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Inequality thresholds, governance and gender economic inclusion in sub-Saharan Africa

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  • Simplice A. Asongu
  • Nicholas M. Odhiambo

Abstract

Inequality and gender economic exclusion are major policy concerns facing sub-Saharan Africa in the post-2015 development agenda. This paper identifies ‘thresholds’ 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 from 2004 to 2014. The empirical work utilises 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 such thresholds.

Suggested Citation

  • Simplice A. Asongu & Nicholas M. Odhiambo, 2020. "Inequality thresholds, governance and gender economic inclusion in sub-Saharan Africa," International Review of Applied Economics, Taylor & Francis Journals, vol. 34(1), pages 94-114, January.
    • Handle: RePEc:taf:irapec:v:34:y:2020:i:1:p:94-114
    DOI: 10.1080/02692171.2019.1645817
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    JEL classification:

    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • I10 - Health, Education, and Welfare - - Health - - - General
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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