RETURNS TO SCHOOLING IN NONFARM SELF-EMPLOYMENT - AN ECONOMETRIC CASE-STUDY OF GHANA

Does educational attainment affect the income from family enterprises? This study examines this relationship from various angles. Heterosked asticity proves to be an important econometric factor in determining t he optimal estimation strategy. In Ghana, educational attainment of th e entrepreneur has a small positive effect, which represents primarily a contribution to allocative efficiency. The size of the effect is cl ose to the rate of return estimated for Ghanaian employees. Educationa l attainment of the entrepreneur's family members has a significant po sitive effect, reflecting the idea that as family members share financ ially in the firm's outcome, they volunteer services from their human capital stock.