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Is Functional Literacy a Prerequisite for Entering the Labor Market? An Analysis of the Determinants of Adult Literacy and Earnings in Ghana

Author

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  • Niels-Hugo, Blunch

    (The George Washington University & World Bank)

  • Verner, Dorte

    (World Bank)

Abstract

This article analyzes the determinants of literacy and earnings in Ghana. It links literacy and earnings with a variety of factors, including age, gender, family educational background, distance to school, and income. Literacy and age are negatively correlated, suggesting that efforts at strengthening the supply and quality of basic education programs in recent years have been successful in raising literacy rates. Females are less literate than males, controlling for other factors. Parents' education is positively associated with literacy. Distance to the nearest primary school, residency in a rural area, and poverty affect literacy negatively. Functional literacy appears to be a prerequisite for entering the labor market, which may partly explain the lack of return to education other than middle school and technical/professional training. The policy implication of the study is that basic education and literacy programs should target females and poorer households, especially in rural areas.

Suggested Citation

  • Niels-Hugo, Blunch & Verner, Dorte, 2000. "Is Functional Literacy a Prerequisite for Entering the Labor Market? An Analysis of the Determinants of Adult Literacy and Earnings in Ghana," CLS Working Papers 00-5, University of Aarhus, Aarhus School of Business, Centre for Labour Market and Social Research.
    • Handle: RePEc:hhs:aarcls:2000_005
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    References listed on IDEAS

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    1. James J. Heckman, 1976. "The Common Structure of Statistical Models of Truncation, Sample Selection and Limited Dependent Variables and a Simple Estimator for Such Models," NBER Chapters, in: Annals of Economic and Social Measurement, Volume 5, number 4, pages 475-492, National Bureau of Economic Research, Inc.
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    4. Blau Francine D & Kahn Lawrence M, 2007. "The Gender Pay Gap," The Economists' Voice, De Gruyter, vol. 4(4), pages 1-6, June.
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    Cited by:

    1. Syed Wajahat Ali & Faiqua Gul, 2019. "The Assessment of Governance on Child Labor in evidence of Pakistan," iRASD Journal of Economics, International Research Alliance for Sustainable Development (iRASD), vol. 1(1), pages 59-67, June.
    2. Martin Godfrey, 2003. "Youth employment policy in developing and transition countries - preventionas well as cure," Social Protection Discussion Papers and Notes 27875, The World Bank.
    3. de Baldini Rocha, Maúna Soares & Ponczek, Vladimir, 2011. "The effects of adult literacy on earnings and employment," Economics of Education Review, Elsevier, vol. 30(4), pages 755-764, August.
    4. Nxumalo, Mpumelelo Author-Name: Raju, Dhushyanth, "undated". "Structural Transformation and Labor Market Performance in Ghana," Jobs Group Papers, Notes, and Guides 154568, The World Bank.
    5. Vadlamannati, Krishna Chaitanya, 2008. "Socioeconomic, Institutional & Political Determinants Of Human Rights Abuses: A Subnational Study Of India, 1993 – 2002," MPRA Paper 10142, University Library of Munich, Germany.
    6. Rocha, Maúna Soares de Baldini & Ponczek, Vladimir Pinheiro, 2010. "Impacto da alfabetização de adultos sobre salário e emprego," Textos para discussão 215, FGV EESP - Escola de Economia de São Paulo, Fundação Getulio Vargas (Brazil).

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    More about this item

    Keywords

    Functional literacy; earnings determinants; Ghana; Sub-Saharan Africa;
    All these keywords.

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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