Assessing the Gender–Labor–Growth Nexus in West Africa: Econometric Evidence from The Gambia and Senegal

Abstract

Gender equality is central in the 17 SDG goals, especially in emerging and developing countries, where disparities in gender remain persistent. This study shows the relationship between gender inequality, labour force and economic growth in two countries in Sub-Saharan Africa: The Gambia and Senegal. Data was collected from the World Bank database covering the period from 2000 to 2023. Advanced econometric techniques, including panel data fixed and random effects estimation and System GMM, were used as an endogeneity test. The Hausman specification test reveals that random effects are more appropriate for our data analysis. Random effects estimates reveal that a one-unit increase in the Gender Parity Index reduces GDP per capita by approximately 2.42 units (p < 0.05), while a 1% rise in female primary enrolment boosts GDP by 0.085 units. On the other hand, promoting women's school attendance, elementary education and labour force involvement pays off economically. The multi-model results consistently show that gender disparity has both negative and positive effects on GDP per capita, depending on the dimension examined.