Examining the income gap-gender inequality nexus in Africa using bi-wavelet and partial wavelet coherence analysis

Abstract

The eradication of gender discrimination traditions and the reduction of income disparities are vital global objectives outlined in Sustainable Development Goals 4 and 10, particularly in African nations where gender and income gaps persist. In alignment with these goals, this study employs wavelet techniques to investigate the relationship between income inequality and gender equality in 31 selected African countries, utilizing available data spanning from 1998 to 2020. Analysis of the co-movement between gender equality and income gap reveals that gender equality plays a crucial role in narrowing the income disparity in African countries. Expanding the analysis to control for the impact of economic growth through the implementation of partial wavelet tools, does not change these results. Further dissemination of our findings reveals that improved gender equality has a more pronounced impact on reducing income inequality in anglophone nations compared to their francophone counterparts, given variations in legal frameworks and religious practices. This emphasizes the importance of gender-sensitive policies in effectively addressing income inequality in Africa and suggests that policymakers should tailor country-specific policies to account for differences in gender laws, cultures, and religious beliefs. Overall, our study presents novel evidence linking income and gender inequality in Africa at country level.