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Education, incomes, poverty and inequality in Ghana in the 1990s

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  • Francis Teal

    (Centre for the Study of African Economies)

Abstract

Three issues are addressed in this paper. First, we use both household and macro data to establish how fast per capita consumption and incomes grew in Ghana in the 1990s. Second, we ask how much of the rise in incomes was due to rises in the level of human capital and how much reflected underlying technical progress. Third, we assess the implications of how incomes rose for the interpretation of changes in the poverty profile.Four household surveys are used to show changes in both expenditures and incomes over the decade. The household surveys show that both consumption per capita and incomes rose by 12 per cent, a rate of 1 per cent per annum. This figure is identical to the growth rate for consumption per capita implied by the macro accounts. The average level of education of the population rose by 27 per cent over the decade which led to a rise of 3 per cent in per capita consumption. We find, on average, no evidence for any underlying technical progress. We show that the rise in income was ssociated with modest falls in the head count and poverty gap measures of poverty but with virtually no change in the severity of poverty measure. The fall in the head count measure was too small to prevent the absolute number of poor people from rising. Inequality increased with he incomes of the non-agricultural self-employed, with given levels of human capital, falling both absolutely and relative to wage workers.

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Bibliographic Info

Paper provided by EconWPA in its series Development and Comp Systems with number 0409006.

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Length: 32 pages
Date of creation: 15 Sep 2004
Date of revision:
Handle: RePEc:wpa:wuwpdc:0409006

Note: Type of Document - pdf; pages: 32
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Web page: http://128.118.178.162

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Keywords: Ghana; real incomes; poverty.;

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References

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  1. Barro, R.J., 1989. "Economic Growth In A Cross Section Of Countries," RCER Working Papers 201, University of Rochester - Center for Economic Research (RCER).
  2. Robert J. Barro & Jong-Wha Lee, 1993. "International Comparisons of Educational Attainment," NBER Working Papers 4349, National Bureau of Economic Research, Inc.
  3. Norman Gemmell,, . "Evaluating the Impacts of Human Capital Stocks and Accumulation on Economic Growth: Some New Evidence," Discussion Papers 95/17, University of Nottingham, CREDIT.
  4. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May.
  5. Robert E. Hall & Charles I. Jones, 1999. "Why Do Some Countries Produce So Much More Output Per Worker Than Others?," The Quarterly Journal of Economics, MIT Press, vol. 114(1), pages 83-116, February.
  6. Vijverberg, Wim P. M., 1995. "Returns to schooling in non-farm self-employment: An econometric case study of Ghana," World Development, Elsevier, vol. 23(7), pages 1215-1227, July.
  7. Benhabib, Jess & Spiegel, Mark M., 1994. "The role of human capital in economic development evidence from aggregate cross-country data," Journal of Monetary Economics, Elsevier, vol. 34(2), pages 143-173, October.
  8. Simon Appleton & John Hoddinott & John MacKinnon, 1996. "Education and health in sub-Saharan Africa," Journal of International Development, John Wiley & Sons, Ltd., vol. 8(3), pages 307-339.
  9. Robert J. Barro, 1996. "Determinants of Economic Growth: A Cross-Country Empirical Study," NBER Working Papers 5698, National Bureau of Economic Research, Inc.
  10. Glewwe, Paul, 1996. "The relevance of standard estimates of rates of return to schooling for education policy: A critical assessment," Journal of Development Economics, Elsevier, vol. 51(2), pages 267-290, December.
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Citations

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Cited by:
  1. Francis Teal, 2006. "Consumption and welfare in Ghana in the 1990s," Journal of Development Studies, Taylor & Francis Journals, vol. 42(7), pages 1252-1269.
  2. Charles Ackah, & Oliver Morrissey, & Simon Appleton, . "Who Gains from Trade Protection in Ghana? A Household-Level Analysis," Discussion Papers 07/02, University of Nottingham, CREDIT.
  3. Rulof P. Burger & Francis J. Teal, 2014. "The effect of schooling on worker productivity: evidence from a South African industry panel," CSAE Working Paper Series 2014-10, Centre for the Study of African Economies, University of Oxford.
  4. Rulof P. Burger & Francis J. Teal, 2013. "Measuring the option value of education," CSAE Working Paper Series 2013-13, Centre for the Study of African Economies, University of Oxford.
  5. Burger, Ronelle & Booysen, Frikkie & van der Berg, Servaas & von Maltitz, Michael, 2006. "Marketable Wealth in a Poor African Country: Using an index of consumer durables to investigate wealth accumulation by households in Ghana," Working Paper Series RP2006/138, World Institute for Development Economic Research (UNU-WIDER).
  6. Rulof P. Burger & Francis J. Teal, 2013. "Measuring the option value of education," CSAE Working Paper Series 2013/13, Centre for the Study of African Economies, University of Oxford.
  7. Frikkie Booysen & Ronelle Burger & Gideon Du Rand & Michael von Maltitz & Servaas Van der Berg, 2007. "Trends in Poverty and Inequality in Seven African Countries," Working Papers PMMA 2007-06, PEP-PMMA.
  8. Howard White & Edoardo Masset, 2005. "Books, Buildings and Learning Outcomes: an impact evaluation of World Bank assistance to basic education in Ghana," Development and Comp Systems 0504013, EconWPA.

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