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Household Social Expenditure in Ghana: Examining the Ex-Post Effects and Vulnerability to Poverty

Richard Kwabena Nkrumah (), Samuel Kobina Annim () and Benedict Afful ()
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Richard Kwabena Nkrumah: Institute of Statistical, Social and Economic Research (ISSER), University of Ghana, Legon GA-521-9360, Ghana
Samuel Kobina Annim: Department of Applied Economics, School of Economics, University of Cape Coast, Cape Coast CC-192-2031, Ghana
Benedict Afful: Department Economic Studies, School of Economics, University of Cape Coast, Cape Coast CC-192-2031, Ghana

Social Sciences, 2021, vol. 10, issue 2, 1-15

Abstract: We estimate the effect of household social expenditure on vulnerability to poverty using the four latest cross-sectional waves of Ghana Living Standard Survey (GLSS) from 1999 to 2017. Using a 3-Stage Least Square and Quantile Regression, our results show a widening consumption ex-post welfare gap between the poorest households and the non-poor households in a per-dollar social expenditure. Further, we estimate the probability of an ex-ante poverty using vulnerability to expected poverty. The results, however, indicate that regardless of poverty status, household vulnerability to poverty increased consistently between 1999 and 2017, and the very poor households showing the severest vulnerability. Hence, it is concluded that social expenditure increases the chances of a poor household falling into chronic poverty a non-poor household into transient poverty in the future.

Keywords: social expenditure; welfare; vulnerability; household; poverty (search for similar items in EconPapers)
JEL-codes: A B N P Y80 Z00 (search for similar items in EconPapers)
Date: 2021
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