The role of gender inequality in wage gap: perspective of Sub-Saharan Africa and South Asia

Kock, Men How and Koo, Wan Yun and Yek, Xiao Ying (2025) The role of gender inequality in wage gap: perspective of Sub-Saharan Africa and South Asia. Final Year Project, UTAR.

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Abstract

This study investigates the effects of gender inequality on the wage gap in SubSaharan Africa and South Asia. Despite continued attempts to promote gender equality, women in these areas continue to earn less than men due to persisting structural and cultural hurdles. The study uses panel data from 23 countries from 2007 to 2021 using econometric models, Pooled OLS, Fixed Effects, and Random Effects to examine the link between gender inequality and pay differences. The data show a strong and positive association between gender inequality and the pay gap, indicating that increased gender inequality worsens income inequalities between men and women. Gender inequality has a positive and marginally significant link with the gender pay gap, implying that nations with higher gender inequalities have larger wage gaps. The findings suggest policy recommendations for Sub-Saharan Africa and South Asia governments to improve population growth by strengthening labour policies, enhancing access to education and formal employment, and promoting women’s leadership to narrow the gender wage gap.

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