Topic: Returns to education in Ghana: The role of education of one's father

The study examines the role of education of father on returns to schooling in Ghana. The data used for the analysis is the Ghana Living Standards Survey Seven (GLSS 7). Spouse education is used as an instrument in our estimation. Father's education, other demographic characteristics and employment characteristics were controlled in the study. Regression analysis revealed that returns on education in Ghana are positively affected by fathers' level of education. It was found that respondents whose fathers have no education were found to obtain lower wages than their counterparts whose fathers had higher levels of educational certification. The evidence was consistent across the formal and informal sectors as well as private and public sector workers. Given that Ghanaians in wage employment are small, the benefits of the study would have been much greater if non wage employees were included in the analysis. The study recommends policies that would enhance educational attainment but reduce parental influence in job acquisition. Furthermore, Policies to formalise the labour market of Ghana will further enhance the returns to schooling in Ghana.