Labor Market Participation and Employment Choice in Ghana: Do Individual Personality Traits and Gender Role Attitudes Matter ?

Akuffo Amankwah, Pauline Castaing, Nkechi Owoo and Amparo Palacios-Lopez

No 10664, Policy Research Working Paper Series from The World Bank

Abstract: In addition to the conventional determinants of labor market participation and the choice between wage employment and self-employment, there is a growing interest of the significance of gender role attitudes and personality traits. This study uses data from the 2022 Ghana Informal Sector Measurement Study to investigate the influence of these factors on employment outcomes in the Northern and Ashanti regions of Ghana. The findings are based on a series of analyses, including descriptive, multinomial logistic, and linear probability model regressions. The empirical results show the critical role played by both gender role attitudes and personality traits in shaping individuals' decisions on labor market participation and employment choices. Notably, personality traits emerge as significant drivers of observed employment outcomes. However, the impact of these personality traits is often mitigated or even reversed in the presence of heightened traditionalism. Furthermore, the gender-disaggregated analysis reveals that possessing at least a secondary education level is a pivotal factor in the selection of men into formal employment, whereas this criterion holds less significance for women. Conversely, once the decision to participate in the labor market has been made, having at least a secondary education becomes relevant for securing wage employment, regardless of an individual's gender.

Date: 2024-01-10
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