Understanding the Determinants of the Gender Gap in the Economy

A Multiregion Panel Study

Ade Nimri & Taleb Awad Warrad

Published: December 2022

The gender gap has been central to discussing development policies in recent decades. It is considered one of the primary benchmarks for policymakers worldwide. This study aims to combine and highlight the primary determinants of the gender gap in four regions: North America, Latin America, Africa and the Middle East, including 21 countries over the period 1990–2020. The model used is backed by economic theory and previous empirical studies to examine the interaction between the gender gap represented by the wage, labour and education gaps (on one hand) and six determinants (trade openness, economic growth, the Human Development Index, population, remittances and foreign direct investment) on the other hand. The study’s empirical findings indicate that governments should seek to remove the wage gap by being transparent, to ensure women do not receive less than men. They should also support the role of women through mentorships in business, especially in jobs classified as male-dominated, and apply skills-based assessments fairly, regardless of the gender of the employee, especially in developing countries.

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