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Structural Change and Welfare: A Micro Panel Data Evidence from Ghana

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  • Richmond Atta-Ankomah
  • Robert Darko Osei

Abstract

Ghana is an example of a developing economy where both output and employment have shifted from agriculture to services and where structural change has not followed the standard pattern observed for many industrialised countries. However, there appears to be a limited understanding of what this changing structure means for poverty reduction and welfare for Ghana, with previous studies focusing mainly on the growth effect of structural change. This article interrogates the welfare effects of cross-sector labour movements in Ghana using the first two waves of the Ghana Socio-economic Panel Surveys. Our results show that labour movements from agriculture to services improve welfare while a move from services to agriculture decreases welfare. We also find that women and younger people are more likely to undertake the welfare-enhancing move, from agriculture to services, than men and older people respectively. On the other hand, we find that men, older people and individuals with relatively high-risk profile are more likely to move from services to agriculture. These findings support the view that structural change in Ghana have played a significant role in Ghana’s poverty reduction achievements in the last three decades.

Suggested Citation

  • Richmond Atta-Ankomah & Robert Darko Osei, 2021. "Structural Change and Welfare: A Micro Panel Data Evidence from Ghana," Journal of Development Studies, Taylor & Francis Journals, vol. 57(11), pages 1927-1944, November.
  • Handle: RePEc:taf:jdevst:v:57:y:2021:i:11:p:1927-1944
    DOI: 10.1080/00220388.2021.1939864
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    1. repec:hal:journl:hal-04487480 is not listed on IDEAS
    2. Ackah, Charles & Osei, Robert Darko & Owusu, Nana Y. A. & Acheampong, Vera, 2023. "Special Economic Zones and household welfare: New evidence from Ghana," KCG Working Papers 25, Kiel Centre for Globalization (KCG).
    3. Yselle Malah Kuete, 2023. "Framing the change: analysing employment change, (in)adequacy, and (de)feminization in Cameroon's tertiary firms," WIDER Working Paper Series wp-2023-108, World Institute for Development Economic Research (UNU-WIDER).
    4. Fatma Mhadhbi & Claude Napoléone, 2022. "Does Agricultural Intensification Enhance Rural Wellbeing? A Structural Model Assessment at the Sub-Communal Level: A Case Study in Tunisia," Sustainability, MDPI, vol. 14(23), pages 1-18, December.
    5. Richmond Atta-Ankomah & Johnson Appiah Kubi & Charles Godfred Ackah, 2022. "The Effect of Kaizen on Performance: Evidence from Manufacturing Enterprises in Ghana," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 34(2), pages 1167-1192, April.

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