Abstract

This paper investigates the effects of gender differences in social capital on milk market participation using data from dairy cooperatives in Ethiopia. We develop composite indicators which are reliable, valid, and consistent measures of dimensions of social capital: structural, relational, and cognitive. Then, we employ independent sample t-tests, to determine whether there are gender difference across these dimensions. Our results show that female members have less structural social capital. Next, we use a two-way ANOVA test to examine whether milk market participation is affected by gender differences in social capital. The results show that female members have lower milk market participation, which is attributed to their lower structural social capital. Our findings reveal a need to reduce the gender gap in structural social capital. We suggest that this can be done by providing gender-sensitive social capital development, paying attention to gender differences in social network formation, and providing continuous gender training.