Informal Economy and Gender Inequality in Africa

Abstract

The study investigates the relationship between gender inequality and the growth of the informal sector in Africa. Using Generalised Least Square Approach. it was discovered that gender inequality indices such as equality between males and females in getting jobs in the formal economy under the same or similar circumstances have a significant impact on the growth of the informal economy in the continent. The study concludes that if an adequate effort is not made to address the gender inequality in the continent, especially in formal employment that has forced many females to informal sector employment, the objective of achieving inclusive growth and development in the continent might not be realistic. The study, therefore, recommends that the United Nation and other international organizations should compensate the African women by giving the women at least 60 percent chance in all their employees as a way of increasing the economic and political power of the women in the continent.