Ghana Article Swipe
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· 2023
· Open Access
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· DOI: https://doi.org/10.1093/oso/9780192872241.003.0005
· OA: W4384940085
In this chapter, we analyse the role played by the changing nature of occupational employment and wages in explaining the trend in earnings inequality in Ghana between 2006 and 2017. During this period, a substantial transformation of the economy occurred, with workers moving out of agriculture and generally taking more-skilled and less-routine jobs in services, within the context of a stagnant manufacturing sector and oil-based expansion. We show that there was an initial decline in earnings inequality which is best explained by a fall in the skill premium following the expansion of education. This period was followed by a substantial increase in earnings inequality in which the skill premium continued to fall at a slower pace, and there was a pro-rich change in the earnings returns to routine tasks performed by workers.