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Prepared by Thomas McGregor (AFR), with contributions from UN Women ESARO. We would like to thank members of the AFR Inclusive Growth Network, seminar participants, and the Ethiopian authorities for their comments.
World Bank WDI data 2017.
IMF Regional Economic Outlook, Oct 2015, “Dealing with the Gathering Clouds”
There is strong evidence that the cognitive skills of the population—rather than mere school attainment are powerfully related to long-run economic growth (Hanushek & Wößmann (2010, 2012)). The idea that human capital accumulation boosts growth is well documented in literature (Kuznets (1960), Lewis (1956), Schultz (1963), Dennison (1967)). However more recent work suggests that the impact of education on growth has not been the same in all countries (Temple (1999)).
Goal 5 of the SDGs explicitly targets gender equality and the empowerment of all women and girls.
Like all composite measures, the GII has some limitations. First, it does not capture the length and breadth of gender inequality. For example, the use of national parliamentary representation excludes participation at the local government level and elsewhere in community and public life. The labor market dimension lacks information on employment, having an adequate job and unpaid work that is mostly done by women. The index misses other important dimensions, such as time use—the fact that many women have the additional burden of caregiving and housekeeping cuts into their leisure time and increases stress and physical exhaustion. Asset ownership, child care support, gender-based violence and participation in community decision-making are also not captured in the GII, mainly due to limited data availability.
The concept of human development is much broader than what can be captured by the HDI, or by any other composite index in the Human Development Report (Inequality-Adjusted HDI, Gender development index, Gender Inequality Index or Multidimensional Poverty Index). The composite indices are a focused measure of human development, zooming in on a few selected areas. A comprehensive assessment of human development requires analysis of other human development indicators and information presented in the statistical annex of the report (see the Readers guide to the Report).
Using GDP per capita in constant 2011 PPP prices as calculated by the World Bank.
The labor force is defined as the supply of labor available for producing goods and services in an economy. It includes people who are currently employed and people who are unemployed but seeking work as well as firsttime job-seekers. Not everyone who works is included, however. Unpaid workers, family workers, and students are often omitted, and some countries do not count members of the armed forces. Labor force size tends to vary during the year as seasonal workers enter and leave.
This is typically informal and unpaid household work.
According to Ethiopia Demographic and Health survey of 2016.
A 2014 World Bank study finds that women farmers produce between 13 and 25 percent less than their male counterparts. The factors that hinder women’s ability to engage equally in agricultural activities range from issues related to limited access to factors of production, inputs, productive resources, and human capital, and social barriers. Women farmers have less access to land, extension services and entities that provide improved seed, fertilizers, new tools, technology, and training are mainly accessed by men. Married women (74 percent of women farmers) are disadvantaged, training and access to other resources is assumed to be available to them via their husbands. Recent work by UN Women (2018) finds that the gender gap in agricultural productivity—measured by the value of agricultural produce per unit of cultivated land—was 24 percent. The study estimates that the gender reduced total agricultural output by amount of $203.5 million in Ethiopia in 2010 U.S. dollars.
This is classified as non-SNA production and includes domestic and personal services produced and consumed within the same household, such as cleaning, servicing and repairs; preparation and serving of meals; care, training and instruction of children; care of the sick and elderly; transportation of members of the household or their goods; and unpaid volunteer services to other households, communities, and neighborhood and other associations.
The ILO define informal employment as: the total number of informal jobs, whether carried out in formal sector enterprises, informal sector enterprises, or households, during a given reference period. However, the definition of the informal sector can vary widely by country, and over time, making comparison difficult.
The informal sector is estimated to contribute to 25–65 percent of GDP and account for 30–90 percent of total nonagricultural employment in sub-Sharan Africa. Sub-Saharan Africa Regional Economic Outlook, IMF, May 2017.
Aguilar et al. 2013 analyze the agricultural productivity gap in different countries. The productivity gap is smallest in southern Nigeria (17 percent) and largest in Niger (66 percent). Agricultural productivity is defined as the average value of agricultural output produced per hectare or acre of land. Productivity differences were measured either at the plot level or added up to the individual farmer level within each country. The analysis for Ethiopia comprises a sample of 1,518 farm managers, of whom approximately 16 percent are women.
According to data from the 2016 Ethiopian Demographic and Health Survey (DHS).
The authorities are aware of these gaps. The Annual Abstract of the Ministry of Finance and Economic Cooperation (MoFEC) notes that female enrolment rates have shown rapid improvement over time, but with twice as many men enrolling in undergraduate programs than women in 2015/16, more needs to be done.
We control for country and year fixed effects, as well as initial GDP and initial LPF ratio.
That is, the lower the initial female LFP rate, the larger is the marginal increase in output from an increase in women in the labor force, regardless of the degree of substitutability/complementarity between men and women.
These are within the range of estimates of Ostry et al. (2018), who find ES between men and women clustered below 1 in the macro data, between 1–2 in the sectoral data, and between 2–3 in the firm-level data.
There is a small share of men and women in the labor force who we assume do engage in economic activity but in activities that do not contribute to measured GDP.
Closing the gender gap in participation rates alone however would actually reduce output by 0.5 percent. This is driven by the relatively high participation rates amongst women with a basic education relative to men, and so closing the gender gap means lowering the number of women in the labor force with basic levels of education.
The data is a household panel covering 3 waves: 2011/12, 2013/14, and 2015/16. It attempts to track and re-interview respondents in later waves. There is roughly a 16 percent attrition rate between each wave.
We inflate the wage rates to 2016/17 Birr using the average 12-month CPI to allow comparisons across waves. It is worth noting that out of a full sample of over 46,760 individuals aged >7 years, only around 2,500 (5.5 percent) report having engaged in wage employment in the past 12 months (1,400 in 2015/16, 530 in 2013/14 and 640 in 2013/14). This makes the sample unrepresentative of the population as a whole.
These gaps are largest in the regions of Harari and Dire Dawe and lowest in Addis Ababa. Understanding the causes of these regional disparities is vital for designing an adequate policy response.
In all cases the standard errors are corrected for heterosketasticity using White’s robust standard errors.
The IMR is calculated using the estimated correlation between the residuals of the probit (or selection) model and those of the wage regression. It tells as about the likelihood of an individual having a wage paying job, given their observable characteristics. For example, the IMR will be larger if we observe a young person with a wage paying job.
On October 25, 2018, Ethiopia’s parliament appointed Sahle-Work Zewde as the first women president in Ethiopia’s history.
The Convention on the Elimination of All Forms of Discrimination Against Women, adopted in 1979 by the UN General Assembly, contains 30 articles aimed at eliminating discrimination against women and girls, while recognizing that it is up to each country to determine its own policies and laws.
2017 Gender Statistics Report; National Planning Commission (NPC), Central Statistics Agency (CSA), UN Women, Statistics Sweden.
In 2011, 30 percent of women in rural areas were literate, compared to 70 percent in urban areas (compared to 50 percent in rural areas and 87 percent in urban areas for men). MDG Report 2014, Ethiopia Commission NPC.
Joint Program between the Ministry of Agriculture and Natural Resources, UN Women and UNDP on Rural Women’s Economic Empowerment (JP RWEE) in Oromia and Afar Regions.
“Leave No Woman Behind”, UN Women, UNFPA, WFP, Ministry of Women’s Affair, and Bureaus of Women Affairs of the Regional State Government of Amhara and Tigray.