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NONFARM EMPLOYMENT AND INCOMES IN RURAL GHANA

Authors


  • This research is based on a grant from the Millennium Development Authority (MiDA) of Ghana through ISSER. I am grateful to my colleagues Robert Osei, Isaac Osei-Akoto and Dorcas Opai-Tetteh for providing the data and Oliver Morrissey for valuable comments. All remaining errors are my own. The views, interpretations, recommendations, and conclusions expressed in the paper are those of the author and not necessarily those of ISSER and MiDA.

Correspondence to: Charles Ackah, Institute of Statistical, Social and Economic Research (ISSER), University of Ghana, PO Box LG 74, Legon, Accra, Ghana.

E-mail: cackah@ug.edu.gh

Abstract

This paper analyses the determinants of participation in nonfarm activities and the impact of nonfarm employment on household income. A clear empirical regularity is that women are significantly less likely than men to be in wage employment and more likely than men to be in self-employment activities. We find also that households whose heads have completed secondary education or higher gravitate more toward wage employment. Nonfarm employment appears to be crucial for the alleviation from rural poverty in Ghana. With limited opportunities in agriculture, nonfarm employment is necessary to augment or supplement farm incomes. Copyright © 2011 John Wiley & Sons, Ltd.

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