Romania Gender Assessment

Abstract

This Country Gender Assessment presents a broad picture of the main gender disparities in Romania. It defines gender equality in terms of access to opportunities, that is, equality in rights, resources, and voice among women and men (World Bank 2007). Gender equality is a core development objective in its own right, and it is also smart economics. Greater gender equality pays off by helping advance a host of development goals, such as improvements in children's health and education and better labor outcomes for adults, at the same time boosting overall economic growth (Morrison, Raju, and Sinha 2007 and World Bank 2011). For example, gender gaps in the Romanian labor market may be harming aggregate productivity due to inefficient use of female potential. These gaps are estimated to potentially lower gross income per capita by 11.53 percent in the short run and 12.63 percent in the long run (Cuberes and Teignier 2016). 1 The report builds on the framework provided by the World Development Report 2012: Gender Equality and Development (World Bank 2011 and WDR 2012) and the World Bank's Gender Strategy (FY16-23), titled "Gender Equality, Poverty Reduction, and Inclusive Growth" (World Bank 2015). According to the WDR 2012, gender equality is a result of gains in three domains: (1) human endowments, notably health and education, (2) economic opportunity, as measured by participation in economic activities and access to and control of key productive assets, and (3) voice and agency, as expressed in political participation, freedom from gender-based violence, and the ability to make key decisions. These three outcome dimensions are shaped by interactions among households, markets, formal institutions such as schools and government ministries, and informal institutions such as gender roles, beliefs, 1 About 58 percent of this loss in GDP per capita derives from distortions in occupations held by women relative to men. The remaining 42 percent corresponds to the costs associated with gaps in labor force participation. The model estimation implies that two factors lead to the income loss. First, a misallocation of entrepreneurial talent reduces the productivity of the economy. Second, women's lower participation in the market leads to the underutilization of the available human capital.