| This thesis extends the existing literature on developing economies by showing the links between labour market participation and poverty in Ghana with a focus on the role of education and an introduction of a gender dimension to the analysis. Using datasets from the 1998/99 Ghana living standards survey and econometric analysis involving probit, multinomial logit and least squares techniques, our study has found evidence in support of our thesis, namely, that labour market participation, coupled with education, reduces poverty.;We find that, though its effects are complex, education is a significant factor in (i) influencing the decision to participate in labour market activities by both males and females as opposed to not participating, (ii) determining the earnings obtained by participants, (iii) reducing poverty (iv) improving the survival rates of children and (v) reducing fertility. The poor have low schooling qualifications compared with the non-poor and, on average, work for fewer hours in a week, which result in a loss of potential earnings. Though poverty is predominantly a rural phenomenon, some vulnerable groups, such as those with no schooling, are found in urban areas and engaging in agriculture.;Holding other factors constant, dependence on agriculture and retail trade tends to expose households to the risk of being unable to meet their basic needs. Engagement in manufacturing activities does the opposite and is important in reducing poverty not only at the national level, but more importantly, in rural areas and among female-headed households, which are associated with a higher incidence of poverty. The determinants of poverty were found to be fairly robust under alternative definitions of poverty. The thesis calls for more investment in schooling and an enabling environment for labour market activities as strategies for the reduction of poverty. |
