-4
Children 5-14
Constant
Observations
0.285***
(0.0874)
0.167
(0.110)
0.428***
(0.121)
0.198***
(0.0260)
-0.0024***
(0.0003)
-0.261***
(0.0350)
-0.0422
(0.0273)
-3.967***
(0.625)
2655
Note: Robust standard errors corrected for clustering at the household level are reported in parentheses.
* p < .10, ** p < 0.05, *** p < 0.01. Source: Author’s own analysis based on DIW Berlin Life in Kyrgyzstan for 2012.
32
Economic Cost Study
Annex A
Table 8: Probit regression by labour sector61
(1)
(2)
(3)
Primary
(agriculture,
fishing, and
mining
Secondary
manufacturing,
energy and
water, and
construction)
Tertiary
(trade and repair; hotels and restaurants; transport
and communications; finance; real estate; renting and
business activity; public admin.; education; health
and social work; utilities, social, and personal services;
private households with employed persons; and extra
territorial organizations)
-0.251
0.255
0.0662
(0.220)
(0.286)
(0.201)
0.610***
0.101
-0.679***
(0.204)
(0.276)
(0.190)
-1.104***
0.00675
0.742***
(0.232)
(0.285)
(0.202)
0.0306
-0.0868
0.0176
(0.0534)
(0.0583)
(0.0488)
0.215**
0.102
-0.222**
(0.0986)
(0.114)
(0.0881)
0.176
-0.254
-0.0537
(0.145)
(0.171)
(0.134)
0.299*
-0.354
-0.150
(0.173)
(0.226)
(0.165)
-0.525**
0.265
0.0436
(0.224)
(0.203)
(0.178)
Own education (Ref. = Primary)
Middle
Secondary
Tertiary
Log income
Partner present
Own education (Ref. = Primary)
Kyrgyz
Uzbek
Russian
61 Note: Robust standard errors corrected for clustering at the household level are reported in parentheses.
* p < .10, ** p < 0.05, *** p < 0.01
33
Legal barriers to women’s participation
in the economy in the Kyrgyz Republic
Table 8: Probit regression by labour sector
(1)
(2)
(3)
Primary
(agriculture,
fishing, and
mining
Secondary
manufacturing,
energy and
water, and
construction)
Tertiary
(trade and repair; hotels and restaurants; transport
and communications; finance; real estate; renting and
business activity; public admin.; education; health
and social work; utilities, social, and personal services;
private households with employed persons; and extra
territorial organizations)
-0.0219
0.0578
0.0004
(0.0405)
(0.0506)
(0.0373)
0.0003
-0.0008
0.0000
(0.0005)
(0.0006)
(0.0005)
0.0779
-0.247***
0.0165
(0.0533)
(0.0885)
(0.0495)
0.160***
-0.300***
-0.0483
Own education (Ref. = Primary)
Age
Age^2
Children 0-4
Children 5-14
Source: Author’s own analysis based on DIW Berlin Life in Kyrgyzstan for 2012.
34
Economic Cost Study
In the primary labour sector (agriculture, fishing,
mining), as expected, having a secondary
education has a positive effect on the likelihood
of labour force participation, while a tertiary
education has a negative effect. A tertiary
education would allow someone to work in a more
skilled job, most likely in the tertiary sector. In the
primary labour sector, we also find that having a
partner present in the household increases the
likelihood of working. This result complements
the descriptive finding from Table 4 that unskilled
workers tend to take on roles as (often unwaged)
contributing family members rather than as waged
employees. Additionally, being a member of an
Uzbek minority seems to increase participation
in the primary labour sector, while being Russian
seems to decrease the likelihood.
In the secondary labour sector (manufacturing,
energy and water, and construction), the main
significant influences on likelihood of labour force
participation are having children. The presence
of children (age 0-15 years) in the household
decreases the likelihood of participation. This
suggests that having young children is a particular
barrier for women working in the industrial
and manufacturing sectors. Beyond children,
it is unclear as to what variables influence
participation in the secondary labour sector.
In the tertiary labour sector (trade and
repair; hotels and restaurants; transport and
communications; finance; real estate; renting
and business activity; public administration;
education; health and social work; utilities,
social, and personal services; private households
with employed persons; and extra territorial
organizations), we again find more pronounced
results. As expected, completing a tertiary
Annex A
education increases the likelihood of working in
more skilled positions. Having a partner present
in the household, in contrast to the primary labour
sector, reduces the likelihood of working. This may
indicate that females in the tertiary sector have
spouses also in the tertiary labour sector who are
most likely wage-earning employees with greater
income stability than those in other sectors. In
the tertiary labour sector, the number of children
doesn’t seem to have a significant effect on labour
force participation.
As found by several studies,62 gender gaps in
employment such as the ones emerging in the
Kyrgyz Republic, can be an important barrier to
economic growth. We estimate the effect of gender
inequality on economic growth using methods
proposed by Klasen and Lamanna (2009). These
entail simulating the impact of gender gaps in the
Kyrgyz Republic and comparing the impact this
has on economic growth based on the regression
results of Klasen and Lamanna (2009). Descriptive
statistics shown in Table 7 suggest that the
Kyrgyz Republic has had remarkably lower rates of
economic growth when compared to other EECA
countries. This, according to the literature, can be
partly explained by number of factors, including:
low competiveness (related to the concentration
of labour in low productivity sectors); relatively
high levels of corruption; the political upheavals
of the early 2000s; and by the economy’s poor
diversification and dependence on large foreign
exchange inflows (such as remittances) and
revenues from exports of raw materials (such as
gold and coal).63 But here we relate low growth to
rising gender gaps in employment as an additional
factor.
62 See e.g. Klasen, S., and Lamanna, F. (2009). “The impact of gender inequality in education and employment on economic growth: new evidence for a panel of
countries” Feminist economics, 15(3), 91-132 and the references cited therein.
63 Asian Development Bank (2014). “The Kyrgyz Republic Strategic Assessment of the economy. Promoting inclusive growth”. Mandaluyong City, Philippines: Asian
Development Bank, 2014.
35
Legal barriers to women’s participation
in the economy in the Kyrgyz Republic
Table 9: Gender inequality in employment and economic growth64
Ratio of female to male
labour force participation rate
(modelled ILO estimate)
Country/Region
Average annual growth
of GDP per capita
1990
2000
1990-2000
2000-2013
The Kyrgyz Republic
0.786
0.758
-5.17
3.07
Kazakhstan
0.800
0.849
-3.03
6.10
Russia
0.781
0.791
-4.66
4.65
Estonia
0.822
0.775
6.95
3.66
EECA Region
0.744
0.745
0.60
4.29
Source: World Development Indicators, 2014.
Gender inequality affects economic growth though
several channels.65 First, the average human
capital in the society is reduced given that the
workforce has an artificially smaller pool of people
they can recruit from (i.e. highly qualified girls
are excluded and “substituted” by less qualified
boys). Second, gender inequality in education and
employment has a demographic effect in that
fertility is driven upwards.66 Third, countries with
gender gaps in employment access would be
deprived of the possibility to use (relatively cheap)
women’s labour as a competitive advantage in
an export-oriented growth strategy.67 Fourth,
women’s bargaining power at home is reduced
when they do not work, which can also have
negative economic effects. For example, a sizable
literature has demonstrated that weak bargaining
power leads to lower investments in the health
and education of children in the family, thus
reducing human capital of the next generation
and hampering economic growth (see, inter alia,
Thomas, 1997 and World Bank, 2001). Lastly, some
studies68 have suggested that women may be less
prone to engage in corruption, so that excluding
less corrupt workers may negatively impact on
growth.
Based on Klasen and Lamanna (2009), we can
estimate the effects that gender inequality in
employment (measured in terms of initial levels)
has on average per capita economic growth
between 1990 and 2000 and between 2000 and
2013.
Results, which are reported in Table 10, show how
the difference in economic growth between the
Kyrgyz Republic and Kazakhstan, Russia, Estonia or
64 Note: Average annual growth of GDP per capita is calculated as the average annual relative rate of change in GDP per capita, PPP (constant 2011 international
$). The ratio of female to male labour force participation rate (modelled ILO estimate) refers to population aged 15-64. EECA Region includes: Albania;
Belarus; Bosnia and Herzegovina; Bulgaria; Croatia; Czech Republic; Estonia; FYR Macedonia; Hungary; Kazakhstan; Kosovo; Latvia; Lithuania; FYR Macedonia;
Montenegro; Poland; Romania; Russia; Serbia; Slovak Republic; Slovenia; Tajikistan; Turkmenistan; Ukraine; Uzbekistan.
65 Klasen, S., and Lamanna, F. (2009). “The impact of gender inequality in education and employment on economic growth: new evidence for a panel of countries.”
Feminist economics, 15(3), 91-132.
66 Promoting female education is widely recognized in the literature to be a significant lever to reduce fertility levels, reduce child mortality levels, and promote
the education of the next generation. Each of these factors will in turn positively affect economic growth. Thus gender gaps in education reduce the benefits to
society of high female education (see, inter alia, Lagerlöf, 1999, Galor and Weil, 1996, World Bank, 2001).
67 Seguino, S (2000) “Gender inequality & economic growth: Cross-country analysis.” World Development 28(7), 1211-1230.
68 Swamy, A., Azfar, O., Knack, S., and Lee, Y. (2001). “Gender and Corruption.” Journal of Development Economics, 64(1):25-55.
36
Economic Cost Study
the EECA region can be attributed to their initial
differences in gender inequality in employment.
Assuming that the average effects estimated apply
to the Kyrgyz Republic, the results suggest that the
comparatively larger gender gap in employment
in the country plays a moderate role in explaining
growth differences between it and other countries.
Depending on the specification, it accounts for
Annex A
a growth difference with other EECA countries
from 1990 to 2000 of between 0.004 and 0.2
percentage points per year. This is a moderate
effect, and much lower than the growth costs
of gender gaps in employment in other regions,
including for example the Middle East or South
Asia.69
Table 10: Estimating the Effect of Gender Inequality in Employment on Growth70
Panel A: Comparing Kyrgyz Republic to other transition countries
1990-2000
2000-2013
Growth difference
2.14
3.03
Effect of gender inequality in employment (initial values)a
0.076
0.491
Effect of gender inequality in employment (initial values)b
0.042
0.270
0.51
1.58
Effect of gender inequality in employment (initial values)a
-0.026
0.176
Effect of gender inequality in employment (initial values)b
-0.014
0.097
Growth difference
12.12
0.59
Effect of gender inequality in employment (initial values)a
0.197
0.090
Effect of gender inequality in employment (initial values)b
0.108
0.050
5.77
1.22
Effect of gender inequality in employment (initial values)a
-0.224
-0.074
Effect of gender inequality in employment (initial values)b
-0.123
-0.041
Kazakhstan
Russia
Growth difference
Estonia
EECA Region
Growth difference
70 Note: a) These estimates are based on regression 13 from Table 5 reported in Klasen and Lamanna (2003) and capture the total effect of gender inequality
in employment; b) These estimates are based on regression 15 from Table 5 reported in Klasen and Lamanna (2003) and capture the total effect of gender
inequality in employment once controlling for gender gap in education. EECA Region includes: Albania; Belarus; Bosnia and Herzegovina; Bulgaria; Croatia; Czech
Republic; Estonia; FYR Macedonia; Hungary; Kazakhstan; Kosovo; Latvia; Lithuania; Montenegro; Poland; Romania; Russia; Serbia; Slovak Republic; Slovenia;
Tajikistan; Turkmenistan; Ukraine; Uzbekistan.
37
Legal barriers to women’s participation
in the economy in the Kyrgyz Republic
Table 10: Estimating the Effect of Gender Inequality in Employment on Growth
Panel B: Estimating the growth costs of the rising gender gap in labour participation
1990-2013
2000-2013
Fall in ratio of female to male labour force participation rate
-0.082
-0.054
Growth cost due to the increase of gender inequality in employment a)
-0.441
-0.292
Growth cost due to the increase of gender inequality in employment b)
-0.242
-0.160
Source: Author’s own calculations based on Klasen and Lamanna (2003) and on data from World Development Indicators, 2014.
However, the effects are much larger if only
considering the period 2000-2013. For example,
in the growth comparison with Kazakhstan,
a country that has started with relatively low
gender inequality and has increased women’s
employment rates over the last two decades, the
Kyrgyz Republic has lost 0.5 per cent growth per
year due to larger gender gaps in employment.
When compared with Russia, however, the effects
are relatively small. This is likely due to the fact
that both Russia and the Kyrgyz Republic had
similar levels of gender gaps in 2000. Where
Russia was successful in reducing the gap,
however, in the Kyrgyz Republic the disparities
between women and men in the labour market
have been widening.
More striking are the results from Panel B in
Table 10. These estimate the growth costs of
the fall in the female-male ratio of labour force
participation that has taken place since 1990 in
the Kyrgyz Republic. It finds that had the gender
38
gap in labour force participation stayed at its
1990 level, the Kyrgyz Republic would have grown
by 0.2 to 0.4 percentage points faster per year
between 1990 and 2013. Had the gender gap in
labour force participation stayed at its 2000 level,
it would have grown by 0.15 to 0.3 percentage
points faster per year. Thus the growing gender
gap in the Kyrgyz Republic (which is not seen in
other transition countries) has generated rising
costs in terms of forgone economic growth. Our
estimates would imply that reversing this trend
would lead to higher growth.
In contrast to most of the EECA countries,
sustained high female education levels in the
Kyrgyz Republic has translated into growing
gender gaps in employment over time, suggesting
that women in this country are encountering
ideological, social or cultural obstacles. As
suggested by our estimates, removing these
barriers may help the country achieve greater
growth performance.
Economic Cost Study
Part 3: Conclusions
Like other transition countries, the Kyrgyz
Republic started off its transition process from
Soviet rule with high levels of female education
and employment. In contrast to other transition
countries, the gender gaps in employment have
increased substantially over recent years. This has
led to growth costs and will continue to do so, if
not addressed.
When examining labour force participation in the
Kyrgyz Republic, we see high levels of sectoral and
Annex A
occupational segregation which also account for
the sizable (though shrinking) gender gaps in pay.
Of particular note is the apparent difficulty of
women with small children to participate in the
labour market, particularly in the industrial and
manufacturing sector. This points to the role of
social stigmas against working mothers as well as
the increasing unavailability of means to combine
family duties with employment. These issues are
analysed and discussed further in the main study
to which this is an annex.
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