51794 April 2009 . Number 6 GE DER-BASED DIFFERE CES AMO G E TREPRE EURS A D WORKERS I LEBA O Randa Akeel1 are operationally active in the management of their companies. In certain earlier surveys, Introduction: share ownership had been used to define entrepreneurs, which could be misleading since Are there significant differences between the some businesses are registered under the name perceptions and labor market experiences of of female owners who have no active role in male and female entrepreneurs and workers in company management. Lebanon? Are such differences important to the optimal deployment of females in the Main Findings: workforce? This report approaches these issues empirically through two surveys conducted in Entrepreneurs (see Table 1): 20072. The first was a survey of 235 formal Female entrepreneurs, as opposed to male sector firms3 (109 female owned and 126 male entrepreneurs, provide greater employment owned) and the second was a survey of 615 opportunities to other females. On average, 47 workers (342 females and 273 males). percent of the labor force in female owned enterprises was composed of women compared Careful attention was paid to sampling and to 34 percent in male owned enterprises. definitions to ensure reliable results. The samples for both surveys were stratified by Women entrepreneurs provide better treatment to sector of activity4 and firm size5 (defined by workers and are especially sensitive to the needs of number of employees). Sample sizes were large female employees. The survey data show that 50 enough to allow for statistically rigorous percent of female-owned firms offered family comparison between the two gender groups. health insurance coverage to workers compared Also, attention was paid to ensure that the to 37 percent of male-owned firms. Eighty definition of entrepreneur captured those who percent of female employees were given maternity leave upon request in female-owned firms compared to 72 percent in male-owned 1 firms. Finally, in male owned firms more than Randa Akeel, Economist, MNSED. This Fast Brief is largely based on the Executive Summary of "Gender-Based Differences 6 percent of female employees' requests for among Entrepreneurs and Workers in Lebanon." 2 annual leave were rejected compared to less While the survey was held nationwide, most of the substantive responses came from the Greater Beirut area. Two thirds of than 0.5 percent of such requests by male business activities in Lebanon take place in the Greater Beirut employees. However, in female owned firms, area. only 0.53 of annual leaves submitted by women 3 Although weights were developed to achieve population and 0.1 percent submitted by male employees representation, it should be noted that the firm samples do not provide a statistical incidence of female entrepreneurship in the were denied.6 Lebanese private sector per se; however, given the small number of female entrepreneurs and employers in Lebanon as shown by other sources it can somewhat reflect the situation on the ground - Annex 1 (of the main report) provides a detailed breakdown and 6 The data also shows that women with young children (less than explanation of the sampling and the data and to what extent it 7 years of age) ask for more leave than all other groups, however, reflects the population. 4 neither these women, nor their male counterparts with young Manufacturing, trade, services, construction, IT, and hotel & children have had their requests for annual or other leave rejected restaurants. (sick leave is an exception where more women with children than 5 Small (>=5, <=9), medium (20-99), Large (100 and over). men face rejection). Those facing the highest rejections to their Table 1: Survey Data - Enterprises Female Owned Male Owned Firms Firms Proportion of workforce that is female (%) 47 34 Proportion of firms offering family health insurance (%) 50 37 Maternity leave requests of female workers approved (%) 80 72 Annual leave requests of female workers rejected (%) 0.53 6 Annual leave requests of male workers rejected (%) 0.1 0.5 Firm owners who consider female workers to be more 40 32 skilled/productive than male workers (%) Proportion of firms with 20% - 50% of Board members 73 36 female Firms with access to a bank loan to finance capital or 48 64 operations (%) Female entrepreneurs have a better perception of married. The corresponding numbers among female workers as opposed to their male colleagues: male workers are 47 percent and 51 percent. 40 percent consider female employees as more skilled/productive compared to 32 percent of In certain respects, female workers face more male entrepreneurs. challenging working conditions than do their male counterparts. A female employee's request for Female entrepreneurs, as opposed to their leave for unexpected travel or funeral counterparts, provide greater professional attendance is five times more likely to be opportunities for other females: 73 percent of rejected compared to the same request by a female owned firms had Boards with 20-50% male employee. Moreover, the rejection rate for female members as compared to only 36 sick leave requests by female workers is 11 percent of male owned firms. times higher than that for male workers (Figure 1). A closer look at the data shows that "leave Female entrepreneurs are more sensitive to financial discrimination" mostly occurs as it relates to and regulatory constraints. Female entrepreneurs un-married females without small children. listed such constraints higher among Leave rejection rates for female and male investment climate challenges than did male workers with small children are practically counterparts, which may be related to their non-existent and almost the same (0.55 percent differential access to finance. Sixty four percent versus 0 percent respectively). of male entrepreneurs who financed their capital or operations had access to a bank loan Figure 1: Percentage of leave requests denied by as compared to only 48 percent of female gender of the employee entrepreneurs. 7 6 Workers (see Table 2): 6 Female workers are better educated than male workers: 65 percent of female workers have 5 completed college education or above 4 4 3.7 compared to 46 percent for males. % Female 3 Female workers tend to be single and younger. The Male average age of female workers is 31 while that 2 of male workers is 35. Among female workers, 1.2 68 percent are single while 29 percent are 1 0.4 0.3 0 Other leave Annual leave Sick leave leave requests (annual, sick, and other) are women without children. April 2009 Number 6 2 Table 2: Survey Data - Workers Female Male Workers who have completed college education or above (%) 65 46 Number of days absent With small children (under age 7) 10 5 Without small children (under age 7) 5 5 Leave requests (Annual, sick and other) - % With small children (under age 7) 69 65 Without small children (under age 7) 65 65.7 Rejection of all leave requests (Annual, sick, and other) - % With small children (under age 7) 0.55 0 Without small children (under age 7) 5.35 0.82 Rejection of all leave request (Annual, sick, and other) - % Never married 5 0.46 Married 4 0.78 Female workers face wage discrimination: nearly 27 The degree of sector segregation among women has percent of the wage difference8 between male and declined over time. Thus, while older women female employees is shown, by statistical analysis, (between 51 and 70 years of age) are heavily to plausibly be attributable to discrimination. concentrated in the manufacturing sector, younger Wage gaps exist even within the same sector and women tend to be more spread out across the main occupation and even after controlling for different sectors of economic activity (see Figure 2). levels of education9. However, wage discrimination varies by age and is non-existent for younger Figure 2: Female Employment by Sector and Age female workers. The survey data show that not 100% 4 1 0 only does the gender wage gap not exist for 6 6 8 4 5 19 younger workers (under 30 years of age), these 80% 4 women are also just as likely as men to get 42 41 21 promotions. 41 IT 60% Hotel & Restaurants Concluding remarks: 17 Construction 40% 20 Services 17 60 Commerce The findings of this report show that compared to 20% 35 Manufacturing their male counterparts, female entrepreneurs tend 23 26 to hire more women and to provide them with (as 0% well as their male employees) better working 18-30 31-40 41-50 51-70 Age in years conditions. Hence, making it easier for more women to become entrepreneurs should make a positive contribution both to female labor force In their decision to work, female workers place a larger participation and to general working conditions in emphasis on non-wage factors than do male workers. the country. Public policy should focus, in Although income stability and high position are particular, on two key constraints that female relevant to both female and male workers, non- entrepreneurs face: access to finance and complex wage conditions are especially important for regulations. women. When asked to prioritize, female workers stressed availability of flexible work, proximity to Loan guarantee schemes for small businesses such the home, no child at home, and availability of as the one offered by Kafalat in Lebanon can be an nurseries, while male workers listed monetary effective mechanism to ease access to financing for factors such as fixed salary, benefits, and availability of social security (NSSF7) coverage. 8 Data is for wages only, hence this does not refer to earnings. 9 Differences in working hours: variables such as sex, age, and marital status affect the number of working hours. After controlling for these variables, there appeared no statistically significant difference in the 7 National Social Security Fund. number of working hours between female and male employees. April 2009 Number 6 3 SMEs. Setting up such a program that focuses on In addition, the low level of married female supporting female entrepreneurs should be workers in the sample suggests that more women explored. Similarly, loan guarantee programs for choose not to participate in the labor force when individual loans such as those offered to students married. To support work for women with could be structured to support women wanting to children, governments could support initiatives for pursue private sector related initiatives. With childcare such as extending the school day, early regards to reducing regulatory proceedings, some childhood education and after school programs. countries have set up service centers (usually at the Furthermore, revisions to the labor law should Chamber of Commerce) that provide assistance in focus on facilitating flexible and part-time navigating all regulatory processes and agencies. employment regulations and conditions. Locating these centers within officially recognized and high profile associations such as the Chamber The above findings pertain to formal sector firms. It of Commerce would allow investors options other would be useful to complement these findings with than resorting to unmonitored or unlicensed a survey of the gender characteristics of the agencies and individuals where there is a high risk informal and micro enterprise sectors, particularly of not getting the full process done. since ninety percent of Lebanese firms are in the informal sector and are micro enterprises10 in size In terms of areas for further research, a gender and nature. based analysis of financing could highlight the ways in which women face these issues differently Contact MNA K&L: than men. In the Lebanese banking system, loans Nadir Mohammed, Director, MNA Operational are highly collateralized and typically provided Core Services Unit David Steel, Manager, MNA Development under an individual's name as opposed to a Effectiveness Unit company's name. Women are less likely than men to own assets or to have assets registered in their Regional Quick Notes Team: name (such as land or housing), which can inhibit Omer Karasapan, Dina El-Naggar, Roby Fields, their ability to borrow. Najat Yamouri, and Aliya Jalloh Tel #: (202) 473 8177 The findings of this report also show that, for various reasons, certain categories of female The MNA Quick Notes are intended to summarize workers (such as single women) find it more lessons learned from MNA and other Bank Knowledge and Learning activities. The Notes do not difficult to get leave. Married women (especially necessarily reflect the views of the World Bank, its those with children) appear to struggle with board or its member countries. maintaining the same level of work commitment compared to those not married, exhibiting high absenteeism and leave requests. 10 Less than 5 employees. April 2009 Number 6 4