American International Journal of Social Science

Estimating Gender Earnings Gap in the Informal Sector Kayayei Labour Market: Micro-Level Empirical Evidence from Kumasi, Ghana
Isaac Addai

Abstract
The existence of differential-payment for labour market services between male and female is taken as a universal phenomenon in almost all countries regardless of the nature and structure of the economic system. The few previous studies that have compared male and female earnings in Ghana have concentrated on the formal sector, notably the public sector labour market, to the neglect of that of the informal sector. To overcome this deficiency and to aid in future policy formulation, this paper used a formalized method to analyze the log monthly earnings differential between male and female Kayayei migrants in the Kumasi informal sector labour market to determine what portion of this differential is due to different market skills and labour market discrimination. An important feature of the paper was the emphasis on discrimination in hiring that pertains in the Kumasi Kayayei informal sector labour market which suggests that male Kayayei operating in the informal sector labour market in Kumasi with sample average female characteristics earn 43% more on average and ceteris paribus than their female counterparts.

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