Short-run labour mobility in Ghana: Understanding the drivers with high-frequency panel data
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Short-run labour mobility in Ghana: Understanding the drivers with high-frequency panel data
Abass I. Abdul-Fatawu, Ibrahim Mohammed, Wassiuw Abdul Rahaman, and Edward NketiahAmponsah
Publisher: African Review of Economics and Finance
Pub: 2026-09-29 09:17:04
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This paper examines short-run employment transitions in Ghana using quarterly panel data from the Ghana Annual Household Income and Expenditure Survey (AHIES), 2022Q1–2024Q4. Focusing on economically active individuals aged 15–64, the study analyses transitions from non-income states into income-earning activities using population-averaged Generalised Estimating Equations (GEE) logit models. To characterise aggregate mobility patterns, the study first applies the Positive Labour Mobility (PLM) Index and then investigates the individual-level determinants of labour market entry. The findings reveal a highly segmented labour market in which most transitions from non-income states occur through selfemployment rather than wage employment. Gender emerges as an important correlate of labour-market entry: women are less likely to transition into wage employment but more likely to enter self-employment and domestic work. Educational attainment is positively associated with entry into wage employment, while short-term adverse health conditions and household responsibilities are associated with lower probabilities of entering income-generating activities. The results also indicate substantial regional disparities in labourmarket opportunities. In addition, the PLM Index reveals marked quarter-to-quarter variation in the quality of labour-market entry, suggesting that mobility outcomes are influenced by both structural constraints and temporal economic conditions. Seasonal patterns are evident, with labour-market entry generally strengthening toward the latter part of the year, although these patterns partly overlap with the period of macroeconomic adjustment associated with Ghana’s economic crisis and IMF-supported reform programme. Overall, the findings highlight the importance of education, gender, and spatial inequalities in shaping labour-market entry and underscore the need for policies that expand access to productive employment opportunities while addressing barriers faced by vulnerable groups.
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Keywords
Labour transitions, short-run, gender inequality, seasonality, high-frequency data, and Ghana.
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Keywords
Labour transitions, short-run, gender inequality, seasonality, high-frequency data, and Ghana.