The Impact of Gender Wage Differentials on Economic Growth in Kenya

Erastus Kaiba Njoroge ()

International Journal of Economic Policy, 2025, vol. 5, issue 1, 66 - 83

Abstract: Purpose: This study investigates the impact of gender wage differentials on Kenya's economic growth. Methodology: The study utilized a correlation research design and time-series data spanning 2012 to 2023. Econometric modeling was applied to evaluate the relationship, with economic growth as the dependent variable and gender wage differentials as the independent variable. Findings: Descriptive statistics revealed that the gender wage gap, measured by the gender wage gap index, exhibited significant variations over the study period, with an average index of 0.531. Regression analysis demonstrated a statistically significant negative relationship (β = -0.249, p < 0.01) between gender wage differentials and economic growth, with a moderate explanatory power (R² = 0.269). The findings suggest that persistent wage disparities undermine economic productivity by constraining female labor participation and limiting household investment in education and health. Unique contribution to theory, practice and policy: These results underline the urgency of addressing occupational segregation, pay inequity, and structural barriers through targeted economic policies, affirmative action, and enforcement by the National Gender and Equality Commission (NGEC). This study contributes to the literature on gender economics and highlights the importance of equitable wage structures in achieving sustainable development goals, particularly SDG 5 (Gender Equality) and SDG 8 (Decent Work and Economic Growth). Future research could explore sector-specific effects to refine policy interventions.

Keywords: Gender Wage Differentials; Economic Growth; Labor Market Disparities; Gender Economics; Occupational Segregation; Wage Inequality; Statistical Analysis (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:bhx:ijecop:v:5:y:2025:i:1:p:66-83:id:2469

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