A Decomposition and Counterfactual Analysis of the Effect of Parents' Educational Status on Youth Employment Outcomes

Abstract

This study sought to examine the extent to which youth employment outcomes in Ghana are influenced by their individual and family characteristics on the one hand and parents' educational status on the other. A sample size of 250 youths, both employed and unemployed, was used for the study. A probit estimation with marginal effects was used to determine how these individuals and family characteristics influence employment outcomes. The results showed that individual and family characteristics influence employment outcomes. We disentangle educational background of parents and group them into high and low status. A Blinder-Oaxaca decomposition shows that the employment gap between youths with parents of high educational status and those with parents of low educational status is largely influenced by the differences in the individual and other family characteristics of the youths rather than differences in parents' educational status.