Internal remittances and employment choices in rural Ghana

2020 ◽  
Vol 11 (3) ◽  
pp. 505-524
Author(s):  
Stanley Kojo Dary ◽  
Yazidu Ustarz

PurposeThe paper examines the effect of internal remittances on the employment choices of household heads in rural Ghana.Design/methodology/approachThe paper employs data from the Ghana Living Standards Survey (GLSS 6) of the Ghana Statistical Service. Due to issues of endogeneity of remittances in relation to labor supply, the paper adopts an instrumental variable approach in the analysis. First, employment choices are categorized into three: (1) wage/salary employment, (2) self-employment and (3) domestic/family employment. The relationship is then modeled as instrumental variable multinomial probit (IV-MNP). Secondly, employment choices are recategorized into two: farm employment and otherwise and modeled as instrumental variable probit (IV-PROBIT). The models are estimated via the conditional mixed process (CMP) estimation technique.FindingsThe results indicate that remittances have a negative effect on self-employment and a positive effect on domestic/family employment. Thus, remittances reduce participation in self-employment but increase participation in domestic/family employment. Furthermore, remittances have a negative effect on participation in farm employment. The results are robust to different measures of remittances: receipt of remittances (dummy) and remittance income.Practical implicationsThe results suggest that remittances are used for consumption rather than investing in earning activities. In general, engaging in earning type of employment, whether farm and nonfarm employment will decline with receipt of remittances in rural Ghana. There is a need for policy attention with the increasing migration of people out of rural areas.Originality/valuePrior to this study, little was known on the effect of internal remittances on labor supply decisions of remittance recipients in Ghana, particularly rural Ghana. This paper contributes significantly to filling this knowledge gap.

2016 ◽  
Vol 43 (2) ◽  
pp. 336-356 ◽  
Author(s):  
Franklin Amuakwa-Mensah ◽  
Louis Boakye-Yiadom ◽  
William Baah-Boateng

Purpose – The purpose of this paper is to investigate the effect of education on migration decisions focusing on rural and urban in-migrants by comparing the 2005/2006 and 2012/2013 rounds of the Ghana Living Standards Survey (GLSS5 and GLSS6). After correcting for selectivity bias, the authors observed that anticipated welfare gain and socio-economic variables such as sector of employment, sex, experience, age, educational level and marital status significantly affect an individual’s migration decision. Design/methodology/approach – The authors made use of Sjaastad’s (1962) human capital framework as a basis for examining the impact of education on migration. The migration decision equation was based on the Heckman two stage procedure. Findings – While educational attainment is observed to have a positive effect on migration decision in the period 2005/2006, the authors find a negative effect of educational attainment on migration decision in the period 2012/2013. The effect of educational attainment on migration decision in 2005/2006 for urban in-migrant is higher than the effect for rural in-migrant, with its significance varying for the different stages of educational attainment. In absolute terms, whereas the effect of secondary educational attainment on migration decisions for urban in-migrant is higher than that of rural in-migrant, the reverse holds for higher educational attainment during the period 2012/2013. Social implications – Based on the mixed effect of education on migration decision as evident from the study, policies to enhance the educational system in Ghana should be complemented with job creations in the entire country. Moreover, special attention should be given to the rural sector in such a way that the jobs to be created in the sector do not require skilled workers. With quality education and job creation, the welfare of individuals living in urban and rural areas will be enhanced. Originality/value – In spite of the importance of education in migration decisions, there is scanty literature on the rural-urban dimension. To the best of the author’s knowledge there is no literature in the Ghanaian context which examines the rural and urban perspective of the impact of education on migration with a much recent data. Further, the author consider how the determinants of migration decision have changed over time focusing on rural and urban perspectives.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Darko B. Vukovic ◽  
Marko Petrovic ◽  
Moinak Maiti ◽  
Aleksandra Vujko

PurposeThe starting premise of this study is that women's empowerment is the goal for self-realization and that the support that comes from local tourism stakeholders represents an adequate base. In many rural areas, women have established self-help groups (SHGs), which facilitate the interaction with a wide range of stakeholders. The objective of this paper is to investigate the effects of SHGs on female entrepreneurship and self-employment in tourism.Design/methodology/approachTo examine the research question, this study adopted a quantitative research that included a sample of 513 women in a less-advanced rural area in Serbia. For the data analysis, the generalized linear regression model (GLM) was used.FindingsAccording to the results, self-employment is the leading goal of women's empowerment.Research limitations/implicationsThe main limitation in the research and the authors’ suggestion for future research is to increase the sample size of female respondents, so examination of their attitudes and role in the travel business in their local settings might reach higher significance. The second issue that the authors would like to point out is a highly local character of our study, so the future research should involve other rural areas in the country and from abroad (e.g. similar undeveloped countryside with noticeable, active women's role in local entrepreneurship).Practical implicationsThe most important practical implications of this paper are twofold: (1) the results of the research have shown that the tourist potential of rural areas can be enhanced through local tourism stakeholders' support; (2) women without professional interest or jobs in rural areas, especially in the areas where the population is traditionally dominated by men (husband/brother/father), have a chance to earn and to be economically more independent. This research can affect future studies to investigate other aspects of empowerment depending on the difference of regions, from one side, and also alternative opportunities for tourism and local development in less-advanced rural areas, from another side.Originality/valueThe study analyzes the tourism potential of the rural areas (which are less advanced and mostly very poor in developing countries, such as Serbia). In this case, there are opportunities to increase employment, social inclusion of women, development of new tourism strategies, implementation of destination marketing, etc. Moreover, it contributes to future research in the field of stakeholders in tourism strategies.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yong Kang Cheah ◽  
Kim-Leng Goh ◽  
Azira Abdul Adzis

PurposeThe objective of this study is to examine the sociodemographic factors that are associated with health care expenditure among households in Malaysia.Design/methodology/approachThis study examines health care participation decision and amount of expenditure using the exponential Type 2 Tobit model. A dataset of a large sample (n = 14,838) that is nationally representative is used.FindingsThe results suggest that household size, location of residence as well as age, education and marital status of the household heads are significantly associated with household expenditure on health care. Health care expenditure increases with the age and educational attainment of household heads, whereas those who are being employed and residing in rural areas have lower health care expenditure. Although larger households are more likely to consume health care than smaller households, they spend less on health care. Furthermore, marital status does not affect the participation decision of health care expenditure, but the variable is associated with the decision on the amount of the expenditure.Practical implicationsThe results provide insights into groups of population that can be targeted for healthcare intervention programmes and policy design.Originality/valueThis study is the first to our knowledge to use a microeconometric approach to analyse the health care participation as well as its level of expenditure among households in Malaysia.


Author(s):  
Chiara Antonelli ◽  
Manuela Coromaldi ◽  
Shouro Dasgupta ◽  
Johannes Emmerling ◽  
Soheil Shayegh

Abstract The entire agricultural supply chain, from crop production to food consumption, is expected to suffer significant damages from climate change. This paper empirically investigates the effects of warming on agricultural labor supply through variation in dietary intake in rural Uganda. We examine labor supply, food consumption, and overall social welfare under various climate change scenarios. First, we combine nationally representative longitudinal survey data with high-resolution climatic data using an instrumental variable approach. Controlling for calorie intake, our study shows that warming has a non-linear impact on agricultural labor supply, with the number of hours worked being optimized at an optimal temperature of 21.3°C. Using these econometric estimates to parametrize an overlapping generations model, we find that under RCP8.5, output per adult decreases by 20 per cent by the end of the century due to the combined effect of climate change on food consumption and labor supply.


2016 ◽  
Vol 118 (7) ◽  
pp. 1554-1567 ◽  
Author(s):  
Wasiu Olayinka Fawole ◽  
Burhan Ozkan ◽  
Festus Ayanwole Ayanrinde

Purpose – The purpose of this paper is to investigate the food security status of 150 households in Osun state of Nigeria. The study area was chosen because relatively little energy consumption data are available concerning this geographical location. Design/methodology/approach – The study used both primary and secondary data. The suitable households sample was chosen by multi-stage random sampling technique. The methodology employed to group the households into either food secure or food insecure is by comparing daily per capita calorie consumption by each household with the threshold daily per capita calorie requirement of 2,710 kcal/day/adult equivalent. This method has proven to be efficient in measuring food security at household level. Findings – The results of the study reveal that majority of the households surveyed are food insecure that is their daily per capita calorie intake falls below the recommended daily per capita calorie requirement. The food insecure households constitute 54 per cent, surplus index of 0.36 per cent and food insecurity gap of 0.0038. Research limitations/implications – The greatest limitation to this study is the inability to collect data on the distribution of income, budget share on foods and socio-economic characteristics of the households to determine how their food security status is influenced due to impediments such as time, limited resources to collect a complete dataset used for the study. Also, recalling accurately the foods eaten in the last 24-hour was difficult for some of the household heads especially the aged ones and precise measurement of foods portion were also not accurate in some cases. Practical implications – The findings of the study will help the stakeholders in food sector in policy formulations and also serve as reference for other researchers who will work on similar topic. Social implications – The revelation that majority of the households are lacking in calorie intake will provide guidance for stakeholders in food sector to put in place efforts that will improve balance between food production and accessibility. Originality/value – The study used original data collected directly from the households for the study using structured questionnaires and the reference materials from secondary sources are appropriately cited. Also, it is worthy to note that not many studies have been carried out in the study area on food security especially in the rural areas.


2019 ◽  
Vol 46 (1) ◽  
pp. 18-30
Author(s):  
Samuel Ampaw ◽  
Edward Nketiah-Amponsah ◽  
Nkechi Srodah Owoo ◽  
Bernardin Senadza

Purpose Rural poverty remains high in many developing countries, Ghana inclusive. This has implications for healthcare affordability and utilization, and thus the attainment of universal health coverage. Nonfarm diversification is seen as a means by which rural farm households can increase incomes and smooth consumption including healthcare. The purpose of this paper is to investigate the impact of nonfarm enterprise participation on healthcare expenditure among farm households in rural Ghana. Design/methodology/approach Using nationally representative household data from the sixth round of the Ghana Living Standards Survey (GLSS 6), the paper employs endogenous switching regression and propensity score matching techniques to account for potential selectivity bias. Findings Results indicate that households that participate in nonfarm enterprises earn higher incomes and expend more on healthcare. Total household income and region of residence are significant determinants of healthcare expenditure among farm households in rural Ghana. In addition, while in nonfarm enterprise nonparticipating households the marital status of the head of household is important, for participating households the head having at least secondary education significantly influences healthcare expenditure. Practical implications Promoting nonfarm activities and hence raising the incomes of households in rural areas of Ghana has the potential of increasing health capital through increased investments in health. It will also positively impact access to and utilization of healthcare and ultimately contribute towards increased farm and non-farm productivity. Originality/value Previous studies have only examined the determinants of nonfarm enterprise participation or its impact on household welfare, poverty, inequality, food security and agricultural investments. While evidence abounds on the positive impact of rural nonfarm enterprise participation on household income, which in turn has implications for household health expenditure, the potential positive link between rural nonfarm enterprise participation and household healthcare expenditure remains unexamined.


2018 ◽  
Vol 14 (4) ◽  
pp. 433-461 ◽  
Author(s):  
Frederick Davis ◽  
Thomas Walker ◽  
Linyi Zhou

Purpose Within the context of mergers and acquisitions, the purpose of this paper is to clarify the relationship between the deal initiator and various outcomes of the deal, particularly in consideration of the cash position of the acquiring firm. Design/methodology/approach Using hand-collected deal initiation data from various filings on the Securities Exchange Commission EDGAR online database, this paper performs a series of event study analyses, multivariate analyses, a Heckman two-step estimation procedure, and an instrumental variable approach to examine merger outcomes. Findings This paper finds that many merger and acquisition (M&A) outcomes (target and acquirer announcement returns, acquirer long-run returns, premiums, and the method of payment) are significantly related to deal initiation, particularly in consideration of the cash position of the acquiring firm. Overall, evidence is seen as consistent with the theory that “lemons” selectively approach cash-rich acquirers, often to the acquirers’ detriment. Originality/value This paper finds that target-initiated deals are not necessarily associated with poorer transaction outcomes for targets as contemporaneous studies suggest, and presents the first empirical evidence of M&A outcomes related to the deal initiator which are dependent on the cash position of the acquiring firm.


2015 ◽  
Vol 7 (2) ◽  
pp. 185-196 ◽  
Author(s):  
Weiliang Su ◽  
Chengfang Liu ◽  
Linxiu Zhang ◽  
Renfu Luo ◽  
Hongmei YI

Purpose – The purpose of this paper is to examine the impact of off-farm employment on agricultural fixed assets among households in rural China. Design/methodology/approach – The authors drew on panel data from two rounds of household-level surveys of more than 2,000 households in rural China. The two surveys were conducted in 2008 and 2012 in five provinces. The authors used instrumental-variable Tobit model to test whether the current value of agricultural fixed assets differ between households with different levels off-farm employment. Findings – The authors observe that off-farm employment has a negative effect on the current value of agricultural fixed assets at the household level in rural China. Originality/value – The authors believe that the results will contribute positively to the assessment of the effect of off-farm employment on the investment in agricultural fixed assets at the household level in the context of China.


2020 ◽  
Vol 17 (3) ◽  
pp. 445-460
Author(s):  
Mohd Imran Khan ◽  
Valatheeswaran C.

The inflow of international remittances to Kerala has been increasing over the last three decades. It has increased the income of recipient households and enabled them to spend more on human capital investment. Using data from the Kerala Migration Survey-2010, this study analyses the impact of remittance receipts on the households’ healthcare expenditure and access to private healthcare in Kerala. This study employs an instrumental variable approach to account for the endogeneity of remittances receipts. The empirical results show that remittance income has a positive and significant impact on households’ healthcare expenditure and access to private healthcare services. After disaggregating the sample into different heterogeneous groups, this study found that remittances have a greater effect on lower-income households and Other Backward Class (OBC) households but not Scheduled Caste (SC) and Scheduled Tribe (ST) households, which remain excluded from reaping the benefit of international migration and remittances.


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