Financial Inclusion Gender Gap in Ethiopia: Evidence from Decomposition Analysis

Abstract Financial inclusion gender gap in Ethiopia is significantly high and how socioeconomic variables affect the gap is not sufficiently studied. Hence, this study examines financial inclusion gender gap in Ethiopia using the World Bank’s Global Findex database of 2017. Hence, this study aims to examine the magnitude of financial inclusion gender gap and its socioeconomic determinants in Ethiopia using different econometric decomposition analysis. Empirical findings denote that there is statistically significant financial gender disparity in Ethiopia. Fairlie decomposition results show that being older, a man, more educated and richer favor financial inclusion with a higher influence of age, employment and education. Moreover, differences in coefficients, differences in productivity, advantage to males and disadvantage to females widen the gender gap in financial inclusion Ethiopia.