Education and Earnings Inequality in Ghana

Type Journal Article - Modern Economy
Title Education and Earnings Inequality in Ghana
Volume 7
Issue 04
Publication (Day/Month/Year) 2016
Page numbers 456-469
The paper investigates the effects of education on earnings distribution of urban workers in the
Ghanaian labour market between 1998/99 and 2005/6 by using the fourth and fifth rounds of the
Ghana Living Standards Survey. To this end, quantile regression technique is applied to examine
returns to education across the earnings spectrum to identify whether some workers benefit more
from education with its implication on earnings inequality. Estimated returns to education along
the earnings distribution point to a change in the pattern of returns between 1998/9 and 2004/5
along the earnings spectrum. Results indicate earnings inequalities have widened with education
across the two periods. Specifically, in 1998/99, earnings inequality reducing trend of education
observed has changed overtime. These results are robust when the labour market is disaggregated
by sector.

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