Unlocking Gender Equality: How Laws Shape Women’s Economic Power Worldwide

The World Bank’s Women, Business and the Law report provides a comprehensive global assessment of how laws, policies, and enforcement affect women’s economic opportunities. Using a life-cycle and three-pillar framework, it highlights both progress and persistent legal barriers to gender equality across 190 economies.

The World Bank’s Women, Business and the Law (WBL) report, developed under the Development Economics Global Indicators Group (DECIG), has emerged as a vital global benchmark for measuring how legal and institutional systems affect women’s economic empowerment. Drawing upon insights from leading institutions such as the International Labour Organization (ILO), UN Women, the World Economic Forum, and research from Harvard University, the London School of Economics, and the University of Oxford, the WBL project is grounded in the understanding that gender equality is not just a human rights imperative but a catalyst for economic prosperity. It estimates that bridging gender gaps in employment and earnings could boost global GDP per capita by as much as 20 percent. With such compelling economic incentives, WBL provides not only a diagnosis of systemic legal inequalities but also a roadmap for reform to unlock the potential of half the world’s population.

A Life-Cycle Approach to Economic Opportunity

The WBL framework takes a life-cycle approach, evaluating how laws and policies impact women as they transition through different stages of economic life, from adolescence through employment, entrepreneurship, and retirement. It organizes data into ten thematic areas: Safety, Mobility, Workplace, Pay, Marriage, Parenthood, Childcare, Entrepreneurship, Assets, and Pension. These are analyzed through three core pillars: legal frameworks (laws as written), supportive frameworks (institutional and policy supports), and enforcement perceptions (expert assessments of whether laws are upheld in practice). This approach ensures that the data reflect both statutory rights and their implementation in the real world, offering a comprehensive view of how gendered laws influence women’s daily lives and economic agency.

Deep Data, Global Coverage

With data spanning 53 years (1970–2023) and covering 190 economies, WBL’s database is one of the most comprehensive in existence on the topic of women’s legal rights and economic inclusion. The project has identified more than 600 legal reforms enhancing women’s opportunities since its inception in 2009. Updated annually, the WBL index evaluates 400 indicators per economy, enabling detailed assessments and cross-country comparisons. The methodology, refined in 2024 and enhanced further for the 2026 data cycle, now includes partial scoring to reflect incremental progress and complex legal structures. It captures nuances such as government-backed childcare, gender-based violence laws, and anti-discrimination protections, thereby offering a more accurate and actionable picture of gender equality.

Law in Practice, Not Just on Paper

One of the report’s most significant methodological advancements came in 2024, when WBL expanded its scope beyond the existence of laws to include their practical implementation. The project began analyzing whether policies are supported by enforcement institutions, whether governments collect disaggregated data, and how experts perceive the enforcement of these laws in everyday life. This addition highlights the gap between de jure reforms and de facto realities, a recurring obstacle in many regions. For example, while many countries have enacted laws against domestic violence or workplace discrimination, weak enforcement mechanisms often mean women still face systemic barriers. Through expert surveys and perception-based indicators, WBL attempts to capture these enforcement gaps and provide a more honest reflection of women’s lived experiences.

A Tool for Reform and Economic Growth

Governments, international agencies, investors, and civil society organizations have turned to WBL findings as a blueprint for reform. The data have informed national development strategies, guided revisions in labor and family law, and supported advocacy efforts in every region of the world. In countries like Ghana, Colombia, and Indonesia, WBL metrics were instrumental in designing policies on maternity benefits, domestic violence protections, and entrepreneurship programs. Academic studies by economists such as Esther Duflo, Rohini Pande, and Markus Goldstein have shown that legal reforms tracked by WBL correlate strongly with increased female labor force participation, reduced wage gaps, and improved household outcomes. Furthermore, the index aligns with global frameworks such as the UN Sustainable Development Goals and the World Bank’s Gender Strategy 2024–2030, reinforcing its value as a policymaking tool.

Challenges and the Road Ahead

While the WBL framework is robust, it acknowledges its limitations. The focus on codified laws may overlook the influence of customary or religious norms, particularly in mixed legal systems. Moreover, while the index prioritizes the formal economy, many women operate in informal sectors where protections may be absent or unenforced. Intersectional dimensions, such as race, disability, and sexual orientation, are also not yet integrated into the scoring, although pilot research is exploring these areas. Nevertheless, the introduction of subnational analysis and granular partial scoring marks a significant advance in capturing legal and economic realities more accurately. As it evolves, WBL aims to better reflect women’s diverse experiences and guide more inclusive reforms.

In essence, Women, Business and the Law is more than just a data tool, it is a global catalyst for gender equity and economic development. By offering a clear view of the structural barriers women face and the benefits of removing them, it empowers decision-makers to create more just, prosperous, and resilient societies. The project continues to refine its methods, broaden its scope, and deepen its impact, reinforcing the idea that equitable legal systems are not only a moral obligation but an economic necessity.