Gender Disparities in Africa s Labor Market

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Gender Disparities in Africa s Labor Market Gender Disparities in Africa s Labor Market Jorge Saba Arbache, Alexandre Kolev, and Ewa Filipiak Editors A copublication of the Agence Française de Développement
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Gender Disparities in Africa s Labor Market Gender Disparities in Africa s Labor Market Jorge Saba Arbache, Alexandre Kolev, and Ewa Filipiak Editors A copublication of the Agence Française de Développement and the World Bank 2010 The International Bank for Reconstruction and Development / The World Bank 1818 H Street NW Washington DC Telephone: Internet: All rights reserved This volume is a product of the staff of the International Bank for Reconstruction and Development / The World Bank. The findings, interpretations, and conclusions expressed in this volume do not necessarily reflect the views of the Executive Directors of The World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgement on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Rights and Permissions The material in this publication is copyrighted. Copying and/or transmitting portions or all of this work without permission may be a violation of applicable law. The International Bank for Reconstruction and Development / The World Bank encourages dissemination of its work and will normally grant permission to reproduce portions of the work promptly. For permission to photocopy or reprint any part of this work, please send a request with complete information to the Copyright Clearance Center Inc., 222 Rosewood Drive, Danvers, MA 01923, USA; telephone: ; fax: ; Internet: All other queries on rights and licenses, including subsidiary rights, should be addressed to the Office of the Publisher, The World Bank, 1818 H Street NW, Washington, DC 20433, USA; fax: ; ISBN: eisbn: DOI: / Library of Congress Cataloging-in-Publication Data Gender disparities in Africa s labor market / Jorge Saba Arbache, Alexandre Kolev, and Ewa Filipiak, editors. p. cm. ISBN ISBN (ebook) 1. Sex discrimination in employment Africa. 2. Sexual division of labor Africa. 3. Labor market Africa. I. Arbache, Jorge Saba. II. Kolev, Alexandre. III. Filipiak, Ewa. IV. World Bank. HD A35G ' dc Cover design: Naylor Design, Washington, DC Africa Development Forum Series The Africa Development Forum series was created in 2009 to focus on issues of significant relevance to Sub-Saharan Africa s social and economic development. Its aim is both to record the state of the art on a specific topic and to contribute to ongoing local, regional, and global policy debates. It is designed specifically to provide practitioners, scholars, and students with the most up-to-date research results while highlighting the promise, challenges, and opportunities that exist on the continent. The series is sponsored by the Agence Française de Développement and the World Bank. The manuscripts chosen for publication represent the highest quality in each institution s research and activity output and have been selected for their relevance to the development agenda. Working together with a shared sense of mission and interdisciplinary purpose, the two institutions are committed to a common search for new insights and new ways of analyzing the development realities of the Sub-Saharan Africa Region. Advisory Committee Members Agence Française de Développement Pierre Jacquet, Directeur de la Stratégie et Chef Économiste Robert Peccoud, Directeur de la Recherche World Bank Shantayanan Devarajan, Chief Economist, Africa Region Jorge Arbache, Senior Economist Contents Foreword About the Editors and Authors Acknowledgments Abbreviations xix xxi xxv xxvii Overview Why Study Gender Disparities in Africa s Labor Markets? 1 Jorge Saba Arbache, Ewa Filipiak, and Alexandre Kolev Objective of This Book 2 Countries Covered in the Studies 3 Book Organization and Topics 5 The Main Findings on Gender Disparities in Africa 8 Policy Recommendations and the Way Forward 16 PART 1 STYLIZED FACTS 21 1 Gender Disparities in Africa s Labor Markets: A Cross- Country Comparison Using Standardized Survey Data 23 Alexandre Kolev and Nicolas Sirven Data and Concepts 24 Gender Differences in Labor Market Outcomes 27 Gender Disparities at Work 36 vii viii Contents The Role of Educational Attainment and Gender Inequalities in Education 42 Conclusions 49 Annex 51 PART 2 DISPARITIES IN EMPLOYMENT, PAY, EDUCATION, AND OTHER DIMENSIONS: A MICRO-ANALYSIS 55 2 Exploring the Gender Pay Gap Through Different Age Cohorts: The Case of Ethiopia 57 Alexandre Kolev and Pablo Suárez Robles Data and Concepts 58 Methodology 62 Results 65 Conclusions 70 Annex 72 3 Gender Disparities in the Malagasy Labor Market 87 Christophe J. Nordman, Faly Rakotomanana, and Anne-Sophie Robilliard Characteristics of the Malagasy Labor Market 91 Data, Definitions, and Methods 92 Results 94 Summary and Concluding Remarks 109 Annex 3A Concepts and Methods 113 Annex 3B Summary Statistics of the Variables Used in the Econometric Analysis 120 Annex 3C Determinants of Sectoral Allocation 122 Annex 3D Wage Employment Earnings Equations 134 Annex 3E Earnings Gap Decompositions for Wage Workers Gender Differences in Pay in African Manufacturing Firms 155 Christophe J. Nordman and François-Charles Wolff Data and Descriptive Statistics 158 Contents ix Econometric Results 163 Conclusions 171 Annex 4A Tables 175 Annex 4B Methodology Addressing Gender Inequality in Ethiopia: Trends, Impacts, and the Way Forward 193 Caterina Ruggeri Laderchi, Hans Lofgren, and Rahimaisa Abdula An International Perspective on Trends in Gender Disparities 195 National Data on Gender Disparities over the Last Decade 195 The Macroeconomic Benefits of Addressing Gender Inequalities 201 Insights from the MAMS Modeling 211 Conclusions and Policy Implications 214 Annex 5A Tables 216 Annex 5B A Brief Description of the Engendered Ethiopia MAMS Application 222 PART 3 DISPARITIES IN LABOR INCOME: MACRO MICRO SIMULATIONS Gender, Time Use, and Labor Income in Guinea: Micro and Macro Analyses 231 Juan Carlos Parra Osorio and Quentin Wodon Introduction 231 Gender, Labor Income, and Time Use from Household Survey Analysis 233 Macroeconomic Analysis of Sectoral Growth and Labor Income Shares 245 Sectoral Demand Shocks and Impact on Labor Income Shares by Gender 252 Conclusion 261 Annex 6A Construction of Total Income in the EBEIP Household Survey 265 Annex 6B Block Decomposition of the SAM Multiplier Matrix 266 x Contents 7 How Does Growth Affect Labor Income by Gender? A Structural Path Analysis for Tanzania 273 Juan Carlos Parra Osorio and Quentin Wodon Introduction 273 Main Features of the 2001 Tanzania SAM 276 Sectoral Growth and Impact on Labor Income Shares by Gender 280 Structural Path Analysis 285 Conclusions 291 Annex 7A Structural Path Analysis 292 PART 4 DISPARITIES IN TIME USE Gender Disparities in Time Allocation, Time Poverty, and Labor Allocation Across Employment Sectors in Ethiopia 299 Pablo Suárez Robles Data, Concepts, and Methodology 301 Results 306 Conclusions 322 Annex 8A Annex 8A Domestic Work Time in Sierra Leone 333 Quentin Wodon and Yvonne Ying Introduction 333 Basic Statistics 335 Regression Analysis 352 Conclusions 354 PART 5 DISPARITIES IN BARGAINING POWER Gender Labor Income Shares and Human Capital Investment in the Republic of Congo 359 Prospere Backiny-Yetna and Quentin Wodon Introduction 359 Income Sources in the Republic of Congo 361 Contents xi Impact of Gender Labor Income Shares on Consumption 370 Conclusions Income Generation and Intra-Household Decision Making: A Gender Analysis for Nigeria 381 Diego Angel-Urdinola and Quentin Wodon Introduction 381 Data and Basic Statistics 383 Econometric Analysis 393 Conclusions 397 Annex Detailed Regression Results 398 Index 407 Figures 1.1 Labor Force Participation Rate by Gender, around Relationships Between Male and Female Employment Ratios, around Women s Share in Total Employment, around Male-to-Female Employment Ratio by Country, around Ratio of Unemployment Between Richest and Poorest Households, around Incidence of Low-Paid Work in Total Wage Employment and Self-Employment, around Weekly Female-to-Male Pay Ratios, around Share of Employed Men and Women in Different Employment Status, around Gender Differences in Sectors of Employment Gender Differences in Literacy and Education, around Gender Differences in Enrollment Ratios Among Children Ages 7 12 by Location, around Gender Differences in Enrollment Ratios Among Children Ages 7 12 by Consumption Quintiles, around Distribution of Individuals Aged 15 and Older Across All Sectors of Employment in Madagascar 95 xii Contents 3.2 Distribution of Individuals Aged 15 and Older Across All Sectors of Employment in Urban and Rural Areas Gender Composition of the Employee Samples Descriptive Statistics of the Gender Wage Gap Quantile Decompositions of the Gender Wage Gap, by Country Decomposition of Gender Earnings Differentials Accounting for Gender Segregation Across Firms Selected Gender Indicators Profile of Educational Attainment by Age Cohort, Gender, and Rural and Urban Location Simulation Results: GDP Growth at Factor Cost Simulation Results: Gross Enrollment Rate, Secondary Simulation Results: Wage Growth for Labor with Secondary Education Average Household Income and Consumption by Consumption Quintile in Guinea Sectoral Impact on Male Labor and Male Labor Elasticity (Shock of 1% of Aggregate Exports) Sectoral Impact on Female Labor and Female Labor Elasticity (Shock of 1% of Aggregate Exports) Difference in Sectoral Impact on Female and Male Labor Income and Impact on Aggregate GDP (Shock of 1% of Aggregate Exports) Difference in Sectoral Impact on Rural and Urban Labor Income (Shock of 1% of Aggregate Exports) Difference in Sectoral Impact on Urban Unskilled and Urban Skilled Labor Income (Shock of 1% of Aggregate Exports) Difference Between Sectoral Impact on Female and Male Labor Income, and Impact on Aggregate GDP (Shock of T Sh 100 million) Difference Between Sectoral Impact on Workers with No Formal Education and Unfinished Secondary (Shock of T Sh 100 million) Concentration of Selected Transmission Channels from Growth to Labor Income Example of Paths to a Category of Labor 289 Contents xiii 7.5 Speed of Selected Transmission Channels of Shocks from Growth to Labor Income 290 7A.1 Sketch Map for Calculation of Total Influence Generalized Lorenz Curves for Total Work Time by Gender in Urban Areas in Ethiopia, Generalized Lorenz Curves for Total Work Time by Gender in Rural Areas in Ethiopia, Impact of Gender Variables on Consumption Patterns in the Republic of Congo, Decision Making on Education by Age and Gender in Nigeria Decision Making on Health by Age and Gender in Nigeria Decision Making on Food by Age and Gender in Nigeria Decision Making on Clothing by Age and Gender in Nigeria Decision Making on Shelter by Age and Gender in Nigeria Decision Making on Sale of Farm Crop by Age and Gender in Nigeria Decision Making on Land Use by Age and Gender in Nigeria Main Contributor of Income in the Household by Age and Gender in Nigeria 392 Tables O.1 Countries Covered in This Volume List of Surveys by Country and Date Employment Ratio by Gender, around Employment Ratio by Gender and Age Class, around Gender Differences in Unemployment Rates by Age and Location, around Average Incidence of Underemployment (Less Than 30 hours of Work per Week) Share of Employed Men and Women in Selected Employment Status, around Employment Status of the Active Population by Gender and Education Level, Regional Average, around xiv Contents 1.8 Share of Employed Individuals in Selected Employment Status by Gender and Education, Regional Average, around Earnings Gap Ratio by Education Level and Gender 44 1A.1 Frequencies for Missing Data by Country Individuals, ages Selected Labor Market Indicators, Nature and Terms of Wage Employment in Total Wage Employment, Unadjusted Gender Monthly Wage Gap by Age and Wage Level, Levels of Education Among the Wage-Employed by Gender, Lower and Upper Estimates of Private Returns to Education, A.1 Selectivity Corrected (Heckman Two-Step Method) Log Monthly Earnings Equations in Wage Employment by Gender, A.2-1 Selectivity Corrected (Heckman Two-Step Method) Log Monthly Earnings Equations in Wage Employment by Gender, 2005 (age group 15 24) 74 2A.2-2 Selectivity Corrected (Heckman Two-Step Method) Log Monthly Earnings Equations in Wage Employment by Gender, 2005 (age group 25 34) 76 2A.2-3 Selectivity Corrected (Heckman Two-Step Method) Log Monthly Earnings Equations in Wage Employment by Gender, 2005 (age group 35+) 78 2A.3 The Cotton-Neumark Decomposition of the Gender Mean Log Monthly Earnings Differentials in Wage Employment 80 2A.4 The Cotton-Neumark Decomposition of the Gender Mean Log Monthly Earnings Differentials in Wage Employment by Age Cohorts (15 24, 25 34, 35+) Selected Labor Market Indicators in Madagascar Monthly Hours Worked in Madagascar Gender Earnings Gaps in Madagascar Full Decomposition of the Gender Wage Gap (OLS estimates) 107 Contents xv 3B.1 Summary Statistics of the Variables Used in the Labor Allocation Models 120 3B.2 Summary Statistics of the Variables Used in the Earnings Equations 121 3C.1 Nature and Terms of Employment in Total Employment in Madagascar 122 3C.2 Nature and Terms of Employment in Total Employment in Urban Areas 124 3C.3 Nature and Terms of Employment in Total Employment in Rural Areas 126 3C.4 Determinants of Labor Allocation Across Paid Employment and Agricultural Self-Employment (Multinomial Logit Models) 128 3C.5 Determinants of Labor Allocation Across Sectors for Males (Multinomial Logit Models) 130 3C.6 Determinants of Labor Allocation Across Sectors for Females (Multinomial Logit Models) 132 3D.1 Log Hourly Earnings Equations for Wage Employment 134 3D.2 Log Hourly Earnings Equations for Public Wage Employment 136 3D.3 Log Hourly Earnings Equations for Formal Wage Employment 138 3D.4 Log Hourly Earnings Equations for Informal Wage Employment 140 3D.5 Log Hourly Earnings Equations for Non-Farm Self-Employment 142 3E.1 Neumark s Decomposition of the Gender Log Hourly Earnings Gap (OLS estimates) 144 3E.2 Neumark s Decomposition of the Gender Log Hourly Earnings Gap by Wage Employment Sector (OLS estimates) 145 3E.3 Neumark s Decomposition of the Gender Mean Log Hourly Earnings Gap in the Non-Farm Self-Employment Sector (OLS estimates) 147 4A.1 Descriptive Statistics on the Workforce 175 4A.2 Descriptive Statistics on the Firms 177 4A.3 Linear Regression of the Log Hourly Wages 179 4A.4 Decomposition Using Fields of the Log Hourly Wages 181 xvi Contents 4A.5 Gender Estimates from Quantile Regressions of the Log Hourly Wages 182 4A.6 Decomposition of the Gender Earnings Differentials Accounting for Gender Segregation Across Firms Description of Simulations Simulation Results: Macro Indicators Simulation Results: Enrollment and Gross Enrollment Rate (GER) by Cycle and Gender Simulation Results: Wages, Employment, and Wage Income by Education and Gender 207 5A.1 Selected Gender Indicators: Ethiopia vs. Sub-Saharan Africa vs. Low-Income Countries, A.2 Selected Gender Indicators: Ethiopia vs. Sub-Saharan Africa vs. Low-Income Countries, A.3 Ethiopia: Selected Aggregate and Disaggregated Indicators of Gender Disparities, A.4 Ethiopia: Selected Aggregate and Disaggregated Indicators of Gender Disparities, A.5 Simulation Results: Time Use by Education and Gender Selected Scenarios Analysis of the Correlates or Determinants of Individual (Log) Wage Incomes in Guinea, Work Time (hours/week) of Individuals Over Age 15 in Guinea, Time (hours/week) Devoted to Different Work Activities by Sex, Age, and Region, Rate of Time Poverty of Individuals Over Age 15 in Guinea, Effects of Work Time Increases by Individuals Over Age 15 on Household Income or Consumption in Guinea, Effect of Increase and Reallocation of Work Time on Monetary Poverty and Inequality in Guinea, Schematic Social Accounting Matrix Sectoral Analysis for the Guinea SAM, 2005 (in GNF billions) Summary Data on Labor Income Shares in the Guinea SAM Effect on Labor of an Exogenous Demand Shock of 1 Percent of Aggregate Exports, Contents xvii 6.11 Percentage of Total Multiplier Effect Resulting from Indirect Effects in Guinea, A.1 Definition of Aggregate Household Income Sectoral Analysis for Tanzania SAM, 2001 (T Sh million) Summary Data on Labor Income Shares in Tanzania SAM Effect on Labor of Exogenous Demand Shock of T Sh 100 million Example of Structural Path Results 287 7A.1 Structural Path Analysis for Tanzania, Decomposition of Average Total Work Hours Per Week by Gender in Ethiopia, Decomposition of Average Total Work Hours Per Week by Place of Residence and Gender in Ethiopia, Time Poverty Rates and Gaps by Place of Residence and Gender in Ethiopia, Labor Force Participation and Unemployment in Ethiopia, Measures of Labor Supply in Ethiopia, Distribution of Workers by Employment Sectors in Ethiopia, Distribution of Workers by Sector of Activity, Occupation, and Terms of Employment in Ethiopia, A.1-1 Determinants of Hours Per Week Worked in the Labor Market by Gender and Place of Residence in Ethiopia, 2005 (Tobit models) 324 8A.1-2 Determinants of Hours Per Week Worked in the Household by Gender and Place of Residence in Ethiopia, 2005 (Tobit models) 325 8A.2-1 Marginal Impacts of Covariates on Male Segment Employment Choices after Multinomial Logit Estimation 327 8A.2-2 Marginal Impacts of Covariates on Female Segment Employment Choices after Multinomial Logit Estimation Domestic Work According to Gender and Age Group in Sierra Leone, Domestic Work According to Access to Water and Electricity in Sierra Leone, Domestic Work According to Per Capita Consumption Status in Sierra Leone, xviii Contents 9.4 Domestic Work According to Employment Status in Sierra Leone, Domestic Work According to Migration Status in Sierra Leone, Domestic Work According to Household Composition in Sierra Leone, Determinants of the Number of Hours Spent on Domestic Work per Week in Sierra Leone, Household Income and Consumption by Quintile of Consumption in the Republic of Congo, Household Income in the Republic of Congo According to Sources, Determinants and Basic Statistics Concerning Individuals Wages in the Republic of Congo, Basic Statistics on Expenditure Shares (%) in the Republic of Congo, Correlates of Household Consumption Shares for Various Items in the Republic of Congo, Correlates of Household Consumption Shares for Two Aggregated Categories, Republic of Congo, Basic Statistics on Employment and Education by Gender in Nigeria Contribution to Household Expenses and Decision Making by Gender and Poverty Status in Nigeria Impact of Income Contribution on Decision Making by Gender in Nigeria Impact of Income Contribution on Decision Making by Gender and Poverty Status in Nigeria A.1 Bivariate Probit Regressions for Women in Nigeria A.2 Bivariate Probit Regressions for Men in Nigeria 402 Foreword In the early 2000s, women s weekly earnings as a fraction of male earnings were 79 percent in Ghana, 51 percent in Nigeria, 45 percent in Mozambique, and 23 percent in Burkina Faso. It is tempting to conclude that this wage gap which is pervasive throughout Africa is a sign of discrimination against women in the labor market. This book shows instead that the wage gap is a reflection of a number of factors, ranging from labor market conditions to access to education to cultural values and attitudes in the household. Specifically, when characteristics that usually explain labor market earnings such as human capital are taken into account, there is still a gap. While this unexplained component is often interpreted as discrimination against women in the job market, the authors show that other explanations also play a substantial role. Women suffer from having fewer educational opportunities, limited access to credit, and less time to wo
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