A recent study examining the gender wage gap in Kenya’s urban labor market reveals significant disparities in earnings between men and women, with women earning only 84.5% to 86% of what their male counterparts make. Conducted by Alwago Wycliffe Obwori from the Doctoral School of Economics at the University of Szeged, Hungary, the research utilized data from the World Bank Skills Towards Employability and Productivity Survey (WBSTEPS) to analyze the factors contributing to this wage gap.
The findings highlight that personal characteristics such as education and age, along with work-related factors, play crucial roles in determining earnings. However, a substantial portion of the wage gap—between 70% and 94.7%—can be attributed to differences in returns to endowments, indicating that women are often undervalued in the workplace. Obwori noted, “The earnings gap is overwhelmingly due to differences in returns to endowments,” emphasizing that while there is evidence of discrimination against women, there is also a notable favoritism towards men in the labor market.
For the energy sector, this research underscores both challenges and opportunities. As the industry continues to evolve and expand in urban areas, addressing the gender wage gap could lead to a more equitable workforce. Companies that actively work to eliminate biases and promote equal opportunities in hiring, training, and career advancement may not only enhance their corporate reputation but also tap into a broader talent pool.
Moreover, with the push for sustainable energy solutions and innovative technologies, there is a pressing need for diverse perspectives in problem-solving and decision-making. This diversity can drive creativity and improve business outcomes. As noted in the study, “Addressing the gender wage gap in Kenya requires a multifaceted approach,” which can also translate into the energy sector’s efforts to foster an inclusive environment that attracts and retains female talent.
The implications of this research are clear: by prioritizing gender equity, the energy sector in Kenya can not only enhance its workforce but also better position itself to meet the growing demands of a dynamic market. The study was published in the journal “Studia Universitatis Vasile Goldis Arad, Seria Stiinte Economice,” further contributing to the discourse on labor market inequalities and their implications for economic growth. For more information about the lead author’s affiliation, you can visit University of Szeged.
