distributional dimension of educational access and

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189 Lawrence Kwaku Ado-Kofie Distributional Dimension of Educational Access and Attainment in Ghana A thesis submitted to The University of Manchester for the degree of Doctor of Philosophy (PhD) in the Faculty of Humanities 2014 School of Environment, Education and Development (SEED) Institute for Development Policy and Management (IDPM)

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189

Lawrence Kwaku Ado-Kofie

Distributional Dimension of Educational Access and Attainment in Ghana

A thesis submitted to The University of Manchester for the degree of

Doctor of Philosophy (PhD) in the Faculty of Humanities

2014

School of Environment, Education and Development (SEED)

Institute for Development Policy and Management (IDPM)

2

Table of Contents

List of Tables.............................................................................................................................. 5

List of Acronyms and Abbreviations ......................................................................................... 7

Abstract ...................................................................................................................................... 9

Declaration and Copyright Statement ...................................................................................... 10

Acknowledgement.................................................................................................................... 11

Dedication ................................................................................................................................ 12

Chapter 1 ................................................................................................................................ 13

Introduction ............................................................................................................................ 13

1.1 Background ........................................................................................................................ 13

1.2 Why Ghana as a case study ................................................................................................ 13

1.3 Significance and contributions of the study ....................................................................... 16

1.4 Equal educational access matters for growth and poverty reduction ................................. 17

1.5 Research objectives and questions ..................................................................................... 20

1.5.1 Research objectives ................................................................................................... 20

1.5.2 Research questions .................................................................................................... 20

1.6 Structure of the thesis ......................................................................................................... 21

Chapter 2 ................................................................................................................................ 22

Background and context of the study ................................................................................... 22

2.1 Introduction ........................................................................................................................ 22

2.2 Country overview ............................................................................................................... 22

2.3 Education provision and inequality in educational outcomes ............................................ 24

2.4 Access to education in Sub-Saharan Africa context .......................................................... 25

2.5 Education policy and trends in educational outcomes in Ghana........................................ 27

2.5.1 Education sector reforms and policy interventions ................................................... 27

2.5.2 Trends in educational outcomes ................................................................................ 30

2.6 Conclusions ........................................................................................................................ 34

Chapter 3 ................................................................................................................................ 36

Economic growth, income and non-income inequality and conceptual framework ........ 36

3.1 Introduction ........................................................................................................................ 36

3.2 Economic growth, inequality and non-income poverty ..................................................... 36

3.3 Focus on non-income inequality and poverty .................................................................... 40

3.4 Progress in educational outcomes ...................................................................................... 43

3.5 Socioeconomic inequality in educational outcomes .......................................................... 45

3.6 Socioeconomic determinants of educational outcomes ..................................................... 49

3.6.1 Children’s demographic characteristics .................................................................... 49

3.6.2 Household wealth ...................................................................................................... 50

3.6.3 Household composition/size ..................................................................................... 52

3.6.4 Residency and location effects .................................................................................. 57

3.6.5 Distance to school, quality and availability of schools ............................................. 58

3.7 Theoretical framework ....................................................................................................... 60

3.8 Data, descriptive statistics and variable definition ............................................................. 62

3.8.1 Data source: justification and details ........................................................................ 62

3

3.8.2 Why GDHS datasets are used instead of GLSS datasets .......................................... 63

3.8.3 Computation of wealth index .................................................................................... 67

3.8.4 Variables for the analysis .......................................................................................... 69

3.9 Conclusions ........................................................................................................................ 75

Chapter 4 ................................................................................................................................ 78

Socioeconomic determinants of educational access and attainment in Ghana ................ 78

4.1 Introduction ........................................................................................................................ 78

4.2 School attendance and completion ..................................................................................... 80

4.2.1 Distribution of educational access by socioeconomic status .................................... 81

4.2.2 Distribution of educational attainment by socioeconomic status .............................. 84

4.3 Multivariate regression framework .................................................................................... 88

4.3.1 Binary probit model .................................................................................................. 88

4.3.2 Empirical specification.............................................................................................. 89

4.3.3 Endogeneity concern ................................................................................................. 90

4.4 Regression results and discussions .................................................................................... 93

4.4.1 Primary and secondary attendance ............................................................................ 93

4.4.2 Primary and secondary completion ......................................................................... 103

4.4.3 Robustness check .................................................................................................... 112

4.5 Policy lessons ................................................................................................................... 113

4.6 Conclusions ...................................................................................................................... 114

Chapter 5 .............................................................................................................................. 116

Educational outcomes of males and females by wealth distribution in Ghana .............. 116

5.1 Introduction ...................................................................................................................... 116

5.2 Educational access and attainment by gender .................................................................. 119

5.2.1 Validity check .......................................................................................................... 119

5.2.2 Gender inequality in educational outcomes among the poor and the non-poor ....... 121

5.3 Regression results and discussions .................................................................................. 129

5.3.1 Inequality in primary and secondary school attendance .......................................... 129

5.3.2 Inequality in primary and secondary school completion ......................................... 135

5.3.3 Robustness check ..................................................................................................... 140

5.4 Policy perspective ............................................................................................................ 141

5.5 Conclusions ...................................................................................................................... 142

Appendix A5: t-test of difference in means of male and female educational outcomes ........ 144

Chapter 6 .............................................................................................................................. 146

Socioeconomic inequality in educational access and attainment in Ghana .................... 146

6.1. Introduction ..................................................................................................................... 146

6.2 Models .............................................................................................................................. 147

6.2.1 Measuring education inequality .................................................................................... 147

6.3 Concentration Index ......................................................................................................... 148

6.3.1 Concentration index approach.................................................................................. 150

6.3.2 Empirical specification............................................................................................. 151

6.3.4 Decomposition of inequality and its evolution over time ........................................ 152

6.3.5 Non-linear regression model .................................................................................... 155

4

6.4 Results and discussions .................................................................................................... 158

6.4.1 Sources of inequality in primary education access .................................................. 160

6.4.2 Sources of inequality in secondary education access ............................................... 171

6.4.3 Sources of inequality in primary education attainment............................................ 180

6.4.4 Sources of inequality in secondary education attainment ........................................ 188

6.5 Conclusions ...................................................................................................................... 198

Appendix A6: Marginal effect and contributions of explanatory variables... ........................ 201

Chapter 7 .............................................................................................................................. 205

Summary and Conclusions .................................................................................................. 205

7.1 Introduction ...................................................................................................................... 205

7.2 Summary .......................................................................................................................... 205

7.3 Major contributions to the literature ................................................................................ 211

7.4 Policy implications ........................................................................................................... 211

7.5 Limitations ....................................................................................................................... 214

7.6 Further research ................................................................................................................ 215

References .............................................................................................................................. 216

Word count 77,708 (main text and footnotes)

5

List of Tables

Chapter 2

Table 2.1: Dropout rate, primary NAR and wealth quintile by locality, 2008 .................... 32

Table 2.2: NAR by locality, gender and wealth quintiles, 2008 .......................................... 33

Table 2.3: NAR by welfare quintile, 2008 ........................................................................... 34

Chapter 3

Table 3.1: Summary statistics - explanatory variables......................................................... 68

Table 3.2: Summary statistics - dependant variables .......................................................... 69

Chapter 4

Table 4.1: School attendance rates by household wealth in percentages ............................ 82

Table 4.2: Completion rates by household wealth in percentages ...................................... 86

Table 4.3: Educational access by children in Ghana (Probit estimates) .............................. 97

Table 4.4: Educational attainment by age cohort in Ghana (Probit estimates) .................. 105

Chapter 5

Table 5.1: Descriptive statistics of educational access and attainment in Ghana .............. 120

Table 5.2: Gender inequality in primary net attendance rate for 6-11 year olds by wealth

distribution ........................................................................................................ 122

Table 5.3: Gender inequality in secondary net attendance rate for 12-17 year olds by

wealth distribution ............................................................................................. 124

Table 5.4: Gender inequality in primary completion rate for 15-20 year olds by wealth

distribution ........................................................................................................ 126

Table 5.5: Gender inequality in secondary completion rate for 18-23 year olds by wealth

distribution ........................................................................................................ 128

Table 5.6: Educational access by gender in Ghana (Probit estimates) .............................. 131

Table 5.7: Educational attainment by gender in Ghana (Probit estimates) ........................ 137

Appendix Table A5

Table A5.1: Primary Net Attendance Rate 2003 ............................................................... 144

Table A5.2: Primary Net Attendance Rate 2008 ............................................................... 144

Table A5.3: Secondary Net Attendance Rate 2003 ........................................................... 144

Table A5.4: Secondary Net Attendance Rate 2008 ........................................................... 144

Table A5.5: Primary Completion Rate 2003 ..................................................................... 145

Table A5.6: Primary Completion Rate 2008 ..................................................................... 145

Table A5.7: Secondary Completion Rate 2003.................................................................. 145

Table A5.8: Secondary Completion Rate 2008.................................................................. 145

Chapter 6

Table 6.1: Primary education access (attendance by age cohort 6-11 years) inequality

decomposition for 2003 & 2008, and change between 2003 & 2008 ............... 162

Table 6.2: Oaxaca-type decompositions for change in primary education access

inequality, 2003 - 2008 ..................................................................................... 169

Table 6.3: Secondary education access (attendance by age cohort 12-17 years) inequality

decomposition for 2003 & 2008, and change between 2003 & 2008 ............. 172

Table 6.4: Oaxaca-type decompositions for change in secondary education access

inequality, 2003-2008 ....................................................................................... 178

6

Table 6.5: Primary education attainment (completion by age cohort 15-20 years) inequality

decomposition for 2003 & 2008, and change between 2003 & 2008 ............... 181

Table 6.6: Oaxaca-type decompositions for change in primary education attainment

inequality, 2003 - 2008 ..................................................................................... 187

Table 6.7: Secondary education attainment (completion by age cohort 18-23 years)

inequality decomposition for 2003 & 2008, and change

between 2003 & 2008 ....................................................................................... 191

Table 6.8: Oaxaca-type decompositions for change in secondary education attainment

inequality, 2003-2008 ....................................................................................... 197

Appendix Table A6

Table A6.1: Primary education access inequality decomposition .................................... 201

Table A6.2: Secondary education access inequality decomposition ................................. 202

Table A6.3: Primary education attainment inequality decomposition ............................... 203

Table A6.4: Secondary education attainment inequality decomposition ........................... 204

7

List of Acronyms and Abbreviations

BECE Basic Education Certificate Examination

CASC Catholic Action for Street Children

DHS Demographic Health Survey

ECOWAS Economic Community of West African States

EFA Education for All

ERPs Economic Recovery Programmes

ESP Education Strategic Plan

FASAF Network on Family and Schooling in Africa

FCUBE Free Compulsory Universal Basic Education

FTI Fast Track Initiative

GDHS Ghana Demographic Health Survey

GDP Gross Domestic Product

GER Gross Enrolment Rate

GES Ghana Education Service

GLM Generalised Linear Models

GLSS Ghana Living Standard Survey

GoG Government of Ghana

GPRS Ghana Poverty Reduction Strategy

GSS Ghana Statistical Service

IMF International Monetary Fund

JHS Junior High School and three years

LMIC Lower Middle Income Country

LSS Living Standards Surveys

MDGs Millennium Development Goals

MOESS Ministry of Education Science and Sports

NAR Net Attendance Rate

NDPC National Development Planning Commission

NHIS National Health Insurance Scheme

NPP New Patriotic Party

PCR Primary Completion Rate

PHC Population and Housing Census

PNAR Primary Net Attendance Rate

PSDP Primary School Development Project

PTA Parent Teacher Association

RoG Republic of Ghana

SAPs Structural Adjustment Programmes

SCG School Capitation Grant

SCR Secondary Completion Rate

SES Socioeconomic Status

SFP School Feeding Programme

SHS Senior High School

SNAR Secondary Net Attendance Rate

SSA Sub-Saharan African

UNDP United Nations Development Programme

8

UNESCO United Nations Education, Scientific and Cultural Organization

UNICEF United Nations Children’s Fund

UPE Universal Primary Education

WASSCE West African Senior School Certificate Examination

WEF World Education Forum

WHO World Health Organization

9

Abstract

The University of Manchester

Lawrence Kwaku Ado-Kofie

Doctor of Philosophy (PhD)

Distributional Dimension of Educational Access and Attainment in Ghana

9th September 2014

This thesis investigates the unequal distribution of educational access and attainment in

Ghana. Inequality in educational access and attainment between the poor and the non-poor,

and between male and female has been a major policy concern in Ghana. To investigate

this concern, we use 2003 and 2008 Ghana Demographic Health Survey (GDHS) datasets

and employ multivariate regression model and concentration index decomposition

framework to analyse the datasets on key educational variables. This research constitutes

the first attempt to quantify the contributions of key socioeconomic factors that might

account for educational inequalities in Ghana and the findings can aid effective policy

design in Ghana.

The first research question explores key socioeconomic factors that are thought to

influence primary and secondary education access and attainment, and the extent of

disparities in the educational outcomes in Ghana. Household wealth, educational

attainment levels of household heads, and female household head appear to be the most

important determining factor in explaining the disparity in children's school attendance and

completion in Ghana. We also find variations in educational access and attainment

between children from poor and non-poor households at different levels of education and

this may constitute evidence of households' continuing financial burden in educating

children and the probable ineffectiveness of the state in transcending those economic

differences. The second research question addresses the extent to which gender disparities

in educational access and attainment increase or decrease with household wealth

distribution in Ghana. We find that gender inequality is larger at lower household wealth

levels than at higher levels. At higher household wealth distribution levels, household

wealth tends to favour female children's educational access and attainment. Finally, the

third research question examines contributions of key sources of educational inequalities

and explores welfare groups that benefitted disproportionately from education expansion

and education policy interventions in Ghana. We find that household wealth and household

head educational attainment levels among others contribute substantially to educational

inequality in Ghana and non-poor households benefitted more than the poor households in

terms of access to, and attainment of both primary and secondary education.

This research provides three main contributions to the literature on distributional

dimension of educational access and attainment. First, it expands the discussion on the

effectiveness of government of Ghana’s education policy interventions on educational

outcomes in Ghana. Second, it brings into the fore the impact of key socioeconomic factors

on gender disparity in educational access and attainment which will help to identify where

intervention is most appropriate and effective in reducing gender disparity gap in education

as well as strengthening female empowerment. The third contribution is an innovation by

applying concentration index decomposition framework to quantify contributions of key

sources of educational inequalities. The contributions of key sources will further expand

the existing knowledge on the distributional dimension of educational access and

attainment in Ghana and other developing countries in terms of formulating and designing

policy interventions to address inequity in educational access and attainment.

Keywords: Educational access and attainment; Educational inequality; Concentration

index decomposition; Gender inequality.

10

Declaration and Copyright Statement

Declaration

I, Lawrence Kwaku Ado-Kofie, hereby declare that no portion of the work referred to in

the thesis has been submitted in support of an application for another degree or

qualification of this or any other university or other institute of learning.

Copyright Statement

(i) The author of this thesis (including any appendices and/or schedules to this

thesis) owns certain copyright or related rights in it (the “Copyright”) and he

has given The University of Manchester certain rights to use such Copyright,

including for administrative purposes.

(ii) Copies of this thesis, either in full or in extracts and whether in hard or

electronic copy, may be made only in accordance with the Copyright, Designs

and Patents Act 1988 (as amended) and regulations issued under it or, where

appropriate, in accordance with licensing agreements which the University has

from time to time. This page must form part of any such copies made.

(iii) The ownership of certain Copyright, patents, designs, trademarks and other

intellectual property (the “Intellectual Property”) and any reproductions of

copyright works in the thesis, for example graphs and tables (“Reproductions”),

which may be described in this thesis, may not be owned by the author and may

be owned by third parties. Such Intellectual Property and Reproductions cannot

and must not be made available for use without the prior written permission of

the owner(s) of the relevant Intellectual Property and/or Reproductions.

(iv) Further information on the conditions under which disclosure, publication and

commercialisation of this thesis, the Copyright and any Intellectual Property

and/or Reproductions described in it may take place is available in the

University IP Policy

(see http://documents.manchester.ac.uk/DocuInfo.aspx?DocID=487), in any

relevant Thesis restriction declarations deposited in the University Library, The

University Library’s regulations

(see http://www.manchester.ac.uk/library/aboutus/regulations) and in The

University’s policy on Presentation of Theses.

11

Acknowledgement

My foremost thanks go to the Almighty God for His unfailing love, sustenance and grace

for the successful completion of my entire study. This work would not have achieved its

standard without the constructive comments, suggestions and encouragement that I have

received from several people without of course, holding them responsible for any

deficiencies that may remain in this thesis.

I am particularly indebted to my supervisors Dr David Lawson and Dr Ralitza Dimova for

their constructive comments, priceless suggestions and advice and above all the time and

energy they put into reading the draft copies of this thesis which have made this work to be

completed in time. I also want to specially thank Dr David Lawson for his financial

assistant in times of financial difficulties that I faced as self-financing student during the

course of this study. Dr Lawson and Dr Dimova, I say every support I received from you is

highly appreciated and will never be forgotten. To our Senior PGR administrator, Miss

Monique Brown, I owe you a lot for your administrative support, especially during those

difficult times when quick and positive administrative responses were much needed. Your

performance is second to none, even at the shortest notice of my requests.

I also owe a great debt of gratitude to my lovely wife, Mrs Naa Dede Ado-Kofie. She has

been and will always be the backbone of my accomplishments. She has worked day and

night in providing financial support for my studies and for the maintenance of the family.

Her encouragements, patience, faith in me and above all her love have given me the

strength and determination to go through this long and arduous academic journey of my

life. Without her support and understanding during my years of study in the UK, especially

the PhD programme, it would have been extremely difficult if not impossible for me to

undertake and complete the PhD programme within the 3 years as a self-financing student

with two children.

I also like to appreciate the prayer supports and encouragement from my brethren in

Calvary Hephzibah Full Gospel Church, Manchester. Special appreciation goes to my

pastors Dr Emmanuel Olatoye and Dr Mrs Shade Olatoye for their prayer supports over the

years, and especially for this PhD programme. To the entire church, I say God bless you all.

Indeed, my thanks also go to all my friends and colleagues in the PhD community at IDPM

and Economics, especially; Dr Justice Bawole, Hamza Bukari, Adams Yakubu Adama,

Alma Kudebayeva and Eleni Sifaki for their supports and inspirations during the

challenging and great moments we shared together as PhD candidates. Hamza Bukari, you

have been more than just a friend and a colleague and I appreciate all your supports,

networking and encouragements. To Dr Justice Bawole, I say thanks for your special

support during those difficult times when my laptop which contained one whole year of my

PhD work was stolen in the department.

To everyone who has supported either directly or indirectly, has my heartfelt gratitude.

May God bless you all!

12

Dedication

This thesis is dedicated to:

My lovely wife, Mrs Naa Dede Ado-Kofie, and my lovely children, Master

Winston and Miss Winielle Ado-Kofie.

The loving memory of my Dad (Mr Abraham Ado-Kofie) and Grandma (Ms

Martha Afezukeh) who, though had no formal education, knew the value of

investing in education and invested substantially in my education.

13

Chapter 1

Introduction

1.1 Background

There is general recognition of the importance of education in socioeconomic development

of countries, especially the developing countries. As a result, the role of human capital in

socioeconomic development has been widely recognised in the various developing

countries studies (Appleton 1995; Appleton et al. 1996; Lloyd and Blanc 1996; Lavy 1996;

Filmer and Pritchett 1999a & 1999b; Lewin 2007 & 2009; Lewin and Akyeampong 2009;

Mani et al. 2009; Harttgen et al. 2010; Harttgen and Klasen 2012). A major trend that

emerges in all these studies is that educational access and attainments are relatively low

and there are observed disparities in educational outcomes between: the poor and non-poor;

and males and females, even at the basic education levels.

Inequality in educational distribution and low educational outcomes has been one of the

top priorities in many poor developing countries where various education policy initiatives

have been evolved in the last two decades to meet Education for All (EFA) goals. The

2000 EFA Conference and the 2000 UN Millennium Summit affirmed low levels of

educational outcomes and educational inequalities in developing countries (UNESCO 2000,

2002a, 2002b & 2008; UN 2000) . Consequently, EFA goals 2 and 5 which are in harmony

with Millennium Development Goals (MDGs) 2 and 3 were set to address the gaps in

educational outcomes in the developing countries. These goals have been incorporated into

educational policies being evolved by governments in developing countries, including

Ghana.

1.2 Why Ghana as a case study

Ghana is seen as one of the role models for Sub-Saharan African (SSA) countries by her

development partners (Bogetic 2007; Coulombe and Wodon 2007; Coulombe and McKay

2007) about the country’s economic performance following successful implementation of

the World Bank and IMF’s various economic programmes (i.e. ERPs, SAPs, and GPRS

etc.). During much of the 1990s and 2000s, Ghana had one of the strongest growth rates

and falling incidence of poverty amongst the SSA countries (Bogetic 2007). In comparison

with many other SSA countries, Ghana’s economic growth performance in the past two

decades has been relatively good.

14

In addition, Ghana is one of the few SSA countries for which EFA and MDGs on universal

access to primary education and gender equality in access to education, and the reduction

of absolute poverty by half by 2015 targets were believed to be within reach (World Bank

2011a, 2011b & 2013; NDPC et al. 2012). The assumption that these targets lie within

reach was based on the relatively good economic performance and reduction in absolute

poverty in Ghana. Since 2000, the education sector in Ghana has experienced substantial

expansion at all levels of education with primary school enrolment ratio around 90%

(World Bank 2004; Akyeampong et al. 2007; NDPC et al. 2010). In addition, Ghana has

recorded one of the strongest and steady GDP growth rates and falling incidence of poverty

amongst the SSA countries (Bogetic 2007; World Bank 2014). The average GDP growth

rate for Ghana since 2000 is around 6.5% with respectable 9th

position in the average GDP

rating of SSA countries (World Bank 2014).

Moreover, currently available data indicate that the share of the population below the

poverty line decreased from 39.5% in 1998/99 to 28.5% in 2005/06 (Ghana Statistical

Service 2000 & 2007). Some researchers described Ghana’s poverty reduction

performance as probably the best record in the whole of SSA over the last two decades

(Coulombe and Wodon 2007). According to Coulombe and Wodon (2007) and World

Bank (2014) online database the absolute number of the poor (consumption based: $1.25 a

day) decreased from 7.2 million in 1998/99 to 6.3 million in 2005/06. However, it has also

been argued that the economic growth benefitted the non-poor disproportionately and if

the growth had benefitted the poor and the non-poor households equally, the poverty

reduction goal would have been achieved (Coulombe and McKay 2007).

Consequently, the impact of the differential distribution of economic growth on poverty

reduction and education expansion present considerable challenges for equitable

distribution of education provision in Ghana, especially to meet EFA and Millennium

Development education related goals. It is worth noting that the steady economic growth

rate, educational expansion and declining absolute poverty in Ghana do not necessarily

imply equity in educational access and attainment and equality of opportunity. Since

economic growth alone cannot guarantee equitable distribution of education, it became

imperative for the government of Ghana (GoG) to increase access to basic education

through a number of international initiatives including EFA Fast Track Initiative (FTI) and

national policy interventions.

15

Throughout the last decade, some policy interventions were carried out in Ghana to

reinforce education initiatives (stipulated in 1987 education reforms, 1992 Constitution,

and Vision 2020) that have been aimed at widening education participation and reducing

cost barriers which have consistently limited educational access for the poor households.

Among the policy interventions are; the construction and rehabilitation of classrooms,

Capitation Grant (CG), School Feeding Programme (SFP), and enforcement of laws that

support the implementation of Free Compulsory Universal Basic Education (FCUBE)

(World Bank 2004; NDPC et al. 2010 & 2012).

Although the FCUBE policy was outlined in 1995 in accordance with the constitution of

the Fourth Republic of Ghana, with the aim to achieve Universal Primary Education (UPE)

by 2005, it was not until the year 2000 when laws that support the implementation of

FCUBE were fully enforced (NDPC et al. 2010). The FCUBE also sought to improve girls’

enrolment and has generally succeeded in achieving this target (Ministry of Education

Science and Sports 2006a). However, as the name suggests Free Compulsory Universal

Basic Education on the contrary was never totally free. It has cost sharing principles that

went with it. Fees and levies such as; Parent Teacher Association (PTA) contributions,

sports fees, and other school activities fees were still being charged under the FCUBE

programme until the year 2004. In effect, these fees represent a regressive taxation on poor

households which affected the enrolment and excluded children from poor households

(Akyeampong et al. 2007; Akyeampong 2009) who are very sensitive to fees, even when

these fees are small. These fees were thought to be negatively impacting on school

attendance of children at the basic level and undermining the GoG’s EFA initiatives.

The government, therefore, decided to implement SCG in 2005 and SFP in 2006 to

increase access to education and maintain, especially the poor children in school.1 In 2008,

the GoG disbursed a total amount of GH¢15 million as payment of SCG to pupils in all

public schools in addition to subsidising the conduct of Basic Education Certificate

Examination (BECE) amounting to over GH¢4 million (NDPC et al. 2010).2 The SFP is

also aimed at increasing school enrolment, retention, attendance, and reduction in

malnutrition among children. It was expanded to cover 596,089 pupils nationwide in 2008,

up from 408,989 in 2007 to help ease the burden on households (NDPC et al. 2010).

1 The School Capitation Grant (SCG) is a form of grant given to all public basic schools in Ghana. It covers

tuition fees and all other forms of fees and levies previously charged under FCUBE. It is an additional

initiative to abolish all forms of fees in basic education and makes school enrolment and attendance at public

basic schools totally free to all households irrespective of income levels (Akyeampong, K. 2011). 2 At the time, GH¢1.00 was equivalent to US$1.00

16

In 2005/06 academic year, there was high increase in school enrolment when a school

capitation grant of GH¢3.00 (equivalent to US$3 at the time) per enrolled child was

introduced. The enrolment in Grade 1 increased by 20%, for the first time ever, but was not

sustained in the following years (Ministry of Education Science and Sports 2008). This

shows that the SCG may not be enough to increase and sustain high enrolments through

into higher grades. Most importantly, the policy intervention does not specifically target

the poor households who need the grant most, but instead spreads the grant for all

households, irrespective of income and socioeconomic status (SES). Although, the broad

education policy objective of the GoG is to ensure that all Ghanaian children, irrespective

of their household income levels, SES and gender have access to and attain at least the

basic level of quality education (Republic of Ghana 1997), this objective is yet to be

achieved (Republic of Ghana 1997 & 2003; Akyeampong et al. 2007; Sackey 2007; Ghana

Statistical Service et al. 2004 & 2009; Rolleston 2009; Nguyen and Wodon 2014;

Nordensvard 2014). However, the key question is whether the poor households have been

able to benefit from these policy interventions (FCUBE, SCG, and SFP) and the

educational expansions in general.

1.3 Significance and contributions of the study

There is now strong support for reducing all forms of inequality including educational

inequalities. For example, in a letter to Dr Homi Kharas, lead author and executive

secretary of the secretariat supporting the High-Level Panel of Eminent Persons on the

Post-2015 Development Agenda, ninety economists, academics, and development experts

urged that reduction in inequality in the post-2015 development agenda be made a priority.

This thesis lends support to the suggestions of the ninety economists, academics, and

development experts. These experts recognised that “While the MDGs did spur some

progress in human development in the last two decades, there is evidence of growing gaps

in terms of income, education, health, nutrition and many other areas that impede the

fulfilment of human rights and wellbeing” (Pickett et al. 2013:1). They, therefore, urged

that reduction in inequality in the post-2015 development agenda be made a priority.

This study informs the literature on inequalities in educational access and attainment in

three fronts. It expands the discussion on the effectiveness of government of Ghana’s

education policy interventions on educational outcomes in Ghana and constitutes the first

attempt to analyse educational outcomes by household wealth distribution using household

data before and after the government's education policy intervention implementation period.

17

In terms of gender inequality debates, it contributes to an enhanced understanding of the

impact of key socioeconomic factors on gender inequality in educational access and

attainment which will invariably help to identify where intervention is most appropriate

and effective in reducing gender inequality gap in education as well as strengthening

female empowerment. Finally, the third contribution is an innovation, by applying

concentration index decomposition framework (widely used in health economics) to

quantify both the absolute and relative contributions of key sources of educational

inequalities (through regression analysis). This application also allows us to explore which

income groups benefitted disproportionately from education provision, which the

traditional methods (reviewed in Chapter 3, sub-section 3.7.1.2) failed to achieve. Again, it

contributes to the literature by distinguishing between the elasticity differences and

inequality differences of socioeconomic determinants of educational inequalities. In other

words, we are able to determine for the first time whether the impacts (i.e. elasticities)

differences of the socioeconomic factors on educational inequality are more important than

the inequality differences between households or vice versa. This distinction is important

for policy direction. This is because policymakers will see whether equitable distribution

of educational opportunities will be preferable to redistribution of existing assets or

incomes or vice versa.

For example, in Ghana we find that the elasticity differences of the key socioeconomic

determinants of educational outcomes are greater than the inequality differences. In other

words, the impacts of the socioeconomic factors on educational inequality are more

important than the inequality differences between households. Thus, reducing educational

inequalities in Ghana seems more a matter of reducing these elasticities (impacts) through

appropriate education-related policies than a matter of income redistribution. The

implication of this finding for policy direction is that an equitable distribution of

educational opportunities will be preferable to a redistribution of existing assets or incomes.

This is a new finding and contributes to the literature on educational inequalities by

providing policy direction and implementation.

1.4 Equal educational access matters for growth and poverty reduction

Why do we have to bother about the distribution of education and its implications for

inequality? The distribution of education matters and unequal distribution of education

tends to have negative impact on per capita income in most countries (Lopez et al. 1998).

Thus, the way in which education is distributed will have profound impact on the

18

distribution of income, the nature of economic growth and poverty reduction. Therefore,

understanding the trends and impacts of inequalities in educational access and attainment is

particularly important because government policy can address them than in the case of

reducing income poverty. It has been shown in the empirical literature that attainment of

higher education, equal distribution of education and public spending, have contributed

significantly to the equalisation of income distribution (Gregorio and Lee 2002). On the

other hand, inequality in educational attainment increases income inequality and restrict

socioeconomic mobility and if we are concern about economic growth, poverty reduction

and equality of opportunity then we should care about inequality in educational access and

attainment of children today. Thus, the distributional dimension of education is extremely

important for both welfare consideration and for production (Corak 2013). Furthermore,

inequalities in educational access and attainment are considered as the primary determinant

of inequalities in income and opportunity. As Doyle and Stiglitz (2014:9) stated “one of

the most pernicious forms of inequality relates to inequality of opportunity, reflected in a

lack of socioeconomic mobility, condemning those born into the bottom of the economic

pyramid to almost surely remain there”. Thus, the lack of socioeconomic mobility of those

at the bottom of income distribution may be largely attributed to inequalities in educational

outcomes and opportunities. The educational outcomes of children reflect a series of

factors such; as the prevailing socioeconomic inequalities to which they are exposed to (e.g.

access to good schools), household socioeconomic status (SES) and public policy on

education (Corak 2013). Thus, household resources and the degree of inequality in access

to education can determine the return to the education children receive. For example,

inequality in educational access and attainment can skew opportunity and lower

intergenerational mobility for the poor households (ibid).

It is also important to note that inequality in education will lead to income inequality that

heightens the income consequences of innate differences between individuals, changes

opportunities, and incentives which put some households in position to support their

children’s achievement independent of talent (Corak 2013). Thus, those with relatively

little or no formal education are less positioned to participate in economic growth. A

reduction in inequalities in educational access and attainment will lead to reduction in

education poverty and as a result, increase economic growth. For example, it has been

shown that reduced inequality in educational access contributes to significant reductions in

education poverty (Sahn and Younger 2006). Therefore, equal distribution of educational

access at least at both primary and secondary school levels, irrespective of household

19

income levels, will serve as a ‘ladder’ for children born into the bottom economic pyramid

to ‘climb up’ and acquire the necessary skills that will help them to partake in

opportunities that economic growth might present to them to increase their socioeconomic

mobility. In addition, not only will access to education for all increase the individuals’

productivity but also the total productivity of the country will increase with and the long

run effect being economic growth and poverty reduction, ceteris paribus.

In terms of distribution of education and its implications for inequality in Ghana, there is

little information on what actually happened during the last decade in terms of educational

outcomes along disparities in wealth distribution versus educational outcomes of the poor

households in Ghana. Thus, the study provides new insights into the directions of

distributional changes in educational outcomes along wealth distributions, sources of

educational inequalities, and the impact of policy interventions using pre-and-post policy

intervention household surveys.

Specifically, the study investigates: (i) the socioeconomic determinants of educational

access and attainment; (ii) inequalities in educational outcomes of males and females by

wealth distribution; and (iii) sources of socioeconomic inequality and contributions of the

sources in educational access and attainment inequality in Ghana. In general, the outcome

of the distribution of educational access and attainment in Ghana provides important policy

evaluations and directions. Such policy evaluations include: whether GoG’s intended pro-

poor education policy intervention has significantly reduced the impact of household

income on schooling outcomes, especially at primary education level for the income poor

households; how gender differentials in educational outcomes by wealth distribution have

changed; and whether poor households have benefited disproportionately in terms of

educational outcomes from the steady economic growth, educational expansions and the

education policy interventions. Thus, the impact of past policies on households such as

children from poor households educational outcomes, become visible so that lessons from

the past can be incorporated into the design of new policies and programmes.

20

1.5 Research objectives and questions

The research aims to investigate the effect of wealth distribution and education policy

interventions on education distribution and inequalities in educational access and

attainment in Ghana.

1.5.1 Research objectives

The specific objectives the study aims to achieve include the following:

i. To measure the socioeconomic determinants of educational access and attainment

of school-age children and young adults from poor households compared with

those from non-poor households.

ii. To estimate gender disparities in educational outcomes by wealth distribution and

to explore how gender differentials have changed at different points of educational

access and attainment in response to income levels.

iii. To estimate both absolute and relative contributions of key determinants of

socioeconomic inequality in educational access and attainment, and to explore who

benefitted disproportionately from the economic growth, education expansion and

policy interventions in Ghana.

1.5.2 Research questions

Specifically, the study seeks answers to the following questions:

i. What key socioeconomic factors influence primary and secondary education access

and attainment, and what is the extent of disparities in the educational outcomes?

ii. To what extent do gender disparities in educational access and attainment increase

or decrease with household wealth distribution, and what is the change in gender

differentials at different points of educational access and attainment in response to

income levels?

iii. What are the absolute and relative contributions of socioeconomic factors to

inequality in educational access and attainment in Ghana and which income groups

benefitted disproportionately from educational access, attainment and educational

policy interventions in Ghana?

21

These are some of the questions this thesis sets out to investigate for education provision

and distribution in Ghana. Answers to these questions will provide policy lessons and to

shed more lights on educational inequalities, especially at primary education level before

and after the implementation of education policy interventions in Ghana.

1.6 Structure of the thesis

The rest of the thesis is organised as follows. Chapter 2 provides the background and

context of the study. The chapter explores economic performance trend in Ghana and

relates it to education provision and educational disparities in Ghana. We then discuss

education reforms and their impacts on access to, and attainment of education in Ghana.

This is followed by Chapter 3 which explores the impact of economic growth on income

and wealth distribution, non-income poverty and socioeconomic inequality in education.

The chapter also details both the theoretical and empirical evidence on the demand aspect

of education, the distribution of education, and inequality in educational access and

attainment in developing countries. It also discusses the conceptual framework and models

of the study. Chapter 4 provides the empirical findings and discussions of socioeconomic

determinants of educational access and attainment in Ghana. In Chapter 5, we estimate

gender disparities in educational outcomes by household wealth distribution and explore

the results for policy implications. The determination of sources of educational inequalities

in educational outcomes is carried out in Chapter 6. In the same chapter, we estimate both

the absolute and relative contributions of each determinant of educational inequality to the

total inequality in educational access and attainment by households in Ghana. Finally,

Chapter 7 provides the summary, conclusions and policy implications of the study.

22

Chapter 2

Background and context of the study

2.1 Introduction

This chapter explores how the general economic performance of Ghana and education

policy intervention relates to educational outcomes in the country. Specific discussions

include: the country’s economic performance; education distribution and educational

inequality; education policy and trends in educational outcomes. These overviews,

therefore, set the scope and direction for further discussions and analysis in the subsequent

chapters.

2.2 Country overview

Ghana is situated on the west coast of Africa and has a land area of 238,533 square

kilometres with total population of about 24.7 million (Ghana Statistical Service 2012).

The country is divided into ten administrative regions and 170 decentralized administrative

districts. The population density increased from 79 persons per square kilometre in 2000 to

103 persons per square kilometre in 2010 (Ghana Statistical Service 2012 & 2013). The

increase in population density implies more pressure on education provision, existing

school facilities and other resources in the country.

Ghana’s economy is ranked the 85th largest in the world with a total GDP of US$40.7

billion and a per capita GDP of US$1,605 in 2012 and 9th position in the average GDP

rating of SSA countries (World Bank 2014). In the ECOWAS sub-region, Ghana’s

economy ranks second and accounts for 10.3% of the total GDP of the sub-region, with

Nigeria taken the first position in the sub-region.3 Ghana’s economic growth has been quite

strong and steady, especially over the past two decades after pursuing IMF and World

Bank Economic Recovery Programmes (ERPs) in 1983 (Appiah et al. 2000).4

Consequently, between 1984 and 2010, Ghana recorded an annual average growth rate of

about 5.2 % and became a Lower Middle Income Country (LMIC) after a rebasing of its

national accounts in 2010 with a change in the base year from 1993 to 2006 (Ghana

Statistical Service 2010 & 2011; Moss and Majerowicz 2012). The rebasing pushed the

country’s annual average growth rate to 8.3% between 2007 and 2012 (World Bank 2013).

In 2011, the country commenced commercial production of oil. This development

3 Nigeria alone accounts for 66.2% of total GDP of all the 15 ECOWAS countries.

4 The ERPs was followed by Structural Adjustment Programmes (SAPs) including the Programme of Actions

to Mitigate the Social Costs of Adjustment (PAMSCAD) from 1986 to 1991 which the country believed was

bound to change the pattern of growth, income distribution and reduce the level of poverty.

23

contributed 5.4% (oil-GDP) to the 15.0% real GDP growth in 2011, with the country been

ranked as one of the six fasters growing economies in the world in 2011 (World Bank 2013;

Ghana Statistical Service 2014). .

In terms of education, over 2.3 million households in Ghana (representing 42.8% of total

number of households) are disadvantaged in access to primary education (Ghana Statistical

Service 2013a). For example, the 2010 Population and Housing Census (PHC) summary

report reveals that 23.4% of the Ghanaian population (i.e. 5,299,884) has never been to

school. Out of this number, 9.1% of males and 14.3% of female have never attended

school depicting a marked difference between the males and females in favour of the males.

The 2010 PHC summary report also shows that 39.5% of the population were attending

school and 37.1% have attended school. The proportion of the population which has never

attended school in the rural area is about 33.1% compared to 14.2% in the urban areas

(Ghana Statistical Service 2012). Furthermore, 2010 PHC summary statistics indicates that

28.5% of the 15.2 million working age population in 2010 had no formal education, while

48% had only basic education. Beyond basic education level, approximately 21% and 3%

had secondary and university education, respectively (Ghana Statistical Service 2012).

These statistics, however, represent an improvement in education and human capital

development over the past two decades. For instance, 1991/92 GLSS shows that about 40%

of the working age population had never been to school while 54% had some basic

education with the remaining 6% accounting for secondary education and tertiary

education (Ghana Statistical Service 1995).

Notwithstanding, the adult literacy rate (percentage of people aged 15 and above)

increased from 57.9% in 2000 to 71.5% in 2010, while the youth literacy rate (percentage

of people aged 15-24) also increased from 70.7% in 2000 to 85.7% in 2010. For female

and male adult population, 49.8% and 66.4% respectively were literate in 2000 and this has

also increased to 65.3% and 78.3% respectively in 2010. For the youth, the literacy is

relatively higher in both 2000 and 2010 compared to the adults. The literacy rate for female

and male youth increased from 65.5% and 75.9% in 2000 to 83.2% and 88.3% in 2010,

respectively (World Bank 2014). Compared with the 2000 census data, the level of literacy

has increased tremendously and this may be attributed to the GoG’s efforts to meet the

MDGs 2 and 3 by 2015 by implementing education policy interventions (Republic of

Ghana 1997 & 2003; NDPC et al. 2010).

24

2.3 Education provision and inequality in educational outcomes

Progress in educational access and attainment depends not only on GDP growth rates and

personal incomes of the households but also government policies. In the development

community, there is an assumption that public expenditure on education is the prime policy

instrument for achieving desired educational outcomes (Roberts 2003). Thus, progress in

educational inequality and poverty reduction requires policies that address both the

demand-side and supply-side constraints of education.

In Ghana, the provision of classroom blocks, textbooks, and trained teachers tend to ease

supply-side constraints to education (World Bank 2004). On the other hand, the main

factors on the demand-side which affect poor households include; household income and

the opportunity cost of sending children to school. It is argued that one of the reasons why

children from poor households in Ghana do not attend school is that their parents cannot

afford the cost of sending the children to school (Osei et al. 2009). In response to make

education accessible, especially at the basic levels to all households, the GoG implemented

various educational policies (i.e. FTI, FCUBE, SCG, and SFP discussed in both Chapters 1

and 2) in order to mitigate demand-side constraints and to increase educational access to all

children.

In terms of inequality in education, Filmer and Pritchett (1999b) emphasise the pronounced

effects of poverty and gender on primary school completion rates. In Ghana, the

distribution of education (enrolments, financing or attainments) suggests that there is

inequality in educational outcomes, and this is also strongly related to income poverty and

gender (Ghana Statistical Service et al. 2009; Akyeampong et al. 2007; World Bank 2004).

Ghana 2008 Demographic and Health Survey dataset (Ghana Statistical Service et al. 2009)

also reveals that children from poor households have lower school enrolment and

attendance rates, and they are more likely to drop out in the course of the primary cycle,

than the children from non-poor households. This suggests that in Ghana, income

inequality and educational inequality are closely linked. This also confirms the findings of

Filmer and Pritchett (1999b) who have also extracted evidence from Demographic Health

Surveys (DHS) in 35 countries including West African countries. The authors show that

the dropout rates for the poor are consistently higher than for the non-poor households.

The situation as regards girls’ education is more nuanced. In Ghana, girls are educationally

disadvantaged compared to boys in most of the regions, with lower enrolment and

completion rates (Sackey 2007). However, once enrolled, girls have as good, if not better,

25

chance of completing primary education as boys (ICF Macro 2010; Akyeampong et al.

2007). Since public policy on education can impact on educational outcomes, Section 2.5

examines the extent to which education policy interventions in Ghana impact on

educational access and attainment of households in Ghana.

2.4 Access to education in Sub-Saharan Africa context

When reviewing the theory and empirical research on educational access and attainment in

SSA, several themes emerge that are relevant to the Ghanaian context. In SSA, there are

policies implemented towards achieving Education for All (EFA). Policies have been

implemented to: increase equity in educational access and attainment; reduce or eliminate

gender inequality in education; and in scaling-up of resources for basic education.

However, achieving EFA is very challenging, particularly in Africa where most of the

world’s out-of-school children live (UNESCO 2008). Although available statistics show

that there are 11 million more SSA children in school in 2012 compared to 2000, 32

million have never been in school as of 2012 (World Bank 2014). Indeed, the World Bank

has predicted that by 2015 three out of four of the world’s out of school children will live

in Africa (World Bank 2002).

Resource constraints have been identified as one of the most prevalent obstacles for

achieving EFA goals (UNESCO 2007; USAID 2007; Yamada 2005). In SSA, households

provide a significant share of overall education expenditures since the world made

commitments to strive to achieve Education for All in 1990 and renewed in 2000 (World

Bank 2004). For example, a survey conducted in 2004 found that in Zambia, parents paid

50% to 75% of total primary education spending and the average household expenditure

for public primary school in Malawi was nearly 80% (World Bank 2004). At the household

level, income has been identified as a major barrier that prevents many children from

accessing and completing quality basic education in Africa (Lloyd and Blanc 1996; Filmer

and Pritchett 1999b; Deininger 2003; Okumu et al. 2008). Especially, in SSA countries

where poverty imposes difficult choices on households about how many and which

children to send to school, and for how long (Kattan 2006). Thus, lack of household

economic resources creates inequality in educational outcomes between the poor and the

noon-poor and also between female and male children of school-age. For example, in 1992,

the proportion of children in Uganda who were not enrolled in school due to costs related

reasons was estimated at 71% (Kattan 2006; Deininger 2003). The Zambia’s Central

26

Statistics Office also estimated that at least 45% of children who dropped out of school did

so because they could not pay school fees (Kattan 2006).

Studies in Ghana have also shown that high cost of schooling is often the most frequent

reason cited for non-attendance in basic schools (Akyeampong et al. 2007; Sackey 2007).

In Ghana, the cost of providing food, clothing, school levies and registration costs have

been identified as the three largest expenditure items facing households (Akyeampong et al.

2007). Thus, Akyeampong et al. (2007) have argued that parents in Ghana who face

education affordability constraints, normally give preference to male child education over

the female child.

Inequality in educational access and attainment and gender inequality in educational

outcomes in SSA have be linked mostly to household resource constraints (Lloyd and

Blanc 1996; Filmer and Pritchett 1999b; Deininger 2003; World Bank 2004; Akyeampong

et al. 2007; Sackey 2007). Consequently, interventions aimed at eliminating school fees

especially at the basic education level have been adopted by some SSA countries as one of

the key policy interventions for influencing education outcomes (USAID 2007). Malawi

represents one of the first countries to adopt the policy of school fees abolition and

Madagascar introduced school grants in school year 2002-03 as part of the abolition of

school fees. Grants were given to both public and private schools, and were used to finance

a limited amount of education supplies and small repairs (Fredriksen 2007). In Tanzania,

capitation as well as school development grants for primary education were introduced

under a World Bank-supported programme in 2002. Other countries in Africa that

abolished school fees in the 2000s in attempt to make basic education more accessible and

equitable include; Lesotho, Kenya, Mozambique, Tanzania, Cameroon and Zambia (Al-

Samarrai 2006; Kattan 2006).

The effect of abolishing school fees was immediate. Countries that have implemented

policies to eliminate school fees and other indirect education costs saw an increase in total

enrolment in the year following the abolition. Malawi abolished fees in 1994 and as a

result, enrolments increased by 49%; Uganda abolished fees in 1996 and experienced 68%

increase in enrolments (Kattan 2006); and Ghana abolished school fees for basic education

in 2004 and recorded an increase in enrolment ratio from 93.7% to 95.2% in in 2004/5

(Ministry of Education Science and Sports 2010; NDPC et al. 2010). In 2001, Tanzania

abolished school fees and the result was a rapid increase of 33% primary enrolment in

2002. The most important effect of the policy is that these enrolment figures mostly

27

represent the enrolment rates among the disadvantaged children which experienced rapid

increases and thereby widening access to education, especially for children from poor

households (Kattan 2006).

2.5 Education policy and trends in educational outcomes in Ghana

2.5.1 Education sector reforms and policy interventions

The current education system in Ghana takes its roots from the 1974 educational reforms

which introduced the idea of thirteen years of pre-tertiary education consisting of: six years

primary school; three years Junior High School (JHS); and three years Senior High School

(SHS). However, for the purpose of the thesis, the discussion will focus on education

reforms starting from 1987 to date.

The 1987 education reform sets out measures to improve access to basic education, equity

in the education sector, improve quality and efficiency. The reform sets the following

objectives and introduced new structures among others:

i. To expand and make access more equitable at all levels of education;

ii. To contain and partially recover costs and to enhance sector management and

budgeting procedures.

According to Akyeampong et al. (2007), the reform was designed to enable all products of

the primary school to have access to a higher level of general academic training to address

the inequity in the old education system.5 An assessment of 1987 reform indicates that the

reform has improved access and quality of basic education mostly in terms of investment.6

However, Akyeampong et al. (2007) argue that although the reform has made an impact on

educational performance in Ghana, many educational performance indicators suggest that

there is still more to do if the EFA goals and MDGs 2 and 3 are to be achieved and

sustained.

In line with the objectives of the 1987 reform, FCUBE was introduced in 1996 to fix the

weaknesses in the 1987 reform. The aim of the FCUBE was to achieve Universal Primary

5 The old system consists of 6 years primary school, 4 years middle school and 5 years lower secondary

school and 2 years upper secondary school (six from) with cost sharing principle at levels of education. 6 Over US$500 million of donor funding had been injected into Ghana’s education sector by 2003 (see

Akyeampong et al., 2007). Funding from the World Bank, from 1986 to 1994 was used for school

infrastructure development and rehabilitation, teacher training instructional materials etc. in primary and JHS.

The DFID, USAID, and the European Union also supported various aspects of the reforms (World Bank,

2004).

28

Education (UPE) by 2005. However, it is now clear that this target has been missed and

Ghana is yet to achieve UPE. The implementation of the FCUBE was supposed to increase

school participation at the basic education level by reducing the cost of basic education

paid by families or households. The policy initiative was supported by the World Bank

Primary School Development Project (PSDP). The areas of activity of the PSDP were;

policy and management (which includes reducing student fees and levies inter alia), and

investment in physical infrastructure (i.e. construction of classrooms, construction of head

teachers’ housing, and provision of roofing sheets) (World Bank 2004). The World Bank’s

assessment of the reforms in 1987 and 1995 indicates that educational access and quality in

Ghana have generally improved. The number of schools increased from 12,997 in 1980 to

18,374 in 2000, basic school enrolment rates increased since the beginning of the reforms

by over 10% points, and there was improvement in attendance rates in public basic schools

(World Bank 2004).

However, a study by Akyeampong et al. (2007) shows that there are still difficulties in

reaching a significant proportion of children who do not enrol at all. In particular, the study

claims that gains made in enrolment have been difficult to sustain throughout the nine year

basic education cycle (primary and JHS) in Ghana. In the World Bank’s evaluation report

on the reforms, the Bank admits that, improving quality and quantity of education

infrastructure is an important strategy but is not by itself adequate, and that more needs to

be done to ensure equitable access to quality basic education (World Bank 2004).

It was also argued that under the FCUBE the basic school enrolment rates in Ghana were

high compared to some other African countries, yet a persistent number of school-age

children (6-11 year olds) remained out of school (Adamu-Issah et al. 2007; Akyeampong et

al. 2007). Despite the policy of fee-free tuition in basic schools, many districts charged

levies as a means of raising funds, for example, for school repairs, cultural and sporting

activities (Akyeampong 2009). One of the main arguments put forward by the critics of the

FCUBE for the failure to increase educational access and achievement of UPE by 2005 in

Ghana was that many school-age children did not attend school because their parents could

not afford to pay the levies charged by the schools (Adamu-Issah et al. 2007; Akyeampong

et al. 2007; Akyeampong 2009). The levies had the effect of deterring many families or

households, particularly the poor, from sending their children, especially girls, to school

(Akyeampong 2009).

29

In order to rectify the failures of FCUBE and to increase access to basic education in

Ghana and to meet the EFA goals and MDGs for education, and the national targets

established in the 2003-2015 Education Strategic Plan (ESP), the GoG took a bold step by

abolishing all fees and implemented SCG and SFP (Republic of Ghana 2003; Ministry of

Education Science and Sports 2005; NDPC et al. 2010). In 2004, the government of Ghana

came out with a White Paper on education reforms. The White Paper Reform outlines a

portfolio of reforms and objectives spanning the entire education sector, (Ministry of

Education Science and Sports 2005) which were implemented in 2007 and have major

targets identified for 2015 and 2020 (Ministry of Education Science and Sports 2005 &

2008). The key objectives of the White Paper Reform are twofold: Firstly, to build upon

the ESP commitments and to ensure that all children are provided with the foundation of

high quality free basic education; and secondly to ensure that second cycle or secondary

education is more inclusive and appropriate to the needs of young people and the demands

in the Ghanaian economy (Ministry of Education Science and Sports 2005).

2.5.1.1 School capitation grant

Another policy which was introduced as part of education sector reforms in Ghana to

increase basic education participation and to meet EFA goals and MDGs 2 and 3 is the

SCG which we briefly touched on in Chapter 1 of the thesis. The SCG is a demand-side

basic education financing initiative implemented in 2005 for school operating budgets for

primary schools and JHS. It was first introduced in 2004 in 40 districts as a pilot scheme

and later extended to 53 districts designated as deprived. In 2005, the SCG policy

intervention was extended nationwide and initial evidence indicated that its introduction

had led to substantial increases in enrolment (Ministry of Education Science and Sports

2006a & 2006b).7 The aim of SCG is to realise equitable and universal access to basic

education in Ghana by; increasing student enrolment in basic schools and removing the

financial barrier to enrolling in schools, while also compensating schools for any loss of

revenue schools face by eliminating student levies formally charged. When SCG initiative

was introduced, every public school received an amount of GH¢ (Ghanaian Cedis)

equivalent of US$3.00 per pupil or student enrolled per year. In 2005, however, the actual

unit cost for a child in a public primary school was about US$72.00 (Ministry of Education

Science and Sports 2006b). Clearly, as a percentage of unit cost per primary school child,

the US$3.00 was insignificant. However, available published information on SCG shows

that, each school now receives on average US$6 per enrolled child (Akyeampong 2011).

7 The introduction of SCG led to about 17% additional increase in enrolment at the basic education level.

30

Akyeampong et al. (2007) argue that although the total capitation budget may be high, it

has done little to raise the unit cost for a primary school child and by implication the

quality of education that a child receives. In spite of the inadequacy of the SCG to cover

unit cost per child, there is evidence that primary school enrolment has increased

significantly as a result of the capitation grants and the removal of all remaining fees and

levies (Ministry of Education Science and Sports 2006a & 2006b; Adamu-Issah et al.

2007). Progress has also been reported in terms of achieving gender parity through a

significant increase in girls’ enrolment and general trends in the education sector (like the

enrolment ratios, transition rates, retention in school and completion rates, and gender and

geographic disparities) (Adamu-Issah et al. 2007).

On the other hand, Osei et al. (2009) employ an econometric estimation model to assess

how SCG affects; gross enrolment rates at the JHS level, the pass rates for the national

examinations at the JHS level, and the gap in the examination performance of boys and

girls. The authors find that SCG have not had any significant effect on the key education

outcomes in Ghana. The World Bank (2011a) report on education in Ghana also indicates

that while basic education enrolment increases in the first year as a result of SCG,

increasing dropouts and limits in learning outcomes counterbalanced the effect of the SCG

on net enrolment. The report further indicates that the effect of SCG on school attendance

in deprived districts was not significant given the high level dropout rates. As highlighted

by Akyeampong et al. (2007), the provision of SCG is based on a single allocative formula

determined at national level. As a result, it is rational to wonder how pro-poor is SCG if

districts with acute poverty and are socioeconomically disadvantaged receive the same

amount of SCG per child as non-poor districts?

2.5.2 Trends in educational outcomes

In Ghana, the number of primary schools rose from 16,903 in 2006/07 to 17,315 in

2007/08, while gross enrolment ratio increased from 93.7% to 95.2% over the same period

after the SCG and free school programmes were implemented in 2004/5 (Ministry of

Education Science and Sports 2010; NDPC et al. 2010). In terms of gender parity,

especially at primary and junior high school levels, there is indication that Ghana is on

track in achieving both targets, although primary level parity has stagnated at 0.96 since

2006/07, while parity at the JHS decreased slightly from 0.99 in 2006/07 to 0.98 in

2007/08 (NDPC et al. 2010). However, in order to gain a better understanding of

educational outcomes in Ghana with respect to access to primary and secondary education,

31

it is necessary to explore trends and patterns of access by wealth distribution over time.

This will provide us insights into the nature and impact of economic growth and the

declining income poverty in achieving 2015 EFA goals and MDGs 2 and 3 in Ghana. In

poor households, as children grow older and become more potentially productive, the

opportunity cost of school attendance for their parents increases (Roberts 2003). Roberts

attributes this phenomenon as the cause of falling enrolment and/or attendance rates in

higher grades in developing countries. In other words, the pecuniary and opportunity costs

of sending children to school are higher relative to household income in poor households

than in non-poor households. Thus, poor households tend to withdraw their children from

school when their incomes fall (ibid). In turn, this can be used to explain the disparities in

the enrolment and/or attendance rates of children from poor households and non-poor

households.

Table 2.1 shows the percentage of pupils who attended school during the previous

academic year but did not attend school the following year by residence and region in

Ghana in 2008. The dropout rates vary across grades indicating points in the school system

where pupils decided to drop out of school. There are wide regional variations in the

dropout rates. The regions with worse rates are the Upper West, Northern, and Central

regions and two of these regions (Upper West and Northern) have very high levels of

incidence of poverty in Ghana (Ghana Statistical Service 2007). Almost one-fifth (17%) of

Grade 6 pupils in the Upper West region, with the highest incidence of poverty in Ghana,

dropped out of school (ibid). On the other hand, the dropout rates are lower for pupils in

the Volta, Ashanti, and Upper East regions. Interestingly, Upper East which is the second

poorest region in Ghana with poverty incidence of 70.4% in 2006 (Ghana Statistical

Service 2007) and 71.6% of the households in the lowest quintile in 2008 (Ghana

Statistical Service et al. 2009), is the only region that recorded no school dropouts from

grade 3 to 6 in 2008 (Table 2.1). In general, however, poor children are more likely to drop

out of school and the non-poor children are twice as likely to be in school as children from

the poor households.

32

Table 2.1: Dropout rate, primary NAR and wealth quintile by locality, 2008

Primary school grade

Wealth

1 2 3 4 5 6

Primary

Quintile

Dropout rate* NAR** 1 5

Residence:

Urban 3.3 3.9 5.5 4.6 3.8 4.5

80.3

1.9 41.2

Rural 3.9 4.1 4.6 3.4 3.6 3.9

69.8

34.0 3.6

Region:

Western 5.2 5.0 5.8 5.8 3.5 3.7

71.6

9.0 20.8

Central 7.3 8.2 10.7 8.5 8.6 6.2

75.2

3.2 13.3

Greater Accra 3.1 4.3 5.5 4.6 4.9 5.8

80.3

0.6 63.7

Volta 0.0 0.0 1.4 1.0 3.1 1.6

71.7

19.2 7.6

Eastern 5.0 1.3 4.5 6.7 2.0 3.0

75.4

12.7 10.6

Ashanti 0.0 2.4 2.8 0.6 0.7 0.9

86.2

6.2 23.7

Brong Ahafo 0.8 1.4 2.1 0.7 0.8 5.5

75.6

25.2 6.6

Northern 9.6 10.0 8.7 7.7 8.2 8.4

53.3

58.6 4.2

Upper East 1.6 0.5 0.0 0.0 0.0 0.0

71.9

71.6 6.0

Upper West 11.3 13.5 12.9 9.4 8.8 17.3

64.7

52.7 3.4

National 3.7 4.0 4.9 3.9 3.7 4.2

73.8

Source: Ghana Statistical Service et al. (2009).

* Dropout rate is the percentage of students in a given grade in the previous school year who are not currently in school.

** Net attendance Rate (NAR) is the percentage of primary school-age (6-11 years) population that is attending primary school.

In terms of school attendance, NARs are lower in rural areas than in urban areas. For

instance, primary school NAR in rural areas is 69.8% compared to 80.3% in urban areas.

Regional differences in NAR are obvious with attendance rates notably lower in the

Northern and Upper West regions compared to all other regions and especially in the case

of the Northern region. A World Bank evaluation report claims that in 1988 the attendance

rate for 7-12 year olds in the Northern and the two Upper regions was just 52% (World

Bank 2004). Although from Table 2.1 the three northern regions have recorded some

improvements, the net attendance rates are still the lowest in Ghana. As generally expected,

the highest NARs are recorded in Greater Accra and Ashanti regions (80.3% for Greater

Accra and 86.2% for Ashanti) which also have the highest quintiles of 63.7% and 23.7%,

respectively (see Table 2.1). It is generally assumed that there is a strong relationship

between household economic status and school attendance. Previous studies indicate that,

for example, the decline in Ghana’s and Tanzania’s Gross Enrolment Rates (GERs) from

80% and 73% respectively in 1980 to 70% and 68% respectively in 1986-97 was attributed

to economic decline during the period (Colclough and Lewin, 1993 cited in Roberts 2003).

Table 2.1 appears to depict the link between household economic status and school

attendance, with exception of Upper East region.

33

Table 2.2: NAR by locality, gender and wealth quintiles, 2008

Primary school NAR

Male Female Total

Residence:

Urban 81.0 79.5 80.3

Rural 68.8 70.8 69.8

Region:

Western 72.0 71.3 71.6

Central 74.3 76.1 75.2

Greater Accra 82.7 77.7 80.3

Volta 67.9 75.5 71.7

Eastern 75.9 74.8 75.4

Ashanti 86.8 85.7 86.2

Brong Ahafo 73.9 77.4 75.6

Northern 55.7 50.4 53.3

Upper East 68.5 75.9 71.9

Upper West 62.1 67.5 64.7

National 73.4 74.1 73.8

Wealth quintile:

Poorest 58.2 60.1 59.1

Poor 72.3 71.6 71.9

Middle 74.8 78.1 76.5

Richer 82.1 81.5 81.8

Richest 87.6 84.4 85.9

Source: Ghana Statistical Service et al. (2009).

For example, the NAR increases from 53.3% among the households from the second

poorest region (with only 4.2% of households in the top wealth quintile) to 80.3% among

households from richest region (with 63.7% wealth quintile).

Furthermore, Table 2.2 also shows that the primary NAR increases from 59.1% among

children from poorest households to 85.9% among children from the richest households.

The strong relationship between household economic status and school attendance

discussed earlier can also be observed among males and females in Table 2.2. Males have

slight advantage over females in NAR as income levels increase. There is also an

indication of urban-rural-divide in the school attendance. For example, a study by

Akyeampong et al. (2007) in Ghana indicates that rural children are significantly less likely

to be enrolled in school than urban children, irrespective of the age-group. The existence

and widening of the rural-urban school enrolment and/or attendance gap, according to

Akyeampong et al. (2007), may be explained by the relatively late age entry into primary

school of rural children.

34

Table 2.3: NAR by welfare quintile, 2008

Quintile

Primary

NAR Secondary

NAR

Wealth quintile:

Poorest 59.1

22.2

Poor 71.9

34.9

Middle 76.5

41.7

Richer 81.8

51.3

Richest 85.9

60.7

Source: Ghana Statistical Service et al (2009)

In terms of wealth distribution, children from poor households have lower primary and

secondary NARs compared to children from non-poor households in Ghana (Table 2.3).

For example, primary NAR for children from poor households are significantly lower

compared to children from the rich households. The situation is even worse at the

secondary level where the gap between the poor and the non-poor widens. Although it is

believed that there is high return to education at this level, the poor continue to be deprived

of secondary education in Ghana (Ghana Statistical Service et al. 2004 & 2009; Rolleston

2009 & 2011).

Referring to Table 2.1 earlier indicates that as children progress through the grades, their

number drops consistently in the regions, except Upper East region. It remains to be seen

whether the economic growth and education policy interventions change the attendance

and attainment trends significantly. Additionally, the improvement in GER identified is

insufficient for assessing the real impacts of household wealth distribution in conjunction

with education sector reforms on progress in educational access and attainment. What is

required is a study that takes into account children’s socioeconomic background in

conjunction with education reforms and policy interventions in Ghana to fully understand

who enrols, attends and has a better chance of completing successfully basic education and

beyond.

2.6 Conclusions

In summary, it appears Ghana has made some gains in terms of economic growth, poverty

reduction, and especially educational outcomes after the education reforms and policy

interventions. These findings are consistent with other empirical studies and reports on

economic growth, poverty reduction, and improvements in educational outcomes in Ghana

(Coulombe and McKay 2007; Coulombe and Wodon 2007; Adjasi and Osei 2007;

Akyeampong et al. 2007; Ghana Statistical Service 2007, 2008, 2010 & 2011; Adamu-

35

Issah et al. 2007; Sackey 2007; Rolleston 2011; NDPC et al. 2010; Ministry of Education

Science and Sports 2008; World Bank 2011a, 2013 and 2014). For example, Akyeampong

et al. (2007) have also shown that from 1998 to 2003, Gross Enrolment Rates (GERs) for

all levels of pre-tertiary education have remained at a near constant level, only rising

slightly in 2004. Furthermore, gross enrolment ratio increased from 93.7% to 95.2%

between 2006/07 and 2007/08 academic year after the SCG and Free School Feeding

programmes were implemented during the mid 2000 (Ministry of Education Science and

Sports 2010; NDPC et al. 2010).

However, the review of Ghana’s economic growth, education sector reforms, and trends in

educational outcomes suggest that there are still questions that remained to be answered

about educational access and attainment in Ghana. This is in spite of the country’s good

economic performance (i.e. steady GDP growth rate) and education policy interventions.

The next chapter reviews both the theoretical and empirical literature on economic growth,

income and wealth distribution, non-income poverty and socioeconomic inequality,

determinants of educational access and attainments in a broader perspective. It also

outlines the conceptual framework of the study. The essence is not only to support the

framework of the study but also to identify the niche where the study can contribute to in

the literature.

36

Chapter 3

Economic growth, income and non-income inequality and conceptual framework

3.1 Introduction

This chapter discusses theoretical and empirical literature of the thesis on wealth

distribution, income and non-income inequality, non-income poverty, and socioeconomic

determinants of educational access and attainments. Section 3.2 provides a review of the

impacts of economic growth on income inequality and non-income inequality and poverty,

while Section 3.3 highlights why it is important to focus on non-income inequality and

poverty. Section 3.4 discusses progress in education in the context of EFA goals 2 and 5.

We review socioeconomic inequality in educational access and attainments in Section 3.5.

The evidence of what determines and contributes to educational access and attainment

inequalities are reviewed in Section 3.6. The conceptual framework and the data for

empirical analysis form the second part of this chapter and are discussed in Sections 3.7

and 3.8, respectively. Section 3.9 concludes the chapter.

3.2 Economic growth, inequality and non-income poverty

It is widely accepted that economic growth is a necessary condition for sustainable poverty

reduction. Thus, in order to understand how economic growth can impact on poverty

reduction, Ravallion (2001) advocates for more microeconomic approach to the analysis of

growth policies and poverty. Some studies demonstrate that economic growth benefits the

poor in most developing countries in which substantial growth has taken place (Deininger

and Squire 1998; Ravallion 1996; Roemer and Gugerty 1997; Ravallion and Chen 2003).

Indeed, economic growth appears to be one of the best ways to reduce poverty. In fact,

countries which experienced rapid economic growth over the past years, such as Hong

Kong, Korea, Malaysia, and Indonesia, saw their per capita incomes of the bottom 20%

and 40% of the population grow significantly (Roemer and Gugerty 1997). Consequently,

one may say that income growth could promote the growth of non-income dimensions of

well-being (e.g. education and health) through non-income variables which may correlate

with average incomes.

From capability expansion point of view, economic growth can expand capabilities directly.

Drèze and Sen (1991) suggest that as average incomes increase, the population has greater

access to relevant non-income dimensions of well-being such as; basic education, and

healthcare among others. This implies that all capabilities can expand with economic

growth, thus promoting human capital development. Drèze and Sen (1991) also argue that

37

non-income poverty outcomes can be improved appreciably if income inequality and

poverty are reduced, reflecting a tendency for economic growth to lead to lower absolute

poverty reduction. Furthermore, they suggest that progress in non-income dimensions of

poverty can be achieved through public social services. In theory, public social spending

on essential non-income dimensions of well-being (education and health) can lead to

improved progress in capability outcomes. By implication, growth matters in reducing

non-income poverty if it is used to finance suitable public social services. In this regards

too, economic growth has the tendency to lead to better provision of public social services.

There are a number of studies on the relationship between economic growth and income

poverty (Grimm et al. 2002; Kakwani and Son 2008; Ravallion and Chen 2003; Gravelle

2003; Greeley 1994; Kakwani 1997; Lopez 2004; Dollar and Kraay 2002; Ravallion and

Chen 1997; Christiaensen et al. 2002; Adam and Page 2001). However, only few studies

(Klasen 2008; Grosse et al. 2008; Gunther and Klasen 2009; Christiaensen et al. 2003;

Harttgen et al. 2010) have specifically analysed the impacts of economic growth on non-

income poverty. In particular, Klasen (2008) and Grosse et al. (2008) apply a pro-poor

growth framework developed by Ravallion and Chen (2003) to measure the impacts of

economic growth on education, health and nutrition. The authors analyse the distributional

pattern of improvements of these non-income dimensions of poverty and from the study, it

emerges that there is no perfect overlap of income poor and of non-income poor

households in Bolivia. They also observe that the poor have not benefited

disproportionately from improvements in the non-income dimensions as a result of the

increased growth rates. The findings reveal that relative economic growth does not

automatically mean that the poor catch up with the non-poor in absolute terms. This

supports the view that improving income situation of households does not automatically

guarantee improving non-income situation of the poor, such as access to education and

healthcare among others (Klasen 2000; Grimm et al. 2002).

In Africa, Christiaensen et al. (2003) examine economic growth, trends in poverty, and

economic policies in eight SSA countries during the 1990s using household data. Out of

the eight countries studied, four countries (Ethiopia, Ghana, Mauritania, and Uganda)

experienced economic growth, with improvements in their human development indicators

to different degrees. Improvements in primary school enrolment in Ethiopia, Ghana,

Mauritania, and Uganda were recorded. But, the other four countries (Madagascar, Nigeria,

Zambia, and Zimbabwe) that experienced stagnation and decline in growth, suffered a

38

decline in living standards. Surprisingly, primary school enrolment improved in

Madagascar, Nigeria, and Zimbabwe in spite of the stagnation or decline in their annual

economic growth rates. Also child mal-nutrition improved in Zimbabwe during an episode

of deteriorating economic situation (Christiaensen et al. 2003). The authors note that it is

quite possible through public policy intervention to increase primary school enrolment

rates even if economic growth rate is not rising. However, the question still remains

whether the increase in primary school enrolment rate is sustainable without economic

growth.

Furthermore, other evidence suggest that economic growth may remain stagnant but

welfare may rise due to improvements in non-income dimensions of poverty as in the case

of some Latin America countries (World Bank 2006; Sahn and Younger 2006). On the

other hand, Adam and Page (2001) observe that there is no clear relationship between a

reduction in monetary poverty and an improvement in non-income dimensions of poverty.

Thus, a country for example, may have a high rate of monetary poverty alongside a high

rate of education, and vice versa. Cardozo and Grosse (2009) analyse how the distribution

of education and health changed between two periods in Colombia and discover that while

income and expenditures fluctuated according to economic growth, the selected non-

income indicators had only minor changes. Furthermore, they also observe that while

income and expenditures decreased for all income percentiles, and relatively more for the

non-poor, the non-income dimensions of well-being stagnated and remained unequally

distributed.

From development economics literature, it has generally been argued that the nature of the

impact of economic growth on inequality and poverty will depend on numerous factors,

such as the initial distributional conditions (i.e. inequality and average income levels), the

type of growth experienced, the functioning of markets, and the ability of the poor to

partake in the growth process (Alesina and Rodrik 1994). One reason for the initial

distributional condition is that inequality may be potentially bad for growth (Alesina and

Rodrik 1994; Deininger and Squire 1998). The assumption is that high inequality may

make poverty fall slower for a given level of economic growth. Consequently, inequality

may further breeds relative deprivation, economic isolation and social exclusion (Duclos

2009). Furthermore, there is a general notion that even in periods of relatively good

economic performance, the poor are being left behind due to the high level of income

inequality (De Janvry and Sadoulet 2000). Likewise, economic stagnation is also

39

particularly harsh for the poor because of the prevailing inequality (Kanbur and Lustig

1999) and as a result, worsening inequality will impede efforts to reduce non-income

poverty.

There are often concerns about high degree of income inequality in developing countries

contributing to the perpetuation of persistent poverty. However, a study conducted by Sahn

and Younger (2006) in six Latin American (Bolivia, Brazil, Colombia, Guatemala,

Nicaragua and Peru) shows that although these countries experienced high income

inequality, this was not the case in terms of education and health inequalities. Interestingly,

the authors observe declines in inequality of the selected non-income dimensions of

poverty. In addition, they discover that increases in mean levels of education and health

have contributed to substantial declines in education and health poverty in the six Latin

American countries, even as income poverty has remained stagnant or declined only

modestly. For example, in most of the six countries studied, inequality in education

outcomes reduced substantially. In Peru, the education Gini decreased from 0.388 to 0.270

between 1986 and 2000. In Guatemala, the decline was from 0.63 to 0.53 between 1987

and 1999, while in Brazil it was from 0.40 to 0.34 over a ten-year period. However, in

Nicaragua there was no decline in education inequality.

Furthermore, in terms of economic growth and human capital development, some believe

that inequalities brought about as a result of market-oriented reforms may be good in one

aspect and bad in other. Chaudhuri and Ravallion (2006) used market-oriented reforms in

China and India to demonstrate both the good and bad aspects inequalities. The authors

argue that “patterns of social exclusion, unequal opportunities for enhancing human capital,

lack of access to credit and insurance among others, can conspire to fuel rising inequality

and prevent certain segments of the population from making transition out of low

productivity activities” (Chaudhuri and Ravallion 2006:17). They refer to these inequalities

as ‘bad inequalities’ which according to the authors are entrenched in market failures and

governance failures that can prevent the individuals from connecting to markets and limit

investment in human capital. Normally, it is poor people who tend to be most constrained

in financing investments in human capital (Aghion et al. 1999; Filmer and Pritchett 1999a

& 1999b; Filmer 2005; World Bank 2005).

Conversely, there is also an argument that inequalities are good for growth when there is

“rising returns to schooling and increasing dispersion of wages, because they reflect freer

40

labour markets with increased incentives for work and skill acquisition” (Chaudhuri and

Ravallion 2006:18). Nevertheless, Chaudhuri and Ravallion also note that inequalities in

human capital are bad because they retard poverty reduction through growth in developing

countries. Thus, those with relatively little schooling are less positioned to participate in

economic growth. The bad aspect of inequalities which Chaudhuri and Ravallion (2006)

argued, arise from differences in endowments that are the results of both supply-side

governmental and demand-side market failures.

3.3 Focus on non-income inequality and poverty

While non-income indicators of inequality and poverty have recently received more and

more attention in the concept and measurement of multidimensional poverty (Bourguignon

and Chakravarty 2003; Alkire and Santos 2010; Ray and Sinha 2011; Harttgen and Klasen

2012), they have not been fully incorporated in the country level policy analysis. This

inadequacy has been recognised and advocated for, among other categorisations of

inequality, to be focused on in the post-2015 development framework (Doyle and Stiglitz

2014).

Non-income inequality and poverty happens when people do not have access to affordable

social and physical services such as education, healthcare, and sanitation (Grosse et al.

2008; Harttgen et al. 2010; Sen 1985). Consequently, lack of these non-income dimensions

of well-being limits the poor people’s capabilities to take advantage of opportunities that

may be unleashed by economic growth.8 For example, lack of schooling is now considered

as a very important constraint on prospects of people escaping poverty in developing

countries (Chaudhuri and Ravallion 2006). Yet most assessments of poverty levels and

progress towards the MDGs have focused primarily on the income poverty target (Grimm

et al. 2002; Kakwani and Son 2008; Ravallion and Chen 2003; Gravelle 2003; Greeley

1994; Kakwani 1997; Lopez 2004; Dollar and Kraay 2002;Ravallion and Chen 1997).

Predictions that most countries are on track for achieving the poverty goals by 2015 are

generally based on income poverty assessments. Out of 134 countries assessed by the

World Bank on progress towards achieving the MDGs, only 34 countries (24%) were on

track to achieve non-income target (World Bank 2006). The World Bank further shows

that many countries, excluding several countries in SSA, will achieve the MDG in income

8

The key indicators usually used for measuring non-income inequality and poverty include: school

enrolment, attendance and completion rates, and years of schooling for education dimension; child mortality,

nutrition, vaccination, and maternal health for health dimension; drinking water, sanitation, electricity, and

cooking fuel for standard of living dimension .

41

poverty target but less than 25% will achieve the non-income poverty targets. This means

that achieving income poverty goals do not necessarily mean that non-income inequality

and poverty goals will be achieved. Thus, income and non-income poverty goals could be

given equal weighting when it comes to poverty reduction policies.

Furthermore, if we conceptualise well-being from a capability perspective (Sen 1985),

income is but one means to generate capabilities such as the ability to be healthy, well-

educated, housed, integrated, etc. (Klasen 2000). Klasen, therefore, argues that it would be

preferable to study well-being outcomes directly by analysing non-income dimensions of

poverty. In both theoretical and empirical literature, it is known that improvements of non-

income dimensions are not a natural by-product of economic growth (Sen 1998; Klasen

2000; Ravallion 2001; Grimm et al. 2002; Sahn and Younger 2006; World Bank 2006).

Furthermore, Adam and Page (2001) also assert that the international community is

increasingly sensitive to other non-monetary aspects of poverty such as education, life

expectancy and health, in addition to its monetary side. They compare the performances

recorded for each indicator in several countries in the Middle East and North Africa, and

find that there is no clear relationship between a reduction in monetary poverty (as a result

of economic growth) and an improvement in other welfare indicators. Thus, to understand

how the poor can benefit from economic growth, there is the need to identify and analyse

non-income dimensions of inequality and poverty that directly measure the capabilities of

individuals and households.

Although we cannot deny the fact that income is an important measure of well-being, it

does not capture all aspects of well-being (Sen 1985; Bourguignon and Chakravarty 2003;

Alkire and Santos 2010; Ray and Sinha 2011; Harttgen and Klasen 2012). The idea that

income is an inadequate measure of well-being is now widely accepted in theory. Yet in

empirical studies of inequality, the emphasis is mostly on income. Defining inequality and

poverty in terms of non-income dimensions of well-being has the added advantage that we

measure and analyse outcomes such as education and health at the individual level rather

than household level (Sahn and Younger 2006; Klasen 2008; Grosse et al. 2008; Gunther

and Klasen 2009).

Furthermore, recognising and analysing inequalities in non-income dimensions of well-

being such as education is of particular importance in designing relevant public policy in

addressing inequality issues, more so than in the case of reducing income inequality (Sahn

42

and Younger 2006). Inequality reduces income growth for the poor, but not for the rich

(Deininger and Squire 1998). Thus, for any pro-poor pattern of growth to be effective in

reducing non-income inequality and poverty, policies are required to address non-income

inequality, just as effective pro-poor growth depends on initial inequality in income

poverty measurement discussed earlier. Evidence show that investment in early childhood

development, for example, will promote equality of opportunity, and efficient public

spending on the basic social services such as; education, health, and infrastructure that

reach the poor is vital for pro-poor growth (Sahn and Younger 2006). However, in many

developing countries, public spending is not efficient and benefits the non-poor

disproportionately (Wilhelm and Fiestas 2005 ).

By decomposing changes in education and health inequalities into shifts in the mean and

changes in the distribution of education and health, Sahn and Younger (2006) show that

reduced inequality in these dimensions has contributed to significant reductions in

education poverty, and to a lesser extent, health poverty. The findings are very different

with respect to findings from income inequality literature. A possible reason from the

literature with regards to the findings may be explained in terms of differences in the

evolution of income and other indicators of inequality reflecting the fact that the

underlying factors that determine income inequality are different from those that contribute

to education and health inequality. Generally, income inequality can be explained by: the

nature of the labour market; the role of non-earned incomes, (including remittances from

overseas workers); the distribution of productive assets; and the differential returns to

human capital (Sahn and Younger 2007). In contrast, non-income dimensions of inequality

(e.g. education, and health inequalities) largely reflect public provision of basic services

and social infrastructure (Wilhelm and Fiestas 2005 ; Sahn and Younger 2006).

Consequently, the availability and access to the institutions providing the public services

may have relationship to the underlying distribution of incomes (Sahn and Younger 2007).

Thus, progress in the provision of public services, focus of public spending and the

distribution of non-income dimensions of well-being could be the explanation why

inequality in education and health could decline concurrent with improvements in the level

of non-income poverty despite worsening income inequality and stagnant or worsening

levels of income poverty (Sahn and Younger 2006). This suggests that reduction in non-

income inequality and poverty is possible even in economically challenged environments.

For example, Lloyd and Hewett (2009) observe that SSA countries have been able to

43

achieve relatively high primary school completion and/or low gender inequality in

education despite relatively low levels of economic growth. However, they also recognise

the fact that other factors such as donor expenditures on primary education and job

opportunities after completion of school among others contribute to reducing education

inequality between the poor and the non-poor in most of the countries.

Sahn and Younger (2007) also examine how non-income dimensions of poverty (education

and health) and inequality in education and health changed over time in twenty three

African countries covering a period of 15-20 years. They observe limited progress in the

African countries improving health and education outcomes in contrast with results from

Latin America study. With regards to education, the authors discover that education

poverty has declined and likewise for inequality in the vast majority of cases. However,

health inequality measure shows that while there were few instances of reduced inequality,

there was little evidence of success in improving equality of outcomes (ibid). In all,

findings about the distributional impact of economic growth on income and non-income

inequality and poverty in the literature are mixed.

3.4 Progress in educational outcomes

The world conference on Education for All (EFA), adopted in 1990 the World Declaration

on EFA. This was in response to the high promise of education and the large gaps in

educational access persisting in many developing countries (UNESCO 2008). Despite the

declaration that everyone has a right to a full cycle of basic education, developing

countries continue to lack progress in access to education (Harttgen et al. 2010).

Consequently, in the year 2000, World Education Forum (WEF) adopted a new framework

for action containing six EFA goals.9 These goals directly emphasise the importance of

education for human development and are to be reached until the year 2015 to overcome

the persisting insufficient progress in access to, and attainment of education in the

developing countries.

In 2008, UNESCO report shows that most developing countries have made progress

towards the EFA goals set in Dakar in 2000. The report shows that the net attendance rate

in primary education has increased from 79% in 1991 to 86% in 2005 in developing

9The six EFA goals adopted in the years 2000 are: the expansion of early childhood care and education, the

achievement of universal primary education, the development of learning opportunities for youth and adults,

the spread of literacy, the achievement of gender parity and gender equality in education, and improvements

in education quality.

44

countries. In particular, faster progress has been made between 1999 and 2005 than

between 1991 and 1999. For example, participation in primary education increased in SSA

from 54% in 1991 to 57% in 1999 and 70% in 2005 (UNESCO 2008).

According to UNESCO, the educational progress averages (especially those relating SSA

countries) hide specific country progress in reaching the EFA goals by the year 2015.

While some countries may be making progress towards achieving the EFA goals, others

may be lagging far behind (UNESCO 2008). Moreover, wide disparities in educational

progress remain between the poor and non-poor, and males and females (Harttgen et al.

2010). There are also evidence of significant within country differences in access to

education and in educational attainment of children, especially between urban and rural

areas (UNESCO 2008). Thus, progress in meeting the EFA goals is more likely to depend

on individual country’s economic growth and policies relating to reducing existing

inequalities in educational access.

In order to meet EFA goals in conjunction with MDGs 2 and 3, there has been substantial

expansion in education provisions in developing countries in recent years. However, the

question still remains if the expansion in education facilities and enrolments has reduced

existing inequalities in educational access and attainment in developing countries. Harttgen

et al. (2010) analyse differences in improvements in the access to the education system and

in educational outcomes across welfare distribution between countries and also by gender

in 37 developing countries. From the analysis, it emerges that there are drastic inequalities

in educational attendance across the wealth distributions in all the 37 countries. In SSA,

for example, Berthélemy (2006) finds that education policies are biased against the poor.

Berthélemy argues that on average, the policies favour the non-poor because the policies

are concentrated on improvements in secondary and tertiary education and only little

attention is paid to improvements in primary education access and attendance by the poor

households.

Consequently, the main channels by which overall economic growth can promote

education, as suggested by Anand and Ravallion (1993), is by lessening the extent of

poverty which constrains families in their ability to send their children to school, and by

increasing public educational investments which leads to greater schooling access and

better quality education. It is hypothesed that a pro-poor progress in education combine

with a focused public spending in education sector is expected to contribute to declining

45

inequality and poverty in education, even in an environment of stagnant or worsening

levels of income poverty (Sahn and Younger 2007; Filmer and Pritchett 1999b).

Nevertheless, sustained economic growth and poverty reduction can result in higher levels

of household resources. Thereby, allowing higher investments by households in their

children’s education because parents are less dependent on their children’s labour

(Harttgen et al. 2010). On the other hand, existing inequality and poverty may be worsened

through poor education. For instance, it has been shown that poverty significantly reduces

the likelihood of school attendance and attainments (Smits et al. 2007).

3.5 Socioeconomic inequality in educational outcomes

Human capital is widely recognised as essential for economic and human development.

The distribution of education matters and unequal distribution of education tends to have a

negative impact on per capita income in most countries (Lopez et al. 1998). On educational

inequality, World Bank (1995) points out that the issue of equity affects several

overlapping disadvantaged groups including the poor, street children and children in the

workforce. The World Bank stresses that the different access that the poor and the non-

poor children, boys, and girls have to the education system should not be ignored because

it contributes to inequality gap among these group of people later in life. For example,

Gopal and Salim (1998) argue that low levels of female education lead to legal illiteracy,

creating a severe constraint to effective implementation of equitable legal provisions. Thus,

the way in which education is distributed will have profound impact on the distribution of

income, the nature of economic growth, and poverty reduction. Therefore, understanding

the trends and impacts of educational inequalities is particularly important because public

policy can relatively address them than in the case of reducing income inequality.

Filmer and Pritchett (2001) examine socioeconomic inequalities in educational outcomes

in India and discover a large school enrolment differences which they attributed to income

inequality that varies widely across India states between the poor and the non-poor. On

average, the non-poor Indian child is 31% point more likely to be enrolled than a poor

child. According to Filmer and Pritchett (1999b), very low primary school attainment by

children from poor households is usually driven by the patterns of enrolment and dropout

among the poor households. They suggest that the patterns of enrolment and dropout of the

poor tend to follow regional patterns observed in a cross-country study of school enrolment

and educational attainment by household wealth in 35 countries. In Western and Central

Africa, they observe low enrolment and high dropout rates resulting in more than 40% of

46

children from poor households never able to complete Grade 1, and only one in four

completed Grade 5.

High enrolment and late dropout rates were recorded for Eastern and Southern African

countries, while low enrolment and low dropout rates were also recorded for South Asian

countries. In Colombia and Peru (Latin America) for instance, the larger percentage

shortfall in achieving universal primary or basic education completion was attributable to

children from the poorest households (Filmer and Pritchett 1999b). In many developing

countries, it is evidenced that the bulk of the deficit from achieving universal primary

education comes from the poor (Filmer and Pritchett 1999b; Filmer 2000) .

Furthermore, Filmer and Pritchett (1999b) discover that in most of the 35 countries

examined, children from households at the top 20% of the wealth index stayed in school

longer than children from households who occupied either the middle 40% or the bottom

40% of the wealth index. In addition, children from the middle 40% of the wealth index

had a higher school retention rate than those in the bottom 40% of the wealth index. In

most countries, the poor (bottom 40% of the wealth index) did not complete primary

school. The studies by Filmer and Pritchett in 1999 and 2001 reveal that household wealth

inequality is associated with low level of educational attainment, low median grade

completion, and high school dropout. In other words, household wealth is positively

associated with children’s enrolment, and inequalities in education outcomes are derived

mainly from household wealth. Montgomery and Hewett (2005) also investigate the effects

of living standards and relative poverty on children’s schooling in urban and rural areas of

Senegal. Their findings show that the living standards in urban areas exert substantial

influence on children’s education. The effect of living standards is, however, weaker in the

rural areas of the country. However, the authors note that income growth alone is unlikely

to close the schooling gap between urban and rural areas, and between boys and girls.

In Ghana, many children fail to continue and complete their basic education programme. In

2008, about a third (32.3%) of children who enrolled in Junior High School dropped out in

the final year of JHS (Ministry of Education Science and Sports 2008), despite the fact that

at the basic education level (primary school and JHS) education is free. According to 2010

PHC report, 23.4% of Ghanaians have never attended school (Ghana Statistical Service

2013a). With respect to education equity; educational access, standards and achievement

varied widely in the country, especially between urban and rural areas, and the poor and

47

non-poor households (Ghana Statistical Service 2008). Other research conducted in Ghana

reveal that educational access and attainment disparities exist based on socioeconomic

groups and gender (Sutherland-Addy 2002; Palmer 2006; Tuwor and Sossou 2008).

Sackey (2007) also analyses school attendance for school-age children within the context

of parental education and household resources using Ghana Living standards Survey

(cross-sectional household data) in 1992 and 1999. The study reveals that household

resources play an important role in the education of children in Ghana, and children from

wealthy households tend to achieve higher rates of school attendance both in 1992 and

1999 household surveys.

Besides, the distribution of education in Ghana suggests that there is inequality in

education which is linked to income poverty and gender (Ghana Statistical Service et al.

2009; Akyeampong et al. 2007; World Bank 2004). For example, Ghana Statistical Service

et al. (2009) also reveal that children from poor households have lower school enrolment

and attendance rates, and they are more likely to drop out in the course of the primary

cycle, than the children from non-poor households. This confirmed earlier findings by

Filmer and Pritchett (1999b) which shows that the dropout rates for the poor are

consistently higher than for the non-poor.

A study by Deininger (2003) evaluates the impact of Universal Primary Education

programme in 1997 which aimed at reducing the cost of primary education in Uganda. The

study shows that before the UPE in 1992, household income significantly increased the

probability of primary and secondary school attendance of children from non-poor but not

the poor households. By 1999, increases in primary school attendance were recorded for

both the poor and non-poor children, and inequalities in attendance related to income and

gender were reduced substantially. The implementation of the UPE programme in Uganda

led to reduction in the cost of primary education but not secondary education to households.

Consequently, the inequality concern at the secondary education level still remains

(Deininger 2003), indicating that household income or wealth distribution may be the key

factor contributing to the inequalities in educational access and attainment in Uganda.

On a cross country level, enrolments in education and associated years of schooling have

expanded substantially in developing countries in recent years (Harttgen et al. 2010) . But

to what extent has this expansion in enrolments reduced existing inequalities in educational

access and achievements in individual countries? Evidence of improvements in access to

48

education system and in educational outcomes across the welfare distribution between and

within countries, and also by gender for 37 countries show drastic inequalities in

educational attendance across wealth distributions (Harttgen et al. 2010). The study shows

that inequality in attendance declines with rising average attendance, while inequality in

completion rates or number of years of schooling increases with rising completion rates.

From a gender perspective, gender inequality in education may come about as a result of

schooling investments which may differ by gender when rates of returns on children

education to parents are gender-specific (Alderman and King 1998). In addition,

differences in cost streams of educating children may differ when direct costs such as fees

and expenses for uniforms are gender-specific. Another reason put forward for gender

inequality in educational access and attainment is when access to education differs by

gender and when the opportunity cost of a school-age child’s time varies by gender (ibid).

Such costs may lead to differences in rates of investment in children’s education and if, for

example, poor parents believe that the costs of educating female child is high with low

returns (especially in developing country setting) then this will lead to gender inequality in

educational outcomes, ceteris paribus. Consequently, resource constraints can exacerbate

gender inequality in education, due to credit constraints and patterns of preferences as

incomes change (Alderman and Gertler 1997).

Furthermore, parental empathy and expected future transfers (remittances) from children to

their parents may differ by gender. There is a general assumption in developing country

setting that boys are able to send remittances to their parents when they start working

compared to girls. For example, Garg and Morduch (1998:473) explain that in many

households, ‘women move out of the family when they marry, while men stay within the

household with their wives’. As a result, parents are more likely to receive more returns on

investing in male children’s education than investing in female children’s education.

Empirically, the extent of inequality among girls in primary school attendance and

completion rates according to socioeconomic status, is found to be substantially greater

than for boys (Lloyd and Hewett 2009). In Ghana, the picture as regards girls’ education is

more nuanced. Girls are educationally deprived compared to boys in most of the

administrative regions in Ghana, with lower enrolment and completion rates. However,

once enrolled, girls have as good if not better chance of completing primary education as

boys (ICF Macro 2010; Akyeampong et al. 2007). These findings are consistent with

49

Sackey (2007) who also finds that although school attainment has improved for both boys

and girls between 1992 and 1999 survey periods, generally the likelihood of girls attending

school is relatively lower than that of boys. However, from Sackey's empirical analysis,

there appear to be a general tendency for the attendance rates of girls to rise faster than that

of boys, suggesting a narrowing of the gender gap in primary education in Ghana. It also

appears that for male and female children, the impact of household resources on school

attendance has reduced from 1992 to 1999 survey periods (Sackey 2007).

A study by Holmes (2003) also shows that girls receive less education than boys. The

reason for this disparity is attributed to both economic and social-cultural reasons. Homes

further argues that the opportunity cost of sending female children to school in rural areas,

where girls are married quite early, is high because benefits of their schooling will not

accrue to their parental household. This supports the general belief that gender inequalities

in school enrolment and completion are magnified even among the children from poor

households. This may, in turn, have serious consequences for girl-child education in terms

of access to schools of reasonable quality.

3.6 Socioeconomic determinants of educational outcomes

There are many factors described in the literature as determinants of educational enrolment,

attendance, and attainments based on specific settings of the studies. However the major

factors that are often cited to explain the observed trend in educational enrolment,

attendance, and attainment of children are: the age and gender of children; household

resources; educational status of household heads or parents, household composition and/or

size; availability and quality of schools; distance to school; and location effects among

others.

3.6.1 Children’s demographic characteristics

A child's age is considered as a good predictor of education attainment in the empirical

literature (Holmes 2003). Age is relevant because it is related to learning abilities, and

whether or not a child starts his or her education on time. Hanushek and Lavy (1994),

Jimerson et al. (2000), and Farmer et al. (2003) highlight a child's age as one of the main

determinants of a child's school enrolment, completion, and dropout rates among other

characteristics (i.e. gender, IQ and cognitive skills, academic achievement, nutritional and

health). In addition, Psacharopoulos and Arriagada (1986) also suggest that the opportunity

cost for spending time in school can be considered to be dependent on the age of the child,

and the demand for schooling will necessarily be dependent on the child's age.

50

The gender of a child is also important in determining the chances of the child's school

attendance and attainment especially in developing countries context, ceteris paribus, for

several reasons. Households commonly prefer to invest in boys’ rather than girls’

education. The main reason for this gender discrimination according to Oxaal (1997) is the

low perceived returns to schooling for girls because they usually leave their natal home

when they marry. Lloyd and Gage-Brandon (1994) find that dropout rates were

significantly greater for girls, and their educational attainment levels were also lower than

that of boys in Ghana, especially when there were younger siblings in the household. Girls’

school attendance also depends on opportunity costs generated by providing child care for

younger siblings (Lewin 2009).

3.6.2 Household wealth

Household income and assets are among the main household characteristics identified in

the literature that impact on school enrolment, attendance and completion rates (Bredie and

Beeharry 1998; Hanushek and Lavy 1994; Sathar and Lloyd 1994). Household income has

been shown to be important determinant of children’s school enrolment and educational

attainment, particularly in settings where households face tight liquidity constraints caused

by the lack of insurance and limited possibilities to smooth consumption through credits or

savings (Becker and Tomes 1986). Thus, the magnitude of family income may be

influential in educational choices households make. For example, if families are credit

constrained, current income may influence a family’s capacity to invest in children's

education (Jacoby 1994; Lillard and Kilburn 1995; Filmer 2005).

From human capital theory framework and dwelling on the sources of variation in

household financial resources, children are perceived as an investment. Consequently,

parents acting in a rational manner will invest resources in their children in such a way as

to maximise the probability of future payoffs (Becker 1975). However, the extent to which

children can be sponsored in their schooling engagements depends in part on household

assets and the number of claimants in the family entitled to (Steelman and Powell 1991).

Theoretically, if poor households are credit constraint and imperfect credit markets

conditions prevail, these conditions can preclude poor households from making profitable

but indivisible investments, such as investing in children's education (Becker and Tomes

1986). Becker and Tomes point out that parents’ concern for the economic capabilities and

success of their children prompts them to invest resources in the children's education,

51

health and motivation. According to the authors, these expenditures influence the human

capital and earnings of children later in life.

It is also expected that the greater the total resources of a household, the greater will be the

demand for child schooling, and hence the likelihood that a child will attend school, ceteris

paribus. The implications of this assumption for the poor households are low demand for

education and increased inequality in the education outcomes between the poor and the

rich households. However, if government spends generously on education and provides

universal access to primary education, in particular, the cost of education to households

will fall (Lloyd and Blanc 1996). This may in turn reduce socioeconomic inequalities in

educational participation by poor households. On the other hand, if access is limited and

schooling is costly, households' financial support for their children’s education will be

critical (ibid).

In the empirical literature, there are evidence indicating the impacts of household resources

on school attendance and attainments. In developing countries contexts, it is well

established that household economic resources are key determinants of children's school

enrolment and attainment (Canagarajah and Coulombe 1997; Filmer and Pritchett 1999b).

Bredie and Beeharry (1998) have also shown that the likelihood of children dropping out

of school depends on the level of opportunity costs incurred by parents. A study by

Hanushek and Lavy (1994) indicates that children with greater opportunities to earn

income are likely to be taken out of school and involved in work if parents need additional

income. Sackey (2007) also finds that household resources play an important role in the

education of children in Ghana, and children from rich households tend to achieve higher

rates of school attendance both in 1992 and 1999 household surveys.

Other studies have found that children’s school enrolment and attainments are associated

with socioeconomic status of households (Psacharopoulos and Arriagada 1986; Sathar and

Lloyd 1994; Lloyd and Blanc 1996; Gage et al. 1997; Buchmann and Hannum 2001). For

example, Lloyd and Blanc (1996) have also confirmed that the household living standard is

strongly associated with the likelihood that children of school-age will be enrolled in a

school and that they will have completed school. It is important to note that households'

access to financial resources have direct implications for children's welfare and education

attainment, ceteris paribus. This, in turn, makes children's access to education positively

associated with household wealth (Patrinos and Psacharopoulos 1997). These studies

52

demonstrate that household wealth is a key determinant of a household’s ability to invest in

children's education, and as a result, it can lead to inequality in educational outcomes of

children. However, none of the studies has estimated absolute and relative contributions of

household income or wealth to inequalities in educational outcomes of households.

3.6.3 Household composition/size

Household size can be considered as a determining factor when it comes to the decision of

whether or not to enrol a child in school. The assumption is that the larger the family, the

lower the probability of a child attending school. This assumption could be based on the

premise that larger families spread their financial and human resources thinly compared to

smaller households (Sathar and Lloyd 1994; Sandefur et al. 2006). Also, the presence of

very young children (age 0-5years) in the household in the context of developing countries

can increase the time needed for childcare and this can affect school attendance and

completion of school-aged children (Sathar and Lloyd 1994). This responsibility is often

shared between adults and older children which may affect the older children's school

attendance and completion (Lloyd and Blanc 1996).

In the empirical literature, the effects of the presence of young children and school-age

children on educational outcomes have been documented and have been mostly negative,

especially in developing country settings. Lloyd and Blanc (1996) assessment of children’s

schooling in SSA identifies the possible effect of other children’s presence on schooling

possibilities of any given child. Using Kenya, Tanzania, Cameroon, Niger, Malawi,

Namibia and Zambia as case studies, they observe that the presence of young children

decreases the likelihood of school attendance of the older children in the household,

especially among girls. In Ghana, Sackey (2007) finds that the presence of younger

siblings, relative to older ones, tends to reduce the probability of school attendance. Sackey

further points out that the reduction in the probability of schooling by virtue of having

younger siblings is higher for girls than for boys and attributes the findings to the socio-

cultural norms and practices on gender roles in Ghanaian households.

In addition, the presence of more school-age children in the household may also put more

pressure on household resources, thereby affecting children's school attendance and

completion rates negatively. This effect has been observed by Butcher and Case (1994) in

their study on sibling composition and educational attainment. The study shows that where

parents are faced with borrowing constraints, the presence of one child may alter the

53

opportunity cost of investing in the education of another. In theory, households who intend

to maximise investment in their children’s education, but are limited in their ability to

borrow will stop short of investing until the rate of return to each child’s education is equal

to the market rate of interest (Becker 1975). In such situations, children with the highest

perceived marginal return to education will receive the most education. For example,

where there are both boys and girls in a household competing for limited resources, boys

are more likely to receive more education than girls because of low perceived returns to

schooling for girls. This tendency can result in a gender gap in education, as long as

parents or households tend to put a higher premium on the education of boys.

In Botswana, Chernichovsky (1985) finds negative impact of younger children and positive

impact of school-aged children on the schooling outcomes of the older children in the

family. Contrary to the notion of the quality-quantity trade-off, the author discovers that in

Botswana, “the larger the number of school-aged children in the household, the greater the

probability that they are enrolled in school and the higher the levels of education”

(Chernichovsky 1985:328). This finding is supported with the argument that due to

diminishing returns to labour, parents may choose to allocate roles to their children and as

a result, some children work and others attend school.

For the effects of household size or family size on educational outcomes, there are mixed

findings. The findings of studies in developed countries show a negative relationship

between family size and educational outcomes (Blake 1981; Downey 1995). Similar results

were also found in Thailand (Knodel et al. 1990) and Malaysia (Pong 1997; Parish and

Willis 1993). On the other hand, studies in SSA have shown that cultural differences may

mitigate the adverse effects of large families on children's schooling (Lloyd and Gage-

Brandon 1994; Chernichovsky 1985; Lloyd and Blanc 1996). Knodel and Wongsith (1991)

explain that the extent of the negative effect of large families is dependent on the cultural

and socioeconomic setting. Other researchers have also found that in Kenya, Botswana and

Israel, the extended family can improve the educational opportunities of children from

large families (Gomes 1984; Chernichovsky 1985; Shavit and Pierce 1991). For instance,

Shavit and Pierce (1991) find that in Israel, Muslims utilise a large kinship network beyond

the nuclear family, which alleviates the resource constraints associated with having more

children. On the contrary, for the Israeli Jews who do not have strong extended family ties,

the association between their household size and educational outcomes of their children

was negative.

54

Furthermore, Patrinos and Psacharopoulos (1997) also explore the negative association

between household size and educational outcomes of children from a different angle and

suggest that the negative relationship could be linked to the preferences of parents. They

explain that parents with a preference for larger families generally see less need to educate

their children. Thus, the negative relationship between house size and children’s

educational attainment may be the result of parental preferences and resource constraints.

The number of economically active household members (aged between 18 and 64 years)

has also been used as a determinant of schooling access and attainment in the empirical

literature. It has been shown that the variable may have a positive or negative impact on

the chances of children's education. A study by Okumu et al. (2008) on socioeconomic

determinants of primary school dropout in Uganda shows that as the proportion of the

economically active members of household increases, the likelihood of primary school

dropout increases, other factors held unchanged. The authors argue that the inverse

relationship found in their study implies that a good number of the economically active

household members were actually unproductive (i.e. unemployed). They further suggest

that the effect squeezes out the households resources, thereby increasing households’

dependence burden. On the other hand, it also implies that the presence of large proportion

of economically active household members who are economically productive (i.e.

employed) is highly likely to impact positively on children's education, all other things

being equal.

Household head’s or parents’ educational level is one of the key factors used to determine

the socioeconomic status of households. In considering the determinants of children’s

educational choices, Haveman and Wolfe (1995) argue that the most fundamental

economic factor is the human capital of parents and that household head or parental

education reflects a sort of intergenerational transmission of socioeconomic status. The

authors find that a mother’s education tends to be more closely related to the child’s

schooling attainment than does the father’s. Lillard and Willis (1994), also note that the

effect of parents’ education on that of their children is one of the key factors in any

consideration of the intergenerational transmission of human capital and economic

wellbeing within households or families. Most studies have found a positive association

between household head’s or parents’ education and children's educational outcomes. The

empirical studies that have found positive relationship between educational level of

household heads or parents and children's educational outcomes include: Glewwe and

Jacoby (1994) and Oliver (1995) for Ghana; Tansel (1997) for Côte d’Ivoire and Ghana;

55

Glick and Sahn (2000) for Guinea; Sathar and Lloyd (1994) for Pakistan; and Tansel (2002)

for Turkey. More recent studies by Rolleston (2011) and Sackey (2007) on the

determinants of educational access using ordered probit regression analysis show that

higher levels of parental education tend to reduce the probability of children dropping out

of school in Ghana.

Similarly, Behrman et al. (1999) and Swada and Lokshin (1999) also report a consistently

positive and significant coefficient of father’s and mother’s education at all levels of

education except at secondary school level. From the literature, it is been proving that the

children of more educated parents are more likely to be enrolled and more likely to

progress further through school (Sathar and Lloyd 1994). However, Holmes (2003) shows

that this impact differs by gender, and that the education of the father increases the

expected level of school retention of boys and that of the mother’s enhances the

educational attainment of girls.

For mothers, it has also been shown that the positive impact of their education on their

children could perhaps be attributed to the fact that educated mothers reduce the time spent

doing household chores while increasing the time spent with their children than their

uneducated counterparts (Pong 1996). Pong further argues that educated mothers are more

effective in helping their children in academic work and in doing so they are able to

monitor and supervise their children’s academic progress. In addition, educated fathers are

also interested in the academic progress of their children and willing to spend more time

helping their children in academic problems. The findings of Leclercq (2001) indicate that

educated parents are more aware of the possible returns to their children's education and

they are more likely to have access to information that will help their children to engage

into relatively human capital intensive activities yielding high returns to education.

Furthermore, a study by Lloyd and Blanc (1996) on children's schooling in SSA shows that

the education of the household head is one of the important factors in determining whether

or not children attend school and how rapidly children who are enrolled progress in their

educational attainments. The authors compare education effects for children who live in

households headed by a person with no schooling, with 1-6 years of schooling and with 7

or more years and discover that the more educated the household head is, the more likely a

child living in the household will be attending school and if the child ever attended, will

have completed at least Grade 4. In Botswana, Chernichovsky (1985) also finds that the

56

educational level of the household head has the greatest impact on whether or not a child

was enrolled in school. In all, there is strong indication from the literature that the

academic attainment of household head or parents enhances educational attendance and

attainments of children.

The effects of the gender of household head on household's socioeconomic status and the

subsequent impacts on educational outcomes of children have been documented both in

developed and developing countries, and the findings have been mixed. Studies conducted

in the United States of America (McLanahan 1985; Pong and Ju 2000) have found

increased likelihood of poverty and poor educational outcomes among children who reside

in female-headed and single-parent households. Studies in SSA that have determined the

effects of the gender of household head on children's welfare and education outcomes

include; Lloyd and Gage-Brandon (1993), Lloyd and Blanc (1996), Lloyd and Desai

(1992), Bhalotra and Heady (2003), Holmes (2003), and Kabeer (2003) among others.

Generally, women's vulnerability to poverty is assumed to be based on women having less

education and because they are normally discriminated against when it comes to access to

resources. Research by Lloyd and Gage-Brandon (1993) in Ghana has shown that there has

been a rise in the proportion of households headed by women, accompanied by an increase

in the proportion of poverty among women. Women household heads' vulnerability to

poverty in Ghana is further highlighted by the study conducted by Catholic Action for

Street Children (CASC) and UNICEF (Beauchemin 1999). The studies show that in Ghana,

female-headed households face economic marginalisation, especially in rural areas where

agricultural productivity is low and employment opportunities are scarce. Consequently,

these effects could have detrimental impacts on the education of children who reside in

households headed by females who face these difficulties. A study by Bhalotra and Heady

(2003) also confirms that in rural Ghana, the rate of school attendance was lower in

female-headed households.

However, in other African contexts, female-headed households appear to be linked with

greater educational participation for children. Lloyd and Blanc (1996) analyse the effects

of the gender of household head on children’s schooling in seven countries in SSA. They

use female-headed household variable to test for the "effect on children's educational

progress of having a woman in the position of authority and resource control within their

residential household, as opposed to having a man in that position" (Lloyd and Blanc

57

1996:281). They discover that despite higher rates of poverty, children in female-headed

households were more likely to enrol and complete at least Grade 4 than were children in

male-headed households. The authors argue that a child could have more education and

welfare if the child’s mother has greater access and command over household resources.

The authors conclude: “female household heads are more likely to invest resources,

including time, money and emotional support, in facilitating the education of children

living in their household” (Lloyd and Blanc 1996:288). Along the same line, it has been

observed that female-headed households, and mothers who have more decision making

power, tend to make decisions in favour of children's education. It has also been argued

that when female decision making power is combined with higher maternal education

levels, children are more likely to be enrolled in school and progress through their

education (Holmes 2003; Kabeer 2003). In short, female household head can have either

positive or negative impacts on children's education both in developed and developing

countries.

3.6.4 Residency and location effects

From the empirical literature, it has been shown that children’s attendance levels vary

considerably among schools, and are often low in rural areas, especially during the farming

season and on occasions such as market days. In Ghana, Sackey (2007) finds locality

differences with respect to children’s school attendance and attainment which posed a

worrying concern over the inequality in educational outcomes between the urban and rural

areas in Ghana. According to Sackey, children residing in rural areas are more likely to

drop out of school, and when they do attend school, they are more likely to have lower

educational attainments than children in urban areas. The Ghana Statistical Service et al.

(2004 & 2009) reports also show higher school attendance and completion rates for urban

areas than rural areas, as well as higher attendance and completion rates for southern

regions than for the northern regions.

Francis et al. (1998) also analyse the effects of residency on school enrolment, attendance

and retention in Nigeria and find disparities based on where school children live. In

Uganda, a study by Okumu et al. (2008) reveals regional imbalances in children's school

enrolments, particularly with respect to female pupils. The authors show that the

probability of a child dropping out from primary school reduces as one moves from rural to

urban areas. They attribute the disparity in school enrolments to easier access to schools in

urban areas as compared to rural areas. In India, Jayachandran (2002) finds a negative

58

impact of urbanisation on school attendance rate of both boys and girls based on a single

period analysis. However, his trend analysis between in 1981 and 1991 reveals little

evidence of any systematic association between school attendance rate and urbanisation.

Region specific effects on school attendance in India were found to have positive effects

on school attendance. However, Jayachandran concludes that attendance rates in the

Southern regions are higher than the attendance rates in Northern and Western regions for

both boys and girls. These findings show that residency and location factors can influence

school attendance and attainments of school children.

3.6.5 Distance to school, quality and availability of schools

School quantity, quality and distance to school variables also play an important role in

school attendance and completion rates (Hanushek and Lavy 1994; World Bank 2004;

Woldehanna et al. 2005). It has been argued that poor school quality may discourage

households from educating their children. For example, in Egypt Hanushek and Lavy

(1994) find that school quality influences students’ dropout decisions, and students

attending higher quality schools tend to stay in school longer and complete higher grades.

The lack of availability of schools, and proximity to schools in any given community, were

found to be negatively associated with school attendance rate (World Bank 2004; Okumu

et al. 2008). It has also been shown that long distances to schools increase the opportunity

costs of children's school attendance by reducing the potential number of hours of work a

child might do at school (Tilak 1989; Glewwe 1999). In addition, long distance to school

also potentially reduces children's ability to learn if they are tired after a long walk to

school (ibid).

Furthermore, Okumu et al. (2008) also find that the likelihood of a pupil dropping out of

primary school increases with increase in the distance a pupil travels to school. Thus,

school children who have to travel long distances to school are more likely to drop out of

school and this was generally evident and significant in rural areas but not for urban

households. Again, the authors attribute the phenomenon to the easier access to schools in

urban areas as compared to rural areas. However, Schaffner (2004) argues that distance

from school plays a smaller intrinsic role in determining whether the child ever attended

school than it plays in the determination of current enrolment.

The available data from the GDHS which is used for this study, however, limit the analysis

of household-level determinants of the supply-side of school attendance and completion.

59

Data on school characteristics are not available in DHS dataset and as a result, it is not

possible to test how school quality and household’s distance from the nearest school affect

the schooling decision of households and the educational outcomes of the children. Similar

studies using DHS dataset have all recognised these limitations. In order to reduce the

effect of these limitations on schooling outcomes, rural residency is used as a proxy for

distance to school and availability of schools (Harttgen et al. 2010; Huebler 2008; Lloyd

and Blanc 1996). However, Woldehanna et al. (2005:7) suggest that “the number of

schools available in the community, the level of education of the teachers, the pupil:

teacher ratio, and the availability of books, desks, blackboards, water and toilets” could be

used as proxy for school quality.

Based on the review of both theoretical and empirical literature, we now turn to the second

part of this chapter (i.e. next section) where we outlined and discuss the theoretical

framework and data for the study.

60

3.7 Theoretical framework

In an economics model where education is treated as a pure investment (Schultz 1960;

Becker 1975 & 1991), and if households are perfectly linked across generations and credit

markets are perfect, then investment in and returns to education will be equally distributed

across individuals (Filmer 2005). With such a model, Filmer argues, it would imply that

investments in education will not be related to a household’s present financial wealth or a

child’s gender. However, in reality investment in children’s education could differ by

household wealth and other variables. Consequently, if investment in children’s education

could differ by household wealth, and if children’s education is valued as a consumption

(Schultz 1960), then demand for children’s education will increase with increases in

household income or wealth and vice versa (Filmer 2005).

From human capital development theory, it follows that if there are credit constraints and

households are not able to borrow for investment in their children’s education then only the

rich households who have ready cash will be able to afford the education expenses.

Furthermore, if rich households are able to borrow at cheaper rates than poor households,

then investments in education will be higher among the rich than the poor households

(Becker 1975; Lazear 1980). Thus, inequalities in human resource development are often

linked to credit market failures on the demand-side but also reflecting supply-side where

there are also governmental failures in service delivery (Chaudhuri and Ravallion 2006).

For example, in Peru, Jacoby (1994) finds that poor households are more credit constrained

than rich households. Therefore, if the theory holds as in the case of Peru, this could lead to

differences in educational access and attainment of school-age children, particularly when

the analysis is based on socioeconomic status.

It is also important to note that since acquisition of education is a significant and

indivisible investment, poverty can constitute an impediment to acquiring education due to

credit constraints (Banerjee 2000). Another reason why poor children do not attend and

complete school is that poor households cannot afford the cost of education if the cost of

schooling is too high or the household income is too low (Bonnet 1993; Jensen and Nielsen

1997). The cost of education would be high if either the direct or the indirect costs of

education are large which could deter poor households from sending their children to

school. The direct costs include school fees, books, uniforms and the distance to school

and indirect costs are forgone income of the child while going to school. Thus, the

opportunity cost of poor households increases as the children get older and this usually

impacts on school attendance and completion at both primary and secondary school levels.

61

Consequently, in absence of public finance for education and lack of credit, the quantity

and quality of education available to school-age children will be entirely dependent on

children’s household income levels or the ability of parents to pay the cost of educating

their children (Dutta et al. 1999).

Although human capital is widely recognised as essential for economic growth and human

development, the way in which education is distributed will have a profound impact on the

distribution of income and the nature of growth. As already noted, credit market

imperfections can preclude poor households from making profitable but indivisible

investments in education of their children (Becker 1975; Lazear 1980). If the acquisition of

education requires a cash outlay that exceeds the household budget, children from poor

households or families would thus, be excluded from the acquisition of education

(Deininger 2003). Thus, credit market imperfections can lead to inter-generational

persistence of inequality (Aghion and Bolton 1997; Aghion et al. 1999; Banerjee and

Newman 1993). As a result, government support to the acquisition of human capital, either

through free compulsory basic education (Eckstein and Zilcha 1994) or through income

redistribution (Aghion et al. 1999) has been part of policy interventions in many poor

developing countries to enhance equity in educational outcomes. This has been evidenced

in many education attainment policy evolved in many developing countries as a response

to EFA goals in conjunction with MDGs 2 and 3.

It is also important to note that, not only economic factors but also socio-cultural factors

are expected to be important when considering children’s school attendance and attainment.

Among the important socio-cultural variables are the gender of the child, the gender of the

household head, marriage, and the family relation to the household head. The education

and the occupation of the head of the household influence school attendance and

attainment for both economic and socio-cultural reasons. Furthermore, it is important to

keep in mind that some determinants of school attendance and attainment in developing

countries may be non-measurable. Such determinants include; norms, traditions and beliefs.

These non-measurable determinants assumed to be captured by household-specific error

components in the empirical analysis (Jensen and Nielsen 1997).

The next section discusses the data sources and justification for the data used for the

empirical analysis. It also presents the summary statistics and discusses the variables for

the empirical analysis in Chapter 4, 5 and 6 of the thesis.

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3.8 Data, descriptive statistics and variable definition

3.8.1 Data source: justification and details

There are two main types of surveys (administrative data / school based surveys and

household surveys) that can be used to analyse educational outcomes of school children

and young adults. The main examples of sources of household surveys include Living

Standards Surveys (LSS) and Demographic Health Surveys (DHS). In Ghana, all the three

sources of data; Administrative Data / School Based Surveys, Ghana Living Standards

Surveys (GLSS) and Ghana Demographic Health Surveys (GDHS) are available and can

be used for educational outcome analysis. However, in order to achieve the main

objectives of this research, GDHS is used for the empirical analysis. The justification for

using the GDHS and the details of the datasets are discussed below.

Limitations of Administrative Data / School Based Surveys

Administrative data or school based surveys are based on school reporting at the beginning

of the school year. Typically, enrolment ratios are based on the numbers of children

enrolled in school and the school-age population is normally estimated from national

censuses and/or vital statistics. Consequently, these datasets provide limited information on

the individual characteristics of pupils or students (such as age, sex and residence), and

little information on the characteristics of their households. The datasets focus primarily on

children who attend school and there is no information on the individual characteristics and

family backgrounds of children who do not attend school. Furthermore, some children will

have enrolled in school without ever actually attending, and other children will have

dropped out of school during the school year. In addition, the accuracy of the population

estimate and the completeness of school level data can affect the calculation of

participation ratios from administrative data (FASAF et al. 2004). Another limitation of

administrative data or school based surveys is the question of reliability of data when the

data is reported by government or public schools, particularly when resource allocation

from the government is tied to enrolment. According to (FASAF et al. 2004:10), “schools

may report higher enrolment figures in order to obtain greater resources, producing

distortions in the estimates of student enrolments”.

Household surveys

Both GLSS and GDHS datasets contain data on enrolment and/or school attendance among

a representative sample of children. Therefore, data on children’s school enrolment, school

attendance and school completion can then be analysed according to household and child

63

characteristics. For example, the percentages of school-age children attending school and

children who have completed school in a given year can be compared by urban-rural

residence, household wealth, sex, and other characteristics critical for decision-making. In

addition, GLSS and GDHS datasets also provide data on adult educational attainment and

literacy skills. These surveys provide national-level sources of data on adult educational

attainment and allow comparisons by different household characteristics.

With regards to the limitations of administrative data or school based surveys, the

completeness of the census enumeration and the sample design for the household survey

may also affect the accuracy of estimates produced by censuses and surveys. Thus, many

factors may contribute to variations in estimates of enrolment and attendance ratios and

this may affect the empirical analysis based on the household surveys.

3.8.2 Why GDHS datasets are used instead of GLSS datasets

GLSS 4 and 5 (1998/99 & 2005/06) is another potential source that could have been used

for the empirical analysis of the thesis. Although, the datasets contain more information on

education indicators and there are data on household consumption expenditure compared

to GDHS datasets, the available GLSS datasets (GLSS 4 and 5) will not be appropriate in

answering the research questions. In other words, GLSS 4 and 5 could not provide the

information needed to answer the research questions to achieve the objective of the

thesis.10 Therefore, the empirical analysis in Chapters 4, 5 and 6 are carried out based on

2003 GDHS and 2008 GDHS. The 2003 GDHS is used as pre-policy period and 2008 is

used as post-policy period to capture any impacts of government of Ghana’s intended pro-

poor education policy interventions implemented in 2004/5 through households’ SES on

educational outcomes of children in Ghana.

Details of GDHS datasets

The datasets contain information about household wealth, education, age, gender,

household head and relationship to the head of household for each member of the

residential unit. Information on education include; school participation, educational

attainment among household members and literacy among adults. For example, the surveys

collect data for all household members who are primary school-age, secondary school-age,

10

One of the main aims of the research is to capture any impacts of government of Ghana’s intended pro-

poor education policy interventions implemented in 2004/5 through households’ SES on educational

outcomes of children in Ghana.

64

or older. In addition, GDHS includes a household questionnaire, which collects data on

household characteristics and location. It is also important to note that the samples used for

our empirical models include all households with children in the relevant age ranges.

School attendance and completion are calculated based on the questions included in the

survey. For our school attendance variable, a household head is asked whether or not a

child of primary school-age (6-11 years) is currently in school, which was interpreted as

whether or not the child was attending school, and not merely enrolled. If a child of

primary school-age currently attends primary school, the response is coded 1 otherwise 0.

In terms of secondary school attendance, a household head is asked whether a child of

secondary school-age (12-17 years) is currently attending secondary school. If a child of

secondary school-age currently attends secondary school, the response is coded 1

otherwise 0. For school completion, information on 15 year olds and over was collected on

the level of education attained. The questions asked were; what is the highest level of

school attended and what is the highest grade completed at that level? Thus, attendance,

net attendance rate and school completion are calculated from the basic questions included

in the DHS. The derivation of net attendance and completion measures which is similar to

procedure used by (Harttgen et al. 2010) are discussed on page 71 to 73. Thus, it is

possible to combine information on schooling, and residence with more traditional

household data on age, gender, household headship, and household socioeconomic status

for children of school-age in order to analyse some of the key determinants of children's

educational access and attainment in Ghana. These variables are useful for evaluating and

informing policy decisions on educational access and attainment and have been used by

other researchers to evaluate educational outcomes in other developing countries (Filmer

and Pritchett 1999b & 2001; Harttgen et al. 2010).

We also recognised the fact that DHS datasets are usually based on sampling frames

available from the most recent national censuses. Therefore, there may be a problem of

selective representation of secondary completion based on age cohort 18-23 year. The

reason being that the two datasets are based on 2000 Ghana Population and Housing

Census sample frame. We, therefore, recognised the fact that the 18-23 year olds may have

left home and the sample may have become increasingly selective. Taking this limitation

of the DHS datasets, we recognise a potential for selection bias and thus, the need for

caution in interpreting the results for secondary school completion. However, we also

know from the questionnaire that household heads were asked to list names of all usual

65

residents of the household, including the household head himself or herself and guests who

stayed in the household the night before the interview. It is also important to note that these

datasets are reliable and comparable because they are based on the same sample frame

(2000 Ghana Population and Housing Census). Therefore, the effect of selective

representation of secondary completion on the empirical analysis is likely to be minimised.

The empirical analysis in Chapters 4, 5 and 6 is based on 2003 and 2008 Ghana

Demographic Health Surveys (GDHS) datasets. The 2003 and 2008 survey periods are

chosen to indirectly capture the impact of the government of Ghana’s education policy

(discussed in Chapter 2) on educational outcomes of households through the households’

socioeconomic status. Although data on the policy and programmes were not directly

collected in the GDHS datasets, by using the 2003 GDHS dataset as pre-policy and 2008

GDHS dataset as a post-policy implementation periods, it is possible to explain any

indirect impacts of the policy interventions on households’ financial burden of enrolling

and maintaining their children in school. The GDHS which are independent cross-section

surveys employ stratified and clustered sampling methods to collect data on households in

Ghana. The survey design (two-stage sample) is based on the Ghana 2000 Population and

Housing Census to produce estimates for key indicators at national level, as well as for

each of the ten regions in Ghana (Ghana Statistical Service et al. 2004 & 2009). The 2003

survey has a sample size of 6,251 households (containing 26,601 members) and 2008

survey has 11,778 households (containing 46,536 members). Each survey covers 412

clusters (sample points) throughout Ghana.

The two surveys are also comparable and are nationally representative samples of

households in Ghana. Although the sample size in 2008 is almost as twice as the sample

size in 2003, the sample means of the two datasets are relatively comparable (see Table

3.1). The comparability of the two surveys has enabled us to undertake trend analysis

between 2003 and 2008 to capture any indirect impact of the intended pro-poor education

policy and interventions implemented in 2004/05 by the government of Ghana on

households’ SES and educational access and attainment of children. For example, Nguyen

and Wodon (2014) also use the 2003 and 2008 GDHS datasets to conduct trend analysis of

gender gap in educational attainment in Ghana. Thus, this research is not the first to use the

2003 and 2008 GDHS datasets for trend analysis.

Although Demographic Health Surveys do not collect information on household income

and consumption expenditure, the 2003 and 2008 surveys contain household welfare asset

66

index generated from information on household assets to cater for income or consumption

expenditure data using statistical technique of principal component analysis (MEASURE

DHS+ 2013). The wealth index is used extensively in the literature as a proxy for

household income or consumption expenditure (Filmer and Pritchett 1999b; Lloyd and

Blanc 1996; Sahn and Stifel 2003; Wagstaff et al. 2003; Klasen 2008; Harttgen et al. 2010;

Bbaale and Buyinza 2013). Filmer and Pritchett (1999b & 2001) have shown, that wealth

indices are comparable with current consumption expenditures and, moreover, are better

than traditional consumption expenditure indices in predicting school enrolment.

Whereas measures of income or consumption expenditure only reflect a household’s

economic environment at a particular point in time, wealth on the other hand reflects

lifetime earnings and purchasing power, as well as the economic environment in which a

child develops (Holmes 2003; Lloyd and Blanc 1996; Filmer and Pritchett 1999b;

Leibowitz 1974). Wagstaff and Watanabe (2003) also compare measured inequality in

wasting and stunting for 19 countries and find that for most countries the choice between

consumption and the asset index as the welfare measure makes little difference to the

measured degree of socioeconomic inequality in malnutrition. The wealth index is,

therefore, robust enough to be used as a proxy for household income or consumption

expenditure to examine the relationship between a household wealth and children’s

educational outcomes. Therefore, we have chosen wealth index to rank households into

their socioeconomic status in this study.

The effect of household wealth variable is very important in determining the educational

access and attainment of children. For example, if households are credit constrained,

current income may influence a household’s capacity to invest in children's education

(Jacoby 1994;Lillard and Kilburn 1995). Thus, household wealth is used to proxy the

permanent income available for education outlays. It is, therefore, relevant to include

wealth when examining the relationship between household background and children’s

educational outcomes. This is because, in addition to the direct impact of wealth on a

household’s economic well-being, wealth could affect households’ expectations of their

children and the level of educational resources and cultural capital that is available to the

children (Orr 2003). In other words, wealth or income influences the decision of parents to

invest in their children’s education (Becker 1975)

67

3.8.3 Computation of wealth index

As DHS do not collect data on income or expenditure, we have used an alternative (asset-

based) approach used by other researchers (Filmer and Pritchett 2001; Sahn and Stifel

2003) to define the socio-economic status of a household. We, therefore, construct an

aggregated uni-dimensional index over the range of different dichotomous variables of

household assets capturing housing durables and information on the housing quality, water

source, toilet types, cooking fuel and others that indicate the material status or welfare of

the household. Following MEASURE DHS+ (2013) and Harttgen et al. (2010), we

compute the wealth index as follows:

𝐴𝑖 = �̃�1𝑎𝑖1 + ⋯ + �̃�𝑛𝑎𝑖𝑛 3.1

Where 𝐴𝑖 is the wealth index, �̃� are the respective weights for each asset that are to be

estimated and the 𝑎𝑖𝑛′𝑠 refer to the respective asset of the household i recorded as

dichotomous variables in the DHS datasets. For the estimation of the weights and the

aggregation of the index, we use Principal Component Analysis proposed by Filmer and

Pritchett (2001).11 The components for the asset index computation include dichotomous

variables on asset holdings in a household. These household assets include: land owned,

bicycle, motorbike, car, truck, tractor, motorised boats, horse or cart, electric

generator/inverter, computer, radio, TV, phone / mobile phone, video recorder/player,

refrigerator, sewing machine, and washing machine, (capturing household durables); type

of floor material, type of wall material, type of toilet, and type or source of drinking water

and type of cooking fuel, (capturing the housing quality). Based on these variables, the

wealth index was computed for each individual, weighted by the household size household

(MEASURE DHS+ 2013) using STATA/SE 11 software. After the derivation of the

aggregated wealth index, we then derive the welfare distribution and classify population

welfare subgroups using quintiles as the segmentation dimension. Where, quintile 1

corresponds to the poorest household and quintile 5 to the richest household, respectively.

The results from the computation of the wealth index were the same as the ones provided

in the DHS datasets. Consequently, the descriptive and econometric analysis of educational

access and attainment in Ghana primarily rely on this welfare distribution.

The summary statistics of the selected variables from the 2003 and 2008 GDHS datasets

for the empirical analysis are shown in Table 3.1 on the next page.

11 Another way to estimate the weights for the assets to derive the aggregated index is a Factor Analysis (FA)

used by Sahn and Stifel (2003). Both PCA and FA estimation methods provide similar results.

68

Table 3.1: Summary statistics - explanatory variables

2003 2008

Explanatory Variables

N

Mean

Std. Dev.

N

Mean

Std. Dev.

Gender by age cohort:5-24 yrs.

Male 12205 0.4974 0.5000

21328 0.4951 0.5000

Female:5-24 yrs. 12205 0.5026 0.5000

21328 0.5049 0.5000

Household wealth:

Poorest 6251 0.1554 0.3623

11778 0.1540 0.3609

Poor 6251 0.1869 0.3899

11778 0.1911 0.3931

Rich 6251 0.2103 0.4076

11778 0.2163 0.4118

Richer 6251 0.2322 0.4223

11778 0.2246 0.4174

Richest 6251 0.2152 0.4110

11778 0.2140 0.4101

Household composition/size:

Household size 6241 4.0250 2.6335

11748 3.7532 2.4931

No. of children under 6 yrs.

No under6 yrs old children 5691 0.3818 0.4859

4916 0.4357 0.4959

Under 6 yrs children:1-2 5691 0.5494 0.4976

4916 0.4993 0.5001

Under 6 yrs children:3-4 5691 0.0654 0.2472

4916 0.0600 0.2375

Under 6 yrs children:5-6 5691 0.0034 0.0585

4916 0.0049 0.0701

No. of school-age children:6-17 yrs

No school-age children 26561 0.2048 0.4036

46536 0.2489 0.4324

School-age children:1-2 26561 0.4141 0.4926

46536 0.4236 0.4941

School-age children:3-4 26561 0.2898 0.4537

46536 0.2570 0.4370

School-age children:5-6 26561 0.0676 0.2511

46536 0.0530 0.2239

School-age children:7+ 26561 0.0236 0.1519

46536 0.0175 0.1310

No. of Economically active:18-64yrs

No economically active members 26561 0.0269 0.1618

46536 0.0269 0.1619

Economically active:1-2 26561 0.6241 0.4844

46536 0.6377 0.4807

Economically active:3-4 26561 0.2766 0.4473

46536 0.2644 0.4410

Economically active:5-6 26561 0.0616 0.2405

46536 0.0576 0.2329

Economically active:7+ 26561 0.0109 0.1037

46536 0.0132 0.1142

No. of retiree aged 65+ yrs 26601 0.2316 0.4868

46527 0.2167 0.4781

Proportion of economically active 26561 0.4544 0.2241

46536 0.4846 0.2380

Household head characteristic:

Household head age 6231 44.9280 16.0591

11755 44.2417 15.9689

Male household head 6251 0.6616 0.4732

11778 0.6631 0.4727

Female household head 6251 0.3384 0.4732

11778 0.3369 0.4727

Households head's yrs. of education

No education 6222 0.3478 0.4763

11747 0.2756 0.4468

Household head attained: 1-6yrs edu. 6222 0.1335 0.3401

11747 0.1286 0.3348

Household head attained: 7-12yrs edu. 6222 0.4024 0.4904

11747 0.4742 0.4994

Household head attained: 13+yrs edu. 6222 0.1163 0.3206

11747 0.1215 0.3268

Residency/location:

Urban 6251 0.4591 0.4984

11778 0.4778 0.4995

Rural 6251 0.5409 0.4984

11778 0.5222 0.4995

Administrative regions:

Western 6251 0.0979 0.2971

11778 0.1005 0.3007

Central 6251 0.0939 0.2918

11778 0.1086 0.3111

Greater Accra 6251 0.1423 0.3494

11778 0.1657 0.3718

Volta 6251 0.0861 0.2805

11778 0.0841 0.2776

Eastern 6251 0.1171 0.3216

11778 0.1070 0.3091

Ashanti 6251 0.2101 0.4074

11778 0.1922 0.3940

Brong Ahafo 6251 0.1064 0.3084

11778 0.0980 0.2973

Northern 6251 0.0779 0.2681

11778 0.0788 0.2694

Upper west 6251 0.0235 0.1513

11778 0.0194 0.1378

Upper east 6251 0.0448 0.2069

11778 0.0459 0.2092

Source: 2003 and 2008 Ghana Demographic Health Survey, own calculations

69

With respect to education, the datasets include indicators on education (such as; school

attendance, completion, number of years of education, educational levels attained, grade

attainment, etc.) for both children and adults. For example, the GDHS collected detailed

information on school attendance for the population aged 3-24 years, and school

completion for 15-24 years that allow the calculation of school net attendance rates (NARs)

and school completion rates, respectively. The variables for the empirical analysis are

discussed in the next sub-sections.

3.8.4 Variables for the analysis

The variables for the empirical analysis include; children's educational access indicator

(school attendance), educational attainment indicator (school completion), and children’s

demographic characteristics (age and gender). The rest include; household wealth (wealth

quintiles), a set of household characteristics (composition and size), a set of household

head characteristics, and a set of residency and regional factors.

3.8.2.1 Outcome variables

There are two sets of dependent variables that are considered for the analysis in both 2003

and 2008: (i) school attendance (divided into primary school attendance, and secondary

school attendance); and (ii) school completion (divided into primary school completion

and secondary school completion).

For descriptive analysis in Chapters 4 and 5, we also computed net attendance rates (NAR)

and completion rates. These rates include: primary NAR ( 𝑃𝑁𝐴𝑅); secondary NAR

( 𝑁𝐴𝑅); primary completion rate ( 𝑃𝐶𝑅) ; and secondary completion rate ( 𝑆𝐶𝑅). The

summary statistics of the outcome variables are shown in Table 3.2 below.

Table 3.2: Summary statistics - dependant variables

2003

2008

Dependent Variables N Mean Std. Dev.

N Mean Std. Dev.

Secondary attendance 3918 0.3469 0.4761

6658 0.4262 0.4946

Primary completion 2985 0.7041 0.4565

5813 0.7496 0.4333

Secondary completion 2526 0.1468 0.354

4983 0.2284 0.4199

Source: 2003 and 2008 Ghana Demographic Health Survey, own calculations.

Primary school attendance by age cohort 6-11 year olds, and secondary school attendance by age cohort 12-17 years

Primary school completion by age cohort, 15-20 year olds, and secondary school completion by age cohort 18-23 years.

70

Why School attendance / NAR and Completion/ Completion rates?

The school attendance / NAR and completion rate analysis help to examine school systems

(Harttgen et al. 2010). For example, NAR reveals whether school children start school on

time, and the completion rate estimates the progress of school children through the

education system as expected. Lower rates indicate weak internal inefficiencies in a given

education system (Harttgen et al. 2010). These education indicators are normally used to

measure the capacity and performance of education system in relation to national education

goals and plans, and to determine future development policies (FASAF et al. 2004;

Harttgen et al. 2010). The indicators also show the extent of children’s participation in

primary and secondary education among children of primary and secondary school-age

(FASAF et al. 2002 & 2004).

Therefore, these education indicators not only allow us to examine the internal efficiencies

in the Ghanaian education system but also to capture changes in the educational access,

and attainment at a point in time and over a period of time. More importantly, analysing

differences in school attendance and completion before and after the GoG’s education

policy intervention periods in the distribution of access and attainment of education by

income groups could guide government policy on pro-poor education interventions in

Ghana.

School attendance

The school attendance is one of the indicators of educational access and we are using this

indicator other than enrolment to capture access to education by households. The reason

not to use the enrolment indicator is that it measures initial enrolment and not a regular

attendance. In other words, attending school is not necessarily the same as being enrolled

in school. Children may be recorded in school enrolment records and yet not actually be

attending school (FASAF et al. 2004). Roberts (2003) also notes that in some Latin

America countries where primary education cycles are unusually long, a quarter of the

children who enrolled in Grade 1 dropped out of primary school. Thus, school attendance

is considered to be more relevant indicator of educational participation or access and is

preferred to enrolment (Jayachandran 2002; Ghana Statistical Service et al. 2004 & 2009;

Harttgen et al. 2010). For example, in the context of Ghanaian education system, access to

basic education is defined as the ability of children to progress through the basic education

cycle without repetition or dropping out (Chao and Alper 1998). This means enrolling in

primary school at age six and completing six years of primary education, and three years of

71

Junior High School (JHS) at age fourteen. Thus, access does not only mean getting

children enrolled in schools, but also ensuring that children who enrolled attend regularly

and complete a full cycle of basic education and/or secondary education and achieve good

learning outcomes.

Thus, educational access of children is examined in terms of school attendance (at both

primary and secondary school levels). Tracking this indicator is considered as one of the

most basic measures of performance in the education sector (Harttgen et al. 2010). For

example, NAR reveals the percentage of children of an official school going-age attending

school. It also reflects the functional capability of a given educational system. In other

words, it shows a country's commitment to the internal efficiency of the educational

system and can shed lights on a country's efforts or policies in providing educational

access (Harttgen et al. 2010).

The NAR (in the descriptive analysis in Chapters 4 and 5) is calculated as the number of

children in the relevant age bracket that are attending school divided by the size of the

relevant age bracket (FASAF et al. 2002 & 2004).12

It is important to note, however, that

by definition the net attendance rate cannot exceed 100% because it does not take into

account the over-age or under-age pupils. For educational access, the study covers children

who are aged between 6 years and 17 years and for educational attainment, it covers age

cohort of 15 years and over. In Ghana, the official primary school age starts from 6 to 11

years (i.e. 6 years of primary education) and secondary school, from 12 years to 17 years

(i.e. 6 years of secondary education).

Specifically, primary net attendance rate (𝑃𝑁𝐴𝑅 ) is defined as the percentage of children

of primary school-age (6-11 years) in the sample or population that is attending primary

school and it is computed as:

𝑃𝑁𝐴𝑅 =No. of children of primary school age who attend primary school

No. of children of primary school age in the sample or populationx 100

12

In Ghana, the official primary school-age is 6-11 years, and the secondary school-age is 12-17 years. The

attendance rates are calculated based on these official age groups for the education system. Children of other

ages enrolled in school are not taken into account as the NAR covers only the children in the official age

range that is associated with a given level of education. This also implies that the rate does not include

repeaters.

72

The secondary net attendance rate ( 𝑆𝑁𝐴𝑅 ) measures the percentage of children of

secondary school-age (12-17 years) in the sample or population that is attending secondary

school and it is computed as:

𝑆𝑁𝐴𝑅 =No. of children of secondary school age who attend secondary school

No. of children of secondary school age in the sample or populationx100

A high NAR is only possible if the education system has the capacity to educate all

children in the relevant age bracket and allow them to enter and progress through the

school system according to their age (Harttgen et al. 2010). Thus, net attendance rate can

be used as an indicator of functional capability of an educational system.

School Completion

To examine education attainment, there are usually two main indicators used in the

literature; average years of schooling completed, and school completion or completion

rates (Sahn and Younger 2006; Klasen 2008; Gunther and Klasen 2009; Harttgen et al.

2010; Harttgen and Klasen 2012; Thomas et al. 2001). However, in order to examine

education attainment of children across the household wealth distribution in Ghana, we are

using school completion which is in line with UNESCO and World Bank choice of

education attainment indicator (World Bank 2002). For example, UNESCO (2002a &

2002b) and World Bank (2002) use primary completion rate as their preferred measure of

progress towards the MDG 2 target13

.

The World Bank (2002) defines school completion rate as the proportion of the total

number of pupils (students) successfully completing or graduating from the last year of

primary (secondary) school in a given year to the total number of children of official

graduation age in the population . In other words, the completion rate is an indicator of

educational attainment and it measures the percentage level of primary or secondary school

completion rate among children who completed the last grade of primary or secondary

school. Completion rate monitors education system coverage and student progression, and

it is also intended to monitor school system quality and measure human capital formation

(FASAF et al. 2002 & 2004; Thomas et al. 2001; UNESCO 2002a & 2002b; Harttgen et al.

2010; World Bank 2002) .

13

UNESCO suggests inter alia, that all primary school-age children should be enrolled and should be able to

complete primary school, but not necessarily on time.

73

School completion is extremely important both socially and economically for school

children, as well as the for a country's education system. The indicator can reveal how

successful children from different income groups are in reaching educational milestone

(Lloyd and Blanc 1996; Lloyd and Hewett 2009; Harttgen et al. 2010). By UNESCO

(2002a & 2002b) definition, the 𝑃𝐶𝑅 is the percentage of children age 15 years and older

in the sample or population who completed primary school or have attended a higher grade.

Also, the 𝑆𝐶𝑅 measures the percentage of adults age 20 years and older in the sample or

population who completed secondary school or have attended a higher grade (FASAF et al.

2002 & 2004).

Following UNESCO (2002a & 2002b), FASAF et al. (2002 & 2004), Harttgen et al.

(2010), and considering the number of years between the survey periods (2003 and 2008),

we restrict the sample to a specific cohort of young adults aged 15-20 years for the

computation of primary school completion, and 18-23 years for the computation of

secondary school completion to monitor changes in the educational attainment over time.

The range equates the number of years between the Demographic Health Surveys.

Harttgen et al. (2010) also use similar range to calculate completion rates for 37

developing countries using DHS datasets.

Specifically, the school completion rates at both primary and secondary school levels are

computed as follows; where 𝑃𝐶𝑅 is primary completion rate, 𝑆𝐶𝑅 is the secondary

completion rate.

𝑃𝐶𝑅 = No. of adults age 15 − 20 years who completed primary school

No. of adults age 15 − 20 years in the sample or population x 100

𝑆𝐶𝑅 = No. of adults age 18 − 23 years who completed secondary school

No. of adults age 18 − 23 years in the sample or population x 100

It is important to note that both the primary and secondary completion rates can only be

high if most children of the age cohort enter primary and secondary school at the official

school-age and complete according to their age (Harttgen et al. 2010).

74

3.8.2.2 Explanatory variables

An understanding of the factors which influence educational access and attainment would

enable policy makers to adopt strategies to improve the allocation of resources, with the

objectives of increasing school attendance and completion rates, and reducing inequality in

attendance and attainment, simultaneously. For example, assessing the effects of factors

that are time-varying and analysing current attendance decision will allow us to relate

current school choices to socioeconomic aspects of the household such as; household

wealth or income and household structure (Glick and Sahn 2000). Thus, the sources of

educational disparities in children’s educational outcomes are expected to come from a

series of; demographic, household, residency, regional, and school characteristics.

However, since the DHS datasets do not contain information on school characteristics, the

focus in this study is on the effects of household SES and other individual factors on

educational outcomes.

The theoretical and empirical literature reviews in this chapter provide some guidance for

the selection of variables to be included in the model for the analysis of school attendance

and completion at both primary and secondary school levels in Ghana. For example,

Schultz (1999) identifies three key socioeconomic determinants of household demand for

schooling; public expenditure on education, education of the parents, and wealth of the

family. Consequently, the resources available to children of primary and secondary school-

age through their household are likely to be strongly associated with the likelihood that

they will be currently attending school and that they will have completed primary school at

age 11, and secondary school by age 17. These resources include: household wealth or

standard of living (measured by households' SES - wealth quintiles); the presence of very

young children in the household (under-six year olds); the presence of other school-age

children (6-17 year olds) who can share in household tasks; economically active adults,

and the education attainment levels of the household head (Lloyd and Blanc 1996; Filmer

and Pritchett 1999b & 2001; Roberts 2003; Lloyd and Hewett 2009; Montgomery and

Hewett 2005; Bredie and Beeharry 1998; Butcher and Case 1994; Okumu et al. 2008;

Lillard and Willis 1994; Haveman and Wolfe 1995). For example, the presence of young

siblings may alter the allocation of time among schooling, household work and other uses.

In addition, including the number of siblings under-six years old in the analysis could also

show how schooling access and attainment are affected by “fertility shocks” (Glick and

Sahn 2000).

75

The explanatory variables included in the analysis are grouped into; pupil/student level

characteristics, SES of households, a set of household level variables, a set of household

head variables, and a set of residency and regional factors. Consequently, our regression

analysis includes the following determinants: children's gender; household SES (wealth

quintiles as a proxy of income levels); household composition/size (number of household

members under-six years old, 6-17 years old, economically active adults, proportion of

economically active members, and retirees); gender of the household head; education level

attained by the household head (primary, secondary, and higher); and dummies for

residency and regional location (to capture the effects of location-related disparities).

Distance to and/or availability of schools and quality of schools are other variables that

could also contribute to socioeconomic inequality in educational outcomes (Hanushek and

Lavy 1994; World Bank 2004; Woldehanna et al. 2005; Schaffner 2004). However, data on

school characteristics are not available in DHS datasets and as a result it is not possible to

include these variables in the analysis to see how they impact on educational disparities in

Ghana. Instead we use urban/rural dummy variable to proxy for availability of schools.

3.9 Conclusions

From the literature review on socioeconomic inequality in education and determinants of

educational outcomes, there is no indication that any of the empirical studies reviewed has

estimated and decomposed the contributions of the various determinants discussed. Yet,

knowing the proportion of the contribution of each determinant to the total inequality in

educational access and attainment is important when designing policy interventions. Thus,

one of the main objectives of the thesis (stated in Chapter 1) is to estimate and decompose

the contributions of these determinants to educational inequalities to bridge the gap in

knowledge and to contribute to the literature. Such contribution to the literature will have

relevant policy implications for policy makers. This is because policy makers will be able

to see both the absolute and relative contributions of key sources of inequality in

educational outcomes in Ghana. By identifying the key sources and their contributions to

educational inequalities, policy interventions could be tailored to deal with some of the

root causes of educational inequality in Ghana.

Furthermore, it emerges that there is broad agreement that income is an inadequate

measure of welfare, and economic growth is a necessary condition but not a sufficient

condition for poverty reduction in developing countries. From capability expansion point

of view, economic growth can expand capabilities directly. In addition, as average incomes

76

increase, the population has greater access to relevant non-income dimensions of well-

being such as basic education and healthcare among others. This implies that all

capabilities can expand with economic growth, thus promoting human capital development.

Some studies demonstrate that economic growth benefits the poor in most developing

countries in which substantial growth has taken place. Others suggest that income growth

could promote non-income dimensions of well-being (e.g. education and health) through

non-income variables which may correlate with average incomes. Consequently, the main

channels through which overall economic growth can promote education (as argued in the

literature) is by: (i) lessening the extent of income poverty which constraints households in

their ability to send children to school; and (ii) increasing public educational investments

which lead to greater school access and better quality education (Anand and Ravallion

1993). It has also been suggested that if progress in education is combined with a focused

public spending in education sector, it will lead to declining inequality and poverty

reduction in education, even in an environment of stagnant or worsening levels of income

poverty (Sahn and Younger 2006 & 2007; Filmer and Pritchett 1999b).

However, evidence gathered in the review suggest that there are socioeconomic

inequalities in educational outcomes across developing countries, and that the attainment

of MDGs 2 and 3 is in doubt in most developing countries, especially in SSA countries.

Household resources emerged as the key contributing factor in educational inequalities and

poverty. From a gender perspective, the extent of inequality among girls in primary school

attendance and completion rates according to SES, is found to be substantially greater than

for boys (Lloyd and Hewett 2009; Harttgen et al. 2010).

Furthermore, where educational inequalities are analysed and discussed, the focus is

mainly on primary education, and less attention is been directed towards secondary

education where returns to education can be high. However, for children from poor

households to partake in the benefits of economic growth and to break the poverty-cycles

in their households, they will need to progress to higher levels of education to acquire the

necessary skills needed for the job market and for life. This is where the secondary

education comes to the fore. However, in most developing countries including Ghana,

secondary education is not free. The question then is how will children from poor

households acquire the necessary skills if they cannot afford secondary education? Will

primary or basic education alone be enough to provide the skills children need to succeed

77

in life? Consequently, Chapters 4, 5 and 6 attempt to give us empirical insights into some

of the gaps identified in the literature review alongside the aims and the objectives of the

thesis.

78

Chapter 4

Socioeconomic determinants of educational access and attainment in Ghana

4.1 Introduction

Persistent differences in educational access and attainment of school-age children due to

socioeconomic status has long been a serious education policy concern in Ghana

(Akyeampong et al. 2007; Chowa et al. 2013). This is in spite of the fact that the education

sector in Ghana has experienced substantial expansion during the last two decades at all

levels (World Bank 2004; Akyeampong et al. 2007; NDPC et al. 2010), with primary

school enrolment ratio around 90% and poverty levels having been reduced from 51.7% in

1991/92 to 28.5% in 2005 (Ghana Statistical Service 2007). Such concerns have been

generally recognised in developing countries in MDG 2 (UN 2000). In an attempt to

address these concerns, the Government of Ghana (GoG) has engaged in the construction

and rehabilitation of more classroom blocks, supply of textbooks, and trained teachers to

ease supply-side constraints to education provision in Ghana (World Bank, 2004).

On the other hand, the main factors on the demand side which affect households, especially

the poor include; household income and the opportunity cost of sending children to school

(Roberts 2003). It has also been argued that one of the reasons why children from poor

households in Ghana do not attend school is that their parents cannot afford the cost of

sending them to school (Osei et al. 2009). However, throughout the last decade or more,

increases in access to basic education in Ghana has been strengthened through a number of

international initiatives; EFA – Fast Track Initiative, and national education policy

interventions were carried out to reinforce the attainment of UPE in particular (NDPC et al.

2010). The national policy interventions include; FCUBE, SCG, and SFP which we have

discussed in Chapter 2. These policy interventions were intended to mitigate demand-side

constraints and to increase educational access to poor children. For instance; SCG is

expected to positively affect the quantity of education provided (measured in terms of

enrolment rates), and SFP is also aimed at increasing school enrolment, retention,

attendance, and reduction in malnutrition among children. The increased educational

resources, holding everything else constant, should increase the probability that all school-

age children attend and complete at least primary education. However, many Ghanaian

children fail to continue and complete their basic education programme. In 2008, about a

third (32.3%) of children who enrolled in JHS dropped out in the final year of JHS

(Ministry of Education Science and Sports 2008). According to Ghana Statistical Service

(2008) report, 30% of Ghanaians have never attended school. Furthermore, educational

79

access, standards, and attainments vary widely in the country, especially between urban

and rural areas, and the poor and non-poor households (Ghana Statistical Service 2008).

Other studies conducted in Ghana also reveal that educational access and attainment

disparities exist (Sutherland-Addy 2002; Palmer 2006; Tuwor and Sossou 2008).

It is against this background that this chapter explores what might be considered the

‘demand-side’ of educational outcomes in Ghana. The aim is to estimate and explain the

disparity in educational outcomes of children aged 6-17 years old as a response to key

socioeconomic factors which might have been responsible for the differences in

educational outcomes. Measuring socioeconomic determinants and their impacts on

educational access and attainment is very important in assessing an educational system.

However, more interesting for policy purpose is to try to explain the impacts of key

socioeconomic factors on school attendance, and school completion (at both primary and

secondary school levels). Therefore, the contribution of this chapter is to estimate and

explain the impacts of key socioeconomic factors on the educational outcomes in Ghana

before and after the GoG’s education policy interventions implemented in 2004/05

discussed in Chapter 2. The research in this chapter constitutes the only first attempt to

specifically analyse the impact of GoG’s education policy interventions through household

wealth distribution on educational access and attainment using household level data before

and after the policy implementation period. Thus, the findings could aid future policy

directions.

Consequently, we employ descriptive analysis to understand the trend of the distribution of

educational outcomes in Ghana by income groups, and also multivariate probit regression

model relevant to investigating the concerns discussed earlier. The first concerns variations

in socioeconomic determinants of educational outcomes at a point in time and over a

period of time. For descriptive analysis, we also examine the net attendance and

completion rates to allow us to measure the internal efficiency (Harttgen et al. 2010) of the

education system in Ghana. For regression analysis, probabilities of school attendance and

completion may presumably reflect variations in determinants of education service

utilisation (e.g. access to education, opportunity cost, household income, other household

level factors, residency and regional location effects etc.)

80

The empirical questions we seek to address are:

i. What key household socioeconomic factors influence educational access and

attainment in Ghana?

ii. To what extent has GoG’s education policy interventions and educational

expansion reduced the differences in educational access and attainment at primary

school level?

iii. What is the extent of the disparity in access to, and attainment of secondary

education?14

The remainder of the chapter is structured as follows. In Section 4.2 we examine

descriptive statistics on the distribution of educational access and attainment by household

wealth in Ghana to determine the level of disparity in educational outcomes between the

poor and the non-poor households. For more robust analysis, we employ a binary probit

regression model focusing on variations in parameters to be estimated and their effect on

the dependent variables (school attendance and attainment) in Section 4.3. The regression

results are presented and discussed in Section 4.4. Section 4.5 discusses policy lessons of

the results, while Sections 4.6 concludes the chapter.

4.2 School attendance and completion

Before we proceed to the descriptive analysis of the distribution of educational access and

attainment by socioeconomic status, it important to put into perspective the descriptive

statistics of the net attendance rate and completion rate for the household population in

Ghana presented in Tables 4.1 and 4.2. In 2003 and 2008, about 61% and 74% respectively,

of children aged 6-11 years who should be attending primary school, attended primary

school. At the secondary level, about 35% and 43% of children aged 12-17 years who

should be attending secondary school, attended secondary school in 2003 and 2008,

respectively. For completion rates at primary school level, about 70% and 75% of the age

cohort, 15-20 years who should have completed primary school, completed primary school

in 2003 and 2008, respectively. At the secondary level, the completion rates for the age

cohort, 18-23 years were very low. The statistics show that about 15% and 23% of the age

cohort who should have completed secondary school, completed secondary school in 2003

and 2008, respectively.

14

At secondary school level, there are no policy interventions to mitigate the cost of secondary education

borne by household, compared to pro-poor education policy interventions at the basic education level.

81

4.2.1 Distribution of educational access by socioeconomic status

This sub-section presents an illustrative overview of the distribution of children’s

educational access and attainment by household wealth quintiles in Ghana. It also

discusses the disparities between the poor and the non-poor households’ educational

outcomes. In essence, the section provides descriptive statistics on the distribution of

educational access in Ghana among income groups. The descriptive statistics are presented

in terms of welfare distribution and demographic background characteristics of households.

Table 4.1 shows net attendance rates (NARs) in 2003 (8 years after the implementation of

FCUBE), and 2008 (8 years after the enforcement of laws that support the implementation

of FCUBE, and 3 years after the implementation of SCG and SFP). The changes in NAR

between the two periods are positive for the country and also for the income groups. The

changes in primary and secondary NAR for the country between 2003 and 2008 are 13.3%

and 7.9%, respectively. This means that educational access at both levels of education has

increased. More importantly, all income groups have also recorded increased access,

especially the poor at the primary school level. The rising attendance rate could be

explained in terms of the general improvement in the standards of living of the average

Ghanaian over the years. For instance, Ghana has reduced its incidence of poverty levels

by almost half between 1991 and 2006. The share of the population below the poverty line

decreased from 51.7% in 1991/92 to 39.5% in 1998/99 and 28.5% in 2005/06 (Ghana

Statistical Service 2000 & 2007). According to Coulombe and Wodon (2007), the absolute

number of the poor also decreased from 7.9 million in 1991/92 to 7.2 million in 1998/99

and 6.2 million in 2005/06.

Table 4.1 also depicts household wealth quintiles, wealth quintile means, as well as wealth

quintile ratios. The quintile ratio of fifth to first is a direct indicator of inequality between

the richest and the poorest population subgroup. The NAR at the primary school level

between 2003 and 2008, without taking into consideration the household wealth, shows

that female NAR increased by 14.5% compared to 12.2% achieved by the male children.

Although, the NAR (59.7%) for females in 2003 was lower than the NAR (61.2%) for

males, in 2008 the NAR (74.2%) for females was slightly higher than that of the males

(73.4%).

There is an indication that more female children have gained access to primary education

from 2003 to 2008 than male children within the same period. Therefore, gender inequality

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Table 4.1: School attendance rates by household wealth in percentages

Primary NAR

Change in

primary

NAR

Secondary NAR

Change in

secondary

NAR

2003 2008 (2003 - 2008) 2003 2008 (2003 - 2008)

Gender

Male 61.2 73.4 12.2 33.7 42.3 8.6

Female 59.7 74.2 14.5 35.5 43.0 7.5

Household wealth:

Quintile 1 43.0 59.5 16.5 14.5 22.6 8.1

Quintile 2 56.0 71.9 15.9 23.8 34.8 11.0

Quintile 3 64.4 76.6 12.2 34.0 41.8 7.8

Quintile 4 68.2 81.5 13.3 41.5 52.1 10.6

Quintile 5 77.9 85.5 7.6 56.6 61.9 5.3

Quintile Mean 61.9 75.0 13.1 34.1 42.6 8.5

Quintile Ratio (5:1) 1.8 1.4 -0.4 3.9 2.7 -1.2

Total 60.5 73.8 13.3 34.7 42.6 7.9

Source: 2003 and 2008 Ghana Demographic Health Survey; own calculations

Note: The figures in this table are weighted

in access to primary education depicted in 2003 has significantly improved in 2008 which

is consistent with Ghana Statistical Service et al. (2009) report.

4.2.1.1 Wealth inequality in primary school net attendance rate

As previously pointed out (see Table 4.1) 60.5% and 73.8% of primary school-age children

in Ghana attended primary school in 2003 and 2008, respectively. However, the inequality

becomes apparent when one examines the distribution of access to primary education in

terms of wealth quintiles. Inequality in this measure of attendance in both survey periods

are evident: among the top wealth quintile of households, 77.9% (in 2003) and 85.5% (in

2008) of primary school-age children attended primary school, while only 43.0% (in 2003)

and 59.5% (in 2008) of children from the poorest quintile of households attended primary

school.

In 2003, children from households in the highest wealth quintile have rates that are 34.9%

points higher than children from households in the bottom wealth quintile. Although the

inequality has fallen to 26.0% points in 2008, there is still an indication of high disparities

between the poor and the non-poor when accessing primary education. In terms of quintile

ratios, the 2003 survey shows that the richest households have a primary NAR that is 1.8

times higher than the rate for the poorest households. However, in 2008, the quintile ratio

between the richest and the poorest households has dropped to 1.4 times which might

suggest that the government education policy interventions to provide primary education

83

access to all, coupled with steady economic growth performance discussed in Chapter 2

might have had some effects on these ratios.

The fall in the quintile ratio (i.e. fall in inequality in primary NAR) between the two

periods can be seen in terms of the increase in the primary NAR of the poorest from 43.0%

in 2003 to 59.5% in 2008 (an increase of 16.3%), compared to an increase of 7.6% points

in the primary NAR of the richest households between 2003 and 2008. The quintile mean

for primary NAR has also improved by 13.1% points between the two periods (61.9% in

2003 and 75.0% in 2008).

4.2.1.2 Wealth inequality in secondary school net attendance rate

The analysis of the NAR in secondary education can yield some insights into the progress

of educational inequality as a result of expanding access to education in Ghana. Secondary

NAR shows more marked income or wealth inequalities in access to education beyond

primary education level. The NAR is 42.1% points higher for children from households in

the top wealth quintile than children from households in the bottom wealth quintile in 2003.

Although in 2008 the rate has reduced to 39.3% points, the inequality still remains high.

In Table 4.1, 34.7% and 42.6% of secondary school age children in Ghana attended

secondary school in 2003 and 2008, respectively. The inequality in the secondary NAR in

both survey periods is more evident than that of the primary school net attendance rate.

Consequently, among the top wealth quintile households, 56.6% (in 2003) and 61.9% (in

2008) of children attended secondary school, while only 14.5% (in 2003) and 22.6% (in

2008) of children from the bottom wealth quintile of households attended secondary school.

Although, there has been an improvement of 8.1% points (from 2003 to 2008) in the

secondary NAR for the poorest households compared to 5.3% within the same period for

richest households, the quintile ratio is still high. In 2003, the richest households have

secondary NAR that is 3.9 times higher than the rate for the poorest households. Even

though in 2008 the quintile ratio between the richest and the poorest households has

dropped to 2.7 times, the inequality between the richest and the poorest households is still

high compared to the ratios for primary NARs. The quintile mean for secondary NAR has

also improved by 8.5% points between the two periods (34.1% in 2003 and 42.6% in 2008).

What is interesting to note is that educational inequality between the richest and the

poorest households increases with lower mean levels of NARs (see Table 4.1). There seem

84

to be different worlds when one considers the distribution of access to secondary education

between welfare groups.

In Ghana, secondary education is not free and this might partially explain why the

secondary NARs are very low for the poor than the non-poor households. One suggestion

is that NARs for secondary schools are generally low in low and middle income countries

due to the fact that many of these countries have moved towards universal primary

education but lack the resources to promote secondary education (Porta et al. 2011). At

household levels it is also suggested that in poor households, as children grow older and

become more potentially productive the opportunity cost of school attendance for their

parents increases (Roberts 2003; Holmes 2003; Lloyd and Blanc 1996). For example,

Roberts (2003) attributes this phenomenon as one of the causes of falling attendance rates

in higher grades or levels. In other words, the pecuniary and opportunity costs of sending

children to school are higher relative to household income in poor households than in non-

poor households. In turn, this could be used to explain the disparity in the attendance rates

of the children from poorest households and the richest households. According to Roberts

(2003), poor households tend to withdraw their children from school when their incomes

fall. Furthermore, lower access to secondary education may compel children from poor

households to enter the labour force too early and with a lower level of education than they

may need. The transmission mechanism is that the low level of education as a result of low

access to secondary education will lead to low level of skills and productivity which will

not be enough to avoid a generational poverty, all other things being equal.

4.2.2 Distribution of educational attainment by socioeconomic status

The educational attainment is measured by school completion rate and it is extremely

important both socially and economically for pupils, students, as well as for a country's

education system (Harttgen et al. 2010). Primary and secondary completion rates are

indicators of primary and secondary school attainments of children aged 15-20 years and

18-23 years, respectively. The indicator can reveal how successful children from different

income groups are in reaching critical educational milestone (Lloyd and Blanc 1996;

Harttgen et al. 2010). Again, because we are interested in the effects of the government of

Ghana’s education policy and programmes (SCG, SFP, and FCUBE), the school

completion rate serves as one of the key education indicators to be examined. It may shed

some lights on the distribution of educational attainment in Ghana. Table 4.2 shows the

primary and secondary school completion rates.

85

The completion rates are examined with respect to wealth quintile to determine the

inequalities between the poor and the non-poor households at both primary and secondary

education levels. The changes in school completion rates between the two periods are

positive for the country as a whole and also for the income groups. The change in primary

and secondary completion rates for the country between 2003 and 2008 are 4.6% and 8.1%,

respectively. The positive change in the rates means that educational attainment at both

levels of education for the age cohorts has increased. In comparison, at the primary school

level, it seems there is more improvement at access level than the attainment level. It is

also worth to note that, all income groups have recorded increased attainment between

2003 and 2008, especially the rich at the secondary school level. The increase in secondary

school attainment by the rich may be due to the fact that secondary education is not free

and therefore, the children from poor households might have struggled to complete

secondary education.

4.2.2.1 Wealth inequality in primary school completion rate

The inequalities in primary completion rate in 2003 are glaring, although on average 67.9%

of children from all the welfare groups completed primary education in 2003. The

completion rate of children from households in the top wealth quintile is 47.5% points

higher than for children from the bottom wealth quintile. In other words, the children from

the top quintile households have 2.2 times more completion rate than children from the

bottom quintile households. In 2008, it appears there is no significant improvement in the

inequality in completion rate of children from the poorest and richest households.

4.2.2.2 Wealth inequality in secondary school completion rate

Generally, the secondary attendance rates in most developing countries are significantly

lower than primary attendance rates (Porta et al. 2011), and Ghana is not an exception as

indicated in Table 4.1. Consequently, the secondary completion rates are more likely to be

lower than the primary completion rates (see Table 4.2 below).

86

Table 4.2: Completion rates by household wealth in percentages

Primary

completion rate

Change in

primary

completion

rate

Secondary

completion rate

Change in

secondary

completion

rate

2003 2008 (2003 - 2008) 2003 2008 (2003 - 2008)

Gender

Male 72.8 76.2 3.4 16.0 24.8 8.8

Female 68.2 73.8 5.6 13.0 21.1 8.1

Household wealth

Quintile 1 40.4 43.6 3.2 2.2 3.7 1.5

Quintile 2 58 68.5 10.5 2.6 7.5 4.9

Quintile 3 73.7 78.9 5.2 4.8 14.6 9.8

Quintile 4 79.7 86.9 7.2 14.4 27.5 13.1

Quintile 5 87.9 92.9 5.0 36.2 52.0 15.8

Quintile Mean 67.9 74.2 6.3 12.0 21.1 9.1

Quintile Ratio (5:1) 2.2 2.1 -0.1 16.5 14.1 -2.4

Total 70.4 75.0 4.6 14.7 22.8 8.1

Source: 2003 and 2008 Ghana Demographic Health Survey; own calculations

Note: The figures in this table are weighted

However, the inequalities in secondary completion rates in both survey years call for an

attention if the poor are to acquire the necessary skills to enable them to participate in the

economic growth which could move them out of poverty. This is evident when Lewin

(2007:2) argues that “lack of education is both a part of the definition of poverty and a

means for its diminution. Sustained and meaningful access to education is critical to long

term improvements in productivity, the reduction of inter-generational cycles of poverty,

demographic transition, preventive health care, the empowerment of women, and

reductions in inequality.”

In 2003 the secondary school completion rate for children from poorest households is 2.2%

compared to 36.2% for children from the richest households. The inequality in the

completion rate is even more glaring when one looks at it in terms of quintile ratio (see

Table 4.2).15

Although the quintile ratio has reduced from 16.5 times to 14.1 times between

2003 and 2008, at the same time, the inequality in completion rate between the top wealth

quintile and the bottom wealth quintile households has increased from 34.0 points in 2003

to 48.3 points in 2008. These results suggest that policies and programmes oriented

towards inequality in completion rates should pay attention to the income levels of

households, especially the poor. Again, the findings appear to suggest that investment in

schooling could differ by household wealth. Theoretically, if schooling is valued as

15 Children from the top quintile households have 16.5 times more secondary school completion rate than

children from the bottom quintile households.

87

consumption (i.e. normal good) then demand for it will increase with increases in

household income or wealth.

In addition, if there are credit constraints (where poor households are not able to borrow

for investments in education) then only those with access to ready-cash or credit facilities

(the non-poor) will be able to afford the education costs (Becker 1975; Lazear 1980).

From the literature it is evident that poorer households are more credit constrained than

richer households (Jacoby 1994; Rose 2000). Moreover, if there are credit facilities

available for both the poor and the non-poor and the non-poor households are able to

borrow at cheaper rates than the poor households, then investments in education will still

be higher among the rich than the poor (Becker 1975; Lazear 1980). Besides, if non-poor

households are able to make complementary investments, such as additional tutoring

(which the poor cannot afford) then the efficiency of schooling and school completion rate

will be higher for the rich households than the poor households (Filmer 2005). Such

conditions and constraints may explain some of the huge inequalities in secondary

completion rate between the poor and the non-poor households in Ghana. This finding is

consistent with both the theoretical underpinnings and the empirical findings of Jacoby

(1994) and Rose (2000).

The results from Tables 4.2 and 4.3 suggest that there is a direct relationship between

schooling outcomes and household wealth or income. The relationship is explored further

using binary probit regression model in Sections 4.3 and 4.4, including some other

covariates.

88

4.3 Multivariate regression framework

The descriptive analysis in Section 4.2 suggests that household wealth could be the main

underlying factor for disparities in educational access and attainment by households in

Ghana. However, household wealth may not necessarily be the only factor and there may

be other factors that may equally affect educational outcomes in Ghana. For robustness of

the analysis, we employ probit regression model to analyse the factors that are likely

impact on whether a child i from household j attends school or not, and if the child

attended school whether the child completed a given educational level or not.

The empirical specification of the regression model (Equation 4.1) are used for analysing

‘Socioeconomic determinants of educational access and attainment’ in this chapter and

also for modelling ‘Disparity in educational outcomes of males and females within the

welfare groups’ in Chapter 5.

4.3.1 Binary probit model

Policy makers would be interested in the importance of the effects of the various factors

thought to be socioeconomic determinants of educational access and attainment in Ghana,

since that would give some idea of policy direction. Therefore, one of the convenient ways

of considering educational differences between households (in terms of access and

attainment) is to apply a probit regression analysis in which the educational access and/or

attainment is related to the equity group (i.e. households) of the individual i; i = 1; ...,N

(Tansel 2002; Deininger 2003; Filmer 2005; Sackey 2007; Okumu et al. 2008; Bbaale and

Buyinza 2013; Filmer and Pritchett 2001) . Thus, to explain variations in school attendance

and completion at both primary and secondary school levels, a reduced educational

production-type probit regression model used by Filmer and other authors referenced

above is adapted to estimate factors that might affect educational outcomes of households

in Ghana. The model for the pupil/student’s attendance and completion is specified to be a

non-linear function of: a vector of characteristics of pupil/student level variable of

household j, Gij; the income or wealth quintile of the household j the child belongs to, Wij;

a vector of household characteristics/composition of child level variables of household j,

Hcij; a vector of household head characteristics of child variables, Hhij; educational

attainment level of household head, HhEdij, and dummy variables for where household j is

located, Rij.

89

4.3.2 Empirical specification

To estimate the impact of household level factors and other related factors on primary and

secondary school current attendance and completion, we apply a reduced educational

production-type probit regression model adapted from Filmer and Pritchett (2001)

Deininger (2003), Filmer (2005), and (Sackey 2007). We assume that the probability of

current school attendance by children aged: 6-11 years (primary school attendance), 12-17

years (secondary school attendance); and school completion by age cohort 15-20 years

(primary school completion), and age cohort 18-23 years (secondary school completion),

from a given household is determined by an underlying latent variable that captures the

preferences and true economic status of the household.

The model is expressed as:

Eij* = 𝛼 + 𝛽𝐺𝑖𝑗 + 𝛾𝑊𝑖𝑗 + 𝛿𝐻𝑐𝑖𝑗 + 𝐻ℎ𝑖𝑗 + 𝜑𝐻ℎ𝐸𝑑 + 𝜌𝑅𝑖𝑗 + ε𝑖𝑗 , 4.1

For; (i) school attendance, and (ii) school completion: Eij* is an unobserved variable whose

observed counterpart, whether or not child i from household j is currently attending school;

and if the child i attended school, whether the child i completed school or not is defined as:

Eij = 1 if Eij* >=0

= 0 otherwise.

Eij* can be thought of as the underlying demand for child’s access to education, and

attainment of education and we only observe whether it exceeds the threshold zero. The

error term is assumed to follow the normal distribution and, therefore, the model can be

estimated using probit regression (Filmer 2005;Sackey 2007). The explanatory variables

are described as follows:16

𝐺, Dummy variable for gender of a child and takes a value of 0 if the child is male

(which is treated as a reference category) and 1 for female.

𝑊, Wealth quintile of the household in which the child resides: The wealth quintile

includes; dummies for the poorest taking a value of 1(treated as a reference

category) through to the richest taking a value of 5.

16

The dependent and explanatory variables for the empirical Chapters 4, 5 and 6 are the same and have been

discussed in Chapter 3.

90

𝐻𝑐 , Vector of household composition/size: Household size; number of children

under 6 years old; number of children of school-age from 6-17 year olds; and

number of economically active members of household, retirees; and proportion of

economically active household members.

𝐻ℎ, Vector of household head characteristics which include: Age of household

head in years; a dummy variable for the gender of the household head, and takes a

value of 0 if household head is male (treated as a reference category) and 1 for

female.

𝐻ℎ𝐸𝑑, Education levels of household head – primary, secondary, and higher (no

education is treated as the reference category)

𝑅, Dummy variables for urban/rural (value of 0 for urban and 1 for rural) and

regional effects (Western = 1, Central = 2, Greater Accra = 3, Volta = 4, Eastern =5,

Ashanti = 6, Brong Ahafo = 7, Northern = 8, and Upper East = 9. Urban and Upper

West are the reference categories and are, therefore, treated as the omitted

categories. The Upper West region is the poorest region in Ghana (Ghana Statistical

Service et al. 2004 & 2009).

The different elements of the coefficient vector β, , , , , and , provide an estimate of

the impact of the socioeconomic determinants on the probability of educational access

(school attendance) and educational attainment (school completion) of school-age children

(6-17 year olds). Equation 4.1 is estimated at both primary and secondary school levels in

2003 and 2008. In other words, for the jth element of explanatory variables, the

corresponding elements of the coefficients (β, , , , , and ) denote the impact of

particular characteristic or determinant on the probability of school attendance and

completion in 2003 and 2008.

4.3.3 Endogeneity concern

Household wealth

Total income of household is likely to be endogenous to the household education decisions

(participation and attainment). To avoid this bias, often non labour income and wealth

information of the household is used as a proxy for permanent income (Roberts 2003).

From the literature, household permanent income is one of the most controversial variables.

This is because it is not clear whether it should be treated as endogenous or exogenous.

91

Generally it is assumed that the household expenditure is an endogenous variable and as a

result, they are instrumented by an indicator of household wealth based on the ownership

of assets (Burchi 2009). Thus, household wealth can be treated as exogenous under the

assumption that it is the result of unearned income (ibid). Although the wealth index based

on assets' ownership (available in the DHS surveys) seems to better reflect permanent

income (Roberts 2003), the assumption has some shortcomings. For example, household

wealth may not be the result of unearned income. According to (Strauss and Thomas

1995:1900) "non-labour income is the return to assets built up with previous labour

earnings". In this regard, the wealth index may be considered as a poor instrument for

household expenditures (Strauss and Thomas 1995). Unfortunately, the DHS datasets do

not contain information on household consumption expenditures, but only on assets owned

by the households which is aggregated into an indicator of wealth referred to as wealth

index.

Both Filmer and Pritchett (2001) and Sahn and Stifel (2003) show that asset index (i.e.

wealth index) can be used as an instrument for expenditures. For example, Sahn and Stifel

(2003: 485) note that “even when expenditure data are available, analysts may prefer to use

the asset index as an explanatory variable or as a means of mapping a metric in permanent

income space to other living standards and capabilities”. Filmer and Pritchett (2001) use

wealth index as an instrument for household wealth to estimate the household wealth

effects on the probability of being in school, for children aged 6-14 years in India using

probit regression. They compared the impact of wealth index with the log of consumption

expenditures per adjusted household size on school enrolment and find that the results

were qualitatively similar. Although the authors note that asset index will be imperfect

proxy for long-run household economic status (wealth), they also argue that the

measurement errors will not be correlated perfectly. They, therefore, suggest that wealth

index can be used as an instrument for household wealth. Furthermore, Filmer and

Pritchett (2001:125) argue that “using assets as instruments for household per capita

expenditures is most likely the more effective way of extracting the maximum amount of

information from household data while reducing the impact of measurement error”. For

example, the authors support their argument by comparing results based on DHS datasets

from India, Indonesia, and Pakistan which show that the “results are consistent with the

presence of less measurement error in the asset index than in consumption expenditures as

a proxy for long-run wealth in predicting educational outcomes” (Filmer and Pritchett 2001:

128).

92

Other studies that use DHS data in analysing the effect of wealth index on schooling

outcomes include; Lloyd and Blanc (1996), Filmer (2000), and Bbaale and Buyinza (2013).

All these studies did not use instrumental variable identification method to instrument for

household wealth but use wealth index (wealth quintile) as an instrument for household

wealth in their regression analysis.

For those studies that use other forms of household survey that contain information on

income or expenditure component have all used log of household expenditure as an

instrument for household expenditure. 17 We could not use this method because DHS

datasets do not contain information on neither income nor consumption expenditure. Even

when the log consumption expenditure is used an instrument for long-run wealth in

predicting educational outcomes, Filmer and Pritchett (2001) argue that household wealth

index has less measurement error than the log consumption expenditure.

Since it is very difficult to find more reliable instruments for wealth, the analysis in

Chapters 4, 5 and 6 could not report the estimations together with Rivers and Vuong (1988)

or wu-Hausman test for endogeneity. Nevertheless, the estimations and results in Chapters

4, 5 and 6 are consistent with other empirical studies that use household wealth (i.e. wealth

index) as a proxy for permanent income without controlling the index via instrumental

variable (Lloyd and Blanc 1996; Filmer and Pritchett 1999a, 1999b & 2001; Filmer 2000

& 2005; Burchi 2009; Bbaale and Buyinza 2013). Thus, by following these authors the

wealth index in Equations 4.1is treated as exogenous variable.

Fertility (number of children)

It is commonly believed that households with more children are less likely to send them to

school, although evidence in the empirical literature reviewed in Chapter 3 is mixed. There

is also a concern that fertility could be endogenous to household decisions and, therefore,

unobserved shifts in changes in costs of education might lead a household to have more or

less children (Maitra and Ray 2002). For example, parents may not send their children to

school either because of a lack of resources or a high relative price of education. However,

Jensen and Nielsen (1997), Ray (2000), Maitra and Ray (2002), and Ravallion and Wodon

(2000) treat the number of children in their empirical models of schooling outcomes of

children as exogenous variables. For example, Maitra and Ray (2002:52) observe that

17

Examples of the instrument include: log expenditure per adult (Glick and Sahn 2000); log per adult total

expenditure (Tasel 1997); log per capita expense (Deininger 2003); log of expenditure per capita (Sackey

2007); log of household welfare (Rolleston 2009 & 2011); log per real total expenditure (Ogundari and

Abdulai 2014).

93

“household composition, generally, does not exert a significant impact on the child’s

schooling/employment decision and where it does, it is through the number of adults rather

than the number of children in the household”. Following other researchers (Jensen and

Nielsen 1997; Ray 2000; Maitra and Ray 2002; Ravallion and Wodon 2000), the number

of children is treated as exogenous variable in our empirical specifications.

4.4 Regression results and discussions

We present and discuss the results pertaining to school attendance at both primary and

secondary school levels in sub-section 4.4.1, while results of primary and secondary school

completion are presented and discussed in sub-section 4.4.2. A positive (negative) and

statistically significant marginal effect in the regression indicates that the relevant

determinant enhances (decreases) the probability of educational access (attendance) and

educational attainment (completion).

4.4.1 Primary and secondary attendance

It is important to note that although the descriptive analysis has given us some insights into

educational distribution by household wealth, the NARs and/or completion rates do not tell

us the factors that contribute to whether a child attends school or not. Thus, the results of

the determinants of school attendance reported in Table 4.3 supplement the descriptive

analysis in Section 4.2. To facilitate the interpretation of the regression results, the

marginal effects of household wealth together with other socioeconomic factors on school

attendance at both primary and secondary levels in 2003 and 2008 are shown together with

the corresponding z-values. Furthermore, it is worth noting that the probabilities are

evaluated at the means of the variables included in the regression. In addition, the

relationship specified by the probit model is non-linear and the effect is estimated for an

‘average’ child in the sample. The estimate of the marginal effects is to guide (Filmer 2000)

us to what the effect is for a child from a given household with an average characteristics

in Ghana. The likelihood rate 2 test, (Pr >

2) result shows that the model is well fit. The

predicted probability for primary school attendance increased from 58.8% in 2003 to 73.4%

in 2008. At the secondary school level, predicted probability for attendance also increased

from 29.6% in 2003 to 38.8% in 2008.

94

Household wealth distribution

The wealth quintiles in the regression analysis are constructed as dummy variables. For

example, poorest, poor, rich, richer, and richest dummy variables equal to one if the child

is from a poorest, poor, rich, richer and richest wealth groups or households, respectively

(the poorest group is the reference group). The marginal effects correspond to the change

in the percentage probability of a child attending school (primary or secondary) and

completing school (primary or secondary) as a result of a change in the dummy variable

(i.e. the quintiles) from zero to one holding all other variables in the equation at their

sample mean.

The results from the multivariate regression analysis (depicted in Table 4.3) confirm the

hypothesis that household wealth or income available to school children has strong impact

on the educational outcomes of children. The estimated marginal effect of household

wealth distribution has the expected signs and is highly significant across all the welfare

groups in 2003 and 2008 for both primary and secondary school attendance. The result

confirms the positive impact of household wealth on school attendance which is line with

the literature (Patrinos and Psacharopoulos 1997; Sathar and Lloyd 1994; Lloyd and Blanc

1996; Buchmann and Hannum 2001; Okumu et al. 2008; Sackey 2007; Deininger 2003;

Holmes 2003).

The marginal effect of moving from the second quintile (poor household) to the fifth

quintile (richest household) increases the probability of primary school attendance for

primary school-age children from 7.2 to 24.0 percentage points in 2003 (Table 4.3). On the

other hand, the marginal effect of being in the poor household increases the probability of

primary school attendance of children in the poor household by only 7.2 percentage points

compared to all other welfare groups in the same year. In other words, the margin effect of

the welfare distribution on primary school attendance is larger in the richest households

and decreases as one moves down the welfare distribution to the poorest households in

Ghana.

Comparing the difference between the impact of household wealth distribution on primary

school attendance of children from poor and richest households, shows that the marginal

effect of household wealth on primary school attendance of children from the richest

households is over three times more than that of the poor in 2003 (i.e. 0.240 vs. 0.072).

However, in 2008 the estimated marginal effect of household wealth on primary school

95

attendance for all welfare groups has fallen compared to 2003. The fall in the impact of

household wealth distribution on primary school attendance of poor children (a reduction

of 1.4%) is fairly negligible compared to that of children from the richest households (a

reduction of 10.0%). These results indicate that there are still disparities between the poor

and the non-poor when accessing primary education in Ghana, in spite of the intended pro-

poor education policy interventions being pursued in Ghana (NDPC et al. 2010).

Furthermore, the effect of the distribution of household wealth on primary school

attendance between the poor and the richest households has reduced from 3.3 times in

2003 (i.e. 0.240 vs. 0.072) to 2.4 times in 2008 (i.e. 0.058 vs. 0.140). The fall in the impact

of household wealth distribution on the primary school attendance could be explained in

terms of increased government expenditure on education in Ghana (World Bank 2004)

coupled with other education policies (NDPC et al. 2010) to meet MDG 2 by 2015

discussed in Chapter 2. The fall in the marginal effect of household wealth of the richest

households on primary school attendance (from 24% to 14%) supports the suggestion that

if government spends generously on education and provides free universal access to

primary schools of reasonable quality, the financial support of households will have less

impact on primary school attendance (Lloyd and Blanc 1996). However, the marginal

effect of the household wealth of the poor on primary school attendance failed to improve

significantly between the two periods (7.2% in 2003 and 5.8% in 2008). For example, the

education policy interventions implemented in Ghana (NDPC et al. 2010) were intended to

reduce the cost of basic education to households.18

Although, the impact of the policies

may have appeared to benefit the rich households by reducing their financial burden on

primary school attendance in 2008 (see Table 4.3), the policies on the other hand appeared

to have no significant change in the impact of household wealth on the probability of

primary school attendance of children from the poor households between 2003 and 2008.

In general, the indirect impacts of the government of Ghana's educational policies might

have helped to reduce the financial burden of primary education to parents which is

consistent with the findings of Akyeampong et al. (2007) in Ghana and Deininger (2003)

in Uganda. However, from Table 4.3, there is an indication that the poor have recorded

only 1.4% point change in the effect of household wealth on primary school attendance,

18

Although data on these policies and programmes are not collected in the GDHS datasets, by using the 2003

GDHS dataset as pre-policy and 2008 GDHS dataset as a post-policy implementation periods, it is possible to

explain any indirect impacts of the policies and programmes on households’ financial burden of enrolling and

maintaining their children in school, ceteris paribus.

96

but the non-poor have recorded a minimum of 5.6% points to a maximum of 10.0% fall in

their household wealth impact on primary school attendance. With this evidence, it seems

the policies have at least to date, not been able to generate significant pro-poor progress in

access to primary education in Ghana. The impact of household wealth on access to

secondary education (i.e. secondary school attendance) is also positive and highly

statistically significant across the wealth distribution depicted in Table 4.3 below.

Again, the marginal effect of moving from the second quintile (poor household) to the fifth

quintile (richest household) increases the probability of secondary school attendance of

children from 7.9 to 31.3 percentage points in 2003 (Table 4.3). Thus, as one moves up the

welfare distribution from the poor households to the richest households, the margin effect

of welfare distribution increases the probability of secondary school attendance of the

children in the welfare groups.

In 2008, the marginal effect of being in the poor household increases the probability of

primary school attendance of children in the poor household by only 9.4 percentage points

in relation other welfare groups or households (an improvement of 1.5% points from 2003).

In comparison with children from the richest households, the marginal effect increases the

probability of secondary school attendance of children (from the richest household) by

26.0 percentage points.

The differentials in the access to secondary education between the poor and the richest

households have, however, reduced from about 23% points in 2003 to about 17% points in

2008. Although there is still large disparity between access to secondary education by

children from poor and the richest households, one could consider the reduction in the

disparity as a significant improvement in the distribution of access to education between

2003 and 2008. This is in the recognition of the fact that in Ghana secondary education is

not free.19

19

In theory, tuition fees in secondary school is supposed to be free in Ghana, however, in practice parents

pay material costs, transportation, boarding and lodging costs (Gyimah-Brempong, K. & Asiedu, E. 2014:6).

This put the cost of accessing and attaining secondary education beyond the reach of the majority (i.e.

children poor households).

97

Table 4.3: Educational access by children in Ghana (Probit estimates)

Variable

Primary School Attendance

by children aged 6-11 years

Secondary School

Attendance by children aged

12-17 years

Marginal Effects

Marginal Effects

2003 2008 2003 2008

Female -0.018 0.001

-0.020 -0.005

(-1.18) (0.11)

(-1.28) (-0.37)

Household wealth:

Poor 0.072*** 0.058***

0.079** 0.094***

(3.37) (3.97)

(2.72) (4.38)

Rich 0.147*** 0.091***

0.179*** 0.144***

(6.44) (5.59)

(5.81) (5.97)

Richer 0.175*** 0.121***

0.204*** 0.204***

(6.26) (6.73)

(5.63) (7.64)

Richest 0.240*** 0.140***

0.313*** 0.260***

(8.00) (6.81)

(7.64) (8.47)

Household size / composition:

Household size 0.013 -0.011*

-0.018* -0.005

(1.63) (-2.12)

(-2.26) (-0.71)

No. of children under 6 yrs;

Under 6 yrs children:1-2 -0.071** 0.000

0.020 -0.048**

(-3.01) (0.00)

(0.85) (-2.58)

Under 6 yrs children:3-4 -0.154*** -0.004

0.027 -0.124**

(-3.36) (-0.13)

(0.51) (-3.28)

Under 6 yrs children:5-6 -0.264** -0.050

0.082 -0.269***

(-2.67) (-0.70)

(0.54) (-4.19)

No. of school-age children;

School-age children:1-2 0.061 -0.070

-0.176* -0.034

(0.86) (-1.37)

(-2.53) (-0.52)

School-age children:3-4 0.050 -0.074

-0.123* -0.015

(0.91) (-1.82)

(-2.13) (-0.28)

School-age children:5-6 -0.021 -0.053

-0.126** -0.034

(-0.44) (-1.44)

(-3.09) (-0.78)

No. of Economically active;

Economically active:1-2 0.008 -0.010

-0.041 -0.006

(0.16) (-0.32)

(-0.95) (-0.19)

Economically active:3-4 0.032 0.006

0.024 0.028

(0.63) (0.19)

(0.49) (0.80)

Economically active:5-6 0.055 0.001

0.029 0.010

(0.93) (0.02)

(0.47) (0.22)

No. of retirees aged 65+ yrs -0.029 -0.019

0.015 0.009

(-1.29) (-1.32)

(0.64) (0.45)

Proportion of economically active -0.050 0.033

0.258** 0.030

(-0.52) (0.51)

(2.77) (0.43)

Household head:

Age 0.002* 0.002***

0.003*** -0.000

(2.42) (3.91)

(3.32) (-0.09)

Female 0.055** 0.029*

0.087*** 0.045**

(2.79) (2.18)

(4.41) (2.98)

98

Table 4.3 cont.:

Household head's education:

Head attained: 1-6yrs edu. 0.046 0.068***

-0.011 0.038

(1.96) (4.59)

(-0.40) (1.78)

Head attained: 7-12yrs edu. 0.140*** 0.108***

0.107*** 0.110***

(6.95) (7.92)

(4.73) (6.16)

Head attained: 13+yrs edu. 0.198*** 0.153***

0.221*** 0.209***

(7.32) (8.90)

(6.72) (8.00)

Residence:

Rural 0.036 0.011

-0.014 -0.007

(1.47) (0.70)

(-0.63) (-0.39)

Administrative region:

Western 0.134*** -0.081**

0.019 0.006

(3.91) (-3.03)

(0.46) (0.20)

Central 0.058 -0.057*

-0.036 -0.034

(1.48) (-2.02)

(-0.89) (-1.07)

Greater Accra 0.067 -0.065*

-0.015 -0.023

(1.75) (-2.21)

(-0.38) (-0.74)

Volta 0.067 -0.068*

-0.010 0.010

(1.86) (-2.55)

(-0.25) (0.33)

Eastern 0.028 -0.048

0.039 -0.002

(0.75) (-1.84)

(0.95) (-0.08)

Ashanti 0.101** 0.065**

0.026 0.080**

(3.17) (2.99)

(0.70) (2.78)

Brong Ahafo 0.082* -0.015

-0.013 0.009

(2.50) (-0.60)

(-0.37) (0.28)

Northern 0.010 -0.118***

-0.085* -0.004

(0.31) (-5.24)

(-2.45) (-0.15)

Upper East 0.052 0.053*

-0.036 0.040

(1.59) (2.57) (-0.93) (1.33)

No. of observations 4725 7826

3897 6640

Observed Pr(attendance) 0.580 0.720

0.319 0.397

Predicted Pr(attendance) 0.588 0.734

0.296 0.388

LR chi2(33) 496.3 624.6

575.1 698.7

Pseudo R2 0.077 0.067

0.118 0.078

Prob > chi2 0.000 0.000

0.000 0.000

Log likelihood -2965.8 -4329.8 -2151.5 -4112.5

Source: 2003 and 2008 Ghana Demographic Health Surveys; own calculations

1. z statistics are given within parentheses

2. Significant levels: * p<0.05, ** p<0.01, *** p<0.001

3. Each marginal effect (change in the dummy from 0 to 1) is evaluated at the means of all other regressors.

The statistically strong marginal effect of household wealth on probability of secondary

school attendance confirms the increasing importance of household wealth distribution for

children if they are going to successfully attend and complete a given level of education,

especially the secondary education (Chowa et al. 2013; Gyimah-Brempong and Asiedu

2014). It is also possible that, within the socioeconomic status, the rich households are

more likely to invest more resources in facilitating the education of children living in the

household. These findings are consistent with the findings of Lloyd and Blanc (1996)

99

Patrinos and Psacharopoulos (1997) Deininger (2003), Sackey (2007), and Harttgen et al.

(2010). These studies demonstrate that household wealth is a key determinant of a

household’s ability to invest in children's education and as a result, it can lead to inequality

in educational outcomes between children from poor and the non-poor households.

Our results demonstrate that the effect wealth distribution on educational access is still far

from resolved, especially at secondary school level. Even with significant improvements in

supply-side factors; increase in the overall number and geographical distribution of schools,

more resources being allocated to teacher and administrative capacity-building, and greater

community-school interaction mechanisms (World Bank 2004), our findings indicate that

aggregate household wealth is still an important barrier to children’s schooling in Ghana.

Household composition/size

The average household size in Ghana in 2003 and 2008 is 4.0 and 3.8 persons, respectively

(Table 3.1 in Chapter 3; and Ghana Statistical Service et al. 2004 & 2009). The impact of

household size on primary school attendance is negative with weak statistical significance

in 2008. At the secondary level, the impact is also negative with weak statistical

significance in 2003 (Table 4.3). The negative marginal effect of household size (although

statistically weak) which reduces the probability of both primary and secondary school

attendance, could be dependent on socioeconomic setting of the households (Knodel et al.

1990;Knodel and Wongsith 1991). For example, poor households normally tend to have

more children with associated household resource constraints. In other words, larger

families tend to spread their financial and human resources thinly compared to smaller

households thereby negatively affecting the schooling outcomes of the children (Sathar and

Lloyd 1994; Sandefur et al. 2006). Thus, if the average Ghanaian household size is

constraint with economic resources to maintain their children in school, then this could

justify the negative impact of the household size on the educational outcomes of the

children, ceteris paribus. The negative association between the household size and school

attendance is not surprising, since 28.5% of Ghanaians are below the poverty line (Ghana

Statistical Service 2007) with consumption based inequality of 39.4% based on currently

available data (Coulombe and Wodon 2007).

This negative association between household size and educational outcomes has also been

found in both developed (Blake 1981 & 1989; Downey 1995) and developing (Knodel et al.

1990; Parish and Willis 1993; Pong 1997; Patrinos and Psacharopoulos 1997) countries.

100

For example, Patrinos and Psacharopoulos (1997) explore the negative association between

household size and educational outcomes of children from a different angle and suggest

that parents with a preference for larger families generally see less need to educate their

children. Thus, the negative relationship between household size and children’s

educational attainment may be the result of parental preferences and household resource

constraints.

In terms of household composition, the number of children under-six years old in a

household has a negative impact on both primary and secondary attendance. However, the

marginal effect is only statistically significant in 2003 and 2008 for primary school

attendance and secondary school attendance, respectively. At the primary school level, a

household size containing a minimum of 1 to 2 and a maximum of 5 to 6 under-six year

olds reduces the probability of primary school attendance of school-age children by 7.1%

to 26.4%. Also at the secondary school level, the trend is similar. For example, a household

size containing a minimum of 1 to 2 and a maximum of 5 to 6 under-six year olds reduces

the probability of secondary school attendance of school-age children by 4.8% and 26.9%,

respectively (see Table 4.3). At both levels of education, the increasing number of very

young children (i.e. age 0-5 years) in the household negatively affects the probability of

educational access (i.e. school attendance) of school-age children in the household. These

findings are consistent with the findings of Sathar and Lloyd (1994), Lloyd and Blanc

(1996), and (Sackey 2007). In Kenya, Tanzania, Cameroon, Niger, Malawi, Namibia and

Zambia, Lloyd and Blanc (1996) observe that the presence of young children decreases the

likelihood of school attendance of the older children in the household. Sackey (2007) also

observes that in Ghana, the presence of younger siblings, relative to older ones, tends to

reduce the probability of school attendance. Furthermore, the results depicted in Table 4.3

confirm the a priori expectation that with increases in the family size, school-age children

are kept back at home to tend to various domestic chores. For example, school children

from poor households in particular, will be needed more at home to carry out various

household chores and to mind the younger siblings as the family size increases, thereby

negatively affecting the likelihood of school attendance (Lloyd and Blanc 1996).

The impact of the number of economically active household members and retirees on the

probability of both primary and secondary school attendance in 2003 and 2008 are

insignificant. However, the impact of the proportion of economically active household

members on school attendance is positive and statistically significant only in 2003 at the

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secondary school level (Table 4.3). As per the earlier discussions in Chapter 3, the positive

marginal effect implies that the proportion of economically active household members is

likely to be economically productive (employed), thereby contributing to households

resources available to maintain children in school. In effect, the positive impact frees out

the households resources, thereby reducing households’ dependence burden. This finding

corroborates the findings of Okumu et al. (2008). The authors find that as the proportion

of the economically active members of household increases, the likelihood of primary

school dropout increases. They argue that the results of the study imply that a good number

of the economically active household members were actually unproductive. Thus, if the

likelihood of school dropout had decreased, it would have meant that the proportion of the

economically active household members was actually employed.

Household head characteristics/background

Households headed by females have statistically significant positive marginal effect on

both primary and secondary school attendance in 2003 and 2008. At the primary school

level, female household head increases the probability of primary school attendance of

children by 5.5% and 2.9% points in 2003 and 2008, respectively, when the marginal effect

of female household head increases by one percentage point (Table 4.3). This implies that

on average, the probability of children from households headed by female, attending

primary school is higher compared with the probability of primary school attendance of

children from households headed by males over the two survey periods. At the secondary

school level, the trend is similar. The probability of secondary school attendance increases

by 8.7% and 4.5% points in 2003 and 2008, respectively when the marginal effect of

female household head increases by one percentage point (Table 4.3). This also means that

the probability of secondary school attendance of children from households headed by

female are higher than the probability of secondary school attendance of children from

households headed by males over the two survey periods.

These findings appear to show that female household heads are more likely to invest in

resources; including time, money, and emotional support in facilitating the education of

children living in their household as suggested by Lloyd and Blanc (1996). The positive

and strong impact of female household head on the likelihood of children’s educational

access, could also be attributed to the importance of women empowerment that allows

them in taking key decisions, especially in favour of children’s welfare. The finding is

consistent with other empirical studies indicating that female household heads spend a

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larger percentage of the household budget on children than the male household heads do

(Lloyd and Gage-Brandon 1994; Lloyd and Blanc 1996; Bruce J et al. 1995; Bruce Judith

and Lloyd 1996; Bbaale and Buyinza 2013; Gyimah-Brempong and Asiedu 2014).

The marginal effect of household head’s educational attainment (secondary and higher

levels of education) is positive and highly statistically significant in both 2003 and 2008.

The impact of household heads with primary education level on children’s school

attendance in both 2003 and 2008 is only statistically significant at primary school level

(Table 4.3). The educational level effect is compared for children who live in households

headed by person with no schooling with households with educated heads. It is also

important to note that the marginal effect of household heads’ educational level increases

the probability of primary school attendance of children from 4.6% to 19.8% points. Thus,

as the level of education attained by household head increases from primary level to higher

level, the probability of school attendance also increases. Similar trend is also observed in

2008 for primary school attendance.

At the secondary school level, the marginal effect of household head educational

attainment (secondary and higher levels) relative to no schooling significantly increases the

probability of children attending school in both 2003 and 2008. Thus, the higher the level

of household heads’ or parents’ schooling the more favourable are the child’s educational

access, all other things being equal. Consequently, children of household heads or parents

with no formal education or low level of educational attainment are more likely to face low

educational prospects while those who live in the households with parents or household

heads with at least secondary education attainment, have better educational prospects. An

important policy lesson may be derived from this analysis. For example, household head’s

educational attainment at lower level (primary or no education) tends to reduce the

probability of children’s school attendance. Conversely, household head’s educational

attainment at a higher level (secondary or higher) tends to increase the probability of

children’s school attendance.

The finding confirms the a priori condition discussed in Chapter 3 that the more educated

the household head is, the more likely that a child of school-age living in the household

will be attending school currently. Our results probably reflect the desire of more educated

household heads to ensure the education of their own children as well as the children of

other relatives within the household for whom they (household heads) feel some

103

responsibility. The results depicted in Table 4.3 also corroborate most studies that have

found a positive association between household head’s or parents’ education and children's

educational outcomes (Jacoby 1994; Haveman and Wolfe 1995; Lillard and Willis 1994;

Sathar and Lloyd 1994; Oliver 1995; Tansel 1997; Glick and Sahn 2000; Tansel 2002).

More recent studies by Sackey (2007) and Rolleston (2011) in Ghana, and Bbaale and

Buyinza (2013) in Uganda on the determinants of educational access using ordered probit

regression analysis also find that higher levels of parental education tend to reduce the

probability of children dropping out of school.

Residency /location

The regional impact on primary school attendance is only significant in both 2003 and

2008 in two regions: Western, and Ashanti regions. In 2003, these regions including the

Brong Ahafo region had statistically significant positive marginal effect on primary school

attendance. Interestingly, however, in 2008 Western, Central, Greater Accra, Volta, and

Northern regions have also recorded statistically significant negative effect (some with

weak effect) on primary school attendance. The implication is that in 2008, the probability

of primary school attendance reduces with a percentage increase in marginal effect of the

regions concerned. At the secondary school level, only Ashanti region has a statistically

significant marginal effect with positive impact on the school attendance in 2008. On the

other, the probability of secondary school attendance by children in Northern region

reduces by 8.5% point. Since most of the regional effects on educational access are

statistically insignificant, our trend analysis between in 2003 and 2008 reveals little

evidence of any systematic regional effect on school attendance in Ghana.

4.4.2 Primary and secondary completion

For educational attainment, we analyse if a given age cohort who attended school has

completed a given level of education or not. Table 4.4 depicts the marginal effects and

predicted probabilities of the key explanatory variables on school completion by age

cohorts at both primary and secondary levels in 2003 and 2008. The likelihood rate 2 test,

(Pr > 2) result shows that the model is well fit. The predicted probability for primary

school completion by age cohort 15-20 years increased from 69.9% in 2003 to 75.3% in

2008. At the secondary school level, predicted probability for secondary education

completion by age cohort 18-23 years increased from 9.9% in 2003 to 17.5% in 2008. It is

worth mentioning that secondary attainment rates (i.e. completion rates) are quite low in

Ghana compared to primary school completion rates. For example, the summary statistics

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(in Table 4.2) show primary completion rates of 70.4% and 75.0% for the age cohort, 15-

20 years in 2003 and 2008, respectively. At the secondary level, the completion rates for

the age cohort, 18-23 years are very low. The statistics show that about 15% and 23% of

the age cohort completed secondary school in 2003 and 2008, respectively which is

consistent with the predicted probability for 2003 and 2008.

Table 4.4 below presents the results from probit estimation relating education attainment of:

(i) age cohort 15-20 years (primary school completion); and (ii) age cohort 18-23 years

(secondary school completion) and household wealth together with other socioeconomic

factors. The marginal effect of female student is negative and statistically significant at

both primary and secondary school levels in 2003 and 2008. This implies that the

probability of female children completing primary and secondary school among Ghanaian

households is lower compared to the male children (reference category). In 2003, the

probability of female children completing primary education was 9.7% points lower than

that of the male children. Although, by 2008 the probability has improved to 3.5% it is still

lower than the probability of male children completing primary education.

At the secondary level, the disparity in completing secondary education between male and

female children is smaller, though the marginal effect is statistically weak. Although, the

marginal effect of female children indicates that female children have lower probability of

completing both primary and secondary education compared to male children, the gender

inequality gap appears to be narrower at the secondary school level between the two survey

periods. This shows that there have been some improvements in school completion rate,

though the females are still lagging behind.

These findings are consistent with the findings of Sackey (2007). Sackey who also finds

that although school attainment has improved for both boys and girls between 1992 and

1999 survey periods generally, the likelihood of girls completing school is relatively lower

than that of boys. The gender disparity in educational attainment has also been found by;

Lloyd and Gage-Brandon (1994), Oxaal (1997), Holmes (2003), Lewin (2009), and Lloyd

and Hewett (2009). Lloyd and Gage-Brandon find that dropout rates were significantly

greater for girls, and their educational attainment levels were also lower than those of boys

in Ghana, especially when there were younger siblings in the household.

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Table 4.4: Educational attainment by age cohort in Ghana (Probit estimates)

Variable

Primary School Completion

by age cohort 15-20 years

Secondary School Completion

by age cohort 18-23 years

Marginal Effects

Marginal Effects

2003 2008 2003 2008

Female -0.097*** -0.035**

-0.021* -0.037***

(-5.14) (-2.85)

(-2.04) (-3.43)

Household wealth:

Poor 0.057* 0.112***

0.018 0.068*

(2.04) (7.31)

(0.60) (2.48)

Rich 0.170*** 0.161***

0.074* 0.124***

(6.79) (10.10)

(2.11) (4.08)

Richer 0.171*** 0.203***

0.204*** 0.208***

(5.68) (12.45)

(4.14) (6.06)

Richest 0.211*** 0.252***

0.351*** 0.344***

(6.32) (14.97)

(5.89) (8.47)

Household size / composition:

Household size 0.005 0.003

0.000 -0.007

(0.93) (0.92)

(-0.01) (-1.15)

No. of children under 6 yrs;

Under 6 yrs children:1-2 -0.033 -0.074***

-0.053*** -0.036*

(-1.44) (-4.75)

(-3.93) (-2.32)

Under 6 yrs children:3-4 -0.060 -0.139***

-0.050** -0.050

(-1.20) (-3.53)

(-3.23) (-1.59)

Under 6 yrs children:5-6 -0.204 -0.321**

- -

(-1.33) (-3.02)

- -

No. of school-age children;

School-age children:1-2 0.046 0.031

0.062** 0.046*

(1.51) (1.54)

(3.02) (2.30)

School-age children:3-4 0.030 0.011

0.104** 0.069*

(0.90) (0.48)

(2.82) (2.03)

School-age children:5-6 0.023 -0.012

0.137 0.129*

(0.52) (-0.37)

(1.96) (2.03)

No. of Economically active;

Economically active:1-2 0.022 0.034

-0.017 -0.023

(0.42) (1.14)

(-0.33) (-0.42)

Economically active:3-4 0.065 0.075**

-0.011 -0.007

(1.30) (2.67)

(-0.26) (-0.15)

Economically active:5-6 0.078 0.039

-0.003 0.002

(1.51) (1.27)

(-0.10) (0.06)

No. of retirees aged 65+ yrs -0.013 -0.014

0.006 0.023

(-0.54) (-0.91)

(0.39) (1.42)

Proportion of economically active 0.025 0.052

0.126* 0.160**

(0.36) (1.23)

(2.30) (2.89)

Household head:

Age 0.003*** 0.002***

0.001** 0.001*

(3.43) (3.81)

(2.61) (2.56)

Female 0.119*** 0.066***

0.044** 0.063***

(5.64) (4.69)

(3.15) (4.65)

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Table 4.4 cont.:

Household head's education:

Head attained: 1-6yrs edu. 0.034 0.043*

-0.007 -0.025

(1.22) (2.44)

(-0.37) (-1.23)

Head attained: 7-12yrs edu. 0.184*** 0.184***

0.051** 0.129***

(8.34) (12.51)

(2.96) (7.64)

Head attained: 13+yrs edu. 0.290*** 0.173***

0.148*** 0.303***

(15.02) (9.96)

(4.39) (9.17)

Residence:

Rural -0.034 -0.028

0.002 -0.060***

(-1.23) (-1.61)

(0.12) (-4.08)

Administrative region:

Western 0.106** 0.050

-0.064*** -0.050*

(2.68) (1.88)

(-6.01) (-2.39)

Central 0.052 -0.005

-0.054*** -0.076***

(1.12) (-0.17)

(-4.31) (-4.02)

Greater Accra 0.039 -0.029

-0.063*** -0.047*

(0.86) (-0.91)

(-4.76) (-2.25)

Volta 0.044 -0.019

-0.063*** -0.071***

(1.03) (-0.67)

(-5.82) (-3.71)

Eastern 0.151*** 0.034

-0.069*** -0.091***

(4.17) (1.26)

(-7.42) (-5.46)

Ashanti 0.096* 0.037

-0.082*** -0.044*

(2.54) (1.49)

(-7.73) (-2.15)

Brong Ahafo 0.065 0.035

-0.043** -0.052*

(1.70) (1.35)

(-2.70) (-2.44)

Northern -0.205*** -0.066**

-0.014 0.001

(-4.29) (-2.58)

(-0.63) (0.04)

Upper East -0.050 0.005

-0.039* 0.023

(-1.12) (0.21) (-2.16) (0.75)

No. of observations 2972 5792

2516 4978

Observed Pr(attendance) 0.660 0.711

0.138 0.207

Predicted Pr(attendance) 0.699 0.753

0.099 0.175

LR chi2(33) 830.0 1377.5

564.4 1201.5

Pseudo R2 0.218 0.198

0.279 0.237

Prob > chi2 0.000 0.000

0.000 0.000

Log likelihood -1489.8 -2794.7 -729.0 -1937.2

Source: 2003 and 2008 Ghana Demographic Health Surveys; own calculations

1. z statistics are given within parentheses

2. Significant levels: * p<0.05, ** p<0.01, *** p<0.001

3. Each marginal effect (change in the dummy from 0 to 1) is evaluated at the means of all other regressors.

The reason for educational outcome disparity between males and females has generally

been attributed to both economic and social-cultural reasons. It has been documented that

households commonly prefer to invest in boys’ rather than girls’ education due to low

perceived returns to schooling for girls (Oxaal 1997; Holmes 2003). In addition, girls’

school attendance depends on opportunity costs generated by providing child care for

younger siblings (Lewin 2009). Detail analysis of the disparity in educational access and

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attainment of males and females by welfare distribution is explored in Chapter 5 to

determine the socioeconomic factors that might be contributing to the low educational

outcomes of females revealed by the result in Table 4.4.

Household wealth distribution

The results in Table 4.4 also confirm the significance of household wealth as key

explanatory variable for education attainment (school completion) as well as the poverty

hypothesis (Hanushek and Lavy 1994; Sathar and Lloyd 1994; Jacoby 1994; Lloyd and

Blanc 1996; Bredie and Beeharry 1998; Filmer and Pritchett 1999b). The marginal effect

of household wealth on the probability of educational attainment depicted in Table 4.4

across the wealth distribution is positive and statistically significant except at secondary

school level in 2003. Household wealth increases the probability of school completion for

all welfare groups. However, the effect is larger for rich households than the poor

households. For example, the marginal effect of moving from the second quintile (poor

household) to the fifth quintile (richest household) increases the probability of primary

school completion for primary school-age children from 5.7 to 21.0 percentage points in

2003 and from 11.2 to 25.2 percentage points in 2008 (Table 4.4).

The marginal effect shows that children from the richest households are more likely to

complete primary education than children from the poor households in both survey years.

Although, the impact of household wealth distribution on primary school completion has

increased the probability of primary school completion for both the poor and the non-poor,

the disparity between the poor and the richest remains between the two survey periods. The

disparity in the vertical comparison (the bottom and top wealth quintiles) should be of

great concern if children from poor households are to catch up with the children from

richest households in terms of educational attainment and to progress from primary to

secondary education level. Although, the government of Ghana’s education policy

interventions appear to have had some indirect positive impact on access to primary

education (through reducing the financial burden of poor households enrolling their

children in primary school, depicted in Table 4.3 in 2008), the primary school completion

appears to be more dependent on household wealth levels or wealth distribution in 2008.

The effects at primary school level have direct impact on secondary school access and

completion. These effects feed through to the secondary level, especially for less affluent

households. At the secondary level, the marginal effect of household wealth on the

108

probability of secondary education attainment for all income groups is positive and

statistically significant in 2003 and 2008, except for the poor households in 2003. Children

from the richest households are (4.7 times in 2003 and 2.8 times in 2008) more likely to

complete secondary education than children from rich or households in the middle of the

wealth distribution. The strong and large impacts of household wealth or household wealth

distribution on secondary school completion depicted in Table 4.4 is a testament to the fact

that in Ghana, secondary education is not free (Gyimah-Brempong and Asiedu 2014) and

only few Ghanaians can afford the high cost of secondary education. The result from Table

4.4 corroborates the findings of Sackey (2007) and Gyimah-Brempong and Asiedu (2014)

which show that household resources play an important role in the education of children in

Ghana. Sackey also finds that children from rich households tend to achieve higher rates of

school attendance both in 1992 and 1999 household surveys. Other studies also confirm

that children’s schooling outcomes are associated with socioeconomic status of households

(Psacharopoulos and Arriagada 1986; Sathar and Lloyd 1994; Lloyd and Blanc 1996; Gage

et al. 1997; Buchmann and Hannum 2001; Patrinos and Psacharopoulos 1997). For

example, Lloyd and Blanc (1996) have also confirmed the strong association between

household living standard and the likelihood that children of school-age will be enrolled in

a school and that they will have completed school. Our findings are consistent with these

studies that demonstrate household wealth as a key socioeconomic determinant of a

household’s ability to invest in children's education, and the resultant disparity in

educational outcomes of children from poor and non-poor households.

Household composition/size

As expected (based on literature review), the number of children under-six year olds has a

negative impact on both primary and secondary completion. At the primary school level,

the marginal effect is only statistically significant in 2008. The number of under-six year

olds reduces the probability of primary school attainment (completion) by a minimum of

7.4% points to a maximum of 32.1% points (see Table 4.4). The impact of the number of

under-six year old children on secondary school completion is also negative and

statistically significant in 2003. A household with 1 to 2 and 3 to 4 under-six year olds

reduces the probability of secondary school attainment by 5.3% and 5.0% points,

respectively. Our results corroborate other research findings which demonstrate that the

presence of very young children in the household can increase the time needed for

childcare and this can affect school attendance and completion rates of school children

(Sathar and Lloyd 1994; Sackey 2007; Psacharopoulos and Arriagada 1989). For example,

109

Lloyd and Blanc (1996) find that school-age children are kept back at home to carry out

various household chores and mind the younger siblings as the family size increases,

thereby negatively affecting school completion rate of female children. In Ghana, Sackey

(2007) also observes that the presence of younger siblings, relative to older ones, tends to

reduce the probability of school completion rates.

The marginal effect of the number of school-age children in the household on the

probability of primary school completion is statistically insignificant. At the secondary

level, the marginal effect of the number of school-age children increases the probability of

secondary school completion from 6.2% to 10.4% points in 2003 and from 4.6% to 12.9%

points in 2008. Even though, this finding corroborates the findings of Chernichovsky

(1985), the evidence depicted in Table 4.4 is very weak to suggest that the number of

school-age children in Ghanaian households increases the probability of secondary

education attainment.

The marginal effect of the proportion of economically active household members is

positive and statistically significant only at the secondary school level. The positive impact

implies that the proportion of economically active household members is likely to be

economically productive (employed), thereby contributing to household resources to

support children to achieve educational outcomes (school completion). In effect, the

positive impact frees out the households resources by reducing households’ dependency

burden. This finding corroborates the findings of Okumu et al. (2008). The authors find

that as the proportion of the economically active members of household increases, the

likelihood of school dropout increases. They argue that their findings imply that the

proportion of the economically active household members was actually unproductive.

Household head characteristics

Female household head has positive and strong statistical significant marginal effect on

primary and secondary education attainment in both 2003 and 2008. In 2003 and 2008, the

impact of female household head increases the probability of primary school completion

by 11.9% and 6.6% points, respectively higher than that of the male household head (i.e.

reference category). At the secondary level also, the marginal effect of female household

head increases the probability of secondary school completion by 4.4% in 2003 and 6.3%

in 2008 compared to the secondary education attainment by children from households

headed by male. This finding is consistent with the earlier results for school attendance and

110

other studies documenting the impact of female headed households on children educational

outcomes. It has been found that female household heads spend a larger percentage of the

household budget on children than the male household heads do (Lloyd and Gage-Brandon

1994; Lloyd and Blanc 1996; Bruce Judith and Lloyd 1996). The finding also confirms the

argument of having a woman in the position of authority and resource control within the

household, as opposed to having a man in that position, is more likely to impact positively

on children's educational access and attainment (Lloyd and Blanc 1996). For example,

Gyimah-Brempong and Asiedu (2014) find that remittances received by female household

head in Ghana increases the probability of educational access and attainment of children

compared to their male counterparts. These reasons might have contributed to the positive

and strong statistical significant marginal effect of female household head on the

probability of children’s school completion rate in Ghana.

The marginal effect of household head’s educational attainment (secondary and higher

levels) is positive and highly statistically significant in both 2003 and 2008 (Table 4.4).

The educational level effect is compared for children who live in households headed by

person with no schooling with households with educated heads. It is also important to note

that the marginal effect of household heads’ educational attainment increases the

probability of primary school completion of children from 18.4% to 29.0% points. Thus, as

the level of education attained by household head increases, the probability of school

completion also increases. However, in 2008 there is a slight change in the probability of

primary school completion (Table 4.4).

At the secondary school level, the marginal effect of household head educational

attainment (secondary and higher levels) relative to no schooling significantly increases the

probability of secondary school completion in both 2003 and 2008. Thus, the higher the

level of household head's or parents’ schooling the more favourable is a child’s educational

attainment, all other things being equal. Consequently, children of household heads or

parents with no formal education or low level of educational attainment are more likely to

face low educational prospects while those who live in the households with parents or

household heads with at least secondary education attainment have better educational

prospects of completing secondary education.

These results are consistent with school attendance results discussed earlier in Table 4.3.

Moreover, the results obtained from Tables 4.3 and 4.4 probably reflect the desire of

111

educated household heads or parents to ensure the education of their own children as well

as the children of other relatives within the household for whom they feel some

responsibility. The results depicted in Table 4.4 corroborate most studies that have found a

positive association between household head’s or parents’ education and children's

educational outcomes (Jacoby 1994; Haveman and Wolfe 1995; Lillard and Willis 1994;

Sathar and Lloyd 1994; Oliver 1995; Tansel 1997; Glick and Sahn 2000; Tansel 2002;

Rolleston 2011). For example, Sackey (2007) finds that higher levels of parental education

tend to reduce the probability of children dropping out of school in Ghana, which

corroborates our findings.

Residency /location

The negative marginal effect of residency in rural area is only statistically significant in

2008 at secondary school level (Table 4.4). This implies that the probability of children

completing secondary school in rural areas is lower than those in the urban areas. Although

the rural effect on primary completion (in both 2003 and 2008) and secondary school

completion in 2003 was statistically insignificant, the statistically significant effect in 2008

at the secondary school level corroborates the findings of Sackey (2007), and Ghana

Statistical Service et al. (2004 & 2009). Sackey (2007) observes locality differences with

respect to children’s school attendance and attainment. According to Sackey, children

residing in rural areas in Ghana are more likely to drop out of school, and when they do

attend school, they are more likely to have lower educational attainments than children in

urban areas. The Ghana Statistical Service et al. (2004 & 2009) reports also reveal higher

completion rates for urban areas than rural areas. These consistent findings (including ours)

pose a worrying concern over the disparity in educational attainments between the urban

and rural areas in Ghana.

The regional effect on primary school completion is positive and statistically significant in;

Western, Eastern, and Ashanti regions in 2003 but not in 2008. The Northern region

records negative and statistically significant marginal effect on primary school completion

in both 2003 and 2008 (Table 4.4). While the probability of primary school completion

increases from 9.6% to 15.1% points in the three southern regions (Western, Eastern, and

Ashanti), that of the Northern region reduces by 20.5% points in 2003. The result to some

extent highlights the old North-South divide inequality debate in Ghana. In the northern

part of Ghana where poverty levels are higher than any part of the country (Ghana

Statistical Service 2000; Ghana Statistical Service 2007; Ghana Statistical Service et al.

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2009), the primary completion rates are significantly lower than other regions in southern

part of the country.

At the secondary level, the regional effect reduces the probability of secondary education

attainment which is statistically significant in eight regions in 2003 and seven regions in

2008 with reference to Upper West region (Table 4.4). In 2003, the probability of

secondary school completion reduces by 3.9% points in Upper East region to 8.2% points

in Ashanti region. A similar trend is observed in 2008, where the probability of secondary

school completion reduces by a minimum of 4.4% points to a maximum of 9.1% points.

On average, the probability of secondary education attainment in most regions has

worsened in 2008. Furthermore, there are disparities in the magnitude of the regional

effect on the probability of educational attainment in the various regions. The findings are

consistent with the GSS report (Ghana Statistical Service et al. 2009) which shows that

there are wide regional variations in dropout rates in Ghana.

4.4.3 Robustness check

We check the robustness of our results to the choice of explanatory variables by estimating

the model (Equation 4.1) with dummy variables for: religion (no religion, Christianity,

Muslim, and Traditional religion); ethnicity (Akan, Ga/Dangme, Ewe, Guan,

Mole/Dagbani, Grussi, Gruma, and Hausa/Mande) and resource control (household

spending) which could impact schooling outcomes. We estimated different combinations

of these variables with the final model variables and also by replacing some of the

variables in the final estimated model by these variables. However, the estimated results

from these combinations with respect to these variables were highly insignificant. For

example, as a proxy for household resource control, we replaced female household dummy

variable by household spending (husband alone, wife alone, husband and wife). The results

were highly statistically insignificant and did not change the stability of the final results

reported in Tables 4.3 and 4.4. For example, the largest deviation of the alternative

estimates compared to the main specification is about 7%. The largest change in estimates

across all specifications is about 9%. To the extent that the estimates are stable, they

provide confidence in the plausibility of the results and the validity of the identification of

the regression model.

In addition, we also used the linktest to check our final model. The idea behind linktest is

that if the model is properly specified, one should not be able to find any additional

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predictors that are statistically significant except by chance (Pregibon 1980). None of the

linktest result (hatsq) is statistically significant.20 The link test reveals no problems with

our specification since the prediction squared does not have explanatory power. Although,

the linktest indicates that there is no problem of misspecifications, we check our model

against the theories of determinants of educational inequality to make sure that our model

is valid based on the theoretical underpinnings of educational inequality reviewed in

Chapter 3.

4.5 Policy lessons

An important policy lessons may be derived from this analysis. Household wealth and

educational attainment of the household head appear to be the key factors in determining

children's access to education, and educational attainment in Ghana. For example, the

educational access and attainment in Ghana are more likely to benefit children from rich

households more than children from the poor households. Consequently, the efforts of the

government of Ghana towards achieving universal access to primary education by 2015

have not yet seem to overcome the advantage of children who live in relatively well-off

households. Moreover, household head’s educational attainment at lower level (primary

education) tends to reduce the probability of children’s school attendance. Conversely,

household head’s educational attainment at higher levels (secondary or higher levels) tends

to increase the probability of children’s school attendance and completion. This finding

implies that for more favourable children’s educational outcomes for the future generations,

the government of Ghana should aim at policies that strengthen educating children beyond

basic education level.

Furthermore, the findings from the fore-going multivariate probit regression analysis

vindicate the importance of household wealth distribution in particular, and household

heads educational attainment in children's educational access and attainment in Ghana.

Although, the government of Ghana has spent a lot of resources (World Bank 2004; NDPC

et al. 2010) providing universal access to basic education, household financial support

appears to be critical, especially at the secondary school level where schooling can be very

20

Primary school attendance, hatsq: p = 0.920 in 2003 and p = 0.071 in 2008

Primary school completion, hatsq: p = 0.128 in 2003 and p = 0.280 in 2008

Secondary school attendance, hatsq: p = 0.137 in 2003 and p = 0.568 in 2008

Secondary school completion, hatsq: p = 0.384 in 2003 and p = 0.800 in 2008

Where = .05 (significance level)

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costly to children from poor households. Therefore, designing education interventions at

the secondary school level that are focused on economically disadvantaged groups will be

an excellent positive discrimination mechanism. Alternatively, expanding free universal

education to secondary level could improve educational outcomes in Ghana. This would

allow children from poor households who cannot afford secondary education to continue

with schooling after the basic education levels. Thus, investing in education and making

educational access available to all households up to secondary school level irrespective of

income levels of households could be a solution to reducing income and educational

inequalities, and poverty reduction in Ghana.

4.6 Conclusions

We have explored socioeconomic determinants of educational outcomes in Ghana using

both descriptive analysis and multivariate regression framework to capture and explain the

impact of the GoG’s education policy interventions implemented in 2004/05 through

household wealth distribution on educational access and attainment of children in Ghana.

We estimated the impacts of key socioeconomic factors on both primary and secondary

school access (probability of attendance) and attainment (probability of completing school

by age cohorts) to explain educational disparities in Ghana before and after the GoG’s

education policy interventions. The key household socioeconomic factors that influence

educational access and attainment have been identified, the extent of disparity in

educational outcomes at both primary and secondary school levels between 2003 and 2008

examined, and policy implications highlighted.

The results of the analysis confirm the significance of household wealth as an important

explanatory variable in addition to other covariates in estimating the persistent disparities

in educational access and attainment of school-age children in Ghana. Especially, at the

secondary school level, the disparity between the poor and the non-poor with respect to

access and attainment should be of a great concern in terms of the magnitude of the impact.

The household wealth appears to be the most important determining factor in explaining

the disparity in children's school attendance and completion. This is evident throughout the

multivariate regression analysis, both in terms of strong statistical significance and in terms

of the magnitude of the overall impact on children's educational access and attainment.

The variations in educational access and attainment between children from poor and non-

poor households at different levels of education may constitute an evidence of households'

115

continuing financial burden in educating children and the probable ineffectiveness of the

state (the government of Ghana) in transcending those economic differences. The

particularly strong marginal effect of household wealth on children educational outcomes

confirms the increasing importance of household wealth distribution for children if they are

going to successfully progress from grade to grade and from level to level in the Ghanaian

education system. It also appears that, within the socioeconomic status, the rich households

are more likely to invest more resources in facilitating the education of their children than

the poor households. The descriptive statistics in Tables 4.1 and 4.2 also show that there is

huge disparity in net attendance rate between primary and secondary school levels. The

primary net attendance rate is almost doubled the secondary net attendance rate. The

completion rate at secondary school level compared to primary school level is even more

worrying. For example, about 70% and 75% primary completion rates were recorded for

age cohort 15-20 in 2003 and 2008 respectively, compared to about 15% and 23%

secondary completion rates for age cohort 18-23 in the same periods.

The findings also indicate a positive and strong statistically significant marginal effect of

female household head on the probability of school attendance and completion. The

marginal effect suggests that there is a direct link between the impact of households headed

by female and educational outcomes of children. This finding also illustrates the crucial

role played by women in educating children. Specially so when they are in the position of

authority and resource control as these increase their say in the intra-household decision

making process as well as in the society at large (Lloyd and Blanc 1996). This finding

corroborates the findings of Lloyd and Gage-Brandon (1994), Lloyd and Blanc (1996), and

Bbaale and Buyinza (2013).

However, this chapter has not been able to shed light on the impacts of socioeconomic

factors on gender disparities in the educational outcomes. To address this, the next chapter

explores socioeconomic factors that might have contributed to the low education

attainments depicted in Table 4.4 and the possible policy lessons for policy makers and the

Ghanaian education system as a whole.

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Chapter 5

Educational outcomes of males and females by wealth distribution in Ghana

5.1 Introduction

Disparities in educational outcomes between males and females in low-income developing

countries is well established in the literature (Appleton et al. 1996 ; Alderman and King

1998; Glick and Sahn 2000; Filmer 2000 & 2005; Appleton 1995) and remain policy

concern in many developing countries. These inequalities have important implications for

the development of the developing countries (World Bank 2001 & 2011) and have been

recognised in a letter to Dr Homi Kharas, lead author and executive secretary of the

secretariat supporting the High-Level Panel of Eminent Persons on the Post-2015

Development Agenda.21

The letter further stresses that the post-2015 development

framework must aim to reduce the inequality gaps within countries, including gender

inequalities.

The importance of gender equality in educational attainment cannot be over-emphasised

enough. There is strong gender equity rational for equalising schooling for both female and

male children. This is because education can empower women and improve their welfare

by increasing the economic opportunities available to them and also by possibly increasing

their bargaining power within the household. “Education represents an important life

opportunity for both women and men, and a vital social and economic resource for

societies. Gender inequality in education constructs, and in turn, is constructed by

inequalities between women and men in other spheres that intersect with education”

(Subrahmanian 2003:9). As a result, gender inequality in education is likely to have

negative knock-on effects in other dimensions of gender inequality. For example, gender

inequality in educational outcomes can perpetuate gender inequality in future labour

market outcomes and socioeconomic status (Filmer 2005) which in turn can negatively

impact on female empowerment. In addition, World Bank (1995) also stresses that the

different access that boys and girls have to the education system should not be ignored

because it contributes to inequality gap between them later in life. Gopal and Salim (1998)

also argue that low levels of female education lead to legal illiteracy, creating a severe

constraint to effective implementation of equitable legal provisions. Thus, equal access to

educational opportunities can be seen as one of the effective means to empower women,

21

In the letter ninety economists, academics, and development experts suggest that the post-2015

development framework should include a top-level goal to reduce inequalities, including gender inequalities

in particular (Pickett et al. 2013).

117

especially in low and poor income countries. Therefore, understanding the trends and

impacts of gender inequalities in educational access and attainment is particularly

important because public policy can relatively address them than in the case of reducing

income inequality.

In Ghana, educational inequality constitutes one area of policy concern (Nordensvard 2014;

Nguyen and Wodon 2014; Sackey 2007). This concern has been consistent with the

discussions in Chapter 2. Our empirical analysis in Chapter 4 shows that there are

educational inequalities in Ghana, despite GoG’s education policy intervention efforts

(discussed in Chapter 2). While educational outcomes have increased substantially in

recent decades for the population as a whole, some groups of Ghanaian continue to

experience poorer educational outcomes (Nguyen and Wodon 2014). Although the country

has a reputation for having an exemplary education policy on paper with free education for

everyone at the basic level, many have argued that the education reform policies have

failed to deliver the expected results (Nordensvard 2014; NDPC et al. 2010 & 2012; Osei

et al. 2009; Akyeampong et al. 2007 & 2009). For example, the National Development

Planning Commission (NDPC) and the United Nations (NDPC et al. 2012) have

acknowledged that there is inequality between females and males, especially in educational

attainments in Ghana. Also, a decomposition analysis by Nguyen and Wodon (2014)

shows that 6.6% more males start primary education in Ghana than females, and the gender

inequality increases with the increasing education level. However, the authors did not

account for factors that might explain the estimated gender disparities. Apart from Nguyen

and Wodon (2014), there are a couple of recent studies (Rolleston 2009; Sackey 2007) that

have used household surveys to analyse inequality in educational outcomes in Ghana.

Rolleston (2009) uses 1991/92, 1998/99 and 2005/06 Ghana living standards surveys

(GLSS3, GLSS4, and GLSS5, respectively) to analyse educational outcomes in Ghana.

The author identifies seven exclusion zones of educational access and uses regression

framework to explore the inequality in educational outcomes, yet the analysis is not gender

specific. Even though a study by Sackey (2007) on determinants of school attendance and

attainment in Ghana is gender specific, the study does not cover the start of the

enforcement period of FCUBE (2000), and the implementation periods of SCG and SFP

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(2004/05) to give us any insights into the impact of the policy interventions on gender

inequalities in educational outcomes in Ghana.22

It has also been argued that even in countries with relatively small gender gap, the gaps in

educational outcomes between the rich and the poor can be very large (Filmer 2000). This

chapter, therefore, estimates the impact of household wealth distribution on gender

inequalities in: educational access by males and females of school-age; and educational

attainment of age cohorts using GDHS 2003 and GDHS 2008 datasets. The analysis is

done with respect to GoG’s educational policy and programmes discussed in Chapter 2.

This chapter also aims to highlight the importance of household wealth distribution and its

impact on gender gap in educational outcomes for policy direction in Ghana.

The main empirical question we attempt to answer in this chapter is, to what extent do

disparities in educational outcomes of males and females increase or decrease with

household wealth distribution? However, if the GoG’s education policy interventions

impacted positively on poor households’ income levels then household wealth distribution

may not be important in explaining disparities in educational outcomes of male and female

children. In addition, investigating whether inequalities in educational outcomes of male

and female children are focused within the poor households will be especially important

for targeting policy interventions. Furthermore, improved understanding of the impact of

key socioeconomic factors on inequality in educational access and attainment of males and

females will help to identify where intervention is most appropriate and effective in

reducing inequality gap in educational outcomes of males and females. This is because

inequality in educational outcomes which affects female children today, for example, could

perpetuate gender inequality in future with its dire consequences for female empowerment,

especially in developing countries.

The remainder of this chapter is organised as follows. Section 5.2 discusses the descriptive

results based on the datasets discussed in Chapter 3. Section 5.3 presents and discusses the

regression results based on empirical specification of regression model (Equation 4.1)

discussed in Chapter 4. Section 5.4 discusses policy lessons of the results, while Section

5.5 concludes the chapter.

22

The reason is that Sackey’s study uses GLSS3 and GLSS4 datasets (1991/92 and 1998/99, respectively) to

analyse the determinants of school attendance and attainment and these datasets were collected before the

above policies were implemented and, therefore, could not capture the effects of the policy interventions.

119

5.2 Educational access and attainment by gender

Most models of human capital investments by parents have been formulated in terms of

household utility function. This is because resource constraints can affect parental

investment in the human capital of children, due to credit constraints and to patterns of

preferences as household incomes change. Garg and Morduch (1998), assert that as long as

the human capital of children is valued intrinsically and treated like a normal good, rising

income will lead to rising human capital and in turn, reduces gender inequalities.

Furthermore, Garg and Morduch (1996) also show that whether or not inequality in

investments of children’s education increase or decrease with income, the inequality may

be sensitive to the curvature in the returns to investments in education. Therefore, if it is

assumed that returns in education are higher for male children, gender disparities in

educational outcomes will be affected by both the relative rates of the decline of marginal

returns and whether resource constraints are binding (Garg and Morduch 1996 & 1998), so

that parents cannot set marginal returns of investment equal to their costs.

One other aspect of Garg and Morduch model of human capital investment is inequality

aversion. Since inequality aversion is important in the model, it implies that the

composition of siblings also determines schooling choices. Consequently, at low household

income levels and due to competition for resources between male and female children, a

male child with all sisters will have higher education investments than one with only

brothers. The inequality between male and female children’s education is, however,

predicted to dissipate with increase in income levels. Thus, gender inequality in

educational access and attainment can decline with increase household incomes (Garg and

Morduch 1996 & 1998). These theoretical underpinnings, therefore, guide both the

descriptive and regression analysis of this chapter.

5.2.1 Validity check

It is generally argued that more boys attend and complete school compared to girls in

Ghana. However, it is important to know whether the difference in educational outcomes

of male and female children in Ghana is significant. We, therefore, carried out a test of

difference in means of male and female educational outcomes. The results reported in

Appendix A5 indicate that the difference in mean educational outcomes of male and

female children is statistically significant at; primary school completion in both 2003 and

2008, and secondary completion level in 2008.

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Table 5.1: Descriptive statistics of educational access and attainment in Ghana

Variable 2003

2008

N Mean Std. Dev. N Mean Std. Dev.

Primary NAR - Male 2492 0.612 0.487

4015 0.734 0.442

Primary NAR - Female 2257 0.598 0.490

3819 0.741 0.438

Secondary NAR - Male 2033 0.339 0.473

3367 0.424 0.494

Secondary NAR - Female 1885 0.356 0.479

3299 0.429 0.495

Primary completion rate - Male 1455 0.728 0.445

2903 0.762 0.426

Primary completion rate - Female 1530 0.682 0.466

2921 0.737 0.440

Secondary completion rate - Male 1128 0.162 0.369

2393 0.249 0.432

Secondary completion rate - Female 1398 0.135 0.342

2601 0.211 0.408

Source: 2003 and 2008 Ghana Demographic Health Survey; own calculations.

Note: Figures in the table are weighted

Table 5.1 shows a summary statistics of educational access and attainment by males and

females aged 6-23 years. In 2003, 61.2% of males and 59.8% of females aged 6-11 years

who should be attending primary school, attended primary school with slight male

advantage, although not statistically significant (Table A5.1). By 2008, the primary NAR

for the males increased to 73.4% and females to 74.1%. Although, there appear to be slight

female advantage, this is also statistically insignificant (Table A5.1).

At the secondary level, 33.9% of males and 35.6% of females aged 12-17 years who

should be attending secondary school, did so in 2003. In 2008, the secondary NAR for both

males and females increased to 42.4% and 42.9% respectively, with slight female

advantage. The statistics in Table 5.1 appear to indicate that there is not much of a gender

inequality in primary and secondary NAR for the Ghanaian school-age population who

should be attending primary school and secondary school. In fact the disparities in the

mean NAR in both years are statistically insignificant (Table A5.1). This descriptive

statistics corroborates the findings in Ghana Statistical Service et al. (2004 & 2009).

For completion rates at primary school level, 72.8% of males and 68.2% of females aged

15-20 years who should have completed primary school, completed primary school in

2003. By 2008, the primary completion rates for the males increased to 76.2% and females

to 73.7%. At the secondary level, however, the completion rates for the age cohort 18-23

years are very low. The statistics show that about 16.2% of males and 13.5% of females in

this age cohort who should have completed secondary school, completed secondary school

in 2003. Although, there has been some improvement in the secondary completion rates in

2008 the rates for both sexes are still very low; 24.9% for males and 21.1% for the females.

121

At both the primary and secondary school levels, it appears that males have slight

advantage in educational attainment over the females. These disparities are statistically

significant (Table A5.8) and consistent with the findings in Nguyen and Wodon (2014).

5.2.2 Gender inequality in educational outcomes among the poor and the non-poor

The descriptive statistics depicted by Tables 5.2 to 5.5 highlight the extent of gender

inequality in educational access and attainment by the distribution of household wealth at a

point in time and over a period of time (2003, 2008, and between 2003 and 2008). The

inequality is discussed at two main levels: (i) gender inequality in educational access; and

(ii) gender inequality in educational attainment. The gender inequality in educational

access is determined by primary school NAR of 6-11 year olds and secondary school NAR

of 12-17 year olds. At the attainment level, the gender inequality is determined by primary

completion rate by age cohort 15-20 year olds, and secondary completion rate by age

cohort 18-23 year olds. These classifications for the analysis have been discussed and

cross-referenced in Chapter 3. Tables 5.2 to 5.5 report: NAR and completion rates of males

and females by household wealth; gender gaps; and gender parity ratios for the selected

age cohorts. The descriptive statistics are summary measures that capture the share of both

the males and females who attended and completed primary and secondary school in 2003

and 2008 survey years.

5.2.2.1 Gender inequality in primary NAR by household wealth

Table 5.2 shows that among the top wealth quintile households; 78.9% of male and 77.0%

of female children of primary school-age who should be attending primary school did so in

2003, and 87.6% of male and 84.4% of female children who should be attending primary

school in 2008, did attend. The results indicate an increasing trend of inequality in access

to primary education between male and female children of primary school-age from the

richest households in favour of the males (1.9% points in 2003 and 3.2% points in 2008).

Among the bottom wealth quintile households; 43.7% of males and 41.9% of females of

primary school-age who should be attending primary school did so in 2003, and 58.2% of

males and 60.1% of females of primary school-age who should be attending primary

school did attend in 2008. There is an indication of slight gender gap in access to primary

education in favour of the males (1.8%) in 2003 which is almost equal to the size of the

gender gap shown in the top wealth quintile households in 2003.

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Table 5.2: Gender inequality in primary net attendance rate for 6-11 year olds by wealth distribution

Background

Characteristics

Male Female

Male Female

Female-Male

gap^

Female/Male

ratio*

2003 2003

2008 2008

2003 2008

2003 2008

Household wealth:

Quintile 1 43.7 41.9

58.2 60.1

-1.8 2.0

0.96 1.03

Quintile 2 57.9 53.6

72.3 71.6

-4.3 -0.7

0.93 0.99

Quintile 3 66.0 62.4

74.8 78.1

-3.6 3.4

0.95 1.04

Quintile 4 67.6 68.3

82.1 81.5

0.6 -0.7

1.01 0.99

Quintile 5 78.9 77.0

87.6 84.4

-1.9 -3.2

0.98 0.96

Quintile Mean 62.8 60.6 75.0 75.1 - - - -

Quintile Ratio (5:1) 1.8 1.8 1.5 1.4 - - - -

Residence:

Urban 69.9 66.7

81.0 79.5

-3.3 -1.6

0.95 0.98

Rural 56.2 55.2

68.8 70.8

-1.0 2.0

0.98 1.03

Total/National 61.2 59.8 73.4 74.1 -1.4 0.7 0.98 1.01

Source: 2003 and 2008 Ghana Demographic Health Survey; own calculations.

*Female/male ratio (Gender Parity Index) is the ratio of primary NAR for females to the NAR for males.

^ Female-male gap is the difference in NAR between the females and the males. Positive (negative) figure represents

female advantage (disadvantage) in primary NAR.

However, by 2008 more female children from the bottom wealth quintile households

attended primary school than male children from the same income group. In other words,

the gender inequality in access to primary education slightly favoured the females. The

inequality in access to primary education between male and female children from top

wealth quintile households on one hand and the inequality in access to primary education

between male and female children from the bottom wealth quintile households on the other

hand indicates that children from top wealth quintile households have more access to

primary education than those from the bottom wealth quintile households. The trend

analysis, however, appears to show an increase in gender inequality in access to primary

education in the top wealth quintile households which favours males.

On the other hand, gender inequality in access to primary education in the bottom wealth

quintile households decreases and by 2008, the gender gap indicates slightly higher

primary NAR in favour of the females (Table 5.2). These results are consistent with the

findings of Ghana Demographic Health Survey reports (Ghana Statistical Service et al.

2004 & 2009).

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Furthermore, the wealth quintile mean of primary NAR for females has also improved by

14.5% between the two periods (60.6% in 2003 and 75.1% in 2008) compared to that of

the males of 12.2% within the same survey periods (62.8% in 2003 and 75.0% in 2008).

The wealth quintile ratio estimates the inequality between the richest and the poorest

households. The ratio shows that both male and female children from the richest

households have 1.8 times more primary NAR (i.e. more access to primary education) than

those from the poorest households in 2003. Although the wealth quintile ratios are still

high in 2008, there has been a slight improvement in primary NAR of females than males

from poorest households (Table 5.2).

In terms of the distributional effect of household wealth on gender inequality in access to

primary education, the NAR at the primary education level did not reveal much

educational inequality between male and female children from top wealth quintile

households compared to male and female children from the bottom wealth quintile

households. However, there appears to be more gender inequality in the primary NAR at

the top wealth quintile at the advantage of the males than at the bottom wealth quintile

level. In Table 5.2, more female children from the poorest households appear to have

attended primary school than male children from the poorest households in 2008 which is

consistent with the findings of Ghana Statistical Service et al. (2009). However, the results

generally appear to indicate that there is not much of a gender inequality in primary NAR

determined by household wealth distribution for the Ghanaian primary school-age

population who should be attending primary school. This descriptive analysis seems to

suggest that the FCUBE, SCG and SFP policy interventions might have reduced the

financial burden of the poor households of maintaining both male and female children in

school.

5.2.2.2 Gender inequality in secondary NAR by household wealth

Generally, the secondary attendance rates in most developing countries are significantly

lower than primary attendance rates (Porta et al. 2011). In Ghana, the secondary NAR is

just above 50% lower than the primary NAR (see Tables 5.2 and 5.3). In terms of gender

and wealth distribution, among the top wealth quintile households; 57.0% of the male

children and 56.5% of female children of secondary school-age who should be attending

secondary school did so in 2003, and 62.8% of male children and 59.1% of female children

of secondary school-age who should be attending secondary school were in school in 2008.

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Table 5.3: Gender inequality in secondary net attendance rate for 12-17 year olds by wealth distribution

Background

Characteristics

Male Female

Male Female

Female-Male

gap^

Female/Male

ratio*

2003 2003

2008 2008

2003 2008

2003 2008

Household wealth:

Quintile 1 15.2 13.7

24.4 19.3

-1.5 -5.2

0.90 0.79

Quintile 2 26.6 20.8

33.9 36.0

-5.8 2.1

0.78 1.06

Quintile 3 33.1 34.6

43.5 39.9

1.5 -3.6

1.05 0.92

Quintile 4 40.7 42.7

50.5 52.0

2.0 1.6

1.05 1.03

Quintile 5 57.0 56.5

62.8 59.1

-0.5 -3.7

0.99 0.94

Quintile Mean 34.5 33.7 43.0 41.3 - - - -

Quintile Ratio (5:1) 3.8 4.1 2.6 3.1 - - - -

Residence:

Urban 44.6 46.3

53.0 50.9

1.7 -2.1

1.04 0.96

Rural 26.2 25.7

34.3 34.9

-0.5 0.5

0.98 1.02

Total/National 33.9 35.6

42.4 42.9

1.7 0.5

1.05 1.01

Source: 2003 and 2008 Ghana Demographic Health Survey; own calculations.

*Female/male ratio (Gender Parity Index) is the ratio of secondary NAR for females to the NAR for males.

^ Female-male gap is the difference in NAR between the females and the males. Positive (negative) figure represents female advantage

(disadvantage) in secondary NAR.

Note: Figures in this table are weighted.

The inequality in the NAR between male and female children from richest households was

just 0.5% in 2003 in favour of male children. However, by 2008 the gender gap has

increased to 3.7% in favour of male children with a resultant increase of 3.2% in the

gender gap (Table 5.3).

Considering gender inequality in access to secondary education at the bottom wealth

quintile households, only 15.2% of male children and 13.7% of female children of

secondary school-age who should be attending secondary school did so in 2003. In 2008,

24.4% of the male children and 19.3% of the female children who should be attending

secondary did attend. These results show that the gender inequality in secondary NAR has

increased by 3.7% between 2003 and 2008 in favour of the male children. Furthermore,

male children have higher quintile mean NAR than female children in both survey periods

(Table 5.3). Although there is an indication of inequality in the secondary NAR between

male and female children in general, the inequality between the male and female children

from the poorest households is slightly higher than those from the richest households. For

example, the gender parity index (female/male ratio) by household wealth distribution is

closer to parity for the richest households than the poorest households in both 2003 and

125

2008. It is also worth noting that even though the gender gap in the NAR increases and

gender parity index of the NAR decreases at both the top and bottom wealth quintile levels

in 2008, the inequality in access to secondary education is more pronounced in the poorest

households. Also, the wealth quintile ratios show that the inequality between the female

children from the richest and the poorest households are marginally higher than the

inequality between the male children from the richest and the poorest households.

In summary, household wealth distribution appears not to account for gender inequality in

primary NAR between the richest and the poorest households. However, there is an

indication that at the secondary education level, household wealth distribution appears to

have increased the gender inequality in secondary NAR of the poorest households than the

richest households in Ghana. Furthermore, it is worth noting that without taking into

account household wealth distribution, there is no discernible gender inequality in primary

and secondary NARs for the Ghanaian primary and secondary school-age who should be

attending school (see Tables 5.2 and 5.3). These findings are consistent with the findings

in Ghana Statistical Service et al. (2004 & 2009) reports.

5.2.2.3 Gender inequality in primary school completion by household wealth distribution

Among the top wealth quintile households, the primary completion rate is 91.6% and 85.3%

for male and female children respectively, with 6.3% inequality gap in favour of male

children and 0.93 gender parity index in 2003. In 2008, the completion rates increased to

96.0% for male children and 90.0% for the female children with corresponding 5.8%

inequality gap in favour of male children and 0.94 gender parity index. These results

appear to show that even in the richest households, male children do have slight advantage

in primary school attainment. Table 5.4 shows that about 6.0% more male than female

children completed primary education in both 2003 and 2008 based on household wealth

distribution in Ghana.

In terms of wealth distribution at the bottom 20% of the population, the completion rates

for both male and female children in this income group is less than 50% of the completion

rates for the male and female children from top wealth quintile households in 2003 and

2008. Table 5.4 also shows that among the bottom wealth quintile households, the primary

completion rate is 44.4% and 35.9% for male and female children respectively, with 8.5%

gender gap and 0.81 gender parity index in 2003.

126

Table 5.4: Gender inequality in primary completion rate for 15-20 year olds by wealth distribution

Background

Characteristics

Male Female

Male Female

Female-Male

gap^

Female/Male

ratio*

2003 2003

2008 2008

2003 2008

2003 2008

Household wealth:

Quintile 1 44.4 35.9

48.5 37.8

-8.5 -10.7

0.81 0.78

Quintile 2 63.3 52.1

71.2 65.6

-11.2 -5.6

0.82 0.92

Quintile 3 75.5 71.9

77.4 80.3

-3.6 2.9

0.95 1.04

Quintile 4 83.5 76.3

88.5 85.4

-7.2 -3.1

0.91 0.96

Quintile 5 91.6 85.3

96.0 90.2

-6.3 -5.9

0.93 0.94

Quintile Mean 71.7 64.3 76.3 71.9 - - - -

Quintile Ratio (5:1) 2.1 2.4 2.0 2.4 - - - -

Residence:

Urban 83.2 78.9

88.0 84.4

-4.3 -3.7

0.95 0.96

Rural 64.0 56.1

67.1 64.1

-7.8 -3.0

0.88 0.96

Total/National 72.8 68.2

76.2 73.7

-4.5 -2.5

0.94 0.97

Source: 2003 and 2008 Ghana Demographic Health Survey; own calculations.

*Female/male ratio (Gender Parity Index) is the ratio of primary completion rate for females to the completion rate for males.

^ Female-male gap is the difference in completion rate between the females and the males. Positive (negative) figure represents female

advantage (disadvantage) in primary completion rate.

Note: Figures in this table are weighted.

In 2008 the completion rates increased marginally to 48.5% for male children and 37.8%

for female children, resulting in 10.7% inequality gap and 0.78 gender parity index. The

results show that male children do have advantage in primary school attainment and there

appears to be a widening gap in primary completion rate between male and female children

from the poorest households despite GoG’s intended pro-poor education policy

interventions.

While the completion rate inequality between male and female children from the top

wealth quintile households has marginally reduced (0.4%) between 2003 and 2008, the

inequality at the bottom wealth quintile has increased by 2.2% within the same period.

Again, the findings are consistent with both the theoretical and empirical literature (Becker

1975; Lazear 1980; Lloyd and Blanc 1996; Rose 2000; Filmer 2000 & 2005; Sackey 2007;

Lloyd and Hewett 2009). These authors demonstrate that female children from poor

households are more likely to drop out of school than male children. They also argue that

in poor households, parents prefer to invest in education of male children when constraint

with financial resources based on the assumption that male children are more likely to

financially support the family in future.

127

5.2.2.4 Gender inequality in secondary school completion by wealth distribution

Secondary completion rates for both male and female children by income groups are very

low compared to primary completion rates in Ghana (see Tables 5.4 and 5.5). Among the

top wealth quintile households, the secondary completion rate is 39.7% and 33.7% for

male and female children respectively, in 2003. In 2008 the completion rates have

significantly increased to; 54.3% for male children, and 50.0% for female children. Thus,

the gender gap in secondary education attainment has reduced from 6.0% in 2003 to 4.3%

in 2008 and gender parity index has also increased from 0.85 in 2003 to 0.92 points in

2008 (Table 5.5).

It is not surprising to see from Table 5.5 that the secondary school completion rates for

both male and female children from the bottom wealth quintiles households are

significantly very low compared to the secondary completion rates for male and female

children from the top wealth quintiles. Again, it is important to emphasise that secondary

education is not free in Ghana and there are no education policy interventions to reduce the

education cost borne by households or parents. In effect, this might have affected the

completion rates for both male and female children from the lowest income groups in the

country. The completion rate for female children from poorest households increased from

just 1.0% in 2003 to 1.9% in 2008 and for male children from the same income group, the

rate increased from 3.5% in 2003 to 5.4% in 2008. Although the gender gaps appear to be

smaller, the gender parity index of 0.29 and 0.34 points respectively, in 2003 and 2008

shows the magnitude of gender inequality in secondary education attainment at the bottom

level of wealth distribution in Ghana (Table 5.5). The gender inequality in secondary

education attainment exhibited at bottom level of wealth distribution could perpetuate

gender inequality in future labour market outcomes and socioeconomic status of the poor

households (Filmer 2005). This may also result in intergenerational poverty cycle of the

poor households. The findings at the secondary education level are extremely important for

policy targeting if the GoG is to achieve poverty reduction target stipulated in Vision 2020

and Ghana Poverty Reduction Strategy (Republic of Ghana 1997 & 2003).

Furthermore, the results in Table 5.4 and 5.5 corroborate the findings of (Holmes 2003;

Lloyd and Hewett 2009). The authors find that the extent of inequality among female

children in school attendance and completion rates according to socioeconomic status is

found to be substantially greater than for male children.

128

Table 5.5: Gender inequality in secondary completion rate for 18-23 year olds by wealth distribution

Background

Characteristics

Male Female

Male Female

Female-Male

gap^

Female/Male

ratio*

2003 2003

2008 2008

2003 200

8 2003 2008

Household wealth:

Quintile 1 3.5 1.0

5.4 1.9

-2.5 -3.6

0.29 0.34

Quintile 2 2.9 2.4

11.0 4.4

-0.5 -6.6

0.83 0.40

Quintile 3 6.3 3.6

17.5 12.3

-2.7 -5.2

0.57 0.70

Quintile 4 17.5 12.1

27.9 27.2

-5.4 -0.7

0.69 0.97

Quintile 5 39.7 33.7

54.3 50.0

-6.0 -4.3

0.85 0.92

Quintile Mean 14.0 10.6 23.2 19.2 - - - -

Quintile Ratio (5:1) 11.3 33.7 10.1 26.3 - - - -

Residence:

Urban 25.6 21.6

38.8 33.4

-4.0 -5.4

0.85 0.86

Rural 6.7 4.4

11.5 8.9

-2.3 -2.7

0.66 0.77

Total/National 16.2 13.5

24.9 21.1

-2.7 -3.8

0.83 0.85

Source: 2003 and 2008 Ghana Demographic Health Survey; own calculations.

*Female/male ratio (Gender Parity) is the ratio of secondary completion rate for females to the completion rate for males.

^ Female-male gap is the difference in completion rate between the females and the males. Positive (negative) figure represents

female advantage (disadvantage) in secondary completion rate.

Note: Figures in this table are weighted.

It has also been argued that if female children substituted for their mother’s time in poorer

households, but not wealthier ones, then one would expect a female disadvantage that

diminishes as household wealth increases (Filmer 2000 & 2005).

In summary, a possible explanation for the consistent gender-wealth inequality in

educational access and attainment (NAR and completion rates) in favour of male children

in Ghana could be that aspect of investment in education where in the developing countries,

parents may expect higher return in investing in male children's education than females’

(Oxaal 1997; Holmes 2003; Filmer 2005). In other words, if parents or households value

the education of sons more than that of daughters, one would observe more male children

schooling than female children. This conjecture may be supported by the findings of Garg

and Morduch (1998) in the study of child health outcomes in Ghana. In the context of

investments in health, the authors argue that the degree to which gender differences

increase or decrease with income depends on the relative rates at which the returns to

human capital decline.

129

However, the question as to whether the household wealth distribution is enough to explain

these wealth-related inequalities in educational access and attainment of male and female

children at both primary and secondary school levels in Ghana is further explored using

regression analysis in Sections 5.3 and 5.4.

5. 3 Regression results and discussions

The regression model specified in Chapter 4 sub-section 4.3.2 is re-estimated separately for

male and female so that the impact of all covariates is allowed to differ by gender of the

school-age children. These estimates are represented in Tables 5.6 and 5.7. We present and

discuss the regression results pertaining to school attendance and completion at both

primary and secondary school levels. The results in Tables 5.6 and 5.7 are obtained by

estimating Equation 4.1 in Chapter 4 separately for males and females using STATA/SE

11 software. A positive (negative) and statistically significant marginal effect indicates that

the relevant determinant enhances (decreases) the probability of educational access

(attendance) and educational attainment (completion).

5.3.1 Inequality in primary and secondary school attendance

The results of the determinants of disparity in educational access of males and females are

shown by marginal effects together with the corresponding z-values in parentheses. These

results are based on the binary probit estimation of current school attendance of male and

female children aged 6-11 years and 12-17 years old in Table 5.6. The likelihood ratio 2

test shows that the model is well fit. The predicted probability for primary school

attendance increased from 59.3% in 2003 to 72.9% in 2008 for male children. For female

children, the predicted probability for primary school attendance increased from 58.3% in

2003 to 74.0% in 2008. At the secondary school level, the predicted probabilities for male

and female children are very low in both 2003 and 2008 compared to primary school

attendance results. The predicted probabilities for secondary school attendance were 28.6%

in 2003 and 38.0% in 2008 for the male children, and 30.4% in 2003 and 39.5% in 2008

for the female children. The results at both primary and secondary school levels support

the results from the descriptive analysis in Section 5.2 based on Tables 5.2 and 5.3.

5.3.1.1 Access to primary education

Table 5.6 shows that household wealth is a significant determinant of inequality in school

attendance for both male and female children in Ghana. The impact of household wealth is

positive and statistically significant at all levels of wealth distribution on primary school

130

attendance of male children in both 2003 and 2008. For female children, the impact of

household wealth is also statistically significant at all levels of wealth distribution except at

the second quintile level (i.e. poor) in both 2003 and 2008. In 2003, the impact of

household wealth on primary school attendance of children from rich households appears

to be higher for female than male children. The marginal effect of moving from the third

quintile (middle welfare group) to the fifth quintile (richest household) increases the

probability of female primary school attendance from 14.0 to 25.6 percentage points

compared to 15.1% to 22.5% for male children in 2003 (Table 5.6). The results shows that

the marginal effect of household wealth distribution on female children’s primary school

attendance on average is about 1.3 times larger than for the male children. This finding is

consistent with the findings of Sackey (2007). The finding also supports the suggestion that

the larger wealth effect for girls from rich households can be explained in terms of

financial capability of wealthy households to hire help for childcare and other household

work, thereby reducing female children’s domestic tasks (Appleton 1995; Glick and Sahn

2000).

Furthermore, Glick and Sahn (2000:82) also argue that "increases in household income

will disproportionately benefit girls’ schooling because they relax the time constraints that

girls face". Another theoretical explanation offered in the literature is that in the rich

households, there is a relaxation of credit constraints with increased household income that

enables rich households to undertake less remunerative investments in female children's

schooling while poor households can only afford to educate male children (Glick and Sahn

2000).

In case of children from poor households (second and third quintiles), the impact of

household wealth on primary school attendance is higher for male than for female children.

For example, the marginal impact of household wealth on primary attendance is 1.1 times

(i.e. 0.151 vs. 0.140) larger for male than for female children. This result again supports

the findings of Appleton (1995) and Glick and Sahn (2000). The results from Table 5.6

may imply that poor households could not afford to hire help for childcare and other

household work to reduce female children’s domestic tasks. Consequently, female children

from poor households are disadvantaged in school attendance compared to those from rich

households. The positive marginal effect of household wealth distribution on both male

and female children’s primary school attendance is much reduced in 2008 compared to

2003.

131

Table 5.6: Educational access by gender in Ghana (Probit estimates)

Primary School Attendance by children

aged 6-11 years

Secondary School Attendance by children

aged 12-17 years

Marginal Effects Marginal Effects

Marginal Effects Marginal Effects

Male Female Male Female

Male Female Male Female

2003 2003 2008 2008 2003 2003 2008 2008

Household wealth:

Poor 0.084** 0.056 0.074*** 0.041

0.099** 0.044 0.052 0.139***

(2.87) (1.77) (3.68) (1.94)

(2.61) (0.99) (1.79) (4.31)

Middle 0.151*** 0.140*** 0.079*** 0.103***

0.162*** 0.206*** 0.115*** 0.174***

(4.89) (4.13) (3.36) (4.49)

(3.89) (4.44) (3.51) (4.90)

Richer 0.147*** 0.204*** 0.129*** 0.114***

0.176*** 0.244*** 0.138*** 0.266***

(3.65) (5.22) (5.09) (4.40)

(3.58) (4.54) (3.62) (7.10)

Richest 0.225*** 0.256*** 0.156*** 0.127***

0.324*** 0.309*** 0.195*** 0.326***

(5.23) (6.05) (5.55) (4.30)

(5.62) (5.29) (4.32) (7.84)

Household size /

composition:

Household size 0.013 0.013 -0.015* -0.008

-0.014 -0.003 -0.006 0.006

(1.42) (1.35) (-2.46) (-1.34)

(-1.54) (-0.27) (-0.90) (0.80)

No. of children under 6 yrs;

Under 6 yrs children:1-2 -0.053 -0.071* -0.003 0.010

0.046 -0.028 -0.028 -0.078**

(-1.73) (-2.25) (-0.14) (0.49)

(1.57) (-0.90) (-1.17) (-3.24)

Under 6 yrs children:3-4 -0.161** -0.092 -0.006 0.018

0.062 -0.050 -0.052 -0.202***

(-2.75) (-1.48) (-0.15) (0.45)

(0.90) (-0.76) (-0.97) (-4.61)

Under 6 yrs children:5-6 -0.297* -0.208 -0.015 -0.060

0.218 -0.171 -0.213* -0.337***

(-2.09) (-1.56) (-0.17) (-0.57)

(1.09) (-1.29) (-2.18) (-5.17)

No. of school-age children;

School-age children:1-2 0.039 0.010 -0.166** -0.011

-0.134 -0.141 -0.022 -0.007

(0.43) (0.10) (-2.58) (-0.17)

(-1.56) (-1.42) (-0.28) (-0.08)

School-age children:3-4 0.040 0.017 -0.155** -0.015

-0.085 -0.104 -0.014 0.013

(0.55) (0.23) (-2.92) (-0.28)

(-1.17) (-1.24) (-0.21) (0.18)

School-age children:5-6 -0.023 -0.052 -0.162** 0.034

-0.089 -0.150* -0.019 -0.041

(-0.36) (-0.76) (-2.99) (0.77)

(-1.58) (-2.50) (-0.33) (-0.64)

Proportion of economically active

0.051 0.059 0.126 0.043

0.405*** 0.191 0.051 0.041

(0.48) (0.55) (1.75) (0.59)

(4.10) (1.93) (0.68) (0.55)

Household head:

Age 0.002 0.001 0.001* 0.002**

0.003*** 0.003** 0.000 0.000

(1.74) (1.44) (2.20) (3.20)

(3.64) (3.01) (0.40) (-0.06)

Female 0.082** 0.031 0.032 0.033

0.083** 0.084** 0.0371 0.050*

(3.02) (1.11) (1.74) (1.84)

(2.97) (3.02) (1.72) (2.34)

Household head's

education:

Primary level 0.067* 0.024 0.078*** 0.057**

-0.014 -0.009 0.041 0.038

(2.09) (0.70) (3.80) (2.65)

(-0.38) (-0.22) (1.38) (1.22)

Secondary level. 0.142*** 0.139*** 0.086*** 0.129***

0.094** 0.124*** 0.127*** 0.093***

(5.15) (4.65) (4.39) (6.78)

(3.00) (3.72) (5.08) (3.60)

Higher levels. 0.222*** 0.175*** 0.119*** 0.181***

0.180*** 0.257*** 0.265*** 0.154***

(6.32) (4.19) (4.23) (8.74)

(3.79) (5.63) (7.29) (4.15)

Residence:

Rural 0.005 0.062 -0.001 0.025

-0.030 0.004 -0.035 0.019

(0.16) (1.76) (-0.07) (1.13)

(-0.93) (0.11) (-1.38) (0.78)

132

Table 5.6 cont.:

Administrative region:

Western 0.158*** 0.114* -0.041 -0.121**

0.048 -0.003 0.052 -0.053

(3.46) (2.26) (-1.13) (-3.10)

(0.84) (-0.05) (1.23) (-1.22)

Central 0.064 0.061 -0.045 -0.069

0.015 -0.085 0.027 -0.094*

(1.19) (1.07) (-1.14) (-1.70)

(0.25) (-1.55) (0.60) (-2.23)

Greater Accra 0.072 0.063 -0.010 -0.126**

-0.038 -0.005 -0.009 -0.048

(1.33) (1.15) (-0.26) (-2.89)

(-0.73) (-0.09) (-0.20) (-1.14)

Volta 0.028 0.111* -0.069 -0.066

0.015 -0.029 0.024 -0.012

(0.53) (2.25) (-1.88) (-1.73)

(0.27) (-0.51) (0.56) (-0.27)

Eastern 0.037 0.028 -0.004 -0.089*

0.057 0.019 0.008 -0.020

(0.73) (0.52) (-0.13) (-2.35)

(0.99) (0.32) (0.19) (-0.47)

Ashanti 0.117** 0.091* 0.093** 0.035

0.060 -0.008 0.108** 0.040

(2.64) (2.02) (3.16) (1.10)

(1.17) (-0.15) (2.67) (0.98)

Brong Ahafo 0.142*** 0.010 -0.010 -0.016

0.030 -0.062 0.035 -0.023

(3.37) (0.20) (-0.29) (-0.45)

(0.60) (-1.22) (0.82) (-0.53)

Northern 0.083* -0.077 -0.064* -0.175***

-0.057 -0.121* -0.002 -0.018

(2.04) (-1.69) (-2.18) (-5.15)

(-1.21) (-2.37) (-0.06) (-0.45)

Upper East 0.059 0.052 0.053 0.053

-0.029 -0.044 0.032 0.044

(1.32) (1.10) (1.87) (1.76) (-0.55) (-0.74) (0.79) (1.01)

No. of observations 2482 2243 4014 3815

2020 1877 3355 3286

Observed Pr(attendance) 0.585 0.576 0.715 0.725

0.307 0.331 0.390 0.406

Predicted Pr(attendance) 0.593 0.583 0.729 0.740

0.286 0.304 0.380 0.395

LR chi2(27) 273.6 249.0 318.3 343.9

274.1 308.9 369.9 346.5

Pseudo R2 0.081 0.081 0.066 0.077

0.110 0.130 0.083 0.078

Prob > chi2 0.000 0.000 0.000 0.000

0.000 0.000 0.000 0.000

Log likelihood -1547.9 -1404.5 -2239.7 -2072.8

-1109.3 -1037.0 -2058.1 -2045.6

Source: 2003 and 2008 Ghana Demographic Health Surveys; own calculations

1. z statistics are given within parentheses

2. Significant levels: * p<0.1, ** p<0.05, *** p<0.01

3. Each marginal effect (change in the dummy from 0 to 1) is evaluated at the means of all other regressors.

The reduction in the impact of household wealth distribution could be explained in terms

of GoG's education policy interventions (especially, SCG and SFP) implemented in

2004/05 to lessen the financial burden of educating children by households in Ghana.

In case of children from poor households (second and third quintiles), the impact of

household wealth distribution on primary school attendance is higher for male than for

female children. For example, the marginal impact of household wealth on primary

attendance is 1.1 times (i.e.15.1% vs. 14.0%) larger for male than for female children in

2003. This result again supports the findings of Appleton (1995) and Glick and Sahn

(2000). The positive marginal effect of household wealth distribution on both male and

female children’s primary school attendance is much reduced in 2008 compared to 2003.

The reduction in the impact of household wealth could be explained in terms of GoG's

education policy interventions (especially, SCG and SFP) implemented in 2004/05 to

lessen the financial burden of educating children by households in Ghana.

133

It also appears the policy interventions might have helped to reduce the impact of

household wealth on primary school attendance and consequently increased access to

primary education for both male and female children. However, it is worth noting that in

2008, household wealth distribution has larger marginal effect on primary school

attendance of male children than the female children from rich households. While in the

poor households the impact of the household wealth distribution was larger for the female

than male children.

However, taking the average impact of wealth distribution on primary school attendance in

2003 and 2008, the results from Table 5.6 appear to indicate that the disparity in primary

school attendance of both male and female children is greater at lower wealth levels and

declines with higher wealth levels. This finding corroborates the findings of Garg and

Morduch (1998), Alderman and King (1998) and it is also supported by the descriptive

findings in Table 5.2.

Primary school attendance is also strongly dependent on household head's educational

attainment levels. The positive impact of household head's education level is consistent

with the findings of other studies (Glick and Sahn 2000; Deininger 2003; Sackey 2007;

Mani et al. 2009). A possible explanation could be that educated household heads are able

to provide home inputs, such as supervision and support which encourage educational

participation of children. An increase in household head's educational attainment level

from primary school to higher levels increases the probability of primary school attendance

from 6.7% to 22.2% for male children and 2.4% to 17.5% for female children in 2003.

This implies that in 2003 the education attainment levels of household heads had a greater

impact on male children’s primary school attendance than that of female children.

However, by 2008 the trend of the impact has changed in favour of the female children.

Household heads’ educational attainment at all levels increases the probability of male

children’s primary school attendance by 7.8% to 11.9%, and female children’s primary

school attendance by 5.7% to 18.1%. Although the marginal effect of household head

educational attainment levels did not reveal much gender inequality in access to primary

education, the key finding is that, the higher the level of the household head educational

attainment the more favourable is the school attendance of both male and female children

in the household.

134

5.3.1.2 Access to secondary education

The positive impact of household wealth distribution on secondary school attendance of

both male and female children shown in Table 5.6 is relatively higher compared to primary

school attendance by both sexes. A plausible explanation is that at the secondary education

level, there is no policy intervention by the GoG to reduce the cost of education borne by

households. Consequently, household wealth is more likely to be crucial in determining

access to secondary education than primary education. In addition, borrowing constraints

are more likely to have remained a major barrier to secondary education access by poor

households. The marginal effect of household wealth is statistically significant at all levels

of wealth distribution on secondary school attendance of male children in 2003 and female

children in 2008. For female children in 2003 and male children in 2008, the impact of

household wealth is also statistically significant at all levels of wealth distribution except at

the second wealth quintile level (i.e. poor). In both 2003 and 2008, the impact of household

wealth on secondary school attendance is higher for female than male children.

The marginal effect of moving from the third quintile (middle welfare group) to the fifth

quintile (richest household) increases the probability of female secondary school

attendance from 20.6% to 30.9% compared to 16.2% to 32.4% for male children. Although

in 2008 the marginal effect of wealth distribution of households on male children’s

secondary school attendance reduced from 11.5% (middle quintile) to 19.5% (fifth

quintile), the marginal effect of wealth distribution on female children’s secondary school

attendance increased from 13.9% (second quintile) to 32.6% (fifth quintile). These results

are consistent with the results obtained from primary school attendance and corroborate the

findings of other researchers (Appleton 1995; Glick and Sahn 2000; Sackey 2007). The

plausible explanations for the increase in probability of female school attendance as one

moves up the household wealth distribution has been explored under the primary education

access and these explanations also apply to secondary education access by the female

children.

Another variable which has strong marginal effect on secondary school attendance of both

sexes is household head’s level of education attained. Unlike primary school attendance,

the marginal effect of the level of household head’s educational attainment is only

statistically significant at secondary and higher levels with reference to no education

(reference category). An increase in household head's educational attainment level from

secondary to higher levels increases the probability of secondary school attendance from

9.4% to 18.0% for male children and 12.4% to 25.7% for female children in 2003 (see

135

Table 5.6). At both levels of household head education, the probability of secondary school

attendance is higher for female than male children. Although in 2008 the probability of

school attendance increases as the level of household education increases, male children

have recorded higher school attendance than the female children. There appears to be no

consistent trend in the impact of household head level of education attainment to reveal

gender inequality in access to secondary education between 2003 and 2008. However,

there is an indication that the higher the level of the household head educational attainment

the more favourable is secondary school attendance of both male and female children in

the household. The positive impact of household head's education level supports the earlier

findings with respect to primary education access and also corroborates the findings of

other studies (Glick and Sahn 2000; Deininger 2003; Sackey 2007; Mani et al. 2009;

Filmer 2005).

5.3.2 Inequality in primary and secondary school completion

Table 5.7 shows marginal effects (with the corresponding z-values) from the binary probit

estimation of educational attainment (school completion) based on Equation 5.1. We

estimate educational attainment based on age cohort 15-20 years (for primary completion)

and age cohort 18-23 years (for secondary completion) for both males and females in 2003

and 2008. The likelihood ratio 2

test shows that the model is well fit. The predicted

probability for primary school completion increased from 73.4% in 2003 to 77.1% in 2008

for the male age cohort. For female age cohort, the predicted probability for primary school

completion increased from 66.9% in 2003 to 74.0% in 2008. At the secondary school level,

the predicted probabilities for male and female age cohorts are very low in both 2003 and

2008 compared to primary school completion probabilities within the same periods. The

predicted probabilities for secondary school completion were 8.3% in 2003 and 17.6% in

2008 for the male age cohort, and 5.0% in 2003 and 11.4% in 2008 for the female age

cohort. The results at both primary and secondary school levels support the results from the

descriptive analysis in Section 5.2 based on Tables 5.4 and 5.5.

5.3.2.1 Primary education attainment

The results in Table 5.7 indicate that wealth distribution positively influences primary

school attainment of children irrespective of gender. The household wealth impact on

primary completion in 2003 is statistically significant at all levels of wealth distribution

except at the second wealth quintile (i.e. poor) with first wealth quintile (poorest) being the

reference category. Table 5.7 shows that the marginal effect of moving from the third

136

quintile (middle welfare group) to the fifth quintile (richest household) increases the

probability of primary school completion from 11.1% to 18.4% for male age cohort, and

from 21.7% to 25.0% for female age cohort. A similar trend is observed in 2008 with

relatively higher probabilities for both male and female age cohorts. A movement in wealth

distribution of households from the second wealth quintile (poor) to the fifth wealth

quintile increases the probability of secondary school completion from 9.8% to 24.2% for

male age cohort, and from 11.5% to 26.2% for female age cohort. These results suggest

that growth in household wealth will increase the probability of primary completion (i.e.

attainment) by female children faster than for male children.

This finding corroborates the findings of Glick and Sahn (2000) which show that increases

in household income lead to greater investment in female children’s education. In addition,

the results also appear to suggest that disparity in educational outcome of males and

females is greater at lower income levels than higher income levels which is consistent

with the findings of Alderman and King (1998). In terms of the impact of GoG’s education

policy interventions (SCG and SFP) on primary school attainment, it appears the policy

had not been able to significantly reduce the impacts of household wealth on primary

school completion by both male and female children in Ghana.

Furthermore, the positive and strong statistical significant marginal effect of household

head’s education on primary education attainment of both male and female children is

observed at higher levels of household head educational attainment (secondary and higher

levels). Household head with secondary and higher levels of education attained increase

the probability of male age cohort’s primary school attainment by 18.9% and 28.0%,

respectively in 2003 compared to household heads with no education.

Considering the female age cohort, the results show that household head’s effect is even

more assertive. That is, household heads with secondary and higher levels of education

attained increase the probability of female age cohort’s primary school attainment by 18.3%

and 30.1%, respectively in 2003 and 2008 compared to household heads with no education.

The primary school attainment results in 2008 are similar to that of 2003 but with reduced

probabilities at the higher levels of educational attainment by household heads.

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Table 5.7: Educational attainment by gender in Ghana (Probit estimates)

Variable

Primary School Completion by age cohort

15-20 years

Secondary School Completion by age cohort

18-23 years

Male Female Male Female Male Female Male Female

Marginal Effects Marginal Effects Marginal Effects Marginal Effects

2003 2003 2008 2008 2003 2003 2008 2008

Household wealth:

Poor 0.043 0.064 0.098*** 0.115*** 0.007 0.022 0.089* 0.047

(1.17) (1.51) (4.72) (5.05) (0.15) (0.58) (2.25) (1.20)

Middle 0.111** 0.217*** 0.115*** 0.199*** 0.108 0.042 0.122** 0.130**

(3.03) (6.18) (4.92) (8.99) (1.81) (1.06) (2.83) (2.91)

Richer 0.117** 0.217*** 0.183*** 0.218*** 0.302*** 0.115* 0.150** 0.262***

(2.64) (5.17) (8.01) (9.20) (3.75) (2.02) (3.20) (5.00)

Richest 0.184*** 0.250*** 0.242*** 0.262*** 0.447*** 0.252** 0.315*** 0.375***

(4.07) (5.15) (10.90) (10.46) (5.03) (3.14) (5.50) (6.27)

Household size /

composition:

Household size 0.005 0.015* 0.000 0.005 -0.001 0.003 -0.001 -0.002

(0.86) (2.18) (0.08) (1.19) (-0.12) (1.01) (-0.15) (-0.53)

No. of children under6

yrs;

Under 6 yrs children:1-2 -0.004 -0.055 -0.050* -0.073*** -0.064** -0.041* -0.039 -0.040*

(-0.14) (-1.70) (-2.34) (-3.33) (-3.23) (-2.54) (-1.69) (-2.10)

Under 6 yrs children:3-4 -0.002 -0.119 -0.054 -0.187** -0.052 -0.042** -0.024 -0.076**

(-0.03) (-1.61) (-1.12) (-3.24) (-1.76) (-3.12) (-0.42) (-2.86)

Under 6 yrs children:5-6 -0.078 -0.327 -0.312* -0.285 - - - -

(-0.44) (-1.46) (-2.24) (-1.72) - - - -

No. of school-age

children;

School-age children:1-2 0.052 0.047 0.032 0.054 0.040 0.066** 0.020 0.045*

(1.19) (1.16) (1.15) (1.96) (1.27) (3.14) (0.69) (1.97)

School-age children:3-4 0.044 0.023 -0.011 0.072* 0.086 0.095* 0.026 0.059

(1.02) (0.50) (-0.36) (2.27) (1.67) (2.27) (0.61) (1.43)

School-age children:5-6 0.090 -0.086 -0.013 0.021 0.091 0.157 0.063 0.093

(1.94) (-1.16) (-0.32) (0.47) (1.04) (1.60) (0.83) (1.21)

Proportion of economically active

0.268*** -0.098 0.081 0.108 0.102 0.133** 0.129 0.135**

(3.31) (-1.14) (1.64) (1.96) (1.37) (3.10) (1.89) (2.64)

Household head:

Age 0.003** 0.003** 0.001 0.003*** 0.001* 0.001** 0.000 0.002***

(2.94) (2.74) (1.33) (4.37) (2.12) (2.77) (0.12) (4.76)

Female 0.142*** 0.095** 0.034 0.088*** 0.047 0.044** 0.061** 0.068***

(5.04) (3.16) (1.68) (4.44) (1.89) (2.80) (2.61) (4.25)

Household head's

education:

Primary level 0.044 0.032 0.030 0.056* 0.013 -0.025 -0.073** 0.013

(1.18) (0.77) (1.22) (2.17) (0.36) (-1.34) (-2.59) (0.45)

Secondary level. 0.189*** 0.183*** 0.172*** 0.198*** 0.069* 0.037* 0.112*** 0.134***

(6.31) (5.67) (8.40) (9.38) (2.27) (1.96) (4.25) (6.24)

Higher levels. 0.280*** 0.301*** 0.185*** 0.167*** 0.153** 0.144** 0.342*** 0.271***

(11.91) (10.12) (8.43) (6.43) (2.89) (3.28) (6.98) (6.17)

Residence:

Rural -0.043 -0.017 -0.046 -0.009 0.021 -0.009 -0.099*** -0.026

(-1.12) (-0.42) (-1.91) (-0.35) (0.92) (-0.48) (-4.22) (-1.47)

138

Table 5.7 cont.:

Administrative region:

Western 0.148** 0.054 0.085** 0.015 -0.080*** -0.046*** -0.079** -0.027

(3.19) (0.85) (2.71) (0.35) (-4.81) (-3.95) (-2.60) (-0.93)

Central 0.096 0.003 0.089* -0.103* -0.088*** -0.013 -0.092** -0.055*

(1.73) (0.05) (2.54) (-2.08) (-6.70) (-0.50) (-3.06) (-2.20)

Greater Accra 0.103 -0.024 0.016 -0.071 -0.062* -0.055*** -0.052 -0.034

(1.76) (-0.37) (0.34) (-1.56) (-2.35) (-4.28) (-1.52) (-1.27)

Volta 0.084 -0.017 0.023 0.065 -0.082*** -0.043*** -0.091** -0.047

(1.60) (-0.25) (0.66) (-1.53) (-4.83) (-3.55) (-3.07) (-1.81)

Eastern 0.191*** 0.092 0.037 0.043 -0.086*** -0.050*** -0.119*** -0.060**

(4.84) (1.53) (1.05) (1.09) (-6.07) (-4.89) (-4.79) (-2.58)

Ashanti 0.110* 0.071 0.073* 0.001 -0.099*** -0.062*** -0.064* -0.022

(2.23) (1.24) (2.29) (0.04) (-5.91) (-5.09) (-2.07) (-0.78)

Brong Ahafo 0.123** -0.017 0.039 0.046 -0.038 -0.047*** -0.065* -0.037

(2.78) (-0.28) (1.14) (1.21) (-1.22) (-3.83) (-1.96) (-1.29)

Northern -0.126* -0.307*** -0.011 -0.137*** 0.006 -0.027 -0.031 0.035

(-2.04) (-4.34) (-0.35) (-3.36) (0.13) (-1.29) (-0.87) (0.90)

Upper East -0.027 -0.073 0.041 -0.029 -0.089*** 0.015 0.000 0.053

(-0.47) (-1.05) (1.30) (-0.72) (-5.46) (0.42) (-0.00) (1.13)

No. of observations 1447 1525 2887 2906 1121 1389 2369 2582

Observed Pr(attendance) 0.679 0.643 0.720 0.702 0.155 0.125 0.226 0.192

Predicted Pr(attendance) 0.734 0.669 0.771 0.740 0.083 0.050 0.176 0.114

LR chi2(27) 427.6 425.8 684.7 731.0 274.0 325.4 543.9 676.9

Pseudo R2 0.235 0.214 0.200 0.207 0.283 0.311 0.215 0.268

Prob > chi2 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

Log likelihood -694.7 -781.3 -1370.1 -1404.7 -346.9 -361.4 -993.5 -923.4

Source: 2003 and 2008 Ghana Demographic Health Surveys; own calculations

1. z statistics are given within parentheses

2. Significant levels: * p<0.1, ** p<0.05, *** p<0.01

3. Each marginal effect (change in the dummy from 0 to 1) is evaluated at the means of all other regressors.

In 2008, an increase in household head's educational attainment level from secondary to

higher levels increases the probability of primary school attainment from 17.2% to 18.5%

for male age cohort and 19.8% to 18.7% for female age cohort(see Table 5.7). These

results indicate that there is no marked gender inequality in primary school completion

(attainment) based on the level of education attained by household heads. However, there

is an indication that the higher the level of the household head educational attainment the

more likely both male and female children are in completing primary education. This

finding corroborates with previous literature (Alderman and King 1998; Glick and Sahn

2000; Sackey 2007; Lloyd and Blanc 1996; Mani et al. 2009; Bbaale and Buyinza 2013).

Female household heads also impact positively on primary school attainment by both male

and female children (Table 5.7).

139

5.3.2.2 Secondary education attainment

Considering secondary school attainment, Table 5.7 indicates that the marginal effect of

wealth distribution on secondary school attainment of both male female age cohorts is

statistically significant at fourth and fifth wealth quintile levels in 2003 and also at third,

fourth and fifth wealth quintile levels in 2008. Thus, a movement in wealth distribution of

households from fourth wealth quintile (richer households) to the fifth wealth quintile

(richest households) increases the probability of secondary school completion from 30.2%

to 44.7% for male age cohort, and from 11.5% to 25.2% for female age cohort (Table 5.7).

This effect is only statistically significant at the higher income levels and the resultant

gender inequality in secondary school attainment or completion favours the male age

cohort.

However, in 2008 the disparity in the secondary school completion appears to favour the

female age cohort. That is, the marginal effect of moving from the third quintile (middle

welfare group or relatively poor households) to the fifth quintile (richest household)

increases the probability of secondary school completion from 12.2 to 31.5 percentage

points for male age cohort and 13.0 to 37.5 percentage points for female age cohort for the

same level of wealth distribution (Table 5.7). These results support the descriptive analysis

in Section 5.2 based on Tables 5.4 and 5.5. In addition, the findings are consistent with the

findings at the primary education attainment level which further support the assumption

that growth in household wealth or income will increase the probability of education

attainment by female children. The plausible explanation given for this effect is that

wealthy households can afford to hire help for childcare and other household work that

negatively affect the schooling outcomes of female children from poor households. In

addition, as household income levels increase, the wealth effect will disproportionately

benefit female children’s education by relaxing the time constraints that female children

face (Appleton 1995; Glick and Sahn 2000).

Household head educational attainment level also has statistical significant marginal effect

on secondary education attainment of both male and female age cohorts. The significant

marginal effect is observed at higher levels of household head educational attainment

(secondary and higher levels). Educational attainment by households at secondary and

higher levels increases the probability of male age cohort’s secondary school attainment by

6.9% and 15.3%, respectively in 2003 compared to household heads with no education.

Considering the female age cohort, the results in Table 5.7 show that household heads with

secondary and higher levels of education attained, increase the probability of female age

140

cohort’s secondary education attainment by 3.7% and 14.4%, respectively in 2003

compared to household heads with no education. In 2008 an increase in household head's

educational attainment level from secondary to higher levels increases the probability of

secondary school attainment from 11.2% to 34.2% for male age cohort and 13.4% to 27.1%

for female age cohort. These results indicate that higher levels of educational attainment by

household heads are more likely to favour secondary education attainment of male age

cohorts than the female age cohorts. Again, there is evidence that the higher the level of the

household head educational attainment, the higher the probability of both male and female

children residing in the household will be completing secondary education. This finding

once again is consistent with the findings in the literature (Alderman and King 1998; Glick

and Sahn 2000; Sackey 2007; Mani et al. 2009; Bbaale and Buyinza 2013).

In addition to household wealth distribution and household head education attainment

levels, our findings also reveal the importance of other factors that can influence the

disparity in educational outcomes of male and female children in Ghana. These factors

include the number of under-six year old children in the household and independence of

women in taking key household decisions (proxied by female headed households). For

example, in 2008 the number of under-six year old children from 1-2 and 3-4 reduces the

probability of; primary school completion of female age cohorts from 7.3% to 18.7%

respectively, and secondary school completion of female age cohorts from 4.0% to 7.6%,

respectively. The effect of the presence of under-six year old children on education

attainment of male age cohorts, on the other hand, was either statistically insignificant or

weakly significant (see Table 5.7). These findings corroborate the findings in the previous

literature (Lloyd and Blanc 1996; Alderman and King 1998; Glick and Sahn 2000). For

example, Glick and Sahn (2000) find that the number of under-five year olds has stronger

negative effect on female children’s educational outcomes but no statistical significant

effect on male children’s educational outcomes in Conakry, Guinea.

5.3.3 Robustness check

The same robustness test which we undertook in Chapter 4 was carried out in this chapter

to test the results reported in Tables 5.6 and 5.7. The results obtained by estimating

different version of the model with the inclusion of dummy variables for: religion (no

religion, Christianity, Muslim, and Traditional religion); ethnicity (Akan, Ga/Dangme,

Ewe, Guan, Mole/Dagbani, Grussi, Gruma, and Hausa/Mande) and resource control

(household spending) were highly statistically insignificant and did not change the stability

141

of the final results reported in Tables 5.6 and 5.7. Furthermore, we also carried out linktest

and none of the linktest result (hatsq) is statistically significant.23

Thus the link test reveals

no problems with our specification since the prediction squared does not have explanatory

power. We check our model against the theories of determinants of educational inequality

to make sure that our model is valid based on the theoretical underpinnings of educational

disparity between male and female children, especially in developing countries.

5.4 Policy perspective

Our analysis of educational access and attainment by gender provides a consistent picture

of the importance of household wealth, female household head, household head education

and household composition as factors in schooling decisions. First, the estimates suggest

that growth in household wealth or incomes will raise schooling investments for both

female and male school children but a bit faster for girls than for boys and could have

equalising effect in educational access and attainment. Therefore, policies that raise

household wealth or incomes will, in general, increase gender equity in schooling. Though

this will also depend on whether and how these policies change the relative opportunity

costs of female and male children and the relative labour market returns to female and

male schooling. Such policies, of course, would also have direct benefits for overall

household welfare.

On the other hand, policies that focus specifically on education may be more effective in

increasing educational access and attainment at primary and secondary levels for both

female and male children. However, education interventions targeted specifically at female

children would have beneficial impacts on the gender schooling inequality and these

impacts would be compounded intergenerationally. This can be inferred from the average

effect of female household head and education of household head on the probability of

increase in educational access and attainment of female children. For example, increasing

23

Primary school attendance of boys, hatsq: p = 0.225 in 2003 and p = 0.198 in 2008

Primary school attendance of girls, hatsq: p = 0.916 in 2003 and p = 0.168 in 2008

Secondary school attendance, hatsq: p = 0.600 in 2003 and p = 0.899 in 2008

Secondary school attendance, hatsq: p = 0.086 in 2003 and p = 0.220 in 2008

Primary school completion of boys, hatsq: p = 0.573 in 2003 and p = 0.812 in 2008

Primary school completion of girls, hatsq: p = 0.097 in 2003 and p = 0.120 in 2008

Secondary school completion, hatsq: p = 0.125 in 2003 and p = 0.365 in 2008

Secondary school completion, hatsq: p = 0.703 in 2003 and p = 0.204 in 2008

Where = .05 (significance level)

142

access to both primary and secondary education for female children now is equivalent to

raising the schooling of mothers and household heads in the next generation. Thus, there

are intergenerational increasing returns for education equity to improvements in female

schooling. However, it would hardly be wise to suggest that all education efforts be

directed at female children. Therefore, policies to promote gender equity in education

generally (instead of targeting female education only) will also serve to reduce future

gender gaps in schooling outcomes of male children.

With regard to the opportunity costs of education, we can infer from our analysis (based on

the impact of the presence of under-six year olds) that female children of school-age may

be constrained in their schooling in part by the demands placed on their time. These

constraints may be derived from parental or household head beliefs about female children’s

roles in the household economy in Ghana as well as other developing countries. Although

removing the constraints will be a difficult task for policy, in the long run, parental

attitudes may change with education, and increased availability of market substitutes for

domestic work and changes in home technology (the use of electricity, refrigerators,

washing machines etc.) could reduce households’ dependence on the labour of female

children (Schultz 1993 cited in Glick and Sahn 2000).

Government can also directly address the issue of opportunity cost of female children’s

education. For example, free or subsidised childcare in community day-care centres near

women’s places of work is often proposed as a way to reduce the time burden of working

mothers, but it may also be a means of reducing the opportunity cost of female children’s

time, thereby increasing their school attendance and completion rates. Promotional

campaigns to raise the parental awareness of non-market benefits of investing in female

education, such as improved child survival and health could be another avenue for policy

consideration (Glick and Sahn 2000).

5.5 Conclusions

This chapter presented an analysis of the impact of wealth distribution and other

determinants on gender inequality in educational outcomes in Ghana. We used data drawn

from 2003 and 2008 GDHS datasets to estimate a binary probit regression model that

captures the determinants of gender inequality in educational access and attainment.

Whereas the results show that increase in household wealth increases probability of

children's educational outcomes, it is not without inclination. There is evidence from both

143

the descriptive and regression analysis that gender specific differences in educational

outcomes of children decline with increasing household wealth and household head

educational attainment level and reflect resource constraints among the poor households

which corroborates the findings of Parish and Willis (1993).

Furthermore, at higher wealth distribution levels, household wealth tends to favour female

children's educational access and attainment. This suggests that income levels of

households are an important determinant of gender inequality in educational outcomes in

Ghana. It also appears that the government of Ghana's intended pro-poor education policy

interventions (SCG and SFP) did not reduce the significance of the impact of household

wealth on children's primary school attendance and completion. In addition, we also found

that the higher the household head's educational attainment level (secondary and higher

levels) the more likely female children will have access to and attain primary and

secondary education.

144

Appendix A5: t-test of difference in means of male and female educational outcomes

Table A5.1: Primary Net Attendance Rate 2003

Variable N Mean Std. Err. Std. Dev. [95% Confidence Interval]

Male 2492 61.20 0.98 48.70 59.29 63.11

Female 2257 59.80 1.03 49.00 57.78 61.82

Combined 4749 60.53 0.71 48.84 59.15 61.92

Diff 1.40 1.42 -1.38 4.18

diff = mean(x) - mean(y) t = 0.99

Ho: diff = 0 degrees of freedom = 4747

Source: 2003 Ghana Demographic Health Survey; own calculations

Table A5.2: Primary Net Attendance Rate 2008

Variable N Mean Std. Err. Std. Dev. [95% Confidence Interval]

Male 4015 73.40 0.70 44.2 72.03 74.77

Female 3819 74.10 0.71 43.8 72.71 75.49

Combined 7834 73.74 0.50 44.00 72.77 74.72

Diff -0.70 0.99 -2.65 1.25

diff = mean(x) - mean(y) t = -0.70

Ho: diff = 0 degrees of freedom = 7832

Source: 2008 Ghana Demographic Health Survey; own calculations

Table A5.3: Secondary Net Attendance Rate 2003

Variable N Mean Std. Err. Std. Dev. [95% Confidence Interval]

Male 2033 33.90 1.05 47.30 31.84 35.96

Female 1885 35.60 1.10 47.90 33.44 37.76

Combined 3918 34.72 0.76 47.59 33.23 36.21

Diff -1.70 1.52 -4.68 1.28

diff = mean(x) - mean(y) t = -1.12

Ho: diff = 0 degrees of freedom = 3916

Source: 2003 Ghana Demographic Health Survey; own calculations

Table A5.4: Secondary Net Attendance Rate 2008

Variable N Mean Std. Err. Std. Dev. [95% Confidence Interval]

Male 3367 42.40 0.85 49.4 40.73 44.07

Female 3299 42.90 0.86 49.5 41.21 44.59

Combined 6666 42.65 0.61 49.45 41.46 43.83

Diff -0.50 1.21 -2.87 1.87

diff = mean(x) - mean(y) t = -0.41

Ho: diff = 0 degrees of freedom = 6664

Source: 2008 Ghana Demographic Health Survey; own calculations

145

Table A5.5: Primary Completion Rate 2003

Variable N Mean Std. Err. Std. Dev. [95% Confidence Interval]

Male 1455 72.80 1.17 44.50 70.51 75.09

Female 1530 68.20 1.19 46.60 65.86 70.54

Combined 2985 70.44 0.84 45.64 68.80 72.08

Diff 4.60 1.67 1.33 7.87

diff = mean(x) - mean(y) t = 2.76*

Ho: diff = 0 degrees of freedom = 2983

Source: 2003 Ghana Demographic Health Survey; own calculations

* Statistically significant

Table A5.6: Primary Completion Rate 2008

Variable N Mean Std. Err. Std. Dev. [95% Confidence Interval]

Male 2903 76.20 0.79 42.6 74.65 77.75

Female 2921 73.70 0.81 44 72.10 75.30

Combined 5824 74.95 0.57 43.32 73.83 76.06

Diff 2.50 1.13 0.28 4.72

diff = mean(x) - mean(y) t = 2.20*

Ho: diff = 0 degrees of freedom = 5822

Source: 2008 Ghana Demographic Health Survey; own calculations

* Statistically significant

Table A5.7: Secondary Completion Rate 2003

Variable N Mean Std. Err. Std. Dev. [95% Confidence Interval]

Male 1128 16.20 1.10 36.90 14.04 18.36

Female 1398 13.50 0.91 34.20 11.71 15.29

Combined 2526 14.71 0.71 35.45 13.32 16.09

Diff 2.70 1.42 -0.08 5.48

diff = mean(x) - mean(y) t = 1.90

Ho: diff = 0 degrees of freedom = 2524

Source: 2003 Ghana Demographic Health Survey; own calculations

Table A5.8: Secondary Completion Rate 2008

Variable N Mean Std. Err. Std. Dev. [95% Confidence Interval]

Male 2393 24.90 0.88 43.2 23.17 26.63

Female 2601 21.10 0.80 40.8 19.53 22.67

Combined 4994 22.92 0.59 42.01 21.76 24.09

Diff 3.80 1.19 1.47 6.13

diff = mean(x) - mean(y) t = 3.20*

Ho: diff = 0 degrees of freedom = 4992

Source: 2008 Ghana Demographic Health Survey; own calculations

* Statistically significant

146

Chapter 6

Socioeconomic inequality in educational access and attainment in Ghana

6.1. Introduction

Who benefits from educational expansion and education policies and programmes in

Ghana? It has been argued that most of the education reforms developed to improve

educational efficiency in developing countries mainly focus on changing the educational

systems (Chowa et al. 2013). The 1987 Ghana education reforms is regarded as one of

such reforms where policy planners generally recommend revising the curriculum,

reducing the number of pre-university years of education, increasing the number of schools,

and distributing educational materials more widely and equitably to improve educational

outcomes (Akyeampong et al. 2007; Chowa et al. 2013) . For example, the 1987 education

reforms set out measures to improve access to basic education, equity in the education

sector, improve quality and efficiency. One of the main objectives of the reforms is to

expand education and make educational access more equitable at all levels in Ghana

(Akyeampong et al. 2007).

However, the implementation of the education programmes may have overlooked the role

of households’ socioeconomic factors in shaping the academic trajectories of income

groups in Ghana. This may contribute to socioeconomic inequality in educational access

and attainment. It has also been argued that although Ghana has implemented School

Capitation Grant, School Feeding Programme, and enforced the laws that support the

implementation of Free Compulsory Universal Basic Education, poor households still

struggle with; additional costs (including transportation, text books, and uniforms) of

sending children to schools, and child labour which disproportionately affects children

from poor households (Chowa et al. 2010).

This chapter, therefore, gives us insight into whether public social spending programmes

that the country has embarked upon have impacted positively on the income-poor

households in terms of educational access and attainment, and whether educational

inequalities have improved between 2003 and 2008. The contribution of this chapter is to

estimate the contributions of socioeconomic factors to inequality in educational access and

attainment in Ghana, using a concentration index framework. Measuring socioeconomic

inequalities in educational access and attainment is very important in assessing an

educational system. However, potentially interesting from policy perspective is to identify

and explain the sources of educational access and attainment inequality. The objective of

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this chapter is, therefore, to quantify for the first time the contributions of the determinants

of educational inequality to socioeconomic inequality in children’s educational access and

attainment in Ghana by applying concentration index methodology used by Wagstaff et al.

(1991), and Wagstaff et al. (2003) in health economics research.

The empirical questions we seek to address are: What are the main contributing factors of

educational inequalities?; What is the change in educational inequality over time (between

2003 and 2008)?; and Has the relatively sustained economic growth in Ghana for the past

decade, and educational expansions impacted positively on educational inequalities?

The rest of the chapter is structured as follows. Section 6.2 describes the concept of

concentration index for analysing socioeconomic inequality and its application in the area

of education inequality research, focusing on the decomposition of the sources and

contributions of determinants of educational inequalities. The section also includes an

extension of the concentration index approach to analyse and explain changes in

educational inequalities. Section 6.3 presents and discusses decomposition results, and

Sections 6.4 concludes the chapter.

6.2 Models

6.2.1 Measuring education inequality

Various measures have been proposed and used to measure educational inequality in both

within country and cross country studies. Common among them are: Education Standard

Deviation and Coefficient of Variation of Schooling (Zhang and Li 2002; SITEAL 2005);

Gini Coefficient or Education Gini Index (Maas and Criel 1982; Thomas et al. 2001;

Zhang and Li 2002; SITEAL 2005; Sahn and Younger 2007); and Generalised Entropy

indices and Atkinson Index (Thomas et al. 2001; SITEAL 2005; Sahn and Younger 2007).

Least known and used in education inequality measurement is Concentration Index

(SITEAL 2005; Oppedisano and Turati 2012), but widely used in health inequality

measurement. These indices, however, have their advantages and disadvantages in

measuring education inequality.

Gini Coefficient/Education Gini Coefficient

The Gini Coefficient is a single statistic measure that can be used to summarise relative

inequality across all groups in the population. Though, it is commonly used to measure

inequality between income groups, it is also used to measure education inequality among

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individuals. For example, Education Gini Coefficient is used to measure education

inequality based on enrolment ratios, educational attainment (average years of schooling)

and education finance (Maas and Criel 1982; Thomas et al. 2001; Zhang and Li 2002;

SITEAL 2005; Sahn and Younger 2007). Although the Education Gini Coefficient is

sensitive to the distribution of the population between social groups and has good

statistical properties (Pigou-Dalton transfer sensitivity, scale invariant, bounded between

0 and 1) it has its own limitations. 24

The index does not reflect the socioeconomic

dimensions of inequalities in education and also does not tell us which social groups are

disadvantaged. Again, the Education Gini Coefficient is computed on individual data and

measures only the inequality between individuals but not inequality between social groups

(d' Hombres 2010). Most importantly, it lacks the property of additive decomposition and,

therefore, cannot be used to determine the sources of educational inequalities.

Generalised Entropy Indices and Atkinson Indices

The indices can be used to measure inequality in education. These indices have the

property of additive decomposition between and within selected groups. Although it is

possible to decompose the overall inequality among individuals into two components;

between social groups, and within social groups indices, and have good statistical

properties (Pigou-Dalton transfer sensitivity, and scale invariant), the indices are limited

for the purpose of this research. Just like the Education Gini Coefficient, the indices: (i) do

not reflect the socioeconomic dimension of inequalities in education, (ii) do not tell us

which social or income groups are disadvantaged, and (iii) cannot be used to determine the

sources of educational inequalities, which is one of the main policy foci of this thesis.

6.3 Concentration Index

Since the two popular indices reviewed above are not able to determine the sources and the

contributions of the sources to educational inequalities (which are the main objectives of

Chapter 6), we prefer to use a concentration index as our measure of both absolute and

relative socioeconomic-related inequality in access to education and attainment of

24 - Principle of transfers (Pigou-Dalton condition), says that a transfer of income from a richer to a poorer

individual will result in a reduction in the indicator of disparity, assuming that the income of other

individuals remains unchanged and the transfer is not large enough to reverse anyone’s relative position.

- Scale independence, says that if the value of the education indicator doubles for each of the equity groups,

the value associated with the inequality indicator does not change.

- Boundness of the indicator, states that the interpretation of the value assigned to the inequality indicator will

be easier if this indicator has a lower bound and an upper bound.

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education in Ghana. The concentration index has been used widely in health economics

research and the index can shed light on the pro-poor and pro-rich distributions of

determinants of a given dependent variable. It is calculated in similar way as the Gini

Coefficient but its values range from -1 to +1. As argued by d' Hombres (2010), the

concentration index is a good measure of socioeconomic inequalities in education. The

favourable properties of concentration index make the index more appropriate to apply in

the estimation and decomposition of educational inequalities among income groups. The

index can be used for both individual data and data aggregated by income group, and it can

also provide a summary index of education inequalities. Besides, it can reflect the

socioeconomic dimension of inequalities in education, and there is the possibility to adjust

the index for the effect of other confounding factors of the determinants of educational

inequalities (d' Hombres 2010; Oppedisano and Turati 2012). Furthermore, the index has

good statistical properties (Pigou-Dalton transfer sensitivity, scale invariant, and bounded

between -1 and +1), sensitive to the proportion of the population in each group, and it is

capable of revealing the sources contributing to a given inequality (Wagstaff et al. 2003;

van Doorslaer et al. 2004; Oppedisano and Turati 2012).

Most importantly, the concentration index is sensitive to the direction of social gradient in

education and as a result, it can measure how educational status varies with socioeconomic

position (d' Hombres 2010; Oppedisano and Turati 2012). Also, the index can be derived

from an estimate in multivariate context and this makes it possible to control for factors

that may simultaneously correlate with educational outcomes and the income groups to

which the individual belongs. However, the concentration index is not without limitations.

The value of the index does not change if the living standard variable (income or wealth)

changes and the income or welfare group must be defined on an interval scale (d' Hombres

2010; Wagstaff et al. 2003; Wagstaff and Watanabe 2003).

The above desirable qualities of the concentration index make the it, probably, the more

appropriate educational inequality measure among others (such as Education Gini

Coefficient, Generalised Entropy Indices and Atkinson Indices) considered to examine the

sources of educational inequalities which is one of the main objectives the thesis. As a

result, the concentration index model is used to estimate and decompose socioeconomic

inequality in educational access and attainment in Ghana. The use of the model is to reveal

the main sources of educational inequalities, the contributions of the sources to educational

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inequalities. The application of concentration index is vital in revealing any inequality in

the distribution of educational access and attainment among households.

In contrast to the comparative literature on socioeconomic inequalities in health where

concentration index methodology is extensively applied (Wagstaff et al. 1991; Wagstaff

2002; Wagstaff and Watanabe 2003; Doorslaer and Koolman 2004; Doorslaer and Jones

2004), the focus in this thesis is on the application of the concentration index framework to

analyse education inequalities in Ghana. To the best of our knowledge, this study

constitutes the only first attempt to quantify and decompose educational inequalities

among the school going-age children (6-17 year olds) in Ghana using concentration index

approach.

6.3.1 Concentration index approach

This section illustrates the application of concentration index in measuring inequality in

educational access and attainment. We use a concentration index as our measure of relative

socioeconomic-related inequality in access to education, and attainment of education in

Ghana. The concentration index is widely used in the area of health economics research

(Wagstaff et al. 1991; Wagstaff 2002; Wagstaff and Watanabe 2003; Wagstaff et al. 2003).

Although the use of the index is relatively new to inequality measurement in education,

SITEAL ( 2005) apply the technique to estimate education concentration indices in Chile

and Costa Rica. Oppedisano and Turati (2012) also used the methodology to measure and

decompose inequality in educational performance (reading score) in Europe. However, in

Ghana and Africa, there is no known published research which has used the methodology

to measure educational inequality. This study follows the methodology used by Wagstaff

et al. (2003) and we apply it to estimate and decompose socioeconomic inequality in

education in Ghana. We quantify the degree to which educational access (school

attendance) and attainment (school completion) are unequally distributed to the

disadvantage of poor children and the extent to which the inequalities in education are

more or less pronounced over time in Ghana. The use of the model is to reveal the main

sources of educational inequalities, and the contributions of determinants of educational

inequalities. The application of concentration index is vital in revealing any inequality in

the distribution of educational access and attainment among households.

In contrast to the comparative literature on socioeconomic inequalities in health where

concentration index methodology is extensively applied (Wagstaff et al. 1991; Wagstaff

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2002; Wagstaff and Watanabe 2003; Doorslaer and Koolman 2004; Doorslaer and Jones

2004), the focus of the chapter is on the application of the concentration index framework

to analyse education inequalities. To the best of our knowledge, this study constitutes the

only first attempt to estimate and decompose educational inequalities among the school

going-age children (6-17 year olds) in Ghana using concentration index approach.

The concentration index is standardised and its value ranges between -1 (more educational

outcomes concentrated among the poor) and +1(more educational outcomes concentrated

among the rich). When the index is zero, it implies everyone enjoys, for example, the same

educational access and attainment irrespective of one's living standards or household

wealth. The application of concentration index model is designed to address two main

objectives: firstly, to estimate the effect of socioeconomic inequality in education of school

going-age children (6-17 year olds) using households’ economic status thereby to calculate

the contribution of the key explanatory factors to the total explained inequalities by

performing the decomposition of concentration index. Keeping this in mind, the second

objective is to compare the educational inequalities and its contributory factors over time

(between 2003 and 2008).25

By estimating the impact and the degree of contribution of

each determinant to the inequality in educational access and attainment could aid an

effective policy intervention to reduce educational inequalities in Ghana.

6.3.2 Empirical specification

Following the approach used by Wagstaff et al. (1991 & 2003), the concentration index (C)

can be mathematically expressed as follows:

𝐶 =2

𝑛𝜇∑ 𝑦𝑖𝑅𝑖

𝑛

𝑖=1

− 1, 6.1

where 𝑦𝑖 is the education variable (e.g. educational access and attainment) whose

inequality is being measured, µ is the mean of 𝑦𝑖, 𝑅𝑖 is the ith individual’s fractional rank

in the socioeconomic or living standard distribution (e.g. the individual’s rank in the

wealth distribution), and n is the number of individuals. C, like the Gini coefficient, is a

measure of relative inequality. C can take on values between -1 and +1, depending on

whether inequalities favour the poor or the rich in the society. Its negative values imply

25

These two periods represent GDHS years. The 2003 and 2008 GDHS are comparable because the DHS has

standard survey questionnaires that are comparable over periods. The 2003 GHDS questionnaire on

education indicators and household characteristics are the same as that of 2008 GDHS. Again, these periods

enable us to capture the impacts of the Ghana government’s educational policies (CGI and SFP) which were

implemented in 2005. We use 2003 as a base year (i.e. a year before the implementation of the “anti-poverty

educational” programmes) to capture the impacts of the programmes on educational inequalities in 2008.

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that a variable is concentrated among the poor or disadvantage people and vice versa.

When there is no inequality, the C will be zero.

However, for convenient computation of the concentration index, the concentration index

can be defined in terms of the covariance between the dependent variable and the fractional

rank in the living standards distribution (O’Donnell et al. 2008; d' Hombres 2010).

According to O’Donnell et al. (2008) “convenient covariance” formula can be stated as:

𝐶 =2

𝜇𝑐𝑜𝑣(𝑦, 𝑅) 6.2

In our application, y is the education variable (e.g. educational access and attainment)

whose inequality is being measured, µ is the mean of y, and R is the fractional ranking by

welfare level or economic status of individuals. Thus, C can be computed from micro-data

by using Equation 6.3. Given the relationship between covariance and ordinary least

squares regression (OLS), an equivalent estimate of the concentration index can be

obtained from a “convenient regression” by transforming the education variable of interest

on the fractional rank in the living standards distribution ( d' Hombres 2010).

The “convenient regression” formula is given as:

2𝜎𝑟2 (𝑦𝑖

𝜇) = 𝛼 + 𝛽𝑟𝑖 + 𝛿𝑥𝑖휀𝑖, 6.3

Where 𝜎𝑟2 is the variance of the fractional rank variable (income or wealth), the OLS

estimate of β is then equivalent to C in Equation 6.2, and 𝑥𝑖 is a set of covariates to control

for potential confounding effects.26

The regression approach facilitates the decomposition

of the degree of inequality into the contributions of different explanatory variables under

investigation (O’Donnell et al. 2008). Thus, from Equation 6.3 we can explore whether a

given education system is unequal based on income or wealth distribution. For instance, an

education system will be unequal if children with different socioeconomic status are

characterised by unequal access to education (𝑦𝑖). The concentration index decomposition

approach is explored in the next sub-section.

6.3.4 Decomposition of inequality and its evolution over time

Inequalities across income or wealth distribution in a variable 𝑦𝑖 can be decomposed into

their sources or determinants. Changes in inequality in 𝑦𝑖 can also be decomposed into the

effects of changes in the means and inequalities in the determinants of 𝑦𝑖, and changes in

the elasticities (impacts) of the determinants of 𝑦𝑖. The method used by Wagstaff et al.

26

If 𝑥𝑖 is simultaneously correlated with 𝑦𝑖 the estimated β will capture the effect of socioeconomic status on

education and also the impact of the other covariates, 𝑥𝑖 (d' Hombres 2010:30).

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(2003) in analysing health inequality is adopted to decompose socioeconomic inequality in

school attendance and completion into their determinants. The decomposition analysis

allows us to estimate how determinants proportionally contribute to inequality (e.g. the gap

between the poor and the rich at a point in time and over a period of time) in a given

education variable.

6.3.4.1 Decomposition of inequality by socioeconomic determinants

For policy purposes, it is important to quantify the contributions of various determinants of

education indicators to their degrees of inequality and impact on socioeconomic inequality.

The decomposition indicates how each determinant’s contribution to total education

inequality ( 𝑦𝑖) can be decomposed into two parts: (i) its impact on education, measured

by the education elasticity (𝜂𝑘), and (ii) its degree of unequal distribution across income

groups, measured by the concentration index (𝐶𝑘). The decomposition method, therefore,

not only allows us to separate the contributions of the various determinants of a given

education variable, but also to identify the importance of each of the two components

within each factor’s contribution. Thus, the concentration index decomposition

methodology makes it possible to disaggregate the mechanisms contributing to a country’s

degree of education inequality.

The decomposition method is based on the linear additive relationship between the

outcome variable yi, the intercept α, the relative contributions of xki determinants and the

residual error 휀𝑖 in Equation 6.4. Following Wagstaff et al. (2003), any linear regression

model linking dependent variable (e.g. education indicator of interest), 𝑦𝑖 to a set of k

education determinants, xk can be specified as:

𝑦𝑖 = 𝛼 + ∑ 𝛽𝑘

𝑘

𝑥𝑘𝑖 + 휀𝑖 , 6.4

Where α and 𝛽𝑘 are coefficients to be estimated and εi is a standard random disturbance

term. It is assumed that everyone in the selected sample, irrespective of their income or

household wealth faces the same coefficient vector, 𝛽𝑘 . Interpersonal variations in 𝑦𝑖 are,

thus, assumed to derive from systematic variations across income groups in the

determinants of 𝑦𝑖, that is the 𝑥𝑘 (Wagstaff et al. 2003). One could consider Equation 6.4

as a reduced form of demand for educational outcomes (i.e. educational access, and

educational attainment) equation where the x variables are exogenous determinants.

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6.3.4.2 Decomposition of concentration index

The decomposition of concentration indices is aimed at generating useful information

regarding the relative importance of various determinants of inequitable outcomes of the

dependent variable of interest. Given the relationship between 𝑦𝑖 and 𝑥𝑘𝑖, it is now possible

to decompose the concentration index of 𝑦𝑖 by using the means and the concentration

indices of the determinants. Consequently, from Equation 6.4, the relationship between 𝑦𝑖

and 𝑥𝑘𝑖, the concentration index for 𝑦𝑖, can be written as:

𝐶 = ∑ (𝛽𝑘�̅�𝑘

𝜇) 𝐶𝑘

𝑘

+𝐺𝐶𝜀

𝜇, 6.5

Where µ is the mean of 𝑦𝑖, �̅�𝑘 is the mean of 𝑥𝑘 , and 𝐶𝑘 is the concentration index for 𝑥𝑘.

The elasticity, (𝛽𝑘�̅�𝑘/𝜇) estimates the impact of each determinant on dependent variable

(educational outcome), and the degree of unequal distribution of each determinants across

income groups is measured by 𝐶𝑘. In the last term, 𝐺𝐶𝜀 is a generalised concentration index

for 휀𝑖, defined as:

𝐺𝐶𝜀 =2

𝑛∑ 휀𝑖𝑅𝑖

𝑛

𝑖=1

, 6.6

Equation 6.5 shows that C can be thought of as being made up two components. The first

is the deterministic component, equal to the concentration indices of the k regressors,

weighted by the elasticity of 𝑦𝑖 with respect to 𝑥𝑘 (evaluated at the sample mean). In other

words, (𝛽𝑘�̅�𝑘/𝜇)𝐶𝑘, is the absolute contribution of each determinant of the concentration

index for 𝑦𝑖. The residual component (Equation 6.6) reflects the inequality in educational

access and attainment that is not explained by systematic variations across income groups

in the determinants of outcomes, 𝑥𝑘 . Empirically, the residual can be obtained as the

difference between the concentration index of the dependent variable, 𝑦𝑖 and the sum of

the factor contributions (i.e. Σ (𝛽𝑘�̅�𝑘/𝜇)𝐶𝑘) (O’Donnell et al. 2008). However, the problem

in this context is that demand for educational outcomes we are interested in (school

attendance, and completion) are binary response variables from the DHS datasets and,

therefore, may not be very well modelled using linear estimation techniques such as OLS.

An examination of the variables reveals that the dependent variables are binary taking the

value of 0, or 1. In the section below we explain how we have been to change the linear

model in Equation 6.4 to the non-linear model specified in Equation 6.7.

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6.3.5 Non-linear regression model

The concentration index decomposition model was first introduced to use with a linear

health sector variables (Wagstaff et al. 2003). However, because health sector variables are

intrinsically non-linear, an appropriate statistical technique for non-linear settings was

proposed by van Doorslaer et al. (2004). The two common choices yielding probabilities in

the range (0, 1) are the logit and the probit models, both of which are fitted by maximum

likelihood. Since we are dealing with a discrete change from 0 to 1 (i.e. attended school or

not, completed school or not) we can conveniently use marginal or partial effects (dh/dx),

which give the change in predicted probability associated with unit change in an

explanatory variable. An approximation of the non-linear relationship using marginal

effects approximately restores the mechanism of the decomposition framework in

Equations 6.4 through 6.7 (Yiengprugsawan et al. 2007). Consequently, a linear

approximation of the non-linear estimations is given by Equation 6.7, where 휀𝑖 indicates

the error generated by the linear approximation used to obtain the marginal effects.

Marginal or partial effects have been analysed in the analysis of health sector inequalities

in non-linear settings (van Doorslaer et al. 2004; O’Donnell et al. 2008).

Therefore, the continuous model proposed by Wagstaff et al. (2003) can be modified to

accommodate non-linear settings (e.g. binary dependent variable) using either probit

regression or Generalised Linear Models (GLM) (van Doorslaer et al. 2004;

Yiengprugsawan et al. 2007 & 2010). We, therefore, apply the probit regression model by

following van Doorslaer et al. (2004), and Yiengprugsawan et al. (2007).

6.3.5.1 Probit model

From Equation 6.4 and following van Doorslaer et al. (2004), the general functional form

G, of a non-linear model (e.g. a probit) can be written as:

𝑦𝑖 = 𝐺(𝛼 + ∑ 𝛽𝑘

𝑘

𝑥𝑘𝑖) + 휀𝑖 , 6.7

Then a linear approximation of this function is given by:

𝑦𝑖 = 𝛼𝑚 + ∑ 𝛽𝑘𝑚

𝑘

𝑥𝑘𝑖 + 휀𝑖 , 6.8

Where 𝛼𝑚 and 𝛽𝑘𝑚 are defined as the marginal effects (dh/dx), of each 𝑥𝑘 treated as fixed

parameters and evaluated at the mean and 휀𝑖 is the error term.

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Consequently from Equation 6.8, the relationship between 𝑦𝑖 and 𝑥𝑘𝑖 , the concentration

index for 𝑦𝑖 can be written as:

𝐶 = ∑ (𝛽𝑘

𝑚�̅�𝑘

𝜇) 𝐶𝑘

𝑘

+𝐺𝐶𝜀

𝜇, 6.9

Equation 6.9 then follows the same description and procedure for the concentration index

decomposition just as in the case of Equations 6.5 and 6.6.

From Equation 6.8, van Doorslaer et al. (2004) show that the marginal effects of the 𝛽𝑘’s

can be used in the estimation and decomposition of concentration index when the

dependent variable of interest is binary. The marginal effects can either be generated using

STATA command dprobit y x (O'Donnell et al. 2007) or the mfx STATA command after

running the non-linear regression.

In order to do the decomposition, the following steps are required: First, we regress the

Pr (school attendance > 0) against its determinants using Equation 6.8 and this results in

finding the marginal effects of the explanatory variable, ( 𝛽𝑘 ). Second, we compute the

means of school attendance (µ) and each of its determinants ( �̅�𝑘) in Equation 6.9. Third,

the concentration indices for the school attendance and for the determinants (C and 𝐶𝑘,

respectively) are computed using Equation 6.9, as well as the generalised concentration

index of the error term (𝐺𝐶𝜀) defined in Equation 6.6. The procedure outlined above for

school attendance was repeated for Pr (school completion > 0) and decomposition of its

determinants.

Furthermore, the contribution of each determinant of school attendance, and school

completion can now be quantified: (i) We compute the absolute contribution of each

determinant by multiplying, for example, the school attendance elasticity with respect to

that determinant and its concentration index, (𝛽𝑘𝑚�̅�𝑘/𝜇)𝐶𝑘, and percentage contribution of

each determinant by dividing through its absolute contribution by the C of the school

attendance , (𝛽𝑘𝑚�̅�𝑘/𝜇)𝐶𝑘/C.

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6.3.5.2 Decomposition of changes in educational inequalities

The most general approach to unravelling the sources of changes in inequalities would be

to allow for the possibility that all the components of the decomposition in Equation 6.9

have changed and to take the difference of equation 6.9 (Wagstaff et al. 2003).

Δ𝐶 = ∑ (𝛽𝑘𝑡

𝑚�̅�𝑘𝑡

𝜇𝑡) 𝐶𝑘𝑡

𝑘

− ∑ (𝛽𝑘𝑡−1

𝑚 �̅�𝑘𝑡−1

𝜇𝑡−1)

𝑘

+ Δ (𝐺𝐶𝜀𝑡

𝜇𝑡) , 6.10

According to Wagstaff et al. (2003) equation 6.10 is somewhat uninformative. Fortunately,

Equation 6.11 or 6.12 enables us to explain how far the changes in inequality in education

reveal by Equation 6.10 were attributable to changes in inequalities in the determinants of

educational access and attainment rather than to changes in the other influences on these

education inequalities.

In addition, inequality can also be considered in its evolution over time. In this case, once

decomposition of inequality into its observable components has been carried out in two

different time periods (t-1 and t), it becomes more interesting to decompose the observed

differences (over time) in socioeconomic inequality due to variations in; (i) the

determinants of educational access and attainment, and (ii) the impact of these

determinants on educational access and attainment. The approach used by Wagstaff et al.

(2003) consists in applying Oaxaca-type decomposition to the expression of the

concentration index, C (Equation 6.9). Our main interest is in the change in educational

inequality over time due to changes in the impacts of the determinants measured by the

educational elasticity (∆η), and the degree of unequal distribution across income levels

measured by concentration index (∆C). These changes can be analysed using Oaxaca

decomposition (Wagstaff et al. 2003; Oaxaca 1973).

Thus, if we denote 𝜂𝑘 = 𝛽𝑘𝑚�̅�𝑘/𝜇, the elasticity of 𝑦𝑖 with respect to 𝑥𝑘 at time t, and

apply the Oaxaca-type decomposition method, we obtain the following equation (Wagstaff

et al. 2003):

∆𝐶 = 𝐶𝑡 − 𝐶𝑡−1 = ∑ 𝜂𝑘𝑡

𝑘

(𝐶𝑘𝑡 − 𝐶𝑘𝑡−1) + ∑ 𝐶𝑘𝑡−1

𝑘

(𝜂𝑘𝑡 − 𝜂𝑘𝑡−1) + Δ (𝐺𝐶𝜀𝑡

𝜇𝑡) , 6.11

Alternatively, Equation 6.10 can be re-written as:

Δ𝐶 = ∑ 𝜂𝑘𝑡−1

𝑘

(𝐶𝑘𝑡 − 𝐶𝑘𝑡−1) + ∑ 𝐶𝑘𝑡

𝑘

(𝜂𝑘𝑡 − 𝜂𝑘𝑡−1) + Δ (𝐺𝐶𝜀𝑡

𝜇𝑡) , 6.12

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The Oaxaca-type decomposition allows us to identify for each 𝑥𝑘 the extent to which

changes in educational inequality are due to changes in inequality in the determinants of

educational access and attainment (the first term in Equation 6.11 or 6.12), rather than in

their elasticities (the second term in Equation 6.11 or 6.12).

The concentration index (C) is considered as a good measure of socioeconomic inequalities

in education (Oppedisano and Turati 2012; d' Hombres 2010; SITEAL 2005). Fortunately,

the application of C in measurement of inequality in education is free from some of the

problems that have been encountered when the index is applied in health inequality

measurement.27

The education concentration index is measured in cardinal scale. However,

the application of C in education also has its own shortcomings. Although the education

concentration index captures the relationship that exists between educational access or

attainment variables, and household wealth and its determinants, as far as wealth or income

is concerned the C takes into account only the ranks and not the levels of household wealth

or income. A given ranking of wealth or incomes may hide very different levels of

household wealth or income (Wagstaff et al. 2003). Both a relatively equal and a relatively

unequal distribution of income are compatible with any given ranking. Therefore, if

changes occur in the distribution of wealth or income which does not affect the welfare

ranks (e.g. a series of transfers which make the distribution more equal) there will be no

effect on C.28

In other words, the value of the index does not change if the living standard

variable (wealth or income) changes.

6.4 Results and discussions

The data, outcome and predictor variables for the analysis are discussed in Chapter 3. The

concentration index and decomposition results are based on Equations 6.8 to 6.12. The

analysis focuses on inequality in the four key areas of interest: primary education access

(primary school attendance); secondary education access (secondary school attendance);

primary education attainment (primary school completion); and secondary education

attainment (secondary school completion). The inequalities are presented through a

27

The most appropriate scale for health status measurement is perhaps an ordinal variable, not a cardinal one.

Health status indicator is an essentially qualitative variable which might be used to order people according to

their health situation, but it will be difficult to draw conclusions about the intensity corresponding to a

specific value of the health indicator. In order to solve this problem, health C assumes cardinal comparability

in order to draw conclusions (Wagstaff et al. 1991; Wagstaff 2002; and Wagstaff and Watanabe 2003). 28 The concentration index depends only on the relationship between the education variable and the rank of

the living standards variable and not on the variation in the living standards variable itself. A change in the

degree of income inequality need not affect the concentration index measure of income-related education

inequality.

159

concentration index decomposition analysis of inequality. We examine which factors

contribute the most to socioeconomic inequality in educational access and educational

attainment (at primary and secondary levels) by decomposing the concentration indices

year-by-year, with reference to Equation 6.9. The decomposition shows how each

determinant, 𝑥𝑘 's separate contribution to total education inequalities can be decomposed

into two main parts: (i) its impact on each of the education access, and educational

attainment, as measured by their elasticity (𝜂𝑘), and (ii) their degree of unequal distribution

across income or household wealth, measured by the concentration index (𝐶𝑘).

The first two columns of the Tables 6.1, 6.3, 6.5, and 6.7 show the mean of the outcome

and determinants; the third and fourth columns present the elasticities of determinants,

(𝜂𝑘 = 𝛽𝑘𝑚�̅�𝑘/𝜇); and the fifth and sixth columns indicate the values of the concentration

indices, (𝐶𝑘) of the determinants. The last five columns present estimates of; the absolute

contribution of the determinants (a by-product of how marginal effects, means and

concentration indices of determinants translate into absolute contributions to the total

observed socioeconomic inequality in educational outcomes), the absolute change

(empirical analog of Equation 6.10), and relative percentage contribution (absolute

contribution divided by the total inequality of the educational outcome) of determinants to

socioeconomic inequality in the educational outcomes, respectively. A positive (negative)

value of the concentration index suggests a pro-rich (pro-poor) distribution of the 𝑥𝑘

determinants of inequality. Furthermore, a positive (negative) absolute contribution of a

determinant means that the combined effect of the marginal effect of the respective

determinant on educational access and attainment and its distribution by economic status is

increasing (lowering) socioeconomic inequality in educational access and attainment in

favour of the rich (poor). In other words, the positive (negative) contributions of the

determinants can be interpreted as indicating that the total educational inequality would be

lower (higher) if that determinant had no impact on the educational outcome or was

equally distributed across the income groups (Yiengprugsawan et al. 2007; Van de Poel et

al. 2007). Also, positive (negative) relative contribution of a determinant means that the

combined effect of the marginal effect of the determinant and its distribution by economic

status is increasing (lowering) socioeconomic inequality in educational access and

attainment.

160

6.4.1 Sources of inequality in primary education access

Tables 6.1 and 6.2 present the decomposition of our measures of primary education access

inequality in 2003 and 2008. Table 6.1 shows the decomposition of socioeconomic

inequality in primary school attendance for 2003 and 2008 ranked by household wealth

index. The mean values of primary school attendance in 2003 and 2008 are 60.5% and 73.8%

respectively, indicating an appreciable improvement between 2003 and 2008. These results

are consistent with the school attendance published in GDHS reports (Ghana Statistical

Service et al. 2004 & 2009). The elasticity shows how sensitive primary education access

is to each contributor, and the concentration index shows the magnitude of the access with

respect to each contributor. Contributions to socioeconomic inequality in primary

education access are estimates of each determinant’s contribution towards the total

socioeconomic inequality in the educational access. The estimated concentration indices

indicate inequalities in the primary school attendance for 2003 and 2008 which are 0.105

and 0.079, respectively. These indices show that the socioeconomic inequality in primary

education access in Ghana favours the rich more in each year (see Table 6.1). However,

there is an improvement in the inequality between 2003 and 2008 (a reduction of 0.026 in

access inequality in primary education).

The first two columns under the heading "contributions to C" show household wealth as

the source of the bulk of socioeconomic inequality in primary education access in both

2003 and 2008. The contribution of household wealth is positive, statistically significant,

and shows a pro-rich distribution. The household wealth inequalities disfavour the poor in

both years and it is revealed by the concentration indices of 0.267 and 0.266 in 2003 and

2008 respectively. The contribution of household wealth to socioeconomic inequality in

primary education access accounts for: 0.084 (80.1%) points of a total of 0.105 in 2003;

and 0.040 (49.7%) of a total of 0.079 in 2008. The positive contributions of household

wealth means that the combined effect of the marginal effect of the household wealth on

primary education access and its distribution by economic status increase socioeconomic

inequality in primary education access in favour of the rich in each year.

However, in 2008 there has been a significant reduction in the contribution of household

wealth to the socioeconomic inequality in primary education access. This reduction might

be due to the positive impacts of SCG and SFP programmes introduced in 2004/05. These

programmes were intended to reduce households’ cost of education at the primary school

level (NDPC et al. 2010). The reduction in the contribution of household wealth to

inequality in access to primary education supports the argument put forward by Lloyd and

161

Blanc (1996) that if government spends generously on education and provides universal

access to primary education, inequality in access due to household wealth will fall. The

column headed "change" (i.e. the empirical analog of Equation 6.10) indicates that the bulk

of the improvement in primary education access inequality between 2003 and 2008 (-0.026

points) was due to a change of -0.044 points in respect of household wealth. These results

are consistent with the findings of other studies conducted in Ghana (Ghana Statistical

Service et al. 2004 & 2009; World Bank 2004; Akyeampong et al. 2007). These studies

also recognise the importance of household wealth in the distribution of education in

Ghana. The studies highlight the pattern of educational distribution in Ghana and argue

that there is inequality in education which is linked to income poverty and gender. For

example, Ghana Statistical Service et al. (2009) reveal that children from poor households

have lower school enrolment and attendance rates, and they are more likely to drop out in

the course of the primary cycle, than the children from non-poor households.

162

Table 6.1: Primary education access (attendance by age cohort 6-11 years) inequality decomposition for 2003 & 2008, and change between 2003 & 2008

Variables Mean

Elasticities

Concentration

indices *Contributions to

C Eq. 6.10

%

Contribution

2003 2008 2003 2008 2003 2008

2003 2008 change 2003 2008

Primary School Attendance

0.605 0.738

Female

0.503 0.505

-0.019 -0.001

0.033 0.023

-0.001 0.000 0.001 -0.6 0.0

Household wealth

3.165 3.154

0.315 0.148

0.267 0.266

0.084 0.040 -0.044 80.1 49.7

Household size / composition:

Household size

4.025 3.753

0.069 -0.096

-0.055 -0.069

-0.004 0.007 0.010 -3.6 8.4

No. of children under 6 yrs;

Under 6 yrs children:1-2

0.549 0.499

-0.050 0.002

-0.055 -0.048

0.003 0.000 -0.003 2.6 -0.1

Under 6 yrs children:3-4

0.065 0.060

-0.017 0.001

-0.278 -0.340

0.005 0.000 -0.005 4.5 -0.3

Under 6 yrs children:5-6

0.003 0.005

-0.002 -0.001

-0.609 -0.596

0.001 0.000 -0.001 1.0 0.5

No. of school-age children;

School-age children:1-2

0.414 0.424

0.032 -0.038

0.028 0.038

0.001 -0.001 -0.002 0.8 -1.8

School-age children:3-4

0.290 0.257

0.018 -0.025

-0.054 -0.099

-0.001 0.002 0.003 -0.9 3.1

School-age children:5-6

0.068 0.053

-0.003 -0.003

-0.151 -0.215

0.001 0.001 0.000 0.5 0.9

No. of Economically active;

Economically active:1-2

0.624 0.638

-0.056 -0.019

-0.003 0.013

0.000 0.000 0.000 0.2 -0.3

Economically active:3-4

0.277 0.264

-0.020 -0.001

-0.025 -0.015

0.001 0.000 0.000 0.5 0.0

Economically active:5-6

0.062 0.058

0.000 -0.002

0.128 0.023

0.000 0.000 0.000 0.0 -0.1

No. of retirees aged 65+ yrs

0.232 0.217

-0.004 -0.002

-0.104 -0.141

0.000 0.000 0.000 0.4 0.3

Proportion of economically active:

0.454 0.485

-0.040 -0.012

0.067 0.068

-0.003 -0.001 0.002 -2.5 -1.0

163

Table 6.1 cont.:

Household head:

Head age

44.9 44.2

0.933 0.635

-0.016 -0.014

-0.015 -0.009 0.006 -14.0 -10.8

Head age2

2276.4 2212.3

-0.408 -0.278

-0.034 -0.031

0.014 0.009 -0.005 13.4 10.9

Female head

0.338 0.337

0.020 0.010

0.110 0.061

0.002 0.000 -0.002 2.1 0.8

Household head's education

Primary level

0.133 0.129

0.010 0.010

-0.124 -0.151

-0.001 -0.001 0.000 -1.2 -1.8

Secondary level

0.402 0.474

0.082 0.059

0.159 0.159

0.013 0.009 -0.004 12.5 11.8

Higher levels

0.116 0.122

0.033 0.024

0.520 0.556

0.017 0.013 -0.004 16.3 16.6

Residence:

Rural

0.541 0.522

0.056 0.003

-0.336 -0.327

-0.019 -0.001 0.018 -18.1 -1.3

Administrative region:

Western

0.098 0.100

0.022 -0.006

0.020 0.063

0.001 0.000 -0.001 0.4 -0.5

Central

0.094 0.109

0.007 -0.001

-0.012 0.063

0.000 0.000 0.000 -0.1 -0.1

Greater Accra

0.142 0.166

0.018 -0.006

0.596 0.603

0.011 -0.004 -0.015 10.5 -4.7

Volta

0.086 0.084

0.016 -0.003

-0.132 -0.139

-0.002 0.001 0.003 -2.0 0.5

Eastern

0.117 0.107

0.008 -0.001

-0.002 -0.038

0.000 0.000 0.000 0.0 0.1

Ashanti

0.210 0.192

0.035 0.020

0.170 0.165

0.006 0.003 -0.003 5.7 4.1

Brong Ahafo

0.106 0.098

0.019 0.004

-0.109 -0.158

-0.002 -0.001 0.001 -2.0 -0.8

Northern

0.078 0.079

0.004 -0.016

-0.433 -0.479

-0.002 0.007 0.009 -1.6 9.8

Upper East

0.045 0.046

0.004 0.006

-0.423 -0.550

-0.002 -0.003 -0.001 -1.6 -3.9

Residual

-0.003 0.008 0.011 -3.1 10.2

Total ( C ) 0.105 0.079 -0.026 100.0 100.0

Source: 2003 and 2008 Ghana Demographic Health Surveys; own calculations.

Note 1: For coefficients of marginal effects and significant levels, see Appendix Table A6.1.

Note 2: Reference categories are: male; no under-six year olds; no school-age children; no economically active members; male head; heads with no formal education; urban; and Upper West region.

164

Our results are also consistent with the findings of (Filmer and Pritchett 1999b & 2001).

The authors examine socioeconomic inequalities in educational outcomes in India and

discover a large school enrolment differences which they attributed to income inequality

that varies widely across India states between the poor and the non-poor. They also come

to similar conclusions in their cross country study of 35 countries in Africa and Asia. In

particular, the authors find that in most of the 35 countries examined, children from

households at the top 20% of the wealth index (household wealth distribution) have higher

school attendance rate than children from households who occupied the bottom 40% of the

wealth index.

Contributions of female household head and household head's education (secondary and

higher levels) are all positive, statistically significant, and show a pro-rich distribution.

Inequalities in household head’s education attainment (shown by the concentration indices)

disfavour the poor in both years and their contributions to socioeconomic inequality in

primary education access are the second largest, accounting for 0.030 (28.8%) points of a

total of 0.105 in 2003, and 0.022 (28.4%) of a total of 0.079 in 2008. The contributions in

both years are positive, implying that household head’s level of education increases

socioeconomic inequality in primary education access in favour of the rich. This finding

supports the findings of Rolleston (2011), Lloyd and Hewett (2009) Sackey (2007),

Haveman and Wolfe (1995), Lloyd and Blanc (1996), and Chernichovsky (1985). These

authors show that the human capital of parents reflects a sort of intergeneration

transmission of socioeconomic status that affects the educational outcomes of their

children. Also, a household head’s educational level may serve as a predictor of the

household head’s market earnings potential that could be invested in children’s education

and this may have contributed to inequality in children’s educational outcomes in Ghana.

On average, 33.8% and 33.7% of households are headed by females in 2003 and 2008,

respectively which is consistent with the findings of (Ghana Statistical Service et al. 2004

& 2009). The inequality depicted by households headed by females, disfavours the poor in

both years but the contribution of female household head to socioeconomic inequality in

primary education access is fairly small, accounting for only 0.002 (2.1%) points of the

total inequality in 2003. The concentration indices of these (female household head and

household head's level of education) indicate that their inequalities are more concentrated

among the rich households in both 2003 and 2008. In other words, children from

165

households with these household characteristics have more access to primary education

than the children from poor households where these characteristics are lacking.

These results corroborate the findings of: Lloyd and Blanc (1996), and Thomas (1990 &

1994) with respect to households headed by females; and Chernichovsky (1985),

Tsakloglou (1993), Jacoby (1994), Lillard and Willis (1994), Lloyd and Blanc (1996),

Glick and Sahn (2000), Tansel (2002), Sackey (2007), and Rolleston (2011) with respect to

the educational level of household heads and parents. For example, Lloyd and Blanc

(1996), and Thomas (1990 & 1994) find that female household head with more education

have increased bargaining power in the household and may choose to allocate more

resources towards children and their human capital development than would their

counterpart, male household head .

The concentration indices for household size are negative (-0.055 and -0.069 in 2003 and

2008 respectively) indicating that the socioeconomic inequality in primary education

access with respect to household size is more concentrated among the poor households.

The contribution of household size to the total socioeconomic inequality is -0.004 in 2003

and 0.006 in 2008, resulting in a change of 0.010 in the total inequality. Considering the

household composition, the number of children under-six year olds have negative marginal

effect (see Table A6.1 in the Appendix 6) and are statistically significant in 2003 (for

households with 1 to 2, and 3 to 4 children), and their inequalities are more concentrated

among the poor households. For example, the concentration index for children under-six

year olds is -0.055 for a maximum of two children, and -0.278 for maximum of four

children in 2003. In 2003, these determinants contribute a fairly small amount of

inequalities (0.008 or 7.1%) to the total inequality.

With respect to the number of school-age children, the concentration indices for

households with 1 to 2 children are positive, indicating that the inequalities are more

concentrated among the rich, and contributing a change of -0.002 to the total inequality.

On the other hand, the concentration indices for households with 3 to 4 children are

negative, indicating that the inequalities are more concentrated among the poor, and

contributing a change of 0.003 to the total inequality. In addition, household composition

comprising a number of economically active and retirees and the proportion of

economically active members are not statistically significant in explaining the variations in

166

the primary education access. Consequently, their total contributions to the socioeconomic

inequality in primary education access are also negligible (see columns 7 to 9 of Table 6.1).

The mean of rural residency also indicates that the majority of households in Ghana reside

in the rural areas (Ghana Statistical Service et al. 2004 & 2009; Ghana Statistical Service

2007; Ghana Statistical Service 2008). The concentration indices (-0.336 and -0.327 in

2003 and 2008 respectively) indicate that inequalities in rural areas with respect to

socioeconomic inequality in primary education access are more concentrated among the

poor. These findings are also consistent with other findings (Ghana Statistical Service et al.

2004 & 2009; Sackey 2007). However, the contribution of rural areas to the total inequality

is statistically insignificant.

There are also regional inequalities that are pro-rich and pro-poor in the distribution of

primary education access, revealed by the concentration indices. Greater Accra and

Ashanti regions which are the richest regions in Ghana (Ghana Statistical Service et al.

2004 & 2009) are associated with higher primary education access. For Greater Accra

region, its contribution to the inequality is only statistically significant in 2003, but for the

Ashanti region, the contribution is statistically significant in both years. In both regions,

the distribution of primary education access is pro-rich. That is, the regional inequality in

these two regions disfavour the children from poor households. The concentration indices

for Greater Accra are 0.596 and 0.603 in 2003 and 2008, respectively. The Greater Accra

regional inequality contribution to socioeconomic inequality in access to primary education

accounts for 0.011 (10.5%) points of the total of 0.105 in 2003. The region also contributes

a change of -0.015 points (the third largest change) in inequality to overall change of

-0.026 in socioeconomic inequality in access to primary education.

Ashanti region inequality is shown by the concentration indices of 0.170 in 2003 and 0.165

in 2008. The region contributes 0.006 (5.7%) in 2003 and 0.003 (4.1%) inequality to the

total inequality of 0.105 and 0.079 in access to primary education in 2003 and 2008,

respectively. Thus, the region contributes a change of -0.003 points in inequality to the

total change in socioeconomic inequality in access to primary education. The contributions

of Volta and Brong Ahafo regions are statistically significant only in 2003. For example,

Volta region contributes a change of 0.003 points, whilst Brong Ahafo region contributes a

change of 0.001 points in inequality to the total change in socioeconomic inequality in

access to primary education in Ghana. The regions’ inequality in access to primary

167

education distributions is pro-poor. In other words, the inequality in access to primary

education (-0.132 and -0.139 for Volta in 2003 and 2008 respectively, and -0.109 and -

0.158 for Brong Ahafo in 2003 and 2008 respectively) is more concentrated among

children from the poor households.

All the regional inequality results presented so far are from the southern part of Ghana.

There are three regions in the northern part of Ghana; Northern, Upper East, and Upper

West regions. The Upper West region which is the poorest region in Ghana (Ghana

Statistical Service et al. 2004 & 2009) is used as reference category for the analysis. The

concentration index for the Northern region in 2008 is -0.479 which shows that lower

access to primary education is more concentrated among the children from poor

households in the region. The region contributes 0.007 (9.8%) points in inequality to the

total inequality of 0.079 in access to primary education which is statistically significant in

2008, and a change of 0.009 points in inequality to the total change in socioeconomic

inequality in access to primary education in Ghana.

The Upper East region’s concentration indices are negative in both years (-0.423 in 2003

and -0.550 in 2008), implying that access to primary education in the region is more

concentrated among children from poor households. In other words, the distribution of

access to primary education in the region is pro-poor. The region contributes -0.002 points

in inequality to the total inequality of 0.105 in 2003 and -0.003 to the total inequality of

0.079, and a change of -0.001 points in inequality to the total change in socioeconomic

inequality in access to primary education between the two periods (see Table 6.1).

Overall, the regional inequality in access to primary education disfavour the poor in the

regions in the north than regions in the south which is consistent with the findings of other

studies (Ghana Statistical Service et al. 2004 & 2009; Ghana Statistical Service 2008;

Ghana Statistical Service 2007; Sackey 2007).

For policy lessons, the results in Table 6.1 shows that the most important determinants that

contribute to pro-rich socioeconomic inequality in access to primary education are;

household wealth; female household head, and household head's educational attainment

levels (secondary and higher levels). However, the bulk of the sources of socioeconomic

inequality in access to primary education (i.e. inequality in primary school attendance) in

both 2003 and 2008 is attributed to household wealth, thereby disproportionately

168

benefiting the non-poor households. This finding corroborates with the findings of other

researchers (Psacharopoulos and Arriagada 1986; Sathar and Lloyd 1994; Lloyd and Blanc

1996; Gage et al. 1997; Buchmann and Hannum 2001). It should also be noted that the

residual (the part of the concentration index that cannot be traced back to the determinants

included in the decomposition analysis) has a negative sign in 2003 and a positive sign in

2008. This implies that some of the negative and positive association between household

wealth rank and primary education access in 2003 and 2008 respectively, are unexplained.

However, the results in Table 6.1 do not enable us to see how far the changes in the

determinants were due to changes in elasticities (i.e. changes in the impact of each

determinant on primary school attendance) rather than changes in inequalities (i.e. changes

in the degree of unequal distribution of each determinants across income groups).

Therefore, to further analyse the development in socioeconomic inequality in access to

primary education for policy purpose, we have applied Oaxaca-type decomposition of

change in concentration index between 2003 and 2008 based on Equations 6.11 and 6.12

(Wagstaff et al. 2003). The Oaxaca-type decomposition results in Table 6.2 allow us to

answer the questions the Table 6.1 results failed to answer.

Policy perspective

Table 6.2 depicts the decomposition results based on the Oaxaca-type decomposition (the

empirical analog of either equation 6.11 or 6.12) which are the estimates of the

contributions of the determinants to the concentration indices as well as the change

between 2003 and 2008. The column with header ‘ΔC * η’ are the contributions of the

respective determinants to the change in inequality in the total concentration index due to

the change of the concentration index of the predictor variables themselves. Furthermore,

the column with the header ‘Δη * C’ indicates the contribution due to the change in the

elasticity (or impact) of the determinants. The column ‘Total’ corresponds to the sum of

the two components, and coincides with the column headed ‘Change’ in Table 6.1

(balancing effect), but for the row total. Interesting insights emerge from the Oaxaca-type

decomposition results. The total change to be explained is a decrease in socioeconomic

inequality in access to primary education of 0.026.

169

Table 6.2: Oaxaca-type decompositions for change in primary education access inequality, 2003 - 2008

Explanatory Variables Equation 6.11

Equation 6.12 Total

ΔC*η Δη*C ΔC*η Δη*C

Female 0.000 0.001

0.000 0.001 0.001

Household wealth 0.000 -0.044

0.000 -0.044 -0.044

Household size / composition:

Household size 0.001 0.009

-0.001 0.011 0.010

No. of children under 6 yrs;

Under 6 yrs children:1-2 0.000 -0.003

0.000 -0.003 -0.003

Under 6 yrs children:3-4 0.000 -0.005

0.001 -0.006 -0.005

Under 6 yrs children:5-6 0.000 -0.001

0.000 -0.001 -0.001

No. of school-age children;

School-age children:1-2 0.000 -0.002

0.000 -0.002 -0.002

School-age children:3-4 0.001 0.002

-0.001 0.004 0.003

School-age children:5-6 0.000 0.000

0.000 0.000 0.000

No. of Economically active;

Economically active:1-2 0.000 0.000

-0.001 0.001 0.000

Economically active:3-4 0.000 0.000

0.000 0.000 0.000

Economically active:5-6 0.000 0.000

0.000 0.000 0.000

No. of retirees aged 65+ yrs 0.000 0.000

0.000 0.000 0.000

Proportion of economically active: 0.000 0.002

0.000 0.002 0.002

Household head:

Head age 0.001 0.005

0.002 0.004 0.006

Head age2 -0.001 -0.004

-0.001 -0.004 -0.005

Female head -0.001 -0.001

-0.001 -0.001 -0.002

Households head's education

Primary level 0.000 0.000

0.000 0.000 0.000

Secondary level 0.000 -0.004

0.000 -0.004 -0.004

Higher levels 0.001 -0.005

0.001 -0.005 -0.004

Residence:

Rural 0.000 0.018

0.001 0.017 0.018

Administrative region:

Western 0.000 -0.001

0.001 -0.002 -0.001

Central 0.000 0.000

0.001 -0.001 0.000

Greater Accra 0.000 -0.015

0.000 -0.015 -0.015

Volta 0.000 0.003

0.000 0.003 0.003

Eastern 0.000 0.000

0.000 0.000 0.000

Ashanti 0.000 -0.003

0.000 -0.003 -0.003

Brong Ahafo 0.000 0.001

-0.001 0.002 0.001

Northern 0.001 0.008

0.000 0.009 0.009

Upper East -0.001 0.000

0.000 -0.001 -0.001

Residual

0.011

Total 0.002 -0.039 -0.001 -0.036 -0.026

Source: 2003 and 2008 Ghana Demographic Health Surveys; own calculations.

170

Some of the variables that contribute to the year-by-year indices are also important for

explaining the change. However, by far the largest contribution to the reduction in

socioeconomic inequality in access to primary education comes from household wealth,

due to the elasticity (i.e. impact) of use which has been drastically reduced from 0.315 in

2003 to 0.148 in 2008 (see Table 6.1). The result in Table 6.2 suggests that it is the

changing elasticity rather than household wealth inequality that accounts for the bulk of the

decrease in access to primary education inequality associated with changes in respect of

household wealth in 2008.

The change in elasticity of household wealth (Δη*C) is -0.044 whether we use Equation

6.11 or Equation 6.12. Overall, taking the changes of all the determinants of primary

education access into account, the fall in socioeconomic inequality in access to primary

education is largely attributable to changing elasticities (which is around -0.039 or -0.036,

depending on whether we use Equation 6.11 or Equation 6.12), rather than changing

inequalities in the determinants of the primary education access in Ghana. The reduced

elasticity of household wealth which has reduced socioeconomic inequality in access to

primary education could be attributed to the implementation of SCG, SFP, in 2004/05 and

the enforcement the laws that support FCUBE in 2000. These policy interventions were

implemented to lessen the cost of education to parents and to increase access to primary

education in Ghana, especially for the poor. The result indicates that the policy might have

improved access to primary education (especially to the poor household, even though the

non-poor appear to benefit disproportionately), just as in the case of Uganda where the

implementation of the UPE programme led to reduction in the cost of primary education

and increase in access to primary education (Deininger 2003).

Considering the changes in the elasticities for household wealth, educational level of

household head (secondary and higher levels), and regional effects of Greater Accra and

Ashanti regions, in particular, show a reduction in the elasticities (depicted in Table 6.1).

Therefore, there is some indication that these determinants are contributing to reducing

inequality more via their reduced impacts (i.e. elasticities) on the access to primary

education (school attendance) than via changes in inequality in the given determinants.

Consequently, the total socioeconomic inequality in access to primary education among

children of official primary school-age in Ghana has fallen from 0.105 points in 2003 to

0.079 points in 2008. This implies that access to primary education between 2003 and 2008

has improved which may be due the GoG’s education policy and programmes. Evidence

171

from other countries which are consistent with our findings show that universal access to

primary education increased primary school attendance in Uganda (Deininger 2003) and

in Japan as early as the early 1900s (Hasegawa T. 2001 cited in Maika et al. 2013).

6.4.2 Sources of inequality in secondary education access

The results for secondary education access (school attendance) are also based on Equations

6.8 to 6.12. Tables 6.3 and 6.4 present the decomposition results of socioeconomic

inequality in access to secondary education for 2003 and 2008 ranked by household wealth

index. The mean values of secondary attendance in 2003 and 2008 are 34.7% and 42.6%

respectively, indicating an appreciable improvement in average school attendance status

between 2003 and 2008. These results are consistent with the results published in Ghana

Statistical Service et al. (2004 & 2009) for secondary school attendance for Ghana in 2003

and 2008. The elasticities in Table 6.3 show the impact of each determinant on the

socioeconomic inequality in access to secondary education, and the concentration indices

show the magnitude of socioeconomic inequality in access to secondary education with

respect to each determinant. Contributions to socioeconomic inequality in access to

secondary education are estimates of each predictor variable’s contribution towards the

total socioeconomic inequality in access to secondary education. The estimated

concentration indices indicate socioeconomic inequalities of 0.129 and 0.120 points in the

access to secondary education for 2003 and 2008, respectively. These indices show that the

socioeconomic inequality in access to secondary education favours the rich more than the

poor in each year. Although, the results indicate an improvement between 2003 and 2008,

the reduction (-0.009) is very small compared to the reduction (-0.026) in socioeconomic

inequality in access to primary education within the same period (see Table 6.1).

172

Table 6.3: Secondary education access (attendance by age cohort 12-17 years) inequality decomposition for 2003 & 2008, and change between 2003 & 2008

Variables

Mean

Elasticities

Concentration

indices

Contributions

to C Eq. 6.10

%

contribution

2003 2008 2003 2008 2003 2008

2003 2008 change 2003 2008

Secondary School Attendance

0.347 0.426

Female

0.503 0.505

-0.026 -0.017

0.033 0.023

-0.001 0.000 0.000 -0.7 -0.3

Household wealth

3.165 3.154

0.346 0.237

0.267 0.266

0.092 0.063 -0.029 71.9 53.3

Household size / composition:

Household size

4.025 3.753

-0.332 -0.061

-0.055 -0.069

0.018 0.004 -0.014 14.2 3.5

No. of children under 6 yrs;

Under 6 yrs children:1-2

0.549 0.499

0.028 -0.049

-0.055 -0.048

-0.002 0.002 0.004 -1.2 1.9

Under 6 yrs children:3-4

0.065 0.060

0.008 -0.019

-0.278 -0.340

-0.002 0.006 0.008 -1.7 5.3

Under 6 yrs children:5-6

0.003 0.005

0.001 -0.003

-0.609 -0.596

-0.001 0.002 0.003 -0.7 1.6

No. of school-age children;

School-age children:1-2

0.414 0.424

-0.177 -0.001

0.028 0.038

-0.005 0.000 0.005 -3.8 0.0

School-age children:3-4

0.290 0.257

-0.073 0.003

-0.054 -0.099

0.004 0.000 -0.004 3.1 -0.3

School-age children:5-6

0.068 0.053

-0.016 -0.004

-0.151 -0.215

0.002 0.000 -0.002 1.9 0.7

No. of Economically active;

Economically active:1-2

0.624 0.638

-0.083 0.013

-0.003 0.013

0.000 0.000 0.000 0.2 0.1

Economically active:3-4

0.277 0.264

0.011 0.032

-0.025 -0.015

0.000 0.000 0.000 -0.2 -0.4

Economically active:5-6

0.062 0.058

0.006 0.006

0.128 0.023

0.001 0.000 -0.001 0.6 0.1

No. of retirees aged 65+ yrs

0.232 0.217

0.015 0.005

-0.104 -0.141

-0.002 -0.001 0.001 -1.2 -0.6

Proportion of economically active:

0.454 0.485

0.041 -0.031

0.067 0.068

0.003 -0.002 -0.005 2.1 -1.8

173

Table 6.3 cont.:

Household head:

Head age

44.9 44.2

0.707 0.633

-0.016 -0.014

-0.011 -0.008 0.003 -8.6 -7.1

Head age2

2276.4 2212.3

-0.185 -0.310

-0.034 -0.031

0.006 0.009 0.003 4.9 8.0

Female head

0.338 0.337

0.069 0.034

0.110 0.061

0.008 0.002 -0.006 5.9 1.7

Households head's education

Primary level

0.133 0.129

-0.013 0.006

-0.124 -0.151

0.002 -0.001 -0.003 1.3 -0.7

Secondary level

0.402 0.474

0.094 0.107

0.159 0.159

0.015 0.017 0.002 11.6 14.2

Higher levels

0.116 0.122

0.065 0.054

0.520 0.556

0.034 0.030 -0.004 26.3 24.9

Residence:

Rural

0.541 0.522

-0.002 -0.015

-0.336 -0.327

0.001 0.005 0.004 0.6 4.1

Administrative region:

Western

0.098 0.100

0.008 0.007

0.020 0.063

0.000 0.000 0.000 0.1 0.4

Central

0.094 0.109

-0.005 -0.003

-0.012 0.063

0.000 0.000 0.000 0.0 -0.2

Greater Accra

0.142 0.166

0.001 -0.006

0.596 0.603

0.000 -0.004 -0.004 0.4 -3.1

Volta

0.086 0.084

0.004 0.003

-0.132 -0.139

0.000 0.000 0.000 -0.4 -0.3

Eastern

0.117 0.107

0.012 0.000

-0.002 -0.038

0.000 0.000 0.000 0.0 0.0

Ashanti

0.210 0.192

0.018 0.036

0.170 0.165

0.004 0.007 0.003 2.4 4.9

Brong Ahafo

0.106 0.098

-0.007 0.006

-0.109 -0.158

0.001 -0.001 -0.002 0.6 -0.8

Northern

0.078 0.079

-0.015 0.006

-0.433 -0.479

0.006 -0.003 -0.009 4.9 -2.3

Upper East

0.045 0.046

-0.010 0.007

-0.423 -0.550

0.004 -0.004 -0.008 3.4 -3.1

Residual

-0.049 -0.004 0.045 -38.1 -3.6

Total ( C ) 0.129 0.120 -0.009 100.0 100.0

Source: 2003 and 2008 Ghana Demographic Health Surveys; own calculations.

Note 1: For coefficients of marginal effects and significant levels, see Appendix Table A6.2. Note 2: Reference categories are: male; no under-six year olds; no school-age children; no economically active members; male head; heads with no formal education; urban; and Upper West region.

174

The contributions of; household wealth, female household head, and household head's

educational attainment levels (secondary and higher levels) are all statistically significant.

The concentration indices of these variables indicate a pro-rich distribution of access to

secondary education among the households. This suggests that these determinants are more

concentrated among the rich households in both 2003 and 2008. The implication is that the

rich households gained more access to secondary education than the poor households in

both years.

Household wealth inequality favours the rich in both years and it is revealed by the

concentration indices of 0.267 and 0.266 in 2003 and 2008 respectively. Contributions of

the determinants to the total inequality in access to secondary education show that

household wealth constitutes the bulk of the sources of the inequality in secondary school

attendance in both 2003 and 2008. The contribution of household wealth to the

socioeconomic inequality in access to secondary education accounts for: 0.092 (71.9%)

points of the total inequality of 0.129 in 2003; and 0.063 (53.3%) of the total inequality of

0.120 in 2008. In addition, the "change" column (i.e. the empirical analog of equation 6.10)

indicates a fall (-0.029) in household wealth inequality which in turn contributes to a

decrease in socioeconomic inequality in access to secondary education between 2003 and

2008.

Considering household head characteristics, inequality in household head’s educational

attainment increases with the education level attained. For example, a household head with

secondary education has concentration index of 0.159 in both 2003 and 2008. For a

household head with educational level attained higher than secondary level (equivalent to

tertiary education attainment) the concentration indices are 0.520 and 0.556 in 2003 and

2008, respectively. This implies that inequality in these determinants disfavours the poor in

both years. Furthermore, the contributions of these determinants to socioeconomic

inequality in access to secondary education are the second largest, accounting for; 0.049

(37.9%) of the total inequality of 0.129 in 2003, and 0.047 (39.1%) of the total inequality

of 0.120 in 2008. Interesting, however, is the trend of the contribution of the two

determinants. For example, whilst the inequality contribution of household heads with

secondary education attainment increases [from 0.015 (11.6%) in 2003 to 0.017 (14.2%)],

that of household heads with higher levels of educational attainment decreases [from 0.034

(26.3%) in 2003 to 0.030 (24.9%)].

175

The inequality depicted by households headed by females, disproportionately benefit the

rich in both years. However, between the two periods, there has been a fall in the

inequality of female household head (from 0.110 in 2003 to 0.061 in 2008). The

contribution of female household head to socioeconomic inequality in access to secondary

education has also reduced from 0.008 (5.9%) in 2003 to 0.002 (1.7%) in 2008. Thus,

female household head contributes fairly small change in inequality (-0.006) towards the

total reduction in socioeconomic inequality in access to secondary education between 2003

and 2008.

These results show that children who reside in households with these household head

characteristics have more access to secondary education than the children from poor

households where these characteristics are lacking. These findings are consistent with the

findings in the empirical literature on the impacts of household head education level and

the positive impacts of households headed by females on children’s educational outcomes

(Chernichovsky 1985; Thomas 1994; Tsakloglou 1993; Jacoby 1994; Lloyd and Blanc

1996; Sackey 2007; Rolleston 2011). For example, Lloyd and Blanc (1996), and

Chernichovsky (1985) find that household head’s education serves as a predictor of

household head’s market earnings potential that could be invested in children’s education.

Thomas (1994) also finds that a female household head with more education may have

increased bargaining power in the household and may choose to allocate more resources

towards children and their human capital development than would their counterpart, male

household head.

The concentration indices for household size are negative (-0.055 and -0.069 in 2003 and

2008 respectively) indicating that the socioeconomic inequality in access to secondary

education is concentrated more among the poor households. The contribution of household

size to the total inequality is 0.018 (14.2%) in 2003 and 0.004 (3.5%) in 2008, resulting in

a change of -0.014 in the total inequality. The inequality in household size associated with

lower secondary education attainment of children from poor households has also been

established in the empirical literature. Although the findings of the effects of household

size on educational outcomes in the literature are mixed, our results are consistent with the

findings of; Blake (1981), Downey (1995) Knodel et al. (1990), and Pong (1997). These

studies show negative relationship between family size and inequality in educational

outcomes which is mostly concentrated among the poor.

176

With respect to the household composition, the contributions of children under-six years

old are statistically significant in 2008, and their inequalities are concentrated among the

poor households. This finding is consistent with the findings of Chernichovsky (1985),

Lloyd and Blanc (1996), and Sackey (2007) among others. It is worth noting the trend of

inequalities exhibited by the number of the under-six year olds. For example, the

concentration index of the number of children aged under-six years old, increases with

increased number of under-six year olds that reside in a household. In 2008, the inequality

increases from -0.048 for a maximum number of two children to -0.596 for a maximum of

six children. In 2008, these variables contribute a total of 0.010 (8.8%) points to the total

inequality, and a change of 0.015 points to the total change in socioeconomic inequality in

access to secondary education between 2003 and 2008.

The concentration index (0.067) of proportion of economically active household members

indicates that the inequality of proportion of economically active household members (who

are economically productive, i.e. employed) is more concentrated among rich households

(see table A6.2). It contributes 0.003 points (2.1%) of inequality in 2003 to the total

inequality of 0.129, and a change of -0.005 to the total change in socioeconomic inequality

in access to secondary education between 2003 and 2008.

Although the concentration indices (-0.336 and -0.327 in 2003 and 2008, respectively)

indicate that inequalities in rural areas with respect to access to secondary education are

more concentrated among the poor, the contribution to the total inequality is statistically

insignificant. Furthermore, regional contributions to the total inequality are only

statistically significant in four regions. The regional inequalities are pro-rich in Western

and Ashanti regions in 2008. Although the inequality in Western region has increased from

0.020 in 2003 to 0.063 in 2008, the region’s contribution to the total inequality is quite low

(0.1% in 2003 and 0.4% in 2008). The Ashanti region on the other hand, has recorded a

slight decrease in inequality (0.170 in 2003 and 0.165 in 2008). However, the region’s

contribution of inequality to the total inequality in access to secondary education has

increased from 0.003 (2.4%) in 2003 to 0.006 (4.9%) in favour of the rich households.

On the contrary, the regional inequalities in the distribution of access to secondary

education in the Northern and Upper East regions are pro-poor, with statistically

significant contributions in 2008. The Northern region inequality has increased from

-0.433 in 2003 to -0.479 in 2008, and contributes a change of -0.009 in inequality to the

177

total socioeconomic inequality in access to secondary education between the 2003 and

2008. The Upper East region also records an increase in inequality from -0.423 in 2003 to

-0.550 in 2008 in favour of the poor households. The region contributes a change of -0.008

to the total change in the reduction of socioeconomic inequality in access to secondary

education between the two periods. The concentration indices of the two northern regions

show that the distribution of access to secondary education in the regions is pro-poor.

From Table 6.3 we also discover that the most important predictor variables that contribute

to the changes in socioeconomic inequality in access to secondary education are;

household wealth, female household head, and household head's educational attainment

(secondary and higher levels). Similar findings have been reported in the empirical

literature (Haveman and Wolfe 1995; Lloyd and Blanc 1996; Lillard and Willis 1994;

Glewwe and Jacoby 1994; Holmes 2003; Sackey 2007; Rolleston 2011). However, the

bulk of the sources of socioeconomic inequality in access to secondary education in both

2003 and 2008 is attributed to household wealth, thereby disproportionately benefiting the

non-poor households which is consistent with the earlier findings from primary education.

Filmer and Pritchett (1999b & 2001), Roberts (2003), Sahn and Younger (2007), and

Harttgen et al. (2010) have also arrived at similar conclusions about the determinants of

educational outcomes in their studies.

However, what is not clear from Table 6.3 is that the results do not enable us to see

whether the changes depicted under the column labelled ‘change’ (i.e. the empirical analog

of Equation 6.10) are due to changes in; elasticities (impacts) or inequalities (degree of

unequal distribution) of the contributing factors. The clarification is vital for policy

considerations. Therefore, to further analyse the sources of the changes in socioeconomic

inequality in access to secondary education, we have applied Oaxaca-type decomposition

of change in concentration index for the secondary school attendance between 2003 and

2008 based on either Equation 6.11 or Equation 6.12 in Table 6.4.

The Oaxaca-type decomposition results allow us to explain further the sources of the

changes in the total socioeconomic inequality in access to secondary education for policy

purpose. This is one area where other researchers, for example (Filmer and Pritchett 1999b

& 2001; Sahn and Younger 2006 & 2007; Harttgen et al. 2010) failed to disaggregate the

sources of the changes in the total socioeconomic inequality in their educational outcomes

studies.

178

Table 6.4: Oaxaca-type decompositions for change in secondary education access inequality, 2003-2008

Explanatory Variables Equation 6.11

Equation 6.12

Total ΔC*η Δη*C

ΔC*η Δη*C

Female 0.000 0.000

0.000 0.000 0.000

Household wealth 0.000 -0.029

0.000 -0.029 -0.029

Household size / composition:

Household size 0.001 -0.015

0.005 -0.019 -0.014

No. of children under 6 yrs;

Under 6 yrs children:1-2 0.000 0.004

0.000 0.004 0.004

Under 6 yrs children:3-4 0.001 0.007

-0.001 0.009 0.008

Under 6 yrs children:5-6 0.000 0.003

0.000 0.003 0.003

No. of school-age children;

School-age children:1-2 0.000 0.005

-0.002 0.007 0.005

School-age children:3-4 0.000 -0.004

0.004 -0.008 -0.004

School-age children:5-6 0.000 -0.002

0.001 -0.003 -0.002

No. of Economically active;

Economically active:1-2 0.000 0.000

-0.001 0.001 0.000

Economically active:3-4 0.000 0.000

0.000 0.000 0.000

Economically active:5-6 -0.001 0.000

-0.001 0.000 -0.001

No. of retirees aged 65+ yrs 0.000 0.001

0.000 0.001 0.001

Proportion of economically active: 0.000 -0.005

0.000 -0.005 -0.005

Household head: 0.000 0.000

0.000 0.000 0.000

Head age 0.002 0.001

0.002 0.001 0.003

Head age2 -0.001 0.004

-0.001 0.004 0.003

Female head -0.002 -0.004

-0.004 -0.002 -0.006

Households head's education

Primary level 0.000 -0.003

0.000 -0.003 -0.003

Secondary level 0.000 0.002

0.000 0.002 0.002

Higher levels 0.002 -0.006

0.002 -0.006 -0.004

Residence: 0.000 0.000

0.000 0.000 0.000

Rural 0.000 0.004

0.000 0.004 0.004

Administrative region:

Western 0.000 0.000

0.000 0.000 0.000

Central 0.000 0.000

0.000 0.000 0.000

Greater Accra 0.000 -0.004

0.000 -0.004 -0.004

Volta 0.000 0.000

0.000 0.000 0.000

Eastern 0.000 0.000

0.000 0.000 0.000

Ashanti 0.000 0.003

0.000 0.003 0.003

Brong Ahafo 0.000 -0.002

0.000 -0.002 -0.002

Northern 0.000 -0.009

0.001 -0.010 -0.009

Upper East -0.001 -0.007

0.001 -0.009 -0.008

Residual

0.045

Total 0.000 -0.054

0.007 -0.061 -0.009

Source: 2003 and 2008 Ghana Demographic Health Surveys; own calculations.

179

Policy perspective

The total change to be explained is a decrease in socioeconomic inequality in access to

secondary education of 0.009 points. Again, some of the variables that contribute to the

year-by-year indices are also important for explaining the change. By far, the largest

contribution to the change in socioeconomic inequality in access to secondary education

comes from household wealth. This finding is consistent with the findings of Filmer and

Pritchett (1999b & 2001), (Harttgen et al. 2010), and (Porta et al. 2011) where they find

household wealth as the main contributor to disparities in educational outcomes of

household across developing countries (Africa, Asia, Latin America, Caribbean and the

Pacific). The source of the change is the elasticity of use with respect to household wealth

which has been reduced from 0.346 in 2003 to 0.237 in 2008. The result depicted by Table

6.4 suggests it is the changing elasticity (-0.029) rather than the inequality in household

wealth that accounts for the bulk of the decrease in socioeconomic inequality in access to

secondary education between the two periods.

Changes in the elasticities of other determinants such as; proportion of economically active

household members (-0.027), household size (-0.015 or -0.019), and Northern and Upper

East regions (-0.016 or -0.019) also contribute to the total reduction in the socioeconomic

inequality in access to secondary education. However, from Table 6.4, it is evidenced that

these covariates contribute to reducing socioeconomic inequality in access to secondary

education more via their reduced impacts on the secondary attendance than via changes in

their inequalities.

Overall, taking the changes of all the determinants of access to secondary education into

account, the decrease in socioeconomic inequality in secondary education access is largely

attributable to changing elasticities, rather than changing inequalities in the determinants of

the access to secondary education. In all, there has been a decrease in total socioeconomic

inequality in access to secondary education from 0.129 in 2003 to 0.120 in 2008. This

finding is also consistent with the findings of (Harttgen et al. 2010) where the authors find

that inequalities in secondary school attendance rates decline with rising average

attendance in most of the 37 developing countries they have studied, including Ghana.

180

6.4.3 Sources of inequality in primary education attainment

The results for primary education attainment (primary school completion) are also derived

from Equations 6.8 to 6.12. Tables 6.5 and 6.6 present the decomposition results showing

sources of inequalities in primary education attainment in 2003 and 2008. The mean values

of primary school completion in 2003 and 2008 are 70.4% and 75.0% respectively,

indicating an improvement in the primary education attainment status between 2003 and

2008. The elasticities in Table 6.5 show the impact of each determinant on the primary

education attainment inequality, and the concentration indices show the magnitude of the

socioeconomic inequality in primary education attainment. Contributions to the

socioeconomic inequality are estimates of each determinant’s contribution towards the

total socioeconomic inequality in the primary education attainment. The estimated

concentration indices indicate total inequality of 0.145 and 0.142 points in primary

education attainment for 2003 and 2008, respectively. These indices show that the

socioeconomic inequality in primary education attainment favours the rich more than the

poor in each year. Although, the results indicate an improvement in the primary school

completion inequality between 2003 and 2008, the reduction (-0.003) is fairly negligible.

The concentration indices for female age cohort who have completed primary education

are more concentrated among the rich (0.033 and 0.023 concentration indices in 2003 and

2008, respectively). The result shown in Table 6.5 is consistent with the findings of other

similar studies; Lloyd and Gage-Brandon (1994) and Sackey (2007) for Ghana, Lloyd and

Hewett (2009) for Africa, and Holmes (2003) for Pakistan. In terms of inequality

contributions, female pupil contributes -0.002 and -0.001 points to socioeconomic

inequality in primary school completion in 2003 and 2008, respectively. Thus, a change of

0.001 to the total change in socioeconomic inequality in primary education completion

between the two periods comes from female pupil which is statistically significant.

Furthermore, considering the association between the primary education attainment and the

key household variables, the marginal effects of; household wealth, female household head,

and household head's educational attainment (secondary and higher levels) are all positive

and statistically significant. The concentration indices of these variables indicate a pro-rich

distribution of primary education attainment among the households.

181

Table 6.5: Primary education attainment (completion by age cohort 15-20 years) inequality decomposition for 2003 & 2008, and change between 2003 & 2008

Variables

Mean

Elasticities

Concentration

indices

Contributions to

C Eq. 6.10

%

contribution

2003 2008 2003 2008 2003 2008

2003 2008 change 2003 2008

Primary School Completion

0.704 0.750

Female

0.503 0.505

-0.060 -0.024

0.033 0.023

-0.002 -0.001 0.001 -1.4 -0.4

Household wealth

3.165 3.154

0.243 0.278

0.267 0.266

0.065 0.074 0.009 44.7 52.1

Household size / composition:

Household size

4.025 3.753

-0.017 -0.027

-0.055 -0.069

0.001 0.002 0.001 0.6 1.3

No. of children under 6 yrs;

Under 6 yrs children:1-2

0.549 0.499

-0.013 -0.032

-0.055 -0.048

0.001 0.002 0.001 0.5 1.1

Under 6 yrs children:3-4

0.065 0.060

-0.003 -0.008

-0.278 -0.340

0.001 0.003 0.002 0.5 1.9

Under 6 yrs children:5-6

0.003 0.005

-0.001 -0.002

-0.609 -0.596

0.002 0.001 -0.001 0.5 0.9

No. of school-age children;

School-age children:1-2

0.414 0.424

0.030 0.014

0.028 0.038

0.001 0.001 0.000 0.6 0.4

School-age children:3-4

0.290 0.257

0.018 0.004

-0.054 -0.099

-0.001 0.000 0.001 -0.7 -0.3

School-age children:5-6

0.068 0.053

0.004 0.001

-0.151 -0.215

-0.001 -0.001 0.000 -0.5 -0.2

No. of Economically active;

Economically active:1-2

0.624 0.638

-0.003 0.024

-0.003 0.013

0.000 0.000 0.000 0.0 0.2

Economically active:3-4

0.277 0.264

0.008 0.021

-0.025 -0.015

0.000 0.000 0.000 -0.1 -0.2

Economically active:5-6

0.062 0.058

0.004 0.003

0.128 0.023

0.000 0.000 0.000 0.4 0.0

No. of retirees aged 65+ yrs

0.232 0.217

0.003 0.005

-0.104 -0.141

0.000 0.000 0.000 -0.2 -0.5

Proportion of economically active:

0.454 0.485

0.027 0.040

0.067 0.068

0.002 0.003 0.001 1.2 1.9

182

Table 6.5 cont.:

Household head:

Head age

44.9 44.2

0.499 0.458

-0.016 -0.014

-0.008 -0.006 0.002 -5.4 -4.4

Head age2

2276.4 2212.3

-0.165 -0.175

-0.034 -0.031

0.005 0.005 0.000 3.9 3.8

Female head

0.338 0.337

0.042 0.024

0.110 0.061

0.005 0.002 -0.003 3.1 1.0

Household head's education

Primary level

0.133 0.129

0.007 0.007

-0.124 -0.151

-0.001 -0.001 0.000 -0.6 -0.7

Secondary level

0.402 0.474

0.091 0.109

0.159 0.159

0.014 0.017 0.003 9.9 12.2

Higher levels

0.116 0.122

0.043 0.026

0.520 0.556

0.022 0.014 -0.008 15.5 10.2

Residence:

Rural

0.541 0.522

-0.003 -0.011

-0.336 -0.327

0.001 0.003 0.002 0.7 2.5

Administrative region:

Western

0.098 0.100

0.015 0.010

0.020 0.063

0.000 0.000 0.000 0.2 0.5

Central

0.094 0.109

0.006 0.007

-0.012 0.063

0.000 0.000 0.000 0.0 0.3

Greater Accra

0.142 0.166

0.012 0.000

0.596 0.603

0.007 0.000 -0.007 5.1 0.2

Volta

0.086 0.084

0.010 0.003

-0.132 -0.139

-0.001 0.000 0.001 -1.0 -0.3

Eastern

0.117 0.107

0.026 0.010

-0.002 -0.038

0.000 0.000 0.000 0.0 -0.3

Ashanti

0.210 0.192

0.034 0.015

0.170 0.165

0.006 0.003 -0.003 3.9 1.7

Brong Ahafo

0.106 0.098

0.015 0.010

-0.109 -0.158

-0.002 -0.002 0.000 -1.1 -1.1

Northern

0.078 0.079

-0.026 -0.009

-0.433 -0.479

0.011 0.004 -0.007 7.9 3.1

Upper East

0.045 0.046

-0.005 0.000

-0.423 -0.550

0.002 0.000 -0.002 1.4 -0.1

Residual

0.015 0.019 0.004 10.3 13.1

Total ( C ) 0.145 0.142 -0.003 100.0 100.0

Source: 2003 and 2008 Ghana Demographic Health Surveys; own calculations.

Note 1: For coefficients of marginal effects and significant levels, see Appendix Table A6.3. Note 2: Reference categories are: male; no under-six year olds; no school-age children; no economically active members; male head; heads with no formal education; urban; and Upper West region.

183

This suggests that these determinants are more concentrated among the rich households in

both 2003 and 2008. In other words, the inequalities disfavour the poor in the distribution

of primary school completion or attainment which is a stepping stone for transition into a

higher level of education.

Household wealth inequality favours the rich more than the poor in both years and it is

revealed by the concentration indices of 0.267 and 0.266 in 2003 and 2008, respectively.

This is consistent with the evidence from Western and Central Africa that show low

enrolment and high dropout rates resulting in more than 40% of children from poor

households never able to complete Grade 1 and only one in four completed Grade 5

(Filmer and Pritchett 1999b). Furthermore, the contributions of the determinants to the

total socioeconomic inequality in primary education attainment show that household

wealth constitutes the bulk of the sources of the inequality in both 2003 and 2008. The

contribution of household wealth to socioeconomic inequality in primary education

attainment accounts for: 0.065 (44.7%) points of the total inequality of 0.145 in 2003; and

0.074 (52.1%) of the total inequality of 0.142 in 2008. The trend shows an increased

change of 0.009 points contribution in household wealth inequality between 2003 and 2008

to the total change in socioeconomic inequality in primary education attainment.

The inequality depicted by households headed by females, favours the rich households

more than the poor households in both years. However, between the two periods, there has

been a fall in the inequality of female household head (from 0.110 in 2003 to 0.061 in

2008). The contribution of female household head to socioeconomic inequality in primary

education attainment has also fallen from 0.005 (3.1%) in 2003 to 0.002 (1.0%) in 2008.

Consequently, female household head contributes -0.003 change in inequality towards the

total reduction in socioeconomic inequality in primary education attainment between 2003

and 2008.

The contribution of secondary and higher levels of education attained by household head to

inequality is statistically significant. However, the decomposition of the inequality reveals

that the impact of household head’s educational attainment measured by the elasticity is

lower for household heads with primary education (concentrated among the poor

households) than household heads with at least secondary education (concentrated among

the rich households). Also the degree of unequal distribution of the primary education

attainment across households favours the rich households. In addition, inequality in

184

household head’s educational attainment increases with the level of education attained. It is

also possible to note that within the socioeconomic status, the rich households are more

likely to invest more resources in facilitating the education of children living in the

household. These findings corroborate the findings of Lloyd and Blanc (1996) Patrinos and

Psacharopoulos (1997) Deininger (2003), Sackey (2007), and Harttgen et al. (2010). These

studies demonstrate that household wealth is a key determinant of a household’s ability to

invest in children's education and as a result, it can lead to inequality in educational

outcomes between children from poor and the non-poor households. For example, in Table

6.5, a household head who has attained secondary education level has concentration index

of 0.159 in both 2003 and 2008. For a household head with higher levels of education than

secondary (equivalent to tertiary education attainment) the concentration index increases

from 0.520 in 2003 to 0.556 in 2008. The educational attainment inequalities are more

concentrated among the rich households in both years and this is consistent with the

findings of Maika et al. (2013) in Indonesia, where household head’s years of education or

parental education contribute to inequality in children’s cognitive achievement and are

more concentrated among the higher economic groups.

Furthermore, the contributions of household head’s educational attainment to

socioeconomic inequality in primary education attainment are the second largest,

accounting for 0.036 (25.4%) of the total inequality of 0.145 in 2003, and 0.031 (22.4%) of

the total inequality of 0.142 in 2008. Interesting, however, is the trend of the contribution

of the two determinants. For example, while the inequality contribution of household heads

with secondary education attainment increases [from 0.014 (9.9%) in 2003 to 0.017 (12.2%)

in 2008], that of household heads with higher levels of attainment than secondary level

decreases [from 0.022 (15.5%) in 2003 to 0.014 (10.2%) in 2008] between the two periods.

In total, household head’s educational attainment inequalities contribute a change of -0.005

to the total reduction in socioeconomic inequality in primary education attainment.

With respect to the household composition, the inequalities associated with number of

children under-six years are concentrated more among the poor households. It is worth

noting the trend of inequalities exhibited by the number of the under-six year olds. For

example, the concentration index of the number of children aged under-six years old

increases as the number of the under-six year olds increases. In 2003, the inequality

increases from -0.055 for a maximum number of two children to -0.609 for a maximum of

six children. Also, the inequality increases from -0.048 for a maximum number of two

185

children to -0.596 for a maximum of six children in 2008. The results corroborate well

with other findings (Sathar and Lloyd 1994; Lloyd and Blanc 1996). These variables

contribute a total of 0.003 (1.5%) and 0.006 (3.9%) points to the total socioeconomic

inequality in 2003 and 2008, respectively. In all, a change of 0.004 points to the total

change in socioeconomic inequality in primary education attainment between 2003 and

2008 was contributed by the number of the under-six year olds. This implies that these

determinants are increasing socioeconomic inequality in primary education attainment. On

the other hand, the inequality contributions of the number of school-age children, retirees,

economically active, and the proportion of economically active household members to the

inequality in primary education attainment are negligible and statistically insignificant.

At the regional level, the inequality contributions of; Western, Eastern, Ashanti, and Brong

Ahafo regions are statistically significant in both years. In the Western region, the regional

inequality is more concentrated among the rich households with increasing trend (from

0.020 in 2003 to 0.063 in 2008). However, the region’s inequality contribution to

socioeconomic inequality in primary education attainment is fairly negligible. The Ashanti

region’s inequality is also more concentrated among the rich households, however, with a

decreasing trend between the two periods (from 0.170 to 0.165). The Ashanti region

contributes 0.006 (3.9%) and 0.003 (1.7%) to the total socioeconomic inequality in primary

education attainment in 2003 and 2008, respectively. In effect, the region contributes a

change of -0.003 to the total change in socioeconomic inequality in primary education

attainment.

The Eastern and Brong Ahafo regions show pro-poor distribution of primary education

attainment in both years. Although both regions record an increase in socioeconomic

inequality in primary education attainment in favour of the poor, their contributions to the

total inequality in both years are fairly negligible. At the northern part of the country, the

result is different. The concentration indices of the Northern region show that the region’s

inequality in primary education attainment increases from -0.433 in 2003 to -0.479 in 2008

which is more concentrated among the children from poor households. An examination of

the marginal effect of the Northern region shows that the negative concentration index in

both 2003 and 2008 is associated with low probability of completing primary education

which is concentrated among the poor households (see Table A6.3). Furthermore, the

region contributes 0.011 (7.9%) and 0.004 (3.1%) in inequality to the total socioeconomic

inequalities of 0.145 and 0.142 in primary education attainment in 2003 and 2008,

186

respectively. Overall, the levels and trends in regional inequality contribution to

socioeconomic inequality in primary educational attainment disfavour the poor households

and these findings are consistent with Ghana Statistical Service et al. (2004 & 2009)

reports. The reports show that there are disparities in educational attainment in all the 10

regions in favour of rich households.

From Table 6.5 it is evidenced that the bulk of the sources contributing to socioeconomic

inequality in primary education attainment in both 2003 and 2008 is attributed to

household wealth which favours the rich households more than the poor households.

Although Table 6.5 shows that the most important sources of socioeconomic inequality in

primary education attainment include: household wealth, female household head,

household head's level of education (secondary and higher levels), and some regional

effects, again the results do not enable us to distinguish between the changes in the

contributions due to changes in elasticities and changes in inequalities. Therefore, further

analysis became imperative to disaggregate the changes in the primary school completion

inequality between 2003 and 2008 for policy purpose. Consequently, we apply Oaxaca-

type decomposition of change in concentration index to scrutinise the sources of the

changes in the socioeconomic inequality in primary education attainment.

Policy perspective

From Table 6.5, the total change to be explained is a decrease in socioeconomic inequality

in primary education attainment of 0.003. Although some of the variables that contribute to

the indices are also important for explaining the change, by far the largest contributor of

inequality change to the total change in socioeconomic inequality in primary education

attainment comes from household wealth. The source of change in the household wealth

and its impact on the primary education attainment, measured by the elasticity of use has

increased from 0.243 in 2003 to 0.278 in 2008. Table 6.6 suggests it is the changing

elasticity (Δη) rather than the changing household wealth inequality (ΔC) that accounts for

the reduction in socioeconomic inequality in primary education attainment between 2003

and 2008. Again, this finding may be explained in terms of positive impact of the

government of Ghana’s education policy interventions (FCUBE, SCG, and SFP) discussed

in Chapters 1 and 2.

187

Table 6.6: Oaxaca-type decompositions for change in primary education attainment inequality, 2003 - 2008

Explanatory Variables Equation 6.11

Equation 6.12 Total

ΔC*η Δη*C ΔC*η Δη*C

Female 0.000 0.001

0.000 0.001 0.001

Household wealth 0.000 0.009

0.000 0.009 0.009

Household size / composition:

Household size 0.000 0.001

0.000 0.001 0.001

No. of children under 6 yrs;

Under 6 yrs children:1-2 0.000 0.001

0.000 0.001 0.001

Under 6 yrs children:3-4 0.000 0.002

0.000 0.002 0.002

Under 6 yrs children:5-6 0.000 0.001

0.000 0.001 0.001

No. of school-age children;

School-age children:1-2 0.000 0.000

0.000 0.000 0.000

School-age children:3-4 0.000 0.001

0.000 0.001 0.001

School-age children:5-6 0.000 0.000

0.000 0.000 0.000

No. of Economically active;

Economically active:1-2 0.000 0.000

0.000 0.000 0.000

Economically active:3-4 0.000 0.000

0.000 0.000 0.000

Economically active:5-6 0.000 0.000

0.000 0.000 0.000

No. of retirees aged 65+ yrs 0.000 0.000

0.000 0.000 0.000

Proportion of economically active: 0.000 0.001

0.000 0.001 0.001

Household head:

Head age 0.001 0.001

0.001 0.001 0.002

Head age2 0.000 0.000

0.000 0.000 0.000

Female head -0.001 -0.002

-0.002 -0.001 -0.003

Households head's education

Primary level 0.000 0.000

0.000 0.000 0.000

Secondary level 0.000 0.003

0.000 0.003 0.003

Higher levels 0.001 -0.009

0.002 -0.010 -0.008

Residence:

Rural 0.000 0.002

0.000 0.002 0.002

Administrative region:

Western 0.000 0.000

0.000 0.000 0.000

Central 0.000 0.000

0.000 0.000 0.000

Greater Accra 0.000 -0.007

0.000 -0.007 -0.007

Volta 0.000 0.001

0.000 0.001 0.001

Eastern 0.000 0.000

-0.001 0.001 0.000

Ashanti 0.000 -0.003

0.000 -0.003 -0.003

Brong Ahafo -0.001 0.001

-0.001 0.001 0.000

Northern 0.000 -0.008

0.001 -0.008 -0.007

Upper East 0.000 -0.002

0.001 -0.003 -0.002

Residual

0.004

Total 0.001 -0.008 0.000 -0.007 -0.003

Source: 2003 and 2008 Ghana Demographic Health Surveys; own calculations

188

Generally, taking the changes of all the determinants of the primary education attainment

into account, the inequality reduction in the primary education attainment is largely

attributable to changing elasticities, rather than changing inequalities in the determinants of

the primary school attainment (see the row total in Table 6.6). From Table 6.6 we can,

therefore, suggest that the key determinants contribute either to increasing or decreasing

inequality more via their impact on primary school completion than via changes in the

degree of unequal distribution across income groups. In all, there has been a decrease in

the total socioeconomic inequality in primary education attainment from 0.145 in 2003 to

0.142 in 2008, although the decrease has been very minimal.

6.4.4 Sources of inequality in secondary education attainment

Tables 6.7 and 6.8 present the decomposition of the measures of socioeconomic inequality

in secondary education attainment for 2003 and 2008. The mean values of secondary

completion in 2003 and 2008 samples are 14.7% and 22.8% respectively, indicating an

improvement in the secondary completion status between 2003 and 2008. The elasticities

in Table 6.7 show the impact of each determinant on the secondary education attainment

inequality, and the concentration indices show the magnitude of the inequality with respect

to each determinant. Contributions to socioeconomic inequality in secondary completion

are estimates of each determinant’s contribution towards the total inequality in the

secondary education attainment. The estimated concentration indices indicate total

inequality of 0.109 and 0.148 points in secondary education attainment for 2003 and 2008,

respectively. These indices show that the inequality in secondary education attainment

favours the rich households more in each year than the poor households. The results also

indicate a significant increase (0.040) in the secondary education attainment inequality

between 2003 and 2008 in favour of the rich households.

The concentration indices (0.033 and 0.023) for female age cohort are positive, indicating

that the inequality associated with female age cohort’s secondary education attainment are

more concentrated among the rich households. Female age cohort contributes -0.001 points

each year to socioeconomic inequality in secondary education attainment. This means that

the combined effect of female student’s marginal effect and its distribution by household

wealth was lowering the socioeconomic inequality in secondary education attainment.

Other findings also suggest that there is inequality in the distribution of education in Ghana

which is linked to gender and income poverty (Ghana Statistical Service et al. 2009;

Akyeampong et al. 2007; World Bank 2004; Lloyd and Hewett 2009).

189

In Table 6.7, the contributions of; household wealth, proportion of economically active

household members, female household head, and household head’s educational attainment

levels (secondary and higher levels) are all statistically significant in both years. The

concentration indices of these determinants indicate that their inequalities are more

concentrated among the rich households. This implies the inequalities favour the rich

households more than the poor households in the distribution of secondary education

attainment in Ghana.

Household wealth inequalities favour the rich households in both years as indicated by its

concentration indices. Contributions of the determinants to the total inequalities in

secondary education attainment show that household wealth constitutes the bulk of the

sources of the socioeconomic inequality in the of secondary school completion in both

2003 and 2008. The contribution of household wealth to inequalities in of secondary

education attainment accounts for; 0.097 (89.0 %%) points of a total of 0.109 in 2003, and

0.065 (43.9%) of a total of 0.148 in 2008. The positive contributions to socioeconomic

inequality imply that the household wealth is increasing socioeconomic inequality in

secondary education attainment in favour of the rich households. However, there is a

decrease in the contribution of household wealth by 0.032 between the two periods,

primarily owing to a lower elasticity (0.246 in 2008 compared to 0.366 in 2003) of the

secondary education attainment.

The change column in Table 6.7 shows that the increase in the socioeconomic inequality in

the secondary education attainment in Ghana between 2003 and 2008 is largely due to

changes in household wealth. For example, Ghana Statistical Service et al. (2009) also

reveal that children from poor households have lower educational attainment, and they are

more likely to drop out in the course of their educational cycle, than the children from non-

poor households. Filmer and Pritchett (1999b) also find that the dropout rates for the poor

are consistently higher than for the non-poor across 37 developing countries.

There are, however, changes in other determinants that have contributed to the total change

in the socioeconomic inequality over time. The inequality depicted by households headed

by females is more concentrated among the rich households in both years. However,

between the two periods, there has been a fall in the inequality of female household head

from 0.110 in 2003 to 0.061 in 2008. The contribution of female household head to

socioeconomic inequality in secondary education attainment has also fallen from 0.012

190

(11.2%) in 2003 to 0.003 (2.3%) in 2008. Consequently, female household head

contributes -0.009 change in inequality towards the total change in socioeconomic

inequality in secondary education attainment between 2003 and 2008. This implies that the

inequality contribution of female household head is lowering socioeconomic inequality in

secondary education attainment. This supports the argument that “female household heads

are more likely to invest resources, including time, money and emotional support, in

facilitating the education of children living in their households” (Lloyd and Blanc

1996:288).

191

Table 6.7: Secondary education attainment (completion by age cohort 18-23 years) inequality decomposition for 2003 & 2008, and change between 2003 & 2008

Variables

Mean

Elasticities

Concentration

indices Contributions to

C

Eq.

6.10

%

Contribution

2003 2008 2003 2008 2003 2008

2003 2008 change 2003 2008

Secondary School Completion

0.147 0.228

Female

0.503 0.505

-0.043 -0.049

0.033 0.023

-0.001 -0.001 0.000 -1.3 -0.8

Household wealth

3.165 3.154

0.366 0.246

0.267 0.266

0.097 0.065 -0.032 90.0 44.2

Household size / composition:

Household size

4.025 3.753

-0.261 -0.129

-0.055 -0.069

0.014 0.009 -0.005 13.3 6.0

No. of children under 6 yrs;

Under 6 yrs children:1-2

0.549 0.499

-0.259 -0.108

-0.055 -0.048

0.014 0.005 -0.009 13.2 3.5

Under 6 yrs children:3-4

0.065 0.060

-0.047 -0.011

-0.278 -0.340

0.013 0.004 -0.009 12.1 2.5

No. of school-age children

School-age children:1-2

0.414 0.424

0.172 0.057

0.028 0.038

0.005 0.002 -0.003 4.4 1.4

School-age children:3-4

0.290 0.257

0.168 0.043

-0.054 -0.099

-0.009 -0.004 0.005 -8.6 -2.9

School-age children:5-6

0.068 0.053

0.036 0.015

-0.151 -0.215

-0.005 -0.003 0.002 -5.1 -2.1

No. of Economically active

Economically active:1-2

0.624 0.638

-0.606 -0.152

-0.003 0.013

0.002 -0.002 -0.004 1.8 -1.3

Economically active:3-4

0.277 0.264

-0.223 -0.045

-0.025 -0.015

0.006 0.001 -0.005 5.2 0.5

Economically active:5-6

0.062 0.058

-0.013 -0.005

0.128 0.023

-0.002 0.000 0.002 -1.8 -0.1

No. of retirees aged 65+ yrs

0.232 0.217

0.000 0.038

-0.104 -0.141

0.000 -0.005 -0.005 0.0 -3.6

Proportion of economically active

0.454 0.485

0.251 0.289

0.067 0.068

0.017 0.020 0.003 15.4 13.2

192

Table 6.7 cont.:

Household head:

Head age

44.9 44.2

0.471 0.819

-0.016 -0.014

-0.007 -0.011 -0.004 -6.9 -7.5

Head age2

2276.4 2212.3

-0.062 -0.342

-0.034 -0.031

0.003 0.011 0.008 2.0 7.2

Female head

0.338 0.337

0.111 0.056

0.110 0.061

0.012 0.003 -0.009 11.2 2.3

Household head's education:

Primary level

0.133 0.129

0.016 -0.014

-0.124 -0.151

-0.002 0.002 0.004 -1.9 1.5

Secondary level

0.402 0.474

0.153 0.209

0.159 0.159

0.024 0.033 0.009 22.5 22.4

Higher levels

0.116 0.122

0.080 0.064

0.520 0.556

0.042 0.036 -0.006 38.4 24.0

Residence:

Rural

0.541 0.522

0.071 -0.157

-0.336 -0.327

-0.024 0.051 0.075 -21.9 34.7

Administrative region:

Western

0.098 0.100

-0.066 -0.025

0.020 0.063

-0.002 -0.002 0.000 -1.2 -1.1

Central

0.094 0.109

-0.053 -0.044

-0.012 0.063

0.000 -0.003 -0.003 0.6 -1.9

Greater Accra

0.142 0.166

-0.045 -0.011

0.596 0.603

-0.026 -0.006 0.020 -24.9 -4.4

Volta

0.086 0.084

-0.072 -0.031

-0.132 -0.139

0.009 0.004 -0.005 8.9 2.9

Eastern

0.117 0.107

-0.104 -0.052

-0.002 -0.038

0.000 0.002 0.002 0.2 1.3

Ashanti

0.210 0.192

-0.196 -0.032

0.170 0.165

-0.033 -0.005 0.028 -30.9 -3.6

Brong Ahafo

0.106 0.098

-0.052 -0.023

-0.109 -0.158

0.006 0.004 -0.002 5.2 2.4

Northern

0.078 0.079

-0.002 0.001

-0.433 -0.479

0.001 -0.001 -0.002 0.8 -0.5

Upper East

0.045 0.046

-0.019 0.010

-0.423 -0.550

0.008 -0.006 -0.014 7.4 -3.7

Residual

-0.054 -0.055 0.001 -47.9 -36.9

Total ( C ) 0.108 0.148 0.040 100.0 100.0

Source: 2003 and 2008 Ghana Demographic Health Surveys; own calculations Note 1: For coefficients of marginal effects and significant levels, see Appendix Table A6.4

Note 2: Reference categories are: male; no under-six year olds; no school-age children; no economically active members; male head; heads with no formal education; urban; and Upper West region.

189

Whilst the inequality in the household head’s secondary education attainment level

remains constant in both years, that of a household head with higher levels of education

attainment increases from 0.520 in 2003 to 0.556 in 2008. The inequality contribution of a

household head’s secondary education attainment, (in absolute term) increases from 0.024

in 2003 to 0.033 in 2008, partly due to the increase in its elasticity. However, the relative

contribution shows a decrease of 0.1% (from 22.5% to 22.4%) between the two periods.

On the other hand, the contribution of household head with higher levels of education

decrease in both absolute and relative terms from 0.042 (38.4%) in 2003 to 0.036 (24.0%)

in 2008. In total, household head’s education levels contribute a change of 0.007 to the

total increase in socioeconomic inequality in secondary education attainment in favour of

the rich households. This means that household head’s educational attainment increases

socioeconomic inequality in secondary education attainment of children. Another

noticeable observation from Table 6.7 is that inequality in household head’s educational

level increases with the higher levels of education attained. For example, the inequality

increases from 0.159 for household head with secondary to 0.520, and 0.556 for household

head with a higher level of education in 2003 and 2008, respectively in favour of the rich

households. This finding is consistent with the empirical literature that have found positive

relationship between educational level of household heads or parents and children's

educational outcomes (Glewwe and Jacoby 1994; Oliver 1995; Tansel 1997; Sathar and

Lloyd 1994; Chernichovsky 1985).

With respect to the household composition, the contribution of a household with a

maximum of two children under-six years old to the inequality in secondary school

completion is statistically significant in both years. The inequality is more concentrated

among the poor households. In addition, contribution of households with a maximum of

four under-six year olds to the total inequality in 2003 is also statistically significant. The

inequality associated with the number of children under-six years old contributes 0.029

(26.7%) and 0.009 (6.0%) points to the total socioeconomic inequality in secondary

education attainment in 2003 and 2008, respectively. In all, a change of -0.020 points to

the total change in socioeconomic inequality in secondary education attainment (0.040)

between 2003 and 2008 was attributed to the number of the under-six year olds. These

findings corroborate studies that show that the presence of very young children in poor

households in particular, can increase the time needed for childcare and this can affect

school attendance and completion of school children (Sathar and Lloyd 1994; Lloyd and

Blanc 1996).

194

The inequality contribution of a maximum of two school-age children to secondary

education attainment is statistically significant only in both 2003 and 2008. Its associated

inequality is more concentrated among rich households. The inequality increases from

0.028 in 2003 to 0.038 in 2008, and contributes 0.005 (4.4%) and 0.002 (1.4%) to the total

socioeconomic inequality in 2003 and 2008, respectively. In effect, households with 1 to 2

school-going-age children contribute a change of -0.003 in inequality to the total change

(0.040) in inequality between the two periods. This means that households with a

maximum of two school-age children contribute to lowering the socioeconomic inequality

in secondary education attainment between the two periods. In addition, the contribution of

a maximum of four school-age children to the total inequality in secondary school

completion is statistically significant in both years. Compared to the maximum number of

two school-age children inequality, the inequality is more concentrated among the poor

households. The inequality associated with the households with 3 to 4 school-age children

increases from -0.054 in 2003 to -0.099 in 2008. It contributes -0.009 and -0.004 to the

total socioeconomic inequality of 0.108 and 0.148 in 2003 and 2008, respectively.

The change in contribution to the total change in socioeconomic inequality in secondary

education attainment is, however, an increase of 0.005 points. In short, the inequality

associated with the number of school-age children contributes a total of -0.009 and -0.005

points to the total socioeconomic inequality in secondary education attainment in 2003 and

2008, respectively. However, the combined change in contribution to the total change in

the socioeconomic inequality in secondary educational attainment between 2003 and 2008

is an increase of 0.004 points. Thus, the inequality associated with the number of school-

age children in a household and its impact on secondary education attainment disfavour the

poor. This is consistent with the findings with Butcher and Case (1994) who argue that the

presence of more school-age children in the household could put more pressure on

household resources, thereby affecting children's school attendance and completion

negatively.

The contribution of the proportion of economically active household members is

statistically significant in both 2003 and 2008. The positive contribution shows that the

proportion of household members is economically productive, thereby creating positive

effect on the secondary education attainment. The concentration indices also show that the

inequality in the proportion of economically active household members favours the rich

households in both years. The proportion of economically active household members

195

contributes 0.017 (15.4%) and 0.020 (13.2%) to the total socioeconomic inequality in 2003

and 2008, respectively. Although the absolute inequality contribution increases between

the two periods (an increase of 0.003 points to the total change in socioeconomic

inequality in secondary completion), the relative inequality contribution decreases between

the two periods.

The concentration index also shows that inequality associated with rural areas is more

concentrated among the poor households. In 2008, rural areas contribute 0.051 (34.7%),

and a change of 0.075 points to the total socioeconomic inequality in secondary education

attainment. The socioeconomic inequality in secondary school attainment revealed by the

decomposition is in line with the findings of Sackey (2007). Sackey observes locality

differences with respect to children’s school attendance and attainment which is highly

associated with socioeconomic inequality in educational outcomes between the urban and

rural areas in Ghana.

In terms of regional effect, the contributions of most of the regions to the total inequality

are statistically in both 2003 and 2008. With exception of Western and Ashanti regions (in

2003 and 2008) and Central region (in 2008), the regional inequality is more concentrated

among the poor households. Western, Central, Volta, Eastern, Ashanti, and Brong Ahafo

regions have contributed -0.020 points to the total socioeconomic inequality in secondary

education attainment in 2003. Although these regions have made fairly negligible

inequality contribution to the total socioeconomic inequality in 2008, their total change in

inequality contribution (0.020) to the total change in secondary education attainment

inequality (0.040) is fairly and statistically significant. Unsurprisingly, the fall in the

secondary education attainment is mostly concentrated among the poor households in the

regions. Ghana Statistical Service et al. (2004 & 2009) find similar trend in regional

educational inequality associated with socioeconomic inequality in Ghana.

From Table 6.7, we also discover that the most important determinants or sources that

contribute to the changes in socioeconomic inequality in secondary school completion are;

household wealth, household head's education, household size, female household head,

rural residency effect, and regional effects of Western, Central, Volta, Eastern, Ashanti,

and Brong Ahafo, regions in particular.

196

Although Table 6.7 appears to have revealed some sources of educational inequality in

secondary completion, the changes in the contribution of the sources of socioeconomic

inequality in secondary education attainment, however, do not enable us to explain whether

the changes are either due to changes in elasticities or changes in inequality or both.

Therefore, to further analyse the changes in the inequality, we have once again applied an

Oaxaca-type decomposition of change in concentration index for the secondary education

attainment between 2003 and 2008 educed from either equation 6.11 or 6.12. The Oaxaca-

type decomposition results in Table 6.8 allow us to explain the sources of the changes in

the inequality for policy purposes.

Policy perspective

Yet again, interesting insights emerge from the decomposition results. The total change to

be explained is an increase in socioeconomic inequality of 0.040. By far the largest

inequality contributions to the change in socioeconomic inequality in secondary education

attainment come from household wealth and rural residency. The impact of household

wealth on the secondary school completion (measured by the elasticity of use) has been

very high over time, even though the elasticity has decreased from 0.366 in 2003 to 0.246

in 2008. Table 6.8 moreover, suggests it is the changing elasticity (Δη) and not the

changing household wealth inequality (ΔC) that contributes to the socioeconomic

inequality in secondary education attainment. On the whole, taking the changes of all the

determinants of the socioeconomic inequality in secondary education attainment into

account, the increase in the inequality (see the row total contributions to C in Table 6.7) is

largely attributable to changing elasticities, rather than changing inequalities in the

determinants (row total in Table 6.8).

There is, therefore, an indication that these key determinants are contributing to either

increasing or decreasing socioeconomic inequality more via their impact (Δη) on the

secondary school completion than via changes in inequality (ΔC) in the determinants.

Overall, the socioeconomic inequality in secondary education attainment has increased

from 0.108 in 2003 to 0.148 in 2008 in favour of the rich households. The finding is

consistent with the findings of (Harttgen et al. 2010). The authors studied 37 developing

countries and find that the socioeconomic inequality in school completion has increased in

favour of rich households.

197

Table 6.8: Oaxaca-type decompositions for change in secondary education attainment inequality, 2003-2008

Explanatory Variables Equation 6.11

Equation 6.12 Total

ΔC*η Δη*C ΔC*η Δη*C

Female 0.001 0.000

0.000 0.000 0.000

Household wealth 0.000 -0.032

0.000 -0.032 -0.032

Household size / composition:

Household size 0.002 -0.007

0.004 -0.009 -0.005

No. of children under 6 yrs;

Under 6 yrs children:1-2 -0.001 -0.008

-0.002 -0.007 -0.009

Under 6 yrs children:3-4 0.001 -0.010

0.003 -0.012 -0.009

No. of school-age children

School-age children:1-2 0.000 -0.003

0.001 -0.004 -0.003

School-age children:3-4 -0.002 0.007

-0.007 0.012 0.005

School-age children:5-6 -0.001 0.003

-0.002 0.004 0.002

No. of Economically active

Economically active:1-2 -0.002 -0.002

-0.010 0.006 -0.004

Economically active:3-4 -0.001 -0.004

-0.002 -0.003 -0.005

Economically active:5-6 0.001 0.001

0.002 0.000 0.002

No. of retirees aged 65+ yrs -0.001 -0.004

0.000 -0.005 -0.005

Proportion of economically active 0.000 0.003

0.000 0.003 0.003

Household head:

Head age 0.002 -0.006

0.001 -0.005 -0.004

Head age2 -0.001 0.009

0.000 0.008 0.008

Female head -0.003 -0.006

-0.006 -0.003 -0.009

Households head's education:

Primary level 0.000 0.004

0.000 0.004 0.004

Secondary level 0.000 0.009

0.000 0.009 0.009

Higher levels 0.002 -0.008

0.003 -0.009 -0.006

Residence:

Rural -0.001 0.076

0.000 0.075 0.075

Administrative region:

Western -0.001 0.001

-0.003 0.003 0.000

Central -0.003 0.000

-0.004 0.001 -0.003

Greater Accra 0.000 0.020

0.000 0.020 0.020

Volta 0.000 -0.005

0.001 -0.006 -0.005

Eastern 0.002 0.000

0.004 -0.002 0.002

Ashanti 0.000 0.028

0.001 0.027 0.028

Brong Ahafo 0.001 -0.003

0.003 -0.005 -0.002

Northern 0.000 -0.002

0.000 -0.002 -0.002

Upper East -0.001 -0.013

0.002 -0.016 -0.014

Residual

0.001

Total -0.007 0.046 -0.012 0.051 0.040

Source: 2003 and 2008 Ghana Demographic Health Surveys; own calculations

198

It is not surprising to see this emerging trend in socioeconomic inequality in secondary

education attainment in Ghana. This is because secondary education in Ghana is not free.

Thus, the distribution of secondary education disproportionally benefits the rich

households more than the poor households. This finding corroborates the findings of

Ghana Statistical Service et al. (2004 & 2009).

6.5 Conclusions

The main aim of this chapter has been to estimate and decompose socioeconomic

inequality in school attendance and completion at both primary school and secondary

school levels in Ghana. The decomposition enables us to unravel the main sources of

educational inequalities, and their change over time, and to answer the questions posed at

the beginning of the chapter. The empirical questions we seek to address with the

decomposition method were: what are the sources or contributing factors of school

attendance and completion inequalities in Ghana?; is wealth distribution the main source of

educational inequalities?; what is the change in educational inequality over time?; have the

relatively sustained economic growth in Ghana for the past decade and educational

expansions impacted positively on educational inequalities?; and who benefits from

educational access and attainment in Ghana?

The concentration index analysis shows that the rich households benefit disproportionally

from access to, and attainment of both primary and secondary education in Ghana

compared to the poor households. Furthermore, the concentration indices of the primary

attendance, primary completion and the secondary attendance reveal that inequality in

these indicators of educational access and attainment has decreased over time, specifically

from 2003 to 2008. Conversely, the concentration indices of secondary school completion

show that inequality in this indicator of educational attainment has increased from 2003 to

2008 by 0.040 points. We then moved on to decompose each observed inequality into its

sources, and analyse its evolution over time (i.e. between 2003 and 2008). In particular,

following Wagstaff et al. (2003) and Oppedisano and Turati (2012) and applying the

concentration index framework to the selected education indicators, we decomposed the

change in each educational inequality at both primary and secondary levels on standardised

tests into shares due to: (i) changes in the inequality of the determinants of educational

indicators (ΔC*η), and (ii) changes due to the impact of the determinants (Δη*C) or the

rate of return of its determinants.

199

The results highlight that besides the inequality of; household head's educational

attainment levels, female household head, certain categories of economically productive

household members, and some regional effects, the most important determinant of

socioeconomic inequality in school attendance and completion in Ghana is the household

wealth. From the decomposition results, we found a positive contribution from household

wealth, especially towards reducing socioeconomic inequality in primary and secondary

school attendance, and secondary school completion between 2003 and 2008. Conversely,

we also observed a positive contribution from household wealth towards increasing

inequality in primary school completion, coming from the evolution of socioeconomic

inequality over time (from 2003 to 2008).

Another interesting question which we are able to answer in this chapter through the

concentration index decomposition analysis is: which of the two components of change in

the contributions of the determinants to the education inequality (i.e. elasticity and

inequality of the determinants) is the most important contributor to the estimated education

inequalities? This distinction is essential from a policy perspective, since in many cases

education policies may not directly alter the distribution of these characteristics by

household wealth, but they may be able to influence the education elasticity of some of

these characteristics. Again, some important observations emerged. In all the four cases of

socioeconomic inequality estimated, the elasticity differences (i.e. changes in the impact of

each determinant on the dependent variables) are greater than the inequality differences (i.e.

changes in the degree of unequal distribution of each determinant across income groups).

This implies that an equitable distribution of educational opportunities is preferable to a

redistribution of existing assets or incomes. As a result, an equitable distribution of

educational access and attainment will build new assets and improve social welfare by its

spill-over effect, without making anyone worse off (Thomas et al. 2001). Therefore,

ensuring access to educational opportunities by attending to both the supply and demand

sides by the government of Ghana will be a win-win policy gaining support in Ghana.

Take the contribution of household wealth for instance, without exception, the relative

change in elasticity (Δη*C) is much greater than the relative change in inequality (ΔC*η).

This implies that it is not so much the differences in household wealth inequality per se,

but the partial association between household wealth and the education indicators that

matters for income related education inequality. This is an important and interesting new

finding which can aid effective education policy interventions and implementation. This is

200

because this new finding implies that reducing education inequalities seems more a matter

of reducing these associations through appropriate education related policies than a matter

of redistribution of wealth or income. It is important to note, however, that the observation

does not necessarily hold for all other determinants, but on the basis of the results in Tables

6.1, 6.3, 6.5, and 6.7, policy makers in Ghana can learn where the greatest opportunities lie

for reducing wealth or income related education inequalities.

In addition, the decomposition results could allow policy makers to target areas that may

make the largest contribution to reducing educational inequalities. While the

decomposition results could not tell us what could be done and how to change the

inequality components, they do show where the greatest potential for socioeconomic

inequality reductions in educational access (school attendance) and attainment (school

completion) lies. Remaining cognisant that our findings cannot be considered causal, we

argue that pro-poor government education policy and investment in education, particularly

in rural areas where majority of the poor resides, are plausible to overall improvements and

decreased inequalities in educational access and attainment of children in Ghana.

Furthermore, one may suggest, based on the findings that expanding free universal

education to secondary school level or means tested free secondary education for the poor,

could be one of the options of education policy to reduce access, and attainment

socioeconomic-related inequalities at the secondary level in Ghana. Any of the options

would allow those who cannot afford secondary education to access and attain secondary

education in Ghana. This also has the effect of reducing the number of economically

unproductive and unskilled work force in Ghana.

201

Appendix A6: Marginal effect and contributions of explanatory variables to

educational inequality

Table A6.1: Primary education access inequality decomposition

Variables Marginal effect

Contributions to C % Contribution

2003 2008 2003 2008 2003 2008

Female -0.025 -0.001

-0.001 0.000 -0.6 0.0

Household wealth 0.068*** 0.038***

0.084 0.040 80.1 49.7

Household size / composition:

Household size 0.009 -0.013**

-0.004 0.007 -3.6 8.4

No. of children under 6 yrs;

Under 6 yrs children:1-2 -0.062* 0.003

0.003 0.000 2.6 -0.1

Under 6 yrs children:3-4 -0.141** 0.010

0.005 0.000 4.5 -0.3

Under 6 yrs children:5-6 -0.227 -0.049

0.001 0.000 1.0 0.5

No. of school-age children;

School-age children:1-2 0.058 -0.069*

0.001 -0.001 0.8 -1.8

School-age children:3-4 0.047 -0.077**

-0.001 0.002 -0.9 3.1

School-age children:5-6 -0.028 -0.054

0.001 0.001 0.5 0.9

No. of Economically active;

Economically active:1-2 -0.061 -0.021

0.000 0.000 0.2 -0.3

Economically active:3-4 -0.050 -0.005

0.001 0.000 0.5 0.0

Economically active:5-6 0.002 -0.025

0.000 0.000 0.0 -0.1

No. of retirees aged 65+ yrs -0.011 -0.004

0.000 0.000 0.4 0.3

Proportion of economically active: -0.052 -0.011

-0.003 -0.001 -2.5 -1.0

Household head:

Head age 0.013** 0.010***

-0.015 -0.009 -14.0 -10.8

Head age2 -0.000* -0.000***

0.014 0.009 13.4 10.9

Female head 0.042** 0.028**

0.002 0.000 2.1 0.8

Household head's education:

Primary level 0.048 0.045

-0.001 -0.001 -1.2 -1.8

Secondary level 0.140*** 0.093***

0.013 0.009 12.5 11.8

Higher levels 0.175*** 0.145***

0.017 0.013 16.3 16.6

Residence:

Rural 0.064 0.006

-0.019 -0.001 -18.1 -1.3

Administrative region:

Western 0.139*** -0.054

0.001 0.000 0.4 -0.5

Central 0.046 -0.016

0.000 0.000 -0.1 -0.1

Greater Accra 0.081* -0.041

0.011 -0.004 10.5 -4.7

Volta 0.096* -0.031

-0.002 0.001 -2.0 0.5

Eastern 0.040 -0.015

0.000 0.000 0.0 0.1

Ashanti 0.106* 0.088**

0.006 0.003 5.7 4.1

Brong Ahafo 0.105** 0.029

-0.002 -0.001 -2.0 -0.8

Northern 0.023 -0.095**

-0.002 0.007 -1.6 9.8

Upper East 0.038 0.063*

-0.002 -0.003 -1.6 -3.9

Residual

-0.003 0.008 -3.1 10.2

Total ( C ) 0.105 0.079 100.0 100.0

Source: 2003 and 2008 Ghana Demographic Health Surveys; own calculations. Significant levels: * p<0.1, ** p<0.05, *** p<0.001

202

Table A6.2: Secondary education access inequality decomposition

Variables

Marginal effect

Contributions to C % contribution

2003 2008

2003 2008 2003 2008

Female -0.022 -0.016

-0.001 0.000 -0.7 -0.3

Household wealth 0.070*** 0.066***

0.092 0.063 71.9 53.3

Household size / composition:

Household size -0.022* -0.005

0.018 0.004 14.2 3.5

No. of children under 6 yrs;

Under 6 yrs children:1-2 0.021 -0.047*

-0.002 0.002 -1.2 1.9

Under 6 yrs children:3-4 0.027 -0.129**

-0.002 0.006 -1.7 5.3

Under 6 yrs children:5-6 0.109 -0.300***

-0.001 0.002 -0.7 1.6

No. of school-age children;

School-age children:1-2 -0.161 0.006

-0.005 0.000 -3.8 0.0

School-age children:3-4 -0.097 0.012

0.004 0.000 3.1 -0.3

School-age children:5-6 -0.094 -0.028

0.002 0.000 1.9 0.7

No. of Economically active;

Economically active:1-2 -0.045 0.010

0.000 0.000 0.2 0.1

Economically active:3-4 0.022 0.057

0.000 0.000 -0.2 -0.4

Economically active:5-6 0.033 0.048

0.001 0.000 0.6 0.1

No. of retirees aged 65+ yrs 0.023 0.011

-0.002 -0.001 -1.2 -0.6

Proportion of economically active: 0.285** -0.036

0.003 -0.002 2.1 -1.8

Household head:

Head age 0.006** 0.006**

-0.011 -0.008 -8.6 -7.1

Head age2 -0.000 -0.000**

0.006 0.009 4.9 8.0

Female head 0.091*** 0.054***

0.008 0.002 5.9 1.7

Household head's education:

Primary level -0.036 0.025

0.002 -0.001 1.3 -0.7

Secondary level 0.100** 0.112***

0.015 0.017 11.6 14.2

Higher levels 0.205*** 0.211***

0.034 0.030 26.3 24.9

Residence:

Rural 0.002 -0.011

0.001 0.005 0.6 4.1

Administrative region:

Western 0.037 0.042*

0.000 0.000 0.1 0.4

Central -0.019 -0.008

0.000 0.000 0.0 -0.2

Greater Accra -0.000 -0.016

0.000 -0.004 0.4 -3.1

Volta 0.020 0.019

0.000 0.000 -0.4 -0.3

Eastern 0.045 0.009

0.000 0.000 0.0 0.0

Ashanti 0.036 0.092***

0.004 0.007 2.4 4.9

Brong Ahafo -0.018 0.034

0.001 -0.001 0.6 -0.8

Northern -0.076 0.021**

0.006 -0.003 4.9 -2.3

Upper East -0.070 0.056***

0.004 -0.004 3.4 -3.1

Residual

-0.049 -0.004 -38.1 -3.6

Total ( C )

0.129 0.120 100.0 100.0

Source: 2003 and 2008 Ghana Demographic Health Surveys; own calculations.

Significant levels: * p<0.1, ** p<0.05, *** p<0.001

203

Table A6.3: Primary education attainment inequality decomposition

Variables Marginal effect

Contributions to C % contribution

2003 2008 2003 2008 2003 2008

Female -0.101*** -0.039***

-0.002 -0.001 -1.4 -0.4

Household wealth 0.059*** 0.071***

0.065 0.074 44.7 52.1

Household size / composition:

Household size -0.002 -0.003

0.001 0.002 0.6 1.3

No. of children under 6 yrs;

Under 6 yrs children:1-2 -0.019 -0.060***

0.001 0.002 0.5 1.1

Under 6 yrs children:3-4 -0.023 -0.088

0.001 0.003 0.5 1.9

Under 6 yrs children:5-6 -0.167 -0.243

0.002 0.001 0.5 0.9

No. of school-age children;

School-age children:1-2 0.053 0.021

0.001 0.001 0.6 0.4

School-age children:3-4 0.044 -0.004

-0.001 0.000 -0.7 -0.3

School-age children:5-6 0.045 -0.005

-0.001 -0.001 -0.5 -0.2

No. of Economically active;

Economically active:1-2 -0.003 0.037

0.000 0.000 0.0 0.2

Economically active:3-4 0.032 0.073*

0.000 0.000 -0.1 -0.2

Economically active:5-6 0.066 0.043

0.000 0.000 0.4 0.0

No. of retirees aged 65+ yrs 0.012 0.017

0.000 0.000 -0.2 -0.5

Proportion of economically active: 0.063 0.069

0.002 0.003 1.2 1.9

Household head:

Head age 0.007 0.008***

-0.008 -0.006 -5.4 -4.4

Head age2 -0.000 -0.000***

0.005 0.005 3.9 3.8

Female head 0.106*** 0.057***

0.005 0.002 3.1 1.0

Household head's education:

Primary level 0.033 0.029

-0.001 -0.001 -0.6 -0.7

Secondary level 0.173*** 0.173***

0.014 0.017 9.9 12.2

Higher levels 0.257*** 0.155***

0.022 0.014 15.5 10.2

Residence:

Rural -0.005 -0.016

0.001 0.003 0.7 2.5

Administrative region:

Western 0.093* 0.064***

0.000 0.000 0.2 0.5

Central 0.032 0.023

0.000 0.000 0.0 0.3

Greater Accra 0.041 -0.012

0.007 0.000 5.1 0.2

Volta 0.058 0.000

-0.001 0.000 -1.0 -0.3

Eastern 0.144*** 0.042**

0.000 0.000 0.0 -0.3

Ashanti 0.099* 0.045**

0.006 0.003 3.9 1.7

Brong Ahafo 0.072* 0.051***

-0.002 -0.002 -1.1 -1.1

Northern -0.182** -0.049***

0.011 0.004 7.9 3.1

Upper East -0.047 0.006

0.002 0.000 1.4 -0.1

Residual

0.015 0.019 10.3 13.1

Total ( C ) 0.145 0.142 100.0 100.0

Source: 2003 and 2008 Ghana Demographic Health Surveys; own calculations.

Significant levels: * p<0.1, ** p<0.05, *** p<0.001

204

Table A6.4: Secondary education attainment inequality decomposition

Variables Marginal effect

Contributions to C % Contribution

2003 2008 2003 2008 2003 2008

Female -0.020** -0.033***

-0.001 -0.001 -1.3 -0.8

Household wealth 0.064*** 0.073***

0.097 0.065 90.0 44.2

Household size / composition:

Household size -0.000 -0.008

0.014 0.009 13.3 6.0

No. of children under 6 yrs;

Under 6 yrs children:1-2 -0.052** -0.044*

0.014 0.005 13.2 3.5

Under 6 yrs children:3-4 -0.057** -0.048

0.013 0.004 12.1 2.5

No. of school-age children;

School-age children:1-2 0.076*** 0.065**

0.005 0.002 4.4 1.4

School-age children:3-4 0.141** 0.099**

-0.009 -0.004 -8.6 -2.9

School-age children:5-6 0.175 0.155**

-0.005 -0.003 -5.1 -2.1

No. of Economically active;

Economically active:1-2 -0.033 -0.037

0.002 -0.002 1.8 -1.3

Economically active:3-4 -0.028 -0.024

0.006 0.001 5.2 0.5

Economically active:5-6 -0.002 -0.009

-0.002 0.000 -1.8 -0.1

No. of retirees aged 65+ yrs 0.005 0.056

0.000 -0.005 0.0 -3.6

Proportion of economically active 0.156** 0.203**

0.017 0.020 15.4 13.2

Household head:

Head age 0.001 0.004*

-0.007 -0.011 -6.9 -7.5

Head age2 0.000 -0.000*

0.003 0.011 2.0 7.2

Female head 0.054*** 0.059**

0.012 0.003 11.2 2.3

Household head's education:

Primary level 0.005 -0.037

-0.002 0.002 -1.9 1.5

Secondary level 0.056** 0.135***

0.024 0.033 22.5 22.4

Higher levels 0.173*** 0.321***

0.042 0.036 38.4 24.0

Residence:

Rural 0.008 -0.068***

-0.024 0.051 -21.9 34.7

Administrative region:

Western -0.069*** -0.054**

-0.002 -0.002 -1.2 -1.1

Central -0.059*** -0.085***

0.000 -0.003 0.6 -1.9

Greater Accra -0.066*** -0.053*

-0.026 -0.006 -24.9 -4.4

Volta -0.068*** -0.073**

0.009 0.004 8.9 2.9

Eastern -0.076*** -0.105***

0.000 0.002 0.2 1.3

Ashanti -0.091*** -0.050

-0.033 -0.005 -30.9 -3.6

Brong Ahafo -0.049** -0.056*

0.006 0.004 5.2 2.4

Northern 0.001 0.004

0.001 -0.001 0.8 -0.5

Upper East -0.040** 0.057

0.008 -0.006 7.4 -3.7

Residual

-0.054 -0.055 -47.9 -36.9

Total ( C ) 0.108 0.148 100.0 100.0

Source: 2003 and 2008 Ghana Demographic Health Surveys; own calculations.

Significant levels: * p<0.1, ** p<0.05, *** p<0.001

205

Chapter 7

Summary and Conclusions

7.1 Introduction

This thesis sets out to analyse the distributional dimension of educational access and

attainment in Ghana. The broad aim of the thesis was to investigate the effect of household

socioeconomic factors and the government of Ghana’s education policy interventions on

education distribution and educational inequalities in Ghana. Specifically, the focus has

been on the extent to which wealth distribution and policy interventions have impacted on

the educational inequalities across households in Ghana between 2003 and 2008. The

specific objectives of the thesis were to: measure the socioeconomic determinants of

educational access and attainment of school-age children; estimate gender disparities in

educational outcomes by wealth distribution and; estimate the contributions of key

determinants of socioeconomic inequality in educational access and attainment. These

objectives are intended to deepen our understanding of the distributional and inequality

patterns of education provision in Ghana. The findings from the empirical chapters show

that these objectives have been achieved. This concluding chapter, therefore, summarises

the major findings of the thesis. In addition, the chapter outlines the main contributions of

the thesis to the literature on inequality in education. The chapter also outlines the key

policy implications of the findings, limitations in the thesis, and identifies areas of further

research.

7.2 Summary

Chapter 1 sets the stage for discussion of the importance of equitable distribution of

educational opportunities. The chapter also highlights some of the consequences of

inequality in educational access and attainment for welfare and production considerations.

For example, inequality in educational attainment increases income inequality and restrict

socioeconomic mobility. Thus, lack of socioeconomic mobility of the poor are largely

attributed to inequalities in educational outcomes and opportunities. In addition, the

chapter heralds the concern that educational outcomes of children reflect a series of factors

such; as the prevailing socioeconomic inequalities to which they are exposed to, household

SES and public policy on education. Therefore, if we are concern about poverty reduction

and equality of opportunity then there is the need to address inequality in educational

outcomes of children today. Furthermore, the chapter emphasises that inequalities in

education and the associated knock-on effects for; employment, wealth, and participation

in society are equally large and an equity based policy or approach in the distribution of

206

educational access is important if developing countries are to equalise socioeconomic and

political opportunities.

In Chapter 2, we analysed the context of the economic performance in the last two decades,

poverty reduction, educational policies and progress in education distribution in Ghana.

The analysis appears to show that Ghana has made some gains in terms of economic

growth and educational outcomes after the education reforms and policy interventions.

However, an analytical review of education sector reforms and policy interventions, and

trends in educational outcomes suggest that there are still questions that remained to be

answered about educational access and attainment for the poor in Ghana, in spite of the

country’s good economic performance.

Chapter 3 examines both the theoretical and empirical literature on educational distribution

and inequalities in educational outcomes in developing countries. We examined findings in

the literature on what determines educational inequality in developing countries and how

economic growth can impact on educational outcomes and other non-income dimensions

of inequality and poverty. The examination of the determinants of educational inequalities

in conjunction with the objectives the thesis formed the basis of selecting explanatory

variables used in the empirical analysis. Furthermore, the second part the chapter outlines

and discusses the theoretical framework of the thesis. The theoretical framework focuses

on the demand-side of educational inequalities and lays the theoretical foundation for the

empirical analysis in Chapters 4, 5 and 6. Summary statistics of the variables for the

analysis were also discussed and justified based on both theoretical and empirical literature.

Reasons for selecting the key dependent variables for analysing inequalities in educational

access and attainment were also thoroughly discussed and justified which are in line with

the objectives of the research.

One major finding from the literature review that motivates the whole thesis is that there is

no indication of any empirical study that has decomposed the contributions of the various

determinants reviewed in the literature. Yet, knowing the proportion of the contribution of

each determinant of educational inequality to the total inequality in educational access and

attainment is important when designing policy interventions. Also, by identifying the key

sources and their contributions to educational inequalities, policy interventions could be

tailored to deal with some of the root causes of educational inequality in Ghana as well as

other developing countries with similar challenges.

207

Furthermore, where educational inequalities are analysed and discussed, the focus is

mainly on primary education, and less attention is been directed towards secondary

education where returns to education could be high. However, for children from poor

households to benefits from economic growth and to break the poverty-cycles in their

households, they will need to progress to higher levels of education to acquire the

necessary skills needed for the job market and for life. This is where the secondary

education comes to the fore.

Also in Chapter 3, we examined the findings of the impact of economic growth on non-

income dimensions of inequality and poverty such as education and health. It emerges that

economic growth is a necessary condition but not a sufficient condition for reducing non-

income dimensions of inequality and poverty in developing countries (Klasen 2008;

Grosse et al. 2008; Gunther and Klasen 2009; Christiaensen et al. 2003; Harttgen et al.

2010). From capability expansion point of view, economic growth can expand capabilities

directly. Thus, as average incomes increase, the population has greater access to relevant

non-income dimensions of well-being such as basic education and healthcare among others

(Drèze and Sen 1991). This implies that all capabilities can expand with economic growth,

thus promoting human capital development.

Other findings in Chapter 3 include the main channels through which overall economic

growth can promote education. First by lessening the extent of income poverty which

constraints households in their ability to send children to school, and secondly by

increasing public educational investments which leads to greater school access and better

quality education (Anand and Ravallion 1993). It also emerged that if progress in

education is combined with a focused public spending in education sector, it will lead to

declining inequality and poverty reduction in education, even in an environment of

stagnant or worsening levels of income poverty (Sahn and Younger 2006 & 2007; Filmer

and Pritchett 1999b) . However, evidence gathered in the review also suggest that there are

socioeconomic inequalities in educational outcomes across developing countries and that

the attainment of MDGs 2 and 3, for example, is in doubt in most developing countries,

especially in SSA countries. Finally, household resources emerged as the key contributing

factor in educational inequalities and poverty. From a gender perspective, the extent of

inequality among girls in primary school attendance and completion rates according to SES,

208

is found to be substantially greater than for boys (Lloyd and Hewett 2009; Harttgen et al.

2010).

In Chapter 4, we discussed the empirical model used for the estimations in Chapters 4 and

5. We then empirically examined socioeconomic determinants of educational access (i.e.

school attendance) and attainment (i.e. school completion) to enable us to identify the key

household socioeconomic factors that influence educational access and attainment in

Ghana. In addition, we carried out trend analysis to appraise the extent to which the

government of Ghana’s intended pro-poor education policy interventions and education

expansions reduce disparities in educational access and attainment, especially at primary

school level between 2003 and 2008. We also examined the extent of educational

disparities at the secondary education level (where there is no specific policy intervention

to reduce the cost of education borne by households) between 2003 and 2008.

Chapter 4 confirms the significance of household wealth as an important explanatory

variable in addition to other covariates in estimating the persistent disparities in

educational access and attainment of school-age children in Ghana. At the secondary

school level, the disparity between the poor and the non-poor with respect to access and

attainment is worrying in terms of the magnitude of the impact. The household wealth

appears to be the most important determining factor in explaining the disparity in children's

school attendance and completion. This is evident throughout the multivariate regression

analysis, both in terms of strong statistical significance and in terms of the magnitude of

the overall impact on children's educational access and attainment.

The variations in educational access and attainment between children from poor and non-

poor households at different levels of education may constitute an evidence of households'

continuing financial burden in educating children and the probable ineffectiveness of the

state (the government of Ghana) in transcending those economic differences. The

particularly strong marginal effect of household wealth on children educational outcomes

confirms the increasing importance of household wealth distribution for children if they are

going to successfully progress from grade to grade and from level to level in the Ghanaian

education system. It also appears that, within the socioeconomic status, the rich households

are more likely to invest more resources in facilitating the education of their children than

the poor households. In addition, the descriptive statistics in Tables 4.1 and 4.2 also show

that there is huge disparity in net attendance rate between primary and secondary school

209

levels. The primary net attendance rate is almost doubled the secondary net attendance rate.

The completion rate at secondary school level compared to primary school level is even

more worrying. For example, about 70% and 75% primary completion rates were recorded

for age cohort 15-20 in 2003 and 2008, respectively compared to about 15% and 23%

secondary completion rates for age cohort 18-23 in the same periods.

The findings also indicate a positive and strong statistically significant marginal effect of

female household head on the probability of school attendance and completion. The

marginal effect suggests that there is a direct link between the impact of households headed

by female and educational outcomes of children. This finding also illustrates the crucial

role played by women in educating children. This finding is consistent with the findings of

Lloyd and Gage-Brandon (1994), Lloyd and Blanc (1996), and Bbaale and Buyinza (2013).

In Chapter 5, we analysed educational outcomes of males and females by wealth

distribution to answer the question; to what extent do disparities in educational outcomes

of males and females increase or decrease with household wealth distribution?

Consequently, the chapter estimates inequality in educational access and attainment of

males and females and we found that the inequality is larger at lower household wealth

distribution levels than at higher levels. At higher wealth distribution levels, household

wealth tends to favour female children's educational access and attainment. This suggests

that wealth levels of households are an important determinant of gender inequality in

educational outcomes in Ghana. It also appears that the government of Ghana's education

policy interventions failed to reduce the significance of the impact of household wealth

distribution on disparities in primary school attendance and completion male and female

children. In addition, we also found that the higher the household heads’ educational

attainment level the more likely female children will have access to and attain primary and

secondary education.

A possible explanation for the consistent gender-wealth inequality in educational access

and attainment in favour of male children in Ghana in both descriptive and econometric

regression analysis, could be that aspect of investment in education where in the

developing countries, parents tend to expect higher return in investing in male children's

education than females’ (Oxaal 1997; Holmes 2003; Filmer 2005). It has also been argued

that if parents or households value the education of sons more than that of daughters, one

would observe more male children schooling than female children. This conjecture,

210

however, supports the findings of Garg and Morduch (1998) on child health outcomes in

Ghana.

In Chapter 6, we explored who benefits from education policies and educational expansion,

and then estimate both absolute and relative contributions of key determinants of

educational inequalities in Ghana. Thus, Chapter 6 analyses socioeconomic inequalities in

educational access and attainment by estimating and decomposing the main determinants

of educational inequalities. The main aim of Chapter 6 has been to estimate the inequality

in both primary and secondary education and also to calculate the absolute and relative

contributions of each determinant of the educational inequalities. The concentration indices

of the primary school attendance, primary school completion and the secondary school

attendance reveal that inequality in these indicators of educational access and attainment

has decreased over time, specifically from 2003 to 2008. Conversely, the concentration

indices of secondary school completion show that inequality in this indicator of

educational attainment has increased from 2003 to 2008 by 0.040 points. For trend analysis,

we further decomposed the change in each educational inequality at both primary and

secondary levels on standardised tests into shares due to changes in the inequality of the

determinants of educational indicators, and changes due to the impact on the determinants.

The findings in Chapter 6 show that the most important determinant of socioeconomic

inequality in school attendance and completion in Ghana is the household wealth. From the

decomposition results, we observed a positive contribution from household wealth,

especially, towards reducing socioeconomic inequality in primary and secondary school

attendance, and secondary school completion between 2003 and 2008. Conversely, we also

observed a positive contribution from household wealth towards increasing inequality in

primary school completion, coming from the evolution of socioeconomic inequality over

time (from 2003 to 2008).

Another interesting finding from the Oaxaca decomposition-type in Chapter 6 is that in all

the four cases of socioeconomic inequality estimated, the elasticity (i.e. impact) differences

are greater than the inequality differences. The explanation for this finding is that an

equitable distribution of educational opportunities will be preferable to a redistribution of

wealth or incomes. For policy direction, the finding implies that the partial association

between household socioeconomic factors and the education indicators matters more for

socioeconomic-related education inequality. The concentration index decomposition

211

analysis also shows that the non-poor households benefit disproportionately from both

access to, and attainment of primary and secondary education in Ghana.

7.3 Major contributions to the literature

For the first time in the education literature on educational outcomes, we have been able to

decompose and quantify key factors that contribute to educational inequalities (access and

attainment). Also, the relative change in elasticity of the factors contributing to educational

inequality was found to be much greater than the relative change in the inequality in

educational access and attainment in Ghana. This is an important contribution and

interesting finding because, it implies that reducing education inequalities seems more a

matter of reducing the associations of the key determinants of educational inequalities

through appropriate education related policies than a matter of redistributing wealth or

income. These findings can guide and aid effective policy interventions to reduce

educational inequalities in Ghana. In addition, the study contributes to the literature by

expanding the discussion on the effectiveness of government of Ghana’s education policy

interventions on educational outcomes in Ghana. Finally, the study brings into the fore the

impact of key socioeconomic factors on gender inequality in educational access and

attainment which will help to identify where intervention is most appropriate and effective

in reducing gender inequality gap in education as well as strengthening female

empowerment efforts.

7.4 Policy implications

While the analysis in the thesis is largely descriptive, a number of policy lessons may be

derived from this analysis based on the key findings. First, the findings from the entire

thesis show that the poor and less educated households are typically disadvantaged and the

effects of higher levels of education attained by household heads or parents improved

educational access and attainment of children. However, secondary education remains

unaffordable for most households in Ghana. Yet this is the phase of education which is

found to have the highest marginal returns in consumption and perhaps the greatest welfare

enhancing potential (Lavy 1996).

Contingent on these findings, expanding free universal education to secondary school

levels or means tested free secondary education for the poor, could be one of the options of

education policy to reduce access, and attainment socioeconomic related inequalities at the

secondary level in Ghana. Any of the options would allow those who cannot afford

212

secondary education to access and attain secondary education in Ghana. This also has the

effect of reducing the number of economically unproductive and unskilled work force in

Ghana.

The findings and the suggestion of expanding free universal secondary education or means

tested free secondary education are testaments to what is happening in the upper secondary

schools in particular, across Ghana. According to Daily Graphic ( 2013) most Senior High

Schools (SHS) could soon run into serious financial difficulties, if parents fail to pay huge

sums of money (school fees) owed to the schools by students who had finished writing the

West African Senior School Certificate Examination (WASSCE) in 2013. For example,

out of the 600 SHSs across the Ghana, 10 of them were owed in school fees totalling

GH¢332, 844 (about US$168,384) by parents. The most worrying aspect is that the trend

of school fees arrears is replicated in almost all the schools in the country (Daily Graphic

2013).

Furthermore, the Director General of the Ghana Education Service (GES) also confirmed

that the issue of indebtedness by final year students had over time been a great challenge to

the GES, and attributed the problem to a number of policies that had been adopted. It is

worrying that in spite of Ghana being classified as LMIC, some secondary schools in

Ghana do prevent students from writing final external examinations because parents could

not afford to pay their children’s school fees. A typical example is where some students at

Okuapeman SHS had been prevented from writing their final external examinations

because they owed school fees (Daily Graphic 2013).

Another policy area for policy direction is gender inequality in educational outcomes in

Ghana. The effect of household wealth in increasing gender inequality in educational

outcomes at lower household wealth distribution levels, but decreasing gender inequality at

higher wealth distribution levels has important policy implications. This finding supports

the argument that larger wealth or income effect or increases in household wealth or

income disproportionately benefits female children’s educational outcomes. This is

because wealthier household can afford to hire help for childcare and other domestic tasks

usually carried out by the female children in developing countries, including Ghana.

Although removing such constraints will be difficult tasks for policy, government policies

that aim at increasing income levels of poor households in Ghana could be one way to

reduce gender inequality in educational outcomes at low income levels. Policies that

213

reduce the opportunity cost of female children's time in low income households may also

increase female children's educational outcomes.

Another policy lesson is that, whereas household heads’ educational attainment is

associated with higher overall children's education outcomes, higher levels of education

tend to increase the probability of female children's educational outcomes than the male

children's education outcomes. This implies that government policies that aim at educating

male and female children at secondary school levels and beyond will in the long run tend

to reduce gender disparities in educational outcomes, ceteris paribus.

Another interesting question which we are able to answer in this thesis through the

concentration index decomposition analysis is: which of the two components of change in

the contributions of the determinants to the education inequality (i.e. elasticity and

inequality of the determinants) is the most important contributor to the estimated education

inequalities? This distinction is essential from a policy perspective, since in many cases

education policies may not directly alter the distribution of these characteristics by

household wealth, but they may be able to influence the education elasticity of some of

these characteristics. Again, some important observations emerged from the Oaxaca

decomposition. The elasticity differences were greater than the inequality differences of

the determinants of the educational inequalities. The implication of this finding for policy

direction is that an equitable distribution of educational opportunities will be preferable to

a redistribution of existing assets or incomes. The point here is that an equitable

distribution of educational access and attainment will build new assets and improve social

welfare by its spill-over effect, without making anyone worse off. Therefore, ensuring

access to educational opportunities by attending to both the supply-side and demand-side

by the government of Ghana will be a win-win policy gaining support in Ghana and other

developing countries where similar trend exists.

The policy implication of the findings from the Oaxaca decomposition can be illustrated

using the results for household wealth (as a key determinant) in any of Tables 6.2, 6.4, 6.6

and 6.8. Take the contribution of household wealth for instance, without exception, the

relative change in elasticity (Δη*C) is much greater than the relative change in inequality

(ΔC*η). This implies that it is not so much the differences in income or household wealth

inequality per se, but the partial association between household wealth and the education

indicators that matters for income related education inequality. This is an important and

214

interesting finding because, it implies that reducing education inequalities seems more a

matter of reducing these associations through appropriate education related policies than a

matter of redistributing wealth or income. It is important to note, however, that the

observation does not necessarily hold for all other determinants, but on the basis of the

results in Tables 6.1, 6.3, 6.5, and 6.7, policy makers in Ghana can learn where the greatest

opportunities lie for reducing income related education inequalities.

In addition, the decomposition results could guide policy makers to target areas that may

make the largest contribution to reducing educational inequalities. While the

decomposition results could not tell us what could be done and how to change the

inequality components, they do show where the greatest potential for socioeconomic

inequality reductions in educational access (school attendance) and attainment (school

completion) lies. Remaining cognisant that our findings cannot be considered causal, we

argue that pro-poor government education policy and investment in education, particularly

in rural areas where majority of the poor resides, are plausible to overall improvements and

decreased inequalities in educational access and attainment of children in Ghana.

Finally, it is important to note that the trend of inequality in educational outcomes,

especially between the poor and the non-poor households is likely to continue unless there

are changes to public policy that promote the human capital of children in a way that offers

relatively greater benefits to the relatively disadvantaged households.

7.5 Limitations

This thesis has not been able to shed light on some important aspect of educational

inequalities due to data limitations. For example, a quantifiable data on social-cultural

norms might underlie gender disparities in educational access and attainments at both

primary and secondary school levels analysed in Chapter 5. Furthermore, a selection bias

is probably present at the secondary school level estimation since the decision to attend

secondary school is likely to be determined by cognitive skills in combination of the

explanatory variables used in the regression analysis. The non-availability of cognitive

variable in DHS dataset may attenuate the estimated marginal effect of the selected

socioeconomic determinants on the educational access and attainment. In spite of these

limitations, the results of the model are consistent with other empirical research (Jacoby

1994; Sathar and Lloyd 1994; Lillard and Willis 1994; Chernichovsky 1985; Oliver 1995;

Lloyd and Blanc 1996; Lloyd and Gage-Brandon 1994; Tansel 1997; Filmer and Pritchett

215

1999b; Glick and Sahn 2000; Tansel 2002; Sackey 2007; Rolleston 2011) which use

household surveys without the inclusion of cognitive skills variable as part of the

explanatory variables.

It is also important to note that the estimated results are subject to the usual caveats

regarding the casual interpretation of cross-sectional results. In other words, it is

descriptive analysis of cross-sectional data in 2003 and 2008 and does not suggest any

causal effect. For example the estimates of the magnitude and contribution to inequality

calculated using the 2003 and 2008 GDHS datasets are based on the socioeconomic

measure used (household wealth quintile). Also, the results from the decomposition

analysis are sensitive to which determinants are selected for inclusion in the model.

Finally, it is worth noting that the GDHS datasets do not distinguish between public and

private school attendance and completion. As a result, this must be taking into account

when interpreting the results in terms of the impact of government education policy

interventions (FCUBE, SCG and SFP) on educational access and attainment at primary

school level in Ghana.

7.6 Further research

This thesis also highlights two potential areas of further inquiry. First, as part of

government of Ghana’s effort to meet EFA goal 2 and MDG 2, pre-primary education is

now free for all children aged 3 to 5 years in Ghana. Therefore, there is the need to also

understand the availability of, and access to pre-primary education by all households in

Ghana and how pre-primary education impacts on access and attainment at the primary

school level. Is there also inequality in access and attainment due to household

socioeconomic factors? Answers to this question are vital to help design policies that will

make sure pre-primary education is equitably distributed and all households have equal

access. Second, in 2012 General Election in Ghana, the opposition party (NPP) manifesto

promised free secondary education for all. However, the main question that the civil

society in Ghana want answers to still remains. How do we finance free secondary

education for all in Ghana? There is, therefore, the need for empirical research on how to

finance free secondary education in Ghana in order to make secondary education more

accessible and equitable to low income and poor households.

216

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