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Human Resource Underutilization in an Era of Poverty Reduction: An Analysis of Unemployment and Underemployment in Ghana
Author(s) -
Sackey Harry A.,
Osei Barfour
Publication year - 2006
Publication title -
african development review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.654
H-Index - 32
eISSN - 1467-8268
pISSN - 1017-6772
DOI - 10.1111/j.1467-8268.2006.00140.x
Subject(s) - underemployment , unemployment , poverty reduction , poverty , economics , resource (disambiguation) , development economics , labour economics , economic growth , computer science , computer network
Unemployment is more prevalent in urban than rural Ghana, while underemployment is pervasive in rural Ghana. The paper analyses trends in these two forms of human resource underutilization and examines their major determinants. It is found that a positive association exists between the underemployment rate and the incidence of poverty in specific industries. The data supports the importance of demographics, education and firm sizes as major determinants of unemployment. Furthermore, these factors together with type of employment are the factors influencing underemployment. To reduce the level of unemployment and underemployment, the government should provide support for: (1) growth of private sector firms and informal sector activities; and (2) rural alternatives to agricultural activities. These implications are also relevant to other African countries trying to combat the twin problems of unemployment and underemployment.