This Ph.D. thesis looks at the effects of religion and ethnicity in developing labour
markets. The first and second chapter take a step towards understanding the impact of
terrorist activities in north-western Pakistan since 2007. The increased insurgency in the
north-western regions of Pakistan threatened the educational attainment of young girls
and boys, with the Taliban specifically targeting the education of girls. The empirical
strategy uses a difference-in-difference-in-difference approach, comparing the differences
in education and labour market outcomes across three dimensions, gender, years, and
district. I first estimate the gender differential for total school enrolment in the affected
districts. Second, estimate the impact on enrolment in religious schools. Last, I look
at the gender differential in labour market by age and marital status. The results
suggest that the impact of these terrorist attacks was relatively modest and short-lived
for both education and labour market outcomes. The third chapter uses the Ghana
Living Standards Survey 2005 to empirically analyse the employment outcomes of ethnic
minorities in Ghanaian labour market. In the to less-developed regions, the absence of
paid work opportunities has resulted in ethnic groups entering self employment. Nondominant
groups residing in ethnic enclaves are pulled into non-farm self-employment
where access to credit and family workers are important determinants of entry into
entrepreneurship.