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Quality Jobs or Mass Employment

Quality Jobs or Mass Employment

Paper No. RP_098 | By Kwabia Boateng | October 1999 | English
The general objective of the study is to explain the apparent failure of employment in the Ghanaian labour market under SAP/ERP by evaluating changes in the qualitative distribution of labour demand, based on trends in advertised job vacancies from 1981 to 1995.
The results indicate a significant (25%) increase in the demand for high-skill labour relative to low-skill labour in the ERP/SAP period, compared with pre-ERP/SAP period. Using decomposition techniques it is found that 51.2% of the increase in demand for high-skill labour is explained by changes in skill composition and 48.8% by changes in sectoral composition of jobs. The policy implication is that improvement in employment performance in Ghana will require additional investments in skill training and a keener effort to enhance occupational mobility.
The general objective of the study is to attempt to explain the apparent failure of employment in the Ghanaian labour market under SAP/ERP. Two possible causes are investigated:

  • Changes in the structure of labour demand, in particular the qualitative distribution of labour demand, based on trends in advertised job vacancies.
  • The macroeconomic environment, notably the policy regime under SAP/ERP, and the institutional environment, notably the extent of wage rigidity among the various segments of the Ghanaian labour market.
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