Education and Livelihood in Ghana: Evidence from Instrumental Variable Analysis


Kwame Nkrumah University of Science and Technology, Kumasi, Ghana.


Keywords: Ghana, Consumption expenditure, Schooling, Livelihood, Poverty, Instrumental variables.


The research verified if schooling makes any difference in the consumption expenditure and poverty status of individuals in Ghana. Using the recent round of the Ghana Living Standards Survey data, we quantified the difference that schooling makes in the livelihood of individuals through the method of instrumental variables (IV). We found that individuals who have completed some level of schooling experience a significant increase in their consumption expenditure relative to those who have not been to school at all. Again, educated individuals who are poor had a significantly lower consumption expenditure compared to educated individuals who are non-poor. Also, individuals with some level of schooling had a lower probability to be poor compared to those without any schooling. We suggest massive investment in educational infrastructure and a revision of the schooling curriculum to equip individuals with workable skills that can enable them to undertake livelihood activities to improve their welfare.


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