A partial least squares analysis of gender inequality, occupational segregation, and economic growth: Evidence from Sub‐Saharan Africa

Abstract

AbstractThe biggest barrier to an egalitarian Sub‐Saharan Africa (SSA) appears to be deeply ingrained structural obstacles and gender imbalances. The significant prevalence of gender inequities, which have both structural and economic ramifications, must be addressed if SSA is committed to achieving the Africa 2063 Agenda (the Africa we want) and Sustainable Development Agenda 2030: gender equity and equality, and economic development. Using partial least squares simultaneous equation modeling (PLS‐SEM), this study examines the effects of gender inequality and occupational segregation on economic growth in Sub‐Saharan Africa. The explanatory power of the structural path model indicated that 17.3% of the variations in latent endogenous variable economic growth in SSA are explained by gender inequality and occupational segregation. This is evidence that gender inequality and occupational segregation account for a significant portion of economic growth in the SSA region. The results of a bootstrapping simulation indicate that, in SSA nations, the direct impact of gender inequality on economic growth is insignificant (β = 0.068, p > 0.05) while occupational segregation, macroeconomic policies, and globalization have a significant impact. However, the indirect effects of both gender inequality (β = −0.048, p < 0.05) and occupational segregation (β = −0.011, p < 0.05) on economic growth via the coordinating power of macroeconomic policy and globalization are significant. This demonstrated that macroeconomic policies are not gender‐neutral. It is therefore recommended that the most significant progress toward achieving an egalitarian SSA be made through an adequate fiscal policy interplay that considers the socioeconomic level of SSA people. Advocate for trade liberalization policies and globalization to benefit from the spillover effects of greater demand for female labor, which promotes gender equality and economic expansion. Even though the gender gap in education and health is closing, SSA countries should fully implement the International Labour Organization (ILO) treaties on gender equality. This will help to lessen social consumption spending and encourage investment spending, which generates returns to develop the economy in the realization of the Sustainable Development Agenda 2030 and the Africa 2063 Agenda (the Africa we want).