CLS Working Papers, Centre for Labour Market and Social Research, Aarhus School of Business, University of Aarhus
No 00-5:
Is Functional Literacy a Prerequisite for Entering the Labor Market? An Analysis of the Determinants of Adult Literacy and Earnings in Ghana
Blunch Niels-Hugo and Dorte Verner
Abstract: This article analyzes the determinants of literacy and
earnings in Ghana. It links literacy and earnings with a variety of
factors, including age, gender, family educational background, distance to
school, and income. Literacy and age are negatively correlated, suggesting
that efforts at strengthening the supply and quality of basic education
programs in recent years have been successful in raising literacy rates.
Females are less literate than males, controlling for other factors.
Parents' education is positively associated with literacy. Distance to the
nearest primary school, residency in a rural area, and poverty affect
literacy negatively. Functional literacy appears to be a prerequisite for
entering the labor market, which may partly explain the lack of return to
education other than middle school and technical/professional training. The
policy implication of the study is that basic education and literacy
programs should target females and poorer households, especially in rural
areas.
Keywords: Functional literacy; earnings determinants; Ghana; Sub-Saharan Africa; (follow links to similar papers)
JEL-Codes: I21; J31; O12; (follow links to similar papers)
41 pages, May 2000
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