Ghana Living Standards Survey Research Articles

Application of Multinomial Logistic to Smallholder Farmers’ Market Participation in Northern Ghana

The contribution of agriculture to the development of a country cannot be over emphasized, likewise the role played by smallholder farmers in the production of food in developing countries such as Ghana. Hence, the research examined the factors that affect market participation of smallholder farmers in Ghana. The Ghana Living Standard Survey data as published by the Ghana Statistical Service was employed and analyzed with the application of multinomial logistic regression model. Analysis of the data in the Northern part of Ghana indicate a very low market participation relative to the national average figure of 36% which itself is considered to be low at the international level. The results further show that, out of the total food crops produced (cereals), maize takes the highest whilst millet is the lowest cereal produced in Ghana. The results also revealed that only 24.2% of the total output of cereals produced in the study area is sold. The multinomial logistic results show that being a female farmer, having access to credit, increase in farm size and household size were factors that discourage subsistence farming and encourage market-oriented farming. The study recommends the promotion of small scale farmer participation in marketing of their produce through improving access to credit, land reallocation and promotion of female farmers’ commercial participation.

Analysis of School Enrollment in Ghana: A Sequential Approach

AbstractIn this paper, we depart from the standard way of analyzing school enrollment by accounting explicitly for educational selectivity in order to examine the determinants of child school enrollment in Ghana. Using data from the Ghana Living Standard Survey round 6 (GLSS 6), we estimate a three‐step sequential logit model for the determinants of secondary school enrollment and its dependence on completing primary school. We find that family resources such as parental education, household income and the gender of the head of the household play a role in households' child schooling decisions. Educated parents are relatively more likely to enroll their children in primary school and keep them in school until they complete primary education. As well, we show that educated parents do not promote a gender‐biased investment in the schooling of children at the primary level. While household welfare does not influence children's entry into primary school importantly, their completion of primary school depends on household welfare. The study sheds more light on the pro‐male bias phenomenon regarding entry into primary school and primary school completion. Policies to promote the achievement of Sustainable Development Goal 4 in Ghana must be grade sensitive.

Smallholder Maize Farmers’ Food Consumption Expenditures in Ghana: The Mediating Role of Commercialization

This paper examines the effect of smallholder maize farmers’ commercialization on their household food consumption expenditures in Ghana using data from the Ghana Living Standard Survey Round Five (GLSS5). The results indicate that the intensity of smallholder maize commercialization is generally low and that better output price, quantity of maize produced, farm size, type of market or point of sale, access to mobile phone network coverage, proportion of crops given to landlord, instant payment for maize sold, are inter alia key incentive variables that influence the intensity of maize commercialization. The study also revealed that intensity of maize commercialization positively influenced food consumption expenditures. Increases in the sale of maize results in increases in purchases of food items needed to address household food security needs. These findings demonstrate the urgent need to strengthen smallholder market integration initiatives, encourage market information delivery systems, and establish more retail outlets with improved market facilities in order to promote production and trade in high value cereals such as maize in Ghana

The Impact of Social Health Insurance on Household Fertility Decisions

While fertility rates generally fall over time as an economy develops, there is also evidence, primarily from developed countries, of pro-cyclical fertility. Fertility rates are correlated with short-run economic fluctuations because women delay pregnancy in poor economic times and periods of uncertainty, and increase fertility when conditions improve. Because health insurance reduces the cost of childbirth and medical care for children, the introduction of social health insurance may have the same effect on fertility as a positive income shock. This paper examines whether the introduction of social health insurance in Ghana had a positive, pro-cyclical effect on fertility decisions. Using data from the 2005/2006 Ghana Living Standards Surveys (GLSS) conducted shortly after the roll out of the insurance programme and the 2012/2013 GLSS, we compare fertility decisions of insured and uninsured women. To control for self-selection into the insurance programme, we exploit district-level variation in the dates of implementation of the national health insurance to instrument for insurance enrolment. We find evidence of a pro-cyclical fertility effect at the individual level. This is consistent with an increase in national fertility rates observed around the time the programme was introduced. The increase in fertility, however, appears to have been temporary; we find no effect of insurance on fertility in the more recent data.

Effect of education on migration decisions in Ghana: a rural-urban perspective

Purpose – The purpose of this paper is to investigate the effect of education on migration decisions focusing on rural and urban in-migrants by comparing the 2005/2006 and 2012/2013 rounds of the Ghana Living Standards Survey (GLSS5 and GLSS6). After correcting for selectivity bias, the authors observed that anticipated welfare gain and socio-economic variables such as sector of employment, sex, experience, age, educational level and marital status significantly affect an individual’s migration decision. Design/methodology/approach – The authors made use of Sjaastad’s (1962) human capital framework as a basis for examining the impact of education on migration. The migration decision equation was based on the Heckman two stage procedure. Findings – While educational attainment is observed to have a positive effect on migration decision in the period 2005/2006, the authors find a negative effect of educational attainment on migration decision in the period 2012/2013. The effect of educational attainment on migration decision in 2005/2006 for urban in-migrant is higher than the effect for rural in-migrant, with its significance varying for the different stages of educational attainment. In absolute terms, whereas the effect of secondary educational attainment on migration decisions for urban in-migrant is higher than that of rural in-migrant, the reverse holds for higher educational attainment during the period 2012/2013. Social implications – Based on the mixed effect of education on migration decision as evident from the study, policies to enhance the educational system in Ghana should be complemented with job creations in the entire country. Moreover, special attention should be given to the rural sector in such a way that the jobs to be created in the sector do not require skilled workers. With quality education and job creation, the welfare of individuals living in urban and rural areas will be enhanced. Originality/value – In spite of the importance of education in migration decisions, there is scanty literature on the rural-urban dimension. To the best of the author’s knowledge there is no literature in the Ghanaian context which examines the rural and urban perspective of the impact of education on migration with a much recent data. Further, the author consider how the determinants of migration decision have changed over time focusing on rural and urban perspectives.

Delayed primary school enrolment among boys and girls in Ghana

Using the fifth Ghana Living Standards Survey, this paper examines whether delayed entry is as likely among girls as it is among boys and the importance of the household's poverty status in understanding delayed entry. No gender difference is found in the likelihood of delayed entry. However boys are much older for their grades than girls suggesting that they may experience a more extended period of delayed entry. The poverty status of the household is not an important correlate of delayed entry among girls or children in urban households but is important for boys and rural children.

A Gospel of Prosperity? An Analysis of the Relationship Between Religion and Earned Income in Ghana, the Most Religious Country in the World*

This study tests for a relationship between religious affiliation and earned income in Ghana. While microeconomic analyses have studied the relationship between religion and several socioeconomic outcomes in the United States, remarkably few have done so in developing countries, and none has explored the religion‐earnings relationship. Using the fifth round of the Ghana Living Standards Survey from 2005 to 2006, we find that, among women, religious denomination correlates with earned income. Specifically, Spiritualists, Pentecostals, and Methodists earn higher income than the Presbyterian base group, while Traditionalists earn less. This article investigates the relationship and posits some of its causes, including the influence of a trend in neo‐Pentecostal religious groups that emphasizes wealth accumulation and self‐confidence.

Determinants of choice of economic sector in the non-farm economy in Ghana

This paper examines the economic sector choice of individuals in the non-farm economy, using the 2012 Ghana Living Standards Survey (GLSS). The multinomial logit regression results indicate that factors that influence individuals' decisions to participate in the non-farm economy differ for the different sectors - manufacturing, wholesale/retail and services. This research emphasises the heterogeneous nature of choice and entry into various sectors of the non-farm economy in Ghana. From a policy perspective, the findings may signal the various policy measures that policy-makers may adopt in order to increase participation into a targeted sector, and promote long-term growth and development of the country.

Household Composition and Well-Being of Older Persons in Ghana

Ghana’s population is aging in line with global trends. While this has implications for household composition and well-being of older persons, discussions on it have not received much attention in the various welfare studies on Ghana. This paper examines changes in household composition and their overall correlation with well-being of the older person. The data sets of the last four rounds of Ghana Living Standard Surveys were used to analyse trends in household composition in Ghana from 1991–1992 survey period to 2012–2013 survey period. A probit regression analysis was employed to identify key household characteristics and resources that correlate with well-being of older persons. The findings suggest that higher number of economically active household members, acquisition of formal education, receipt of remittances and ownership of certain material and social resources correlate positively with the well-being of the older persons. The paper concludes that household composition and resources owned by household members can affect the well-being of the older persons in the household. Household members are therefore encouraged to remain economically active while conserving resources to improve their well-being later in life.

Education and Earnings Inequality in Ghana

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.

Loan refusal, household income and savings in Ghana: a dominance analysis approach

Many loan applicants and households face the problem of loan refusal but researchers passively discuss it and do not consider discussing its intensity. This paper uses the fifth round of the Ghana Living Standards Survey data, employing the logit and Poisson regression models on loan refusal as binary and count variables respectively. The econometric analysis of 1,600 and 1,591 households for the loan refusal and intensity of loan refusal respectively shows that income and savings inversely relate to loan refusal and the intensity of loan refusal. The dominance analysis also showed that in Ghana, household savings causes loan refusal and intensity of loan refusal more than household income. We call on financial institutions to widen their coverage, in general, and more in the rural areas so as to increase the stock of loanable funds readily available to prospective applicants, with more flexibility for rural dwellers.

Household Composition and Well-Being of Older Persons in Ghana

Ghana’s population is aging in line with global trends. While this has implications for household composition and well-being of older persons, discussions on it have not received much attention in the various welfare studies on Ghana. This paper examines changes in household composition and their overall correlation with well-being of the older person. The data sets of the last four rounds of Ghana Living Standard Surveys were used to analyse trends in household composition in Ghana from 1991–1992 survey period to 2012–2013 survey period. A probit regression analysis was employed to identify key household characteristics and resources that correlate with well-being of older persons. The findings suggest that higher number of economically active household members, acquisition of formal education, receipt of remittances and ownership of certain material and social resources correlate positively with the well-being of the older persons. The paper concludes that household composition and resources owned by household members can affect the well-being of the older persons in the household. Household members are therefore encouraged to remain economically active while conserving resources to improve their well-being later in life.

Poverty and Inequality in Ghana: Analysis of the Dimensions, Trends and Spatial Perspectives

This study assesses the poverty and inequality situation in Ghana using the last four rounds of the Ghana Living Standards Survey (1991–2013). The FGT poverty incidence, Gini and Generalized Entropy inequality measures and regression analysis are used to examine trends, spatial distribution and correlation between poverty inequality and poverty. e ndings suggest that the proportion of population dened as income-poor but non-poor in consumption have increased overtime. Also, a decline in wealth inequality is observed, but rural inequality overtime has increased to outpace urban inequality. Minimizing wealth inequality especially, in rural areas, has the potential of accelerating poverty reduction in Ghana.

The Demand for Public Health Care and the Progressivity of Health Care Services in Ghana

AbstractThis paper examines the choice of health care and progressivity of health care services in Ghana. Using a combination of benefit incidence analysis and a discrete choice model and data from the Ghana Living Standards Survey, our results give clear evidence of progressivity with consistent ordering: postnatal and prenatal services are the most progressive, followed by clinic visits, and then hospital visits. Child health care services are more progressive than adult. Own price and income elasticities are higher for public health care than private health care and for adults than children. Poorer households are substantially more price responsive than wealthy ones, implying that fee increases for public health care will impact negatively on equity in health care. Simulations show the importance of opportunity costs in health care decisions and suggest that reforms that focus only on out‐of‐pocket expenses will have a limited ability to extend public health care to all potential users.

Migration and Climate Change in Rural Africa

We analyse whether migration is an adaptation that households employ to cope with climate in Ghana and Nigeria. If migration is part of the present adaptation portfolio of households in developing countries, it is reasonable to expect that it will also be an adaptation to future climate change. It is important to stress that we are interested in long-term climatic conditions rather than in short-term weather fluctuations. The data to test these predictions are drawn from two different household surveys: the Nigeria General Household Survey and the Ghana Living Standard Survey. We find a hill-shaped relationship between temperature in the dry sea son and the propensity to migrate in households that operate farms. We also find a significant hill-shaped relationship between precipitations in the wet seasons and the propensity to migrate in farm households. Climate has instead no significant impact on the propensity to migrate in non-farm households. Climate change scenarios generated by General Circulation model reveal that, ceteris paribus, migration may decline in Ghana and in Nigeria.

Factors Influencing Participation of Crop Farming Households in Non-farm Activities in Ghana

Agricultural sector is facing serious challenges (low productivity, inadequate investment, changes in climatic conditions etc) in developing countries. The challenges facing Ghanaian agriculture had led to the increasing participation of farmers in the non-farm activities. It is therefore incumbent on researchers to investigate factors that can be modified for farmers to fully participate in non-farm agriculture activities to complement their livelihoods. This study investigated factors that influenced farming households’ decision to participate in non-farm activities using data from fifth version of Ghana Living Standard Survey. The sample size used for the study is 1368. A binary logit estimation model was used for the analysis. The results obtained from maximum likelihood estimation showed that households with greater probability to participate in non-farm activities were as follows: female-headed households; households headed by the young; households whose heads were married, households whose heads had formal education, larger households, Original Research Article Sienso et al.; AJAEES, 6(3): 117-125, 2015; Article no.AJAEES.2015.069 118 households living in urban areas and households living in the forest zone. Crop farming households who are male-headed, had no formal education, had small household sizes, lived in rural areas and in savannah areas should be encouraged and supported to diversify activities by engaging in nonfarm activities.

Migration and Climate Change in Rural Africa

We analyse whether migration is an adaptation that households employ to cope with climate in Ghana and Nigeria. If migration is part of the present adaptation portfolio of households in developing countries, it is reasonable to expect that it will also be an adaptation to future climate change. It is important to stress that we are interested in long-term climatic conditions rather than in short-term weather fluctuations. The data to test these predictions are drawn from two different household surveys: the Nigeria General Household Survey and the Ghana Living Standard Survey. We find a hill-shaped relationship between temperature in the dry sea son and the propensity to migrate in households that operate farms. We also find a significant hill-shaped relationship between precipitations in the wet seasons and the propensity to migrate in farm households. Climate has instead no significant impact on the propensity to migrate in non-farm households. Climate change scenarios generated by General Circulation model reveal that, ceteris paribus, migration may decline in Ghana and in Nigeria.

Does education signal ability in Ghana? An analysis comparing wage earners with the self-employed

When education signals underlying abilities, income returns to education may not reflect true increases in productivity. This may be a particular concern in developing countries, where education is often prescribed as a major path to escaping poverty. Unfortunately, because education signalling occurs when underlying worker characteristics are difficult to observe, it is extremely difficult to obtain estimates of education signalling. This study uses Spence's (2002) model of signalling to develop a testable hypothesis: in the presence of education signalling, wage earners will see a higher return to education than the self-employed doing similar work. Using the 2005-2006 round of the Ghana Living Standards Survey, the study finds that returns to education are consistently higher for those in the wage-earning sector, which supports an education signalling hypothesis. Signalling appears to be more prevalent at higher levels of education and in large, unionised, and professional firms.

Household Savings and Women?s Bargaining Power in Ghana

This study investigates the effect of women’s bargaining power on household’s ownership and amount of savings in Ghana. Unlike previous empirical studies, this study considers the differences in preference among household members that leads to bargaining over allocation of resources in the household. To achieve the objective of this paper, the fifth round (2005) of the Ghana Living Standards Survey was employed. Women’s bargaining power is measured as the share of woman’s education among the couple. Probit and Heckman two-stage estimation techniques are employed. The latter is justified, in view of potential sampling selection bias in the annual savings model. The main finding is that, an increase women’s bargaining power engenders a corresponding increase in the probability of ownership of savings account and amount saved. We therefore recommend that, one of the strategies to improve household savings habit in Ghana, is through empowering women via better education.

English

This paper uses the hierarchical competitive welfare model approach to estimate the effects of credit from formal and informal sources on welfare development of farm households in Ghana. Data used for the econometric analyses came from the Ghana Living Standards Survey Round 5 dataset. The results showed that when a farm household is given GHC100 as formal credit, its welfare expenditure would increase by about GHC6. On the other hand, GHC100 given to a farm household as informal credit reduces its welfare expenses by about GHC10. There are two possible explanations for the negativity of informal credit on household welfare expenses. The first is that most informal credit is delivered in material forms instead of cash, which therefore reduces how much borrowing households expend on those materials. The second possible explanation is that informal credit borrowers get trapped in the vicious cycle of poverty such that it reduces their capacity to expend towards the attainment of their welfare outcomes such as food security, healthcare, education and general well-being. A paradigm shift towards the integration of formal and informal financial markets of Ghana is recommended. Key words: Ghana, welfare, farm household, credit, hierarchical competitive model.