Unemployment Duration and Its Covariates: Evidence From Selected Regions in Ghana

Abstract

This study examines individual-specific covariates of unemployment duration, with evidence from four administrative regions of Ghana. It employs primary data and semi-parametric Cox regression and Cox proportional hazard models, underpinned by job search and human capital theories. This study is distinct from other unemployment-related studies in Ghana in that it highlights how individual characteristics affect their employability and unemployment spells. The study concludes that age, locality, social networks, alternative income sources, migration, and education are significant factors influencing unemployment duration in Ghana. Also, migration status and education are jointly associated with shorter unemployment duration. The study encourages young people to take up voluntary services and other forms of industry attachments to build labor market experience. Again, the government should develop and implement a policy on industrial attachment and internship programs for tertiary students. Individuals should build and effectively utilize their social networks. Individuals who receive financial support while unemployed should leverage such income to intensify their job search efforts and activities. Moreover, individuals should take advantage of the opportunities created in the educational sector to upgrade their educational levels. The study further encourages job seekers with higher education to migrate as part of their job search efforts and activities. The study sets the springboard for further studies to be conducted on employment duration in Ghana but using longitudinal data and national survey data.