Africa: Study Sheds Light on Gender Disparities in Labour Markets

By Peter Omondi

WASHINGTON- – A new study published by the World Bank reveals that gender inequalities remain a concern in African labour markets despite variations from one country to another. Titled, Gender Disparities in Africa’s Labor Market, reveals that overall there is a 17 percentage-point difference between the labour force participation rate for men (78.3 percent) and women (61 percent).

The methodology of the study was based on an analysis of household survey data collected in the early 2000s in 18 countries across Africa, looking into gender dimensions in employment, unemployment, pay gap, as well as the role of educational attainment.

According to the study, women’s participation rates in the labour market range from under 40 percent in Ethiopia, Kenya, Malawi, and Uganda, to 80 percent and above in Burkina Faso, Burundi, Gambia, Ghana, Guinea, and Sierra Leone. For Sub-Saharan Africa as a whole, women’s employment ratio over the survey period is 25 percent lower than for men, respectively at 53 percent and nearly 70 percent.

The study says that in a number of African countries, women are almost twice as likely as men to be in the informal sector and about two times less likely to have a public or private formal job. Gender pay gap is high, but varies a great deal among countries. The ratio of average female-to-male weekly labour income ranged from 23 percent in Burkina Faso to 79 percent in Ghana. Segmentation by sector of employment shows that 70 percent of women work in agriculture (compared to 64 percent of men), 6 percent in small industries (men’s rate is 13 percent), and 23 percent in the service sector. Overall, women were underrepresented in the industry and service sector.

“What we found is that these disparities are caused mainly by very limited job prospects, differences in education, power dynamics in the household, and other human capital variables. We found little evidence to support the idea that labour market discrimination is a key explanation for gender gaps in underdeveloped economies, especially those whose job markets are small and can only supply formal employment for a minority of the population,” says World Bank Senior Economist Jorge Arbache, one of the report’s editors. “Disparities are indeed greater in countries that have few job opportunities to begin with and, conversely, countries with the highest job rate for men are also those with the least gender disparities. Job creation is therefore a critical prerequisite for gender equality.”

The study draws attention to the importance of educational attainment in helping bridge the gap. Survey data shows that on average the male-to-female earnings ratio is as high as 2.8 among individuals with no education, and as low as 0.9 among those with post-secondary education. The authors therefore recommend that policymakers adopt targeted measures that facilitate women's access to education, such as conditional cash transfer programs, that encourage families to enroll girls in schools.

“In Africa, education not only has a favourable effect on earnings, but also a positive impact on gender wage equity. The higher the educational level, the lower the incidence of low-paid jobs,” Arbache said.

The report comes up with a raft of recommendations, including facilitating women’s ownership of land and access to microcredit, as well as targeted measures that increase their bargaining power within the household, including through sensitization campaigns. Likewise the combined efforts of improvements in a country’s business environment, along with investments in growth-critical infrastructure (such as reliable electricity supply), can go a long way in expanding job opportunities, and therefore reducing gender gaps. 

The 18 African countries surveyed: Burkina Faso, Burundi, Côte d’Ivoire, Cameroon, Ethiopia, The Gambia, Ghana, Guinea, Kenya, Madagascar, Malawi, Mauritania, Mozambique, Nigeria, São Tomé and Príncipe, Sierra Leone, Uganda, and Zambia. Case studies were done in Congo Republic, Ethiopia, Guinea, Madagascar, Nigeria, Sierra Leone, and Tanzania, while cross-country studies were done Benin, Kenya, Madagascar, Mauritius, Morocco, Senegal and Uganda.