Abstract WP14-02

Eugenia Amporfu, Daniel Sakyi, Prince Boakye Frimpong. 2014. Demographic Dividend of Ghana: The National Transfer Accounts Approach.

Abstract:

The paper uses the National Transfer Accounts Approach to estimate the lifecycle deficit and hence the first demographic dividend for Ghana in 2005. The results of the National Transfer Accounts for Ghana indicate that, lifecycle surplus runs for about 30 years and peaks around age 50. Further, there is early entry in the labor force as well as late exit from the labor force, probably due to significant unregulated labor market activities in Ghana, particularly in the informal sector. The results reveal that Ghana started enjoying the first demographic dividend in 1990 and is expected to peak around 2031. The paper, however, proposes some policies geared towards strengthening the labor market which potentially would develop the human capital particularly in the productive ages to help sustain the benefits.

Keywords: Ghana, National Transfer Accounts, Demographic Dividend, Lifecycle Deficit, Economic Support Ratio