The Determinants Of Gender Asset Gap In Ghana

ABSTRACT Differences in economic outcomes and the analysis of their determinants are of utmost importance in various domains. Especially with respect to gender, there is massive (political) interest in whether these differences reflect discrimination or whether they simply arise from differences in relevant observable characteristics between men and women. This study focuses on estimating wealth differences between men and women in Ghana to comprehend and appreciate these differences and understand the determinants of gender wealth gap. The study utilized the standard Blinder-Oaxaca decomposition technique in examining and explaining the wealth differentials (in terms of the gross value of total physical assets owned) between men and women. The data for the analysis was obtained from the 2010 Ghana Household Asset Survey (GHAS). The results indicate that wealth levels of men were found to be significantly higher than those of women. The Blinder-Oaxaca decomposition result showed a mean difference of about 0.13 in favour of men. Approximately 21% of differences in the gender wealth were explained by the predictors of the model with the remaining 79% (approximately) representing the unexplained difference in gender wealth. Four factors (age, education, economic status, and location) were found to account for the explained difference. Out of the explained difference, these characteristic of asset owners were significant in explaining the gap at approximately 82%, 196%, 120%, and 40% respectively. The study recommends some constructive and feasible policies like policies that will empower women to own assets in their names, encourage women to reach higher levels in education and also push for more women in the public wage employment, in order to harness gender equality by ensuring a bridge in the gender wealth gap were recommended.