Role of Female Labour Participation in Reducing Income Inequality in ECOWAS Sub-Region

Abstract

This study examined the nexus between female labour participation and income inequality in ECOWAS sub-region between 1990 and 2019. Consequently, Panel Dynamic Ordinary Least Squares and Pairwise Panel Causality techniques were used to estimate the objective of the study. The findings from this study are summarized as follows; two (2) of the three (3) indicators of female labour participation- labour participation rate and female employment in service showed a positive and significant relationship with income inequality in ECOWAS sub region. In addition, no feedback relationship exists between any indicators of female labour participation and income inequality in ECOWAS sub region. Meanwhile, a bidirectional causality exists between female educational enrolment and female employment in the service sector. Also, female educational enrolment Granger causes female labour force participation. In the light of the above findings, the following recommendations were offered for the policy makers in ECOWAS sub region and African policymakers, at any time the goal of these policymakers is reduction of income inequality, the labour market policy should be structured in such a way that will give preference to women in the recruitment process. Also, the policymakers should prioritize giving of scholarship to female folks, this will drive a rise in female education enrolment. As such, more educated women will participate in the labour market and consequently earn more income, thereby leading to the reduction in income inequality.