This report aims to update knowledge of gender disparities in Ethiopia using the latest household survey data. The aim of this analysis is to support ongoing efforts to implement Plan for Accelerated and Sustained Development to End Poverty (PASDEP) vision. The significant progress in addressing key dimensions of gender disparities such as education shown in this report as well as in the recent annual progress report on the implementation of PASDEP in 2006-2007 suggests that current policy directions are proving effective. At the same time this report highlights the need to complement the existing emphasis on broad based interventions with additional targeted interventions which might address the specific constraints experienced by some groups. Further, based on the evidence from a few detailed evaluations of some existing programs, the study highlights how policy making in this area should include more emphasis on considerations of effective implementation and monitoring. This report is structured as follows. Chapter two presents a set of stylized facts on gender disparities in Ethiopia, including both trends over the last decade and current comparisons between Ethiopia and other countries. Chapter three looks in greater detail at the main drivers of gender disparities, focusing on factor markets. Chapter four looks at the economic pay-offs of decreasing gender inequality. Chapter five identifies a few priority areas for policy intervention.