Inequality Thresholds, Governance and Gender Economic Inclusion in sub-Saharan Africa

International Review of Applied Economics, 34(1), pp. 94-114 (January, 2020).

25 Pages Posted: 18 Jun 2019 Last revised: 13 Nov 2019

See all articles by Simplice Asongu

Simplice Asongu

African Governance and Development Institute

Nicholas Odhiambo

University of South Africa - Department of Economics

Date Written: January 1, 2019

Abstract

Inequality and gender economic exclusion are major policy concerns facing sub-Saharan Africa in the post-2015 development agenda. The study provides critical masses of inequality that should not be exceeded if governance is to promote gender economic participation. The research focuses on 42 countries in sub-Saharan Africa using annual data spanning from 2004 to 2014. The empirical evidence is based on the Generalized Method of Moments. The following findings are established. First, inequality (i.e. the Gini coefficient) levels that completely nullify the positive effect of governance on female labour force participation are 0.708 for political stability, 0.601 for voice & accountability, 0.588 for government effectiveness, 0.631 for regulatory quality, 0.612 for the rule of law, and 0.550 for corruption-control. Second, inequality thresholds at which female unemployment can no longer be mitigated by governance channels include: 0.561 (for political stability) and 0.465 (for the rule of law). Third, inequality levels that completely dampen the positive impact of governance on female employment are 0.608 for political stability, 0.580 for voice & accountability, 0.581 for government effectiveness, and 0.557 for the rule of law. As the main policy implication, for good governance to promote gender economic inclusion, inequality levels should not exceed established thresholds.

Keywords: Africa; Gender; Inequality; Inclusive development

JEL Classification: G20; I10; I32; O40; O55

Suggested Citation

Asongu, Simplice and Odhiambo, Nicholas, Inequality Thresholds, Governance and Gender Economic Inclusion in sub-Saharan Africa (January 1, 2019). International Review of Applied Economics, 34(1), pp. 94-114 (January, 2020).. Available at SSRN: https://ssrn.com/abstract=3401332 or http://dx.doi.org/10.2139/ssrn.3401332

Simplice Asongu (Contact Author)

African Governance and Development Institute ( email )

P.O. Box 8413
Yaoundé, 8413
Cameroon

Nicholas Odhiambo

University of South Africa - Department of Economics ( email )

PO Box 392
Pretoria, 0003
South Africa

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