Earnings gaps, segmentation and competitiveness in the Ghanaian labour market

Syme, T, Ali, A ORCID: https://orcid.org/0000-0001-5398-0450 and Nimoh, CNF 2020, Earnings gaps, segmentation and competitiveness in the Ghanaian labour market , Working Paper, University of Salford.

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Abstract

This paper examines the labour market dynamics of Ghana by specifically assessing: (1) the informal-formal earnings gaps in the country, and (2) whether informal sector employment is due to labour market segmentation (i.e. last resort) or comparative advantage (voluntary). Our findings indicate that there are significant formal/informal earnings gaps in the Ghanaian labour market which is robust to industry and regional differences. Interestingly, we find that, even though males suffer earnings penalties within the informal sector, the penalty is much higher for females. Additionally, the study identifies the existence of two distinct segments within the informal labour market, each characterised by a different earnings profile. Thus, there is both segmentation and competitiveness within the informal labour market. Our results highlight the importance of designing appropriate policies that can tackle both voluntary and involuntary informal sector employment.

Item Type:	Monograph (Working Paper)
Schools:	Schools > Salford Business School
Journal or Publication Title:	EconStor Working Paper
Publisher:	University of Salford
Related URLs:	http://www.econstor.eu/
Depositing User:	RA Syme
Date Deposited:	24 Jan 2022 09:23
Last Modified:	15 Feb 2022 17:30
URI:	http://usir.salford.ac.uk/id/eprint/62829

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