Gender differentials in income profiles across the lifecycle in Nigeria
Gender income inequality persists globally but remains acute in developing economies, where informal labor markets and unpaid care work disproportionately reduce women’s lifecycle earnings. This study examines gender differentials in income profiles across the lifecycle in Nigeria, a context where structural barriers and cultural norms worsen these gaps. Understanding these differentials is critical for informing policies on savings, investments, and retirement planning in gender-unequal labor markets. This study employs the National Transfer Accounts (NTA) framework, a methodology rooted in research on intergenerational transfers that enables a detailed analysis of economic flows across age groups. The NTA approach integrates microdata from surveys with macrodata from national accounts to construct labor income profiles by generations and age. The analysis draws on the 2018/2019 National Living Standards Survey and the 2019 National Accounts from the National Bureau of Statistics. The results reveal a persistent gender gap in the Nigerian labor market, with women facing discrimination from ages 30–68, a period characterized by 56% male dominance in wages. Conversely, women outperform men in self-employment, although this often signifies a precarious nature of informal work rather than a pathway to genuine empowerment. The study underscores the need for targeted policies that address mid-career income fluctuations and dismantle systemic barriers to women’s long-term financial stability.
Abendroth, A.K., Melzer, S., Kalev, A., & Tomaskovic-Devey, D. (2017). Women at work: Women’s access to power and the gender earnings gap. ILR Review, 70(1):190-222. https://doi.org/10.1177/0019793916668530
Adeosun, O.T., & Owolabi, K.E. (2021). Gender inequality: Determinants and outcomes in Nigeria. Journal of Business and Socio-Economic Development, 1(2):165-181. https://doi.org/10.1108/JBSED-01-2021-0007
Agüero, J.M., Marks, M., & Raykar, N. (2020). Economic Development and the Motherhood Wage Penalty (No. 2020- 06). University of Connecticut, Department of Economics. Available from: https://media.economics.uconn.edu/ working/2020-06.pdf [Last accessed on 2024 Sep 18].
Aktuğ, E., Kuzubaş, T.U., & Torul, O. (2021). Heterogeneity in labor income profiles: Evidence from Turkey. Empirical Economics, 60(5):2557-2587. https://doi.org/10.1007/s00181-020-01848-w
Arrow, K.J. (1973). The theory of discrimination. In: Ashenfelter, O., & Rees, A., (eds.). Discrimination in Labor Markets. New Jersey: Princeton University Press, p.3-33.
Asali, M., & Gurashvili, R. (2020). Labor market discrimination and the macroeconomy. Economics of Transition and Institutional Change, 28(3):515-533. https://doi.org/10.1111/ecot.12249
Barth, E., Kerr, S.P., & Olivetti, C. (2021). The dynamics of gender earnings differentials: Evidence from establishment data. European Economic Review, 134, 103713. https://doi.org/10.1016/j.euroecorev.2021.103713
Becker, G.S. (1962). Investment in human capital: A theoretical analysis. Journal of Political Economy, 70(5, Part 2):9-49. https://doi.org/10.1086/258724
Blau, F.D., & Kahn, L.M. (2017). The gender wage gap: Extent, trends, and explanations. Journal of Economic Literature, 55(3):789-865. https://doi.org/10.1257/jel.20160995
Budig, M.J., & England, P. (2001). The wage penalty for motherhood. American Sociological Review, 66(2):204-225. https://doi.org/10.2307/2657415
Foster, L., & Walker, A. (2021). Active ageing across the life course: Towards a comprehensive approach to prevention. BioMed Research International, 2021:6650414. https://doi.org/10.1155/2021/6650414
Gagauz, O., & Prohnitski, V. (2022). Gender profile of income and consumption: Evidence from the national transfer accounts of Moldova. Economy and Sociology, 1:87-99. https://doi.org/10.36004/nier.es.2022.1-08
Guidime, C., Doumbo, S., Dramani, L., & Dabou, R. (2022). Consumption and labor income over the life cycle in Mali: A National Transfer Accounts approach. Population and Economics, 6(3):101-116. https://doi.org/10.3897/popecon.6.e86738
Goldin, C. (2014). A grand gender convergence: Its last chapter. American Economic Review, 104(4):1091-1119.
Heckman, J.J., Lochner, L.J., & Todd, P.E. (2006). Earnings functions, rates of return and treatment effects: The Mincer equation and beyond. Handbook of the Economics of Education, 1:307-458. https://doi.org/10.1016/S1574-0692(06)01007-5
International Labour Organization (ILO). (2022). Nigeria - Labor force with advanced education. Available from: https://www.indexmundi.com/facts/nigeria/labor-force-with-advanced-education [Last accessed on 2025 Jan 15].
International Labor Organization (ILO). (2023). Global Wage Report 2022-23: The Impact of Inflation and COVID-19 on Wages and Purchasing Power. Available from: https://www. ilo.org/global/topics/wages/lang--en/index.htm
Ismail, R., & Jajri, I. (2012). Gender wage differentials and discrimination in Malaysian labor market. World Applied Sciences Journal, 19(5):719-728. https://10.5829/idosi.wasj.2012.19.05.1114
Lee, R., & Mason, A. (eds.). (2011). Population Aging and the Generational Economy: A Global Perspective. Cheltenham: Edward Elgar Publishing.
Lee, S., & Ogawa, N. (2011). Labor income over the lifecycle: An international comparison. In: Lee, R., & Mason, A., (eds.). Population Aging and the Generational Economy. Cheltenham: Edward Elgar Publishing. https://doi.org/10.4337/9780857930583.00012
Liu, H., Fernandez, F., & Dutz, G. (2022). Educational attainment, use of numeracy at work, and gender wage gaps: Evidence from 12 middle-income countries. International Journal of Educational Development, 92:102625. https://doi.org/10.1016/j.ijedudev.2022.102625
McKinsey Global Institute. (2023). The Power of Parity: Advancing Women’s Equality in Africa. Available from: https://www.mckinsey.com/featured-insights/gender-equality/the-power-of-parity-advancing-womens-equality-in-africa [Last accessed on 2025 Apr 10].
Montanari, B., & Bergh, S.I. (2019). A gendered analysis of the income generating activities under the Green Morocco Plan: Who Profits? Human Ecology, 47(3):409-417. https://doi.org/10.1007/s10745-019-00086-8
Mosedale, S. (2005). Assessing women’s empowerment: Towards a conceptual framework. Journal of International Development, 17(2):243-257. https://doi.org/10.1002/jid.1212
NBS. (2020). Labor Force Statistics: Unemployment and Underemployment Report. Abuja: National Bureau of Statistics. Available from: https://nigerianstat.gov.ng/ elibrary/read/1135 [Last accessed on 2024 Mar 20].
NBS. (2021). Gender Statistics Report: Nigeria. Abuja: National Bureau of Statistics. Available from: https://www. nigerianstat.gov.ng/elibrary/read/1241312 [Last accessed on 2024 Mar 22].
Olaniyan, O., Olasehinde, N., Lawanson, A.O., Soyibo, A., Owoeye, O., Adeyemi, F., et al. (2018). Out of school children and demographic dividend in Nigeria”. Policy Brief, 2:1-5. Available from: https://www.researchgate.net/publication/347433847_out_of_school_children_ and_demographic_dividend_in_nigeria [Last accessed on 2025 Mar 07].
Olaniyan, O., Olasehinde, N., Odufuwa, O., & Awodumi, O. (2021). The nature and extent of demographic dividend in West Africa: National transfer account approach. The Journal of the Economics of Ageing, 20:100349. https://doi.org/10.1016/j.jeoa.2021.100349
Olaniyan, O., Soyibo, A., & Lawanson, A.O. (2011). Consumption and income over the lifecycle in Nigeria. African Population Studies, 25(1):115-131. https://doi.org/10.11564/25-1-270
Olaniyan, O., Soyibo, A., Lawanson, A., Olasehinde, N., Odumosu, M., Orekoya, A., et al. (2018). Harnessing the Demographic Dividend for the Sustainable Development of Nigeria: 2016 Demographic Dividend Report of Nigeria. Published by Health Policy Training and Research Programme (HPTRP), University of Ibadan, Nigeria for the United Nations Populations Fund (UNFPA), Nigeria. Available from: https:// www.researchgate.net/publication/332523296_harnessing_demographic_dividend_for_sustainable_development_of_ nigeria [Last accessed on 2024 Feb 02].
Olasehinde, N., Olaniyan, O., Soyibo, A., Lawanson, A., Dauda, R., Odufuwa, O., et al. (2024). Demographic dividend in Nigeria: Evidence from country and sub-country application of national transfer accounts (NTA) approach. The Nigerian Journal of Economic and Social Studies (NJESS), 66(3):457-480.
Omoruyi, O. (2015). Labor market, demographic patterns and income inequality in Nigeria. Journal of Sociology and Social Anthropology, 6(3):341-354. https://doi.org/10.1080/09766634.2015.11885674
Sanusi, S., Paul, S., Makarfi, A., & Veenita, K. (2020). Effect of gender on income gap among fish farmers in Nigeria’s Kogi state. Atatürk University Journal of Women’s Studies, 2(2), 27-45.
Sharaunga, S., Mudhara, M., & Bogale, A. (2019). Conceptualisation and measurement of women’s empowerment revisited. Journal of Human Development and Capabilities, 20(1):1-25. https://doi.org/10.1080/19452829.2018.1546280
Sin, I., Stillman, S., & Fabling, R. (2022). What drives the gender wage gap? Examining the roles of sorting, productivity differences, bargaining, and discrimination. The Review of Economics and Statistics, 104(4):636-651. https://doi.org/10.1162/rest_a_01000
United Nations. (2015). Transforming Our World: The 2030 Agenda for Sustainable Development (A/RES/70/1;). United Nations, p.1-41. Available from: https://sdgs.un.org/sites/default/files/publications/21252030%20Agenda%20for%20Sustainable%20Development%20web.pdf [Last accessed on 2025 Jan 15].
WEF. (2022). Global Gender Gap Report 2022. Switzerland: World Economic Forum.
World Bank. (2023). Nigeria Development Update: Gender Gaps in Labor Market Outcomes. Washington, D.C: The World Bank.