Breaking barriers: How an international treaty for women reduces the size of the informal economy

Original

Breaking barriers: How an international treaty for women reduces the size of the informal economy

Chris Gahagan

Abstract

Abstract Prior research on the role the Convention on the Elimination of All Forms of Discrimination Against Women (CEDAW) has improving women's outcomes has shown ratification results in increased political and social rights, yet no improvements in economic rights. I challenge prior findings by providing evidence that CEDAW improves women's economic rights by reducing gendered legal barriers to employment. I also demonstrate CEDAW has unexpected but desirable downstream consequences that further improve women's economic outcomes by facilitating movement from the informal to the formal economy. Through matching within a difference‐in‐differences design, I show ratifying countries experience a significant increase in women's equality of economic opportunity and a significant decrease in the size of the informal economy. These results hold under multiple robustness checks and placebo tests. By examining specific outcomes that are relevant to CEDAW, I offer greater insight into CEDAW's impact on women's economic outcomes than previous research has afforded.