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Ethnic diversity and informal work in Ghana

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  • Sefa Awaworyi Churchill
  • Michael Danquah

Abstract

We present the first study that examines the effects of ethnic diversity on informal work. Using two waves of data from the Ghana Socioeconomic Panel Survey, we find that ethnic diversity is associated with a higher probability of engaging in informal work. Specifically, our instrumental variable estimates suggest that a unit increase in ethnic diversity is associated with up to a 26.3 percentage point increase in the probability of engaging in informal work. This result is robust to alternative estimation approaches and alternative ways of measuring ethnic diversity.

Suggested Citation

  • Sefa Awaworyi Churchill & Michael Danquah, 2020. "Ethnic diversity and informal work in Ghana," WIDER Working Paper Series wp-2020-126, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2020-126
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    References listed on IDEAS

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    Cited by:

    1. Samba Diop & Simplice A. Asongu, 2022. "Trust Institutions, Perceptions of Economic Performance and the Mitigating role of Political Diversity," Working Papers 22/056, European Xtramile Centre of African Studies (EXCAS).
    2. Samba Diop & Simplice A. Asongu, 2022. "Information and Communication Technologies (ICTs) as catalyst for the achievement of Sustainable Development Goals (SGDs) at the local level in Africa," Working Papers of the African Governance and Development Institute. 22/084, African Governance and Development Institute..

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    Keywords

    Ethnic diversity; Informal work; Informality; Trust; Ghana;
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