ISSUE BRIEF 06.29.20 Economic Empowerment Policies for Women in Jordan: A Focus on Amended Laws

Amal M. El-Kharouf, Ph.D., Professor at the Center for Women’s Studies, University of Jordan

Despite Jordan’s recent achievements in and pressures that dissuade women from development, the country’s gender gap seeking employment.6 Around 25.6% of for economic participation is significant: it women and 15.7% of men in Jordan believe was ranked 138 out of 153 countries in the that work affects a woman’s ability to care World Economic Forum’s 2020 ratings for for children, especially in the absence of this sector.1 The estimated cost associated supportive policies and services such as with the lack of women's participation in nurseries and sufficient maternity leave.7 the labor market in 2013 amounted to about Early marriage can complicate this issue 11 billion dinars, or 46% of Jordan’s gross and further limit women’s access to the labor domestic product (GDP).2 market, if they end up raising children at an The lack of representation of women early age. The percentage of married women in Jordan’s economy is especially surprising under the age of 18 reached 13.4% in 2017.8 given their high levels of educational Lastly, there are simply fewer economic attainment. Jordanian women have seen opportunities available for women. In recent significant educational progress: females had years, Jordan has suffered from weak GDP the highest enrollment rates in secondary growth that typically has not exceeded schools and universities in 2018,3 an 2%, and the unemployment rate reached important shift from rates in the 1990s.4 19% in 2018. Of the total unemployed The lack of However, the economic participation rate for population, 28.9% were females, while representation of women was just 15.4% in 2018, compared to 16.4% were males. Therefore, even when women in Jordan’s 55.9% for men.5 This contradiction reflects there is job creation, these opportunities Jordan’s failure to invest in half of its human mostly favor males. This issue persists economy is especially capital, thereby impeding development even among highly educated women: the surprising given in a country where the workforce—in the percentage of unemployed men who hold a their high levels absence of natural resources—is one of its bachelor’s degree or higher is 25.6%, but the of educational most important assets. unemployment rate for women who hold a bachelor’s degree or higher is 78%. attainment.

REASONS FOR THE LOW PARTICIPATION OF WOMEN IN THE LABOR MARKET AMENDING LAWS RELATED TO WOMEN’S WORK Several reasons may account for the low participation of women in Jordan’s Between 2000 and 2018, many of the laws labor market, including the lack of social related to women’s workforce participation programs supporting women’s employment, in Jordan were reformed, including the social the lack of opportunities in the labor security law, the labor law, and the civil market, and the presence of social norms service system.9 The sections below outline some of these changes. RICE UNIVERSITY’S BAKER INSTITUTE FOR PUBLIC POLICY // ISSUE BRIEF // 06.29.20

Social Security Additionally, the new social security law gave immunity to funds due from social The new social security law allowed both security, except for debt from alimony and female and male owners of small businesses the social security institution, whose funds consisting of fewer than five employees are not to exceed a quarter of the total debt. to gain access to social security benefits. It also allowed women to seize part of their This enhanced the social and economic ex-husband’s retirement pension as alimony. protection of working women, especially for those working in small establishments such Labor as sewing and secretarial labor. Further, the law stipulated that anyone—including The Labor Law of 1996 included important women—who engaged in domestic work changes that affected women. For example, in their own households could be insured, female employees were given the right to whereas before, only wage workers could maternity leave for 10 weeks with full pay, receive insurance. Due to this law, women instead of six weeks with half pay, as was can now receive old age, disability, and life the case before. Pregnant women were also insurance benefits, thereby ensuring their promised job security through the right to social protection and pension salaries. This leave their positions for one year without was a substantial gain for women. pay. Female employees were guaranteed an The new law also introduced maternity hour a day to breastfeed their babies during insurance to protect insured female the first year after birth, and employers were workers, especially in the private sector. banned from dismissing a woman during This encourages the employment of women pregnancy or maternity leave. Each working and discourages employers from ending spouse was also given the right to obtain a women’s jobs in the event of marriage one-time leave of up to two years without or pregnancy. A woman who receives a pay to accompany their spouse to work retirement or disability pension can also outside of Jordan. Finally, jobs that place combine this pension with a pension restrictions on women working at night, entrusted to her by her parents. Her share such as factory work, were clearly identified. can be disbursed in the event that she is not There were further changes made to working, regardless of her age. the labor law in 2008. The law originally The most important advantage granted excluded agricultural workers, domestic to women by the new social security law workers, and members of the employer’s was the right for widows to combine their family. Such exclusions had a dramatic wages with those they receive from their impact on women, especially those deceased husband. In the previous social living in rural areas, who make up a high security law of 2001, a widow was only percentage of these excluded groups. The allowed to combine her wages with no 2008 amendment to the labor law aimed to more than 50 dinars from her deceased include these groups, which in turn affected husband. The new law was an important the social security law, as these groups qualitative shift in providing economic and became eligible for social security. An social protection for working women. The amendment was also developed to imprison new law further stipulated that the salary or fine an employer if an employee was of a deceased woman should be inherited sexually harassed during work. Previously, in full by all beneficiaries, including her the law would close the institution if an husband, just as it would be for a man. The employee was sexually harassed at work, previous law required that the deceased but the new amendment acknowledged woman be the sole provider of the heirs in that it was better to punish the employer, as order for them to inherit her salary. The new closing the institution would harm the rest law also stipulated that a woman can inherit of the employees. her deceased son’s salary, even if she is not In 2019, the law was amended again. married to her son’s father. These changes allowed for the children of Jordanian women married to foreigners 2 ECONOMIC EMPOWERMENT POLICIES FOR WOMEN IN JORDAN: A FOCUS ON AMENDED LAWS

to work without a permit. It also provided for the adoption of a flexible work system, RECOMMENDATIONS whereby workers could work from home, Despite these important legal changes, have flexible hours, and be held accountable women have not been able to participate based on the quality of their work and in the Jordanian economy at a level that their attendance. It enforced rules to matches their educational achievement. prevent wage discrimination based on The Organization for Economic Cooperation gender and stiffened the penalties for such and Development (OECD) estimates that discrimination. It provided paternity leave achieving gender parity in labor force for three days after a worker’s wife gave participation rates would increase developed birth, and lastly, required that nurseries or countries’ GDP by 12% over the next 20 daycares be available at the workplace for years, and that this trend would be even all employees with children. It did not limit more pronounced in emerging markets.10 childcare services based on the number of Therefore, the participation of women male or female employees, whereas the in the labor market meets the goals of previous law only offered childcare services comprehensive development. However, to female workers. in Jordan, this change requires strong political will. Jordan should implement more Retirement ambitious policies that change standards and The Civil Retirement Act of 2018 permitted transform gender relations in society and work, thus addressing structural inequality. a woman to combine her salary with the Jordan should salary of her husband or her parents. This Certain policies have had a significant impact law also stipulated that a family member of in countries where women suffer from implement more a deceased woman can inherit her salary discrimination and restrictions to the labor ambitious policies without conditions. Previously, the law market.11 These include: that change standards only allowed family members to inherit • Reforming the pension system and and transform gender the deceased woman’s salary if they were strengthening legal care for women.12 incapacitated or unemployed. Mothers can relations in society and now also benefit from their son’s salary • Improving job benefits and tax work, thus addressing without conditions, whereas previously exemptions for workers with lower structural inequality. a mother was required to be widowed or wages, regardless of gender. divorced. The new law rescinded a previous • Increasing access to appropriate rule that required a woman’s retirement childcare. salary to be cut off upon marriage, only • Promoting women’s political returned to the woman upon her husband’s participation and encouraging women to death or divorce, and permanently taken take positions of leadership. away in the event of a second marriage. • Activating government policies related to Finally, the new law extended the parental leave, including the availability retirement conditions for female employees. of flexible and part-time work and the Originally, male employees were allowed to right to equal pay. retire after 25 years of acceptable service, • Encouraging female entrepreneurs to and female employees were required to start businesses. Research has shown retire after 15 years. The new law extended that woman-owned companies have this timeline for women, allowing them to higher growth in annual sales than retire after 20 years. male-owned companies. These firms generate jobs, as female entrepreneurs tend to employ women at higher rates than their male counterparts.13 • Developing the public transportation network to make it safer and more convenient for women to travel to work.

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11. Christian Gonzales, Sonali Jain- ENDNOTES Chandra, Kalpana Kochhar, Monique 1. “Global Gender Gap Report 2020,” Newiak, and Tlek Zeinullayev, “Catalyst for World Economic Forum, Geneva, 2020, Change: Empowering Women and Tackling http://www3.weforum.org/docs/WEF_ Income Inequality,” International Monetary GGGR_2020.pdf. Fund, October 2015, https://www.imf.org/ 2. “Working Paper on the Situation of external/pubs/ft/sdn/2015/sdn1520.pdf. the Low Economic Participation of Women 12. Ibid. in Jordan,” Jordanian Strategy Forum, 2015. 13. Simeon Nichter and Lara Goldmark, 3. Department of General Statistics “Small Firm Growth in Developing Countries,” (Jordan), Jordan By Numbers: Periodic World Development 37, no. 9 (2009): Statistical Bulletin, 2016, http://dosweb.dos. 1453-1464. https://doi.org/10.1016/j. gov.jo/products/jordan-in-figures2016/. worlddev.2009.01.013. 4. Ministry of Higher Education and Scientific Research (Jordan), ABOUT THE SERIES Annual Statistical Report, 2018, http:// www.mohe.gov.jo/ar/Statistics/ This brief is part of a series on “Women’s Statistics2017-2018%20v5.pdf. Grassroots Mobilization in the MENA Region 5. Department of General Statistics Post-2011.” The briefs were presented (Jordan), Employment, Unemployment and at workshops in Rabat, Morocco and Income Survey, 2018, http://dosweb.dos. Amman, Jordan in February and March gov.jo/product-category/emp-unemp/. 2020 hosted by the Moroccan Institute 6. The Higher Population Council for Policy Analysis and the American (Jordan), The Experience of the Higher Center for Oriental Research and involving Population Council in Enhancing the scholars and activists from Morocco, Tunisia, Economic Participation of Jordanian, 2019. Lebanon, Turkey, Palestine, and Jordan. The See more issue briefs at: 7. The Jordanian National Commission workshops were funded with the generous www.bakerinstitute.org/issue-briefs for Women and Department of General support of the Kelly Day Endowment as part This publication was written by a Statistics (Jordan), Survey of Women’s of the Baker Institute’s program on Women’s researcher (or researchers) who Participation in the Informal Sector, 2011, Rights, Human Rights and Refugees. participated in a Baker Institute project. http://haqqi.info/ar/haqqi/search-engine. Wherever feasible, this research is 8. Department of General Statistics reviewed by outside experts before it is (Jordan), Employment, Unemployment and AUTHOR released. However, the views expressed Income Survey, 2018, http://dosweb.dos. herein are those of the individual Amal M. El-Kharouf, Ph.D., is a professor author(s), and do not necessarily gov.jo/product-category/emp-unemp/. at the Center for Women’s Studies at the represent the views of Rice University’s 9. “Country Report: Women and Gender Baker Institute for Public Policy. Affairs,” Economic and Social Council, 2018, University of Jordan in Amman and an author http://www.esc.jo/Contents/state-reportar. of several books. Her research interests © 2020 Rice University’s Baker aspx. include population growth, factors influencing Institute for Public Policy 10. OECD (Organization for Economic the employment of women, women’s affairs, and women and development. This material may be quoted or Cooperation and Development), “Achieving reproduced without prior permission, Stronger Growth by Promoting a More provided appropriate credit is given to Gender-Balanced Economy,” August 15, the author and Rice University’s Baker 2014, https://www.oecd.org/g20/topics/ Institute for Public Policy. employment-and-social-policy/ILO-IMF- Cite as: OECD-WBG-Achieving-stronger-growth- El-Kharouf, Amal M. 2020. Economic by-promoting-a-more-gender-balanced- Empowerment Policies for Women in economy-G20.pdf. Jordan: A Focus on Amended Laws. Issue brief no. 06.29.20. Rice University’s Baker Institute for Public Policy, Houston, Texas.

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