Agricultural performance in northern Ghana: a gender decomposition

Abstract

Women represent approximately 50 percent of the active labor force in Sub-Saharan Africa. Even though women are involved in a variety of agricultural activities, they have limited access to resources and have restricted decision-making power compared to their male counterparts (FAO, 2011). These limitations and restrictions are likely to have a significant effect on women’s performance levels compared to men. The present research measures the gender-based performance differences, identifies factors that influence the financial performance levels, and factors contributing to generate disparities between male and female smallholders performance in northern Ghana. Data used in this study are from the Agriculture Production Survey (APS) focusing on the 2013-2014 cropping season. The study uses the Oaxaca-Blinder decomposition method to measure and decompose the gender performance gap in two parts: endowment effect and structural effect. Gross margin is used to measure farmer’s financial performance. The endowment effect is attributed to differences in the explanatory variables, and the structural effect is associated with differences in returns of the explanatory variables. Results from the study indicate there is a gender gap between male and female smallholder farmers with male farmers outperforming females by 46 percent. Land area had the largest significant impact on the explained part of the gender gap, followed by tractor service. The endowment effect portion of the decomposition models is accounted for 35 percent of the gender gap, and the remaining 65 percent is associated with the structural effect. The larger structural effect part suggests that developing programs to establish equality among male and female smallholder producers in terms of access to resources will not close the gender gap. Additionally, factors contributing positively overall to gross margin of smallholder farmers were land area, and tractor services and crops produced. Based on the results of this research, policymakers and agribusiness stakeholders may look to reduce the gender gap existing between smallholder farmers in northern Ghana by empowering women by providing them access to land area and tractor services. Further research into factors affecting the gender gap in financial performance in agricultural activities is warranted.