Firms’ Behavior Under Discriminatory Laws and Women’s Employment in the Democratic Republic of Congo

ABSTRACT This article contributes to better understanding firms’ behavior in the presence of gender discriminatory laws and its linkages with labor market outcomes for women in a developing country setting. Using data collected through the World Bank Enterprise Surveys in the Democratic Republic of Congo, the study documents the existence of nonnegligible employer discrimination in the presence of discriminatory laws. Interestingly, discriminatory behaviors, and the related limitations in women’s autonomy, are more pervasive outside the capital city, Kinshasa, which suggests that differences in enforcement and social norms may be at play. The study also finds that, in those firms that do not enforce discriminatory laws, women benefit from better labor market outcomes, in terms of their representation among the upper echelons of management and their participation in the overall workforce. The positive relationship between nondiscriminatory behaviors and female employment is particularly strong in the manufacturing sector. HIGHLIGHTS In the Democratic Republic of Congo, discriminatory laws are linked to employer discrimination against women. Firms do not follow these laws uniformly, with enforcement varying by geography and type of law. This important nuance helps uncover the interaction between national laws and local norms. Firms that do not impose discriminatory laws have more women employees and managers.