Individual Effects

Who benefits from being self-employed in urban Ghana

This paper explores the earnings gap between the self-employed and wage earners in urban Ghana. This is important in understanding the drivers of inequality, we hypothesise that heterogeneity in informal sector earnings will have implications for the income gap between self-employed individuals and wage earners. This heterogeneity in earnings will be concealed at the mean. However, the information about who benefits and who is penalized in the informal sector can be important from the policy perspective.

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