The nexus between education and poverty reduction in Ghana from 2013 to 2017

Abstract

Generally, poverty levels in Ghana have reduced over the past decade. Still, extreme poverty increased from 2.2 million in 2013 to 2.4 million in 2017. This study was conducted to assess the nexus between education and poverty reduction in Ghana. Data from the Ghana Living Standard Survey (GLSS) rounds six (2012/2013) and seven (2016/2017) with a total sample size of 30,781 was used. Using the probit and logit models and two-stage least square estimation, the findings confirmed that there is a significant negative relationship between education and poverty reduction. Additionally, it was revealed that household heads with higher levels of education (tertiary) are less likely to be poor as compared with their counterparts with low levels of education (basic level). Again, the probability of household heads being poor was high among those in the rural areas. Households with large family size were more likely to be poor. Considering the findings of the study policy makers should consider education as important driver for poverty reduction and ensure that majority of the populace have access to higher level of education, especially tertiary.

Keywords

• poverty reduction
• probit and logit models
• education and poverty
• ghana