Ethnic diversity and informal work in Ghana

Sefa Awaworyi Churchill and Michael Danquah

No wp-2020-126, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: We present the first study that examines the effects of ethnic diversity on informal work. Using two waves of data from the Ghana Socioeconomic Panel Survey, we find that ethnic diversity is associated with a higher probability of engaging in informal work. Specifically, our instrumental variable estimates suggest that a unit increase in ethnic diversity is associated with up to a 26.3 percentage point increase in the probability of engaging in informal work. This result is robust to alternative estimation approaches and alternative ways of measuring ethnic diversity.

Keywords: Ethnic diversity; Informal work; Informality; Trust; Ghana (search for similar items in EconPapers)
Date: 2020
New Economics Papers: this item is included in nep-dev and nep-iue
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Citations: View citations in EconPapers (5)

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