Enhancing Job Opportunities for Skilled Women in the Palestinian Territories

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Enhancing Job Opportunities for Skilled Women in the Palestinian Territories Public Disclosure Authorized Enhancing job opportunities for skilled women in the Palestinian territories Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized 1 [Copyright page] ii Contents Acknowledgments .......................................................................................................................................... v Executive summary .........................................................................................................................................vi Abbreviations ................................................................................................................................................ xvi Chapter 1 – Introduction: Objectives, focus, and methodology .................................................................... 1 Objective of and motivation for this study ................................................................................................. 1 Rationale for focusing on the high-skilled .................................................................................................. 3 Methodology .............................................................................................................................................. 3 Organization of this report ......................................................................................................................... 6 Chapter 2 – The Challenge of skilled female unemployment ........................................................................ 7 Profile of unemployed skilled women ...................................................................................................... 10 Chapter 3 – Understanding the high rates of unemployment of skilled women ......................................... 14 Limited job opportunities for skilled workers .......................................................................................... 14 More limited jobs for skilled women than for skilled men in the private sector and in certain sectors and occupations ....................................................................................................................................... 19 Exclusion of skilled women from high-productivity entrepreneurial activities ....................................... 38 Chapter 4 – Policy Recommendations .......................................................................................................... 41 Short-term policy recommendations ....................................................................................................... 41 Medium-term policy recommendations .................................................................................................. 44 Chapter 5 - Conclusion ................................................................................................................................. 47 Appendixes .................................................................................................................................................. 48 A - Participants in qualitative data collection .......................................................................................... 48 B - Gender wage gap analysis tables ....................................................................................................... 52 C - The challenge of job creation in the Palestinian territories ............................................................... 54 References .................................................................................................................................................... 65 iii Figures 2.1 Unemployment rates of holders of advanced degrees at national level: selected economies, 2015 2.2 Composition of working-age population (15 and over), by sex and education: West Bank and Gaza, 2015 2.3 Labor force participation, by sex, education, and region: West Bank and Gaza, 2015 2.4 Unemployment rate, by sex, education, and region: West Bank and Gaza, 2015 2.5 Unemployment rate of postsecondary-educated women, by governorate: West Bank and Gaza, 2015 2.6 Unemployment rate of postsecondary-educated men, by governorate: West Bank and Gaza, 2015 2.7 Unemployment rate and composition of unemployment of postsecondary-educated men and women, by age cohort: West Bank and Gaza, 2015 2.8 Periods of unemployment of postsecondary-educated men and women: West Bank and Gaza, 2015 3.1 Percentage of skilled workers employed, by sector and sex: West Bank and Gaza, 2015 3.2 Employment of labor force, by education level: West Bank and Gaza, 2012–15 3.3 Percentage change in net employment between 2012 and 2015, by sector: West Bank and Gaza, 2015 3.4 Composition of sectoral employment for skilled workers, by sex: West Bank and Gaza, 2015 3.5 Percentage of skilled workers employed, by occupation and sex: West Bank and Gaza, 2015 3.6 Occupations of postsecondary-educated Palestinians, ISCO Sub-major Classification, 2015 3.7 Industries employing postsecondary-educated Palestinians, ISCO Sub-major Classification, 2015 3.8 Fields of postsecondary graduates (ISCED II): West Bank and Gaza, 2015–16 3.9 Share of male employment, by sector: West Bank and Gaza, 2000–2015 3.10 Share of female employment, by sector: West Bank and Gaza, 2000–2015 3.11 Net employment increase by economic activity between 2012 and 2015, West Bank and Gaza 3.12 Number of gender legal differences: selected economies, 2016 3.13 Percentage of firms with a female top manager: selected economies and years 3.14 Percentage of females with young businesses: selected economies, 2010 C.1 Labor force participation rate: West Bank and Gaza, 2000–2015 C.2 Unemployment rate: West Bank and Gaza, 2000–2015 C.3 Unemployment rate, by age group: West Bank and Gaza, 2015 C.4 Real GDP growth rates: West Bank and Gaza, 1995–Q1 2016 C.5 GDP and employment growth: West Bank and Gaza, 2000–2015 C.6 Employment and labor force growth rate: West Bank and Gaza, 2001–15 C.7 Sectoral composition of employment: West Bank and Gaza, 2000–2015 C.8 Relative composition of total employment: West Bank and Gaza: 1995 and 2015 C.9 Average daily real wage (NIS): West Bank and Gaza, 2000–2015 C.10 Mean performance in science on TIMSS, eighth-grade students, by GDP per capita: Selected economies iv Tables 3.1 Unemployment by field of education, 20–29-year-olds with a postsecondary education: West Bank and Gaza 3.2 Median daily wage for employed workers, by sex: West Bank and Gaza, 2015 A.1 Characteristics of focus group participants A.2 Characteristics of participants in employer Interviews A.3 Participants in key Informant Interviews B.1 Determinants of log hourly wage, 2015 B.2 Oaxaca decomposition of the difference in mean wages between males and females in the private sector v Acknowledgments This report was drafted by a team at the World Bank composed of Samira Hillis (program leader and task team leader), Jumana Alaref (social protection economist and task team leader), and Wouter Takkenberg (consultant). Valuable comments were received from peer reviewers Lucia Hanmer (lead economist) and Stefanie Koettl- Brodmann (senior economist), as well as from Carine Clert (lead social protection specialist), Cristobal Ridao-Cano (lead eonomist), and Nahla Zeitoun (senior social protection specialist). Suha Rabah (program assistant), Marie Agnes Huchard (program assistant), and Zein Daqqaq (team assistant) provided the team with administrative support. We thank the Palestinian Central Bureau of Statistics (PCBS) for granting access to microdata, as well as the Arab World for Research and Development (AWRAD) for excellent qualitative data collection and analysis. Finally, we are grateful for Sabra Ledent for professionally editing the report. Overall guidance was provided by Marina Wes (country director) and Hana Brixi (practice manager). This study was funded by the Norwegian government through the Norway West Bank and Gaza Support Trust Fund (NWBG–TF), which finances activities in support of the World Bank’s analytical and strategic program in the Palestinian territories. The team would like to express its gratitude to the Norwegian government for this important and timely contribution. vi Executive summary The lack of good job opportunities in the Palestinian territories (West Bank and Gaza) remains a central challenge to achieving inclusive growth, peace, and stability in the region. The unemployment rate in the Palestinian territories (PT) has remained stubbornly high since 2003, reaching 26 percent in 2015 and disproportionally affecting youth (41 percent) and women (39 percent). Meanwhile, there are stark differences in rates between the West Bank (26 percent) and Gaza (41 percent), and job informality has been persistently high, reaching 61 percent of the workforce in 2015. Limited job creation stems from low levels of private sector investment and its concentration in low- productivity sectors with weak potential for growth and job creation. This situation arises mainly from the ongoing conflict between the Palestinian territories and Israel. Volatile economic growth has not brought about employment growth, and the situation is not likely to improve in the medium term without meaningful changes in Israeli restrictions on trade, movement, and access. As noted, private sector investment remains low and far from sufficient to fuel adequate rates of economic growth, job creation, and reductions in unemployment. In addition, employment in productive tradable sectors such as manufacturing has shrunk, while
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