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Ghana's labor market (1987-92)

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Author Info
Canagarajah, Sudharshan
Thomas, Saji

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Abstract

Using the household survey and other data sources, the authors analyze returns to education and other aspects of Ghana's labor market profile from 1987 to 1991. The labor force grew slower than the population did between 1980 and 1990, but the supply of labor is expected to increase as the population of youth is expected to grow faster from 1990 to 2000. And labor force participation rates for 26- to 45-year-olds have been increasing rapidly. Over time, the average labor force participation rates of women have become equal to men's; that of children younger than 15 has remained unchanged at 38 percent. More than half of Ghana's child laborers are employed in agriculture. The formal sector's share of employment is on the decline, while the private informal sector's share has increased, especially in urban areas. Over time, the informal sector (in which most workers have a primary education or less) has absorbed more labor than the formal sector (in which most workers have middle or secondary schooling). Unemployment is pervasive in urban areas, and is less visible in rural areas. Labor productivity may not have increased and is possibly declining. Between 1987 and 1992, there was reverse migration, with many people moving from urban to rural areas, mostly for family reasons. Employment-related migration has also been on the increase. As is true elsewhere, the level of education affects participation in the labor force. Literacy rates for women are lower than those for men, which is one reason men dominate the private formal sector. The rate of return to education increases with higher education and work experience. The return for each additional year of schooling rangesfrom 4 percent to 6 percent in Ghana, quite high for a Sub-Saharan African country. Private and social returns to education are greater for primary than for secondary or postsecondary education.

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Paper provided by The World Bank in its series Policy Research Working Paper Series with number 1752.

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Date of creation: 30 Apr 1997
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Handle: RePEc:wbk:wbrwps:1752

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Related research
Keywords: Public Health Promotion; Health Economics&Finance; Health Monitoring&Evaluation; Labor Policies; Environmental Economics&Policies; Health Monitoring&Evaluation; Environmental Economics&Policies; Health Economics&Finance; Labor Standards; Poverty Assessment;

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Alderman, Harold & Canagarajah, Sudharshan & Younger, Stephen, 1995. "A Comparison of Ghanaian Civil Servants' Earnings before and after Retrenchment," Journal of African Economies, Oxford University Press, vol. 4(2), pages 259-88, October.
  2. Grootaert, Christiaan & Kanbur, Ravi, 1995. "Child labor : a review," Policy Research Working Paper Series 1454, The World Bank. [Downloadable!]
  3. Psacharopoulos, George & Velez, Eduardo & Patrinos, Harry Anthony, 1994. "Education and earnings in Paraguay," Economics of Education Review, Elsevier, vol. 13(4), pages 321-327. [Downloadable!] (restricted)
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Cited by:
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  1. Niels-Hugo Blunch & Claus C Pörtner, 2005. "Literacy, Skills and Welfare: Effects of Participation in Adult Literacy Programs," Working Papers UWEC-2005-23-R, University of Washington, Department of Economics, revised Aug 2009. [Downloadable!]
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This page was last updated on 2009-12-3.


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