The study examines gender disparities in the performance of informal sector enterprises in Accra, Kumasi and Tamale, with a focus on differences in firm productivity between male- and female-owned businesses.
The analysis uses data from the 2022 World Bank Informal Enterprise Ghana Survey. Ordinary least squares regression and the Oaxaca–Blinder decomposition method were employed to assess productivity differentials and identify factors contributing to gender-based performance variations.
Female-owned enterprises demonstrate higher productivity on average than male-owned enterprises. However, disparities persist across various activity types, financing sources, educational levels and geographic locations, reflecting structural and contextual disadvantages.
As the analysis relies on cross-sectional data, causality cannot be fully established. Future research could use longitudinal data to track changes in gender disparities over time.
The findings point to the need for targeted policies that expand financial inclusion, improve women’s access to resources and provide gender-sensitive business support services.
Addressing gender-specific constraints in the informal sector has the potential to improve household welfare, promote equity and contribute to inclusive economic growth in Ghana.
This study contributes recent empirical evidence on gendered firm performance in Ghana’s informal economy. By combining regression and decomposition techniques, it disentangles the extent to which productivity differences are driven by observable characteristics and structural barriers.
