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Periodical article Periodical article Leiden University catalogue Leiden University catalogue WorldCat catalogue WorldCat
Title:Returns to Schooling in Non-Farm Self-Employment: An Econometric Case Study of Ghana
Author:Vijverberg, Wim P.
Periodical:World Development
Geographic term:Ghana
Subjects:small enterprises
household income
cost-benefit analysis
Economics and Trade
Education and Oral Traditions
Development and Technology
External link:https://doi.org/10.1016/0305-750X(95)00032-8
Abstract:Does educational attainment affect the income from family enterprises? This study examines this relationship from various angles. The data for the paper are derived from the Ghana Living Standards Survey (GLSS) and cover September 1987 to August 1989. Heteroskedasticity proved to be an important econometric factor in determining the optimal estimation strategy. The paper shows that in Ghana in the late 1980s schooling of the entrepreneur increased the income of his enterprise, primarily by raising the firm's allocative efficiency and less so through increased productive efficiency. In magnitude, the estimates of the overall effect of the entrepreneur's educational attainment were smaller than but did approach rates of return estimated for Ghanaian wage employees, especially at the elementary level. Educational attainment of the entrepreneur's family members had a significant positive effect, reflecting the idea that as family members share financially in the firm's outcome, they volunteer services from their human capital stock. Bibliogr., notes, ref., sum.