Gender equality is one of the keys to sustainable economic development, and a casual observation shows that various governments have been implementing different policies to promote gender equality. However, before implementing policies, governments must first assess the extent of gender inequality. Afterwards, evidence-based policies can be implemented to rectify the inequality. Finally, the government can evaluate those policies using the scientific method to measure their effectiveness. If they are effective, the policies can be continued; if not, then they need to be re-evaluated.

As one can imagine, appropriate and time-sensitive data is needed to assess the problem, implement the policies, and finally measure their effectiveness. However, in many developing countries, nationally-representative data is collected irregularly, mainly because of financial constraints. Thus, as development economists, we have to work with any available data that can help assess the problem at hand. One such piece of data that I, along with Aletheia Donald and Anja Robakowski of the World Bank, had access to was a comprehensive national survey of households in Burkina Faso in 2019. Armed with this dataset, named Enquête Harmonisée sur les Conditions de Vie des Ménages (EHCVM), we were able to gauge the extent of gender inequality in Burkina Faso for the year 2019. Our results are available in the working paper “Explaining Gender Differences in Economic Outcomes in Burkina Faso.” (link)

A large proportion of women participate in the labor force, according to the dataset (78% of women are part of the labor force, compared to 85% of men). This number is much higher compared to South Asian countries. However, this higher labor force participation does not mean women are treated equally in the workplace. When we looked at wage earnings, women earned 82% less than men. Businesses run by women earn 60% less revenues when compared to businesses run by men. Similarly, women managing their farms grow crops whose value is 60% less than the value of crops grown by men. Thus, in every sector of the economy, women earned significantly less than men.

We compared these gender gaps of 2019 using data obtained from 2014 Living Standards Measurement Survey (LSMS) of Burkina Faso. The wage gap was around 70 percent in 2014, but it rose to over 80 percent in 2019. The gap in business revenues remained the same over the years, and the gap in harvest value rose slightly. This exercise showed that the gender gaps have been persistent, if not growing.

To investigate why gender gaps are persistent in Burkina Faso, we ran a test called the Kitagawa-Oaxaca-Blinder (KOB) decomposition on labor force participation, wage earnings, business revenues, and harvest values. The KOB decomposition helps a researcher find out the correlates of the gap. For example, we found that the average wage gap between men and women in Burkina Faso is 82%. So, if men earn $100, women earn $18. The KOB decomposition tells us if this difference in earnings is due to women having fewer ‘endowments’ (such as less education, skills, training, or tools or machinery to work with) or if it is due to ‘returns’, which means that the endowments of women are valued less than those of men. This decomposition does not establish a causal relationship, but it helps us see what factors correlate with the earnings gap. 

When decomposing differences in labor force participation, we find that most of the gender gap is correlated to differences in returns, not endowments. Thus, women have lower participation because some of their endowments are valued less in the market. For the gap in wages, we find that much of it is correlated to women employees working in agriculture as unpaid workers. Compared to men, fewer women work in higher-skilled jobs and as managers, which also correlates to an increase in the gender gap. The gender gap in business revenues is mainly correlated with the fact that fewer men work than women in business. We infer that this is because men may not want to work under female managers, and so women-run businesses may not be able to employ the desired number of people.

In agriculture, we find that the gender gap in harvest value is correlated with the fact that women do not grow cash crops like cotton, and they implement a lower amount of labor and non-labor inputs compared to men. Women farm managers also use fewer fertilizers, pesticides, and farming equipment, which could increase the gender gap.

Based on the findings of the KOB decomposition, we recommend certain policies to close the gender gap. These policies are evidence-based; that is, they were evaluated using a randomized control trial (RCT) in sub-Saharan Africa. We recommend the government improve the skills of women. Vocational skills, life skills training, and other empowerment programs have been shown to improve the economic outcomes of women (Buehren et al., 2017; Bandiera et al., 2020). Special emphasis on increasing representation of women in management positions and reducing occupational segregation can increase women’s participation in male-dominated and lucrative sectors (Croke, Goldstein, and Holla, 2018; Porter and Serra, 2020; Breda et al., 2021). We also recommend providing business capital to women entrepreneurs and promoting financial inclusion (Bass et al., 2014; Carranza et al., 2022) to help women entrepreneurs grow their businesses. Also, providing easy access to agriculture technology, credit, and better seed and employing female agriculture extension agents could help increase the agriculture incomes of women (Ndegwa et al., 2022; Maertens et al., 2021; Kondylis et al., 2016).

Finally, we also recommend increasing women’s knowledge of their rights and laws. Empowering women would help to reduce pregnancy among adolescents and child marriages (Bandiera et al., 2020). Cash transfers to female students can reduce school dropouts, child marriage, and births (Baird et al., 2011). Involving men in sharing household chores can reduce women’s share of domestic work (Doyle et al. 2018; Vaillant et al. 2020), and that could help women increase their work in economic activities. Also, the opening of childcare centers can increase the economic activities of both men and women, which can then help increase income and well-being (Donald and Vaillant, 2022).

References

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