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This study investigates the effect of women’s bargaining power on household’s ownership and amount of savings in Ghana. Unlike previous empirical studies, this study considers the differences in preference among household members that leads to bargaining over allocation of resources in the household. To achieve the objective of this paper, the fifth round (2005) of the Ghana Living Standards Survey was employed. Women’s bargaining power is measured as the share of woman’s education among the couple. Probit and Heckman two-stage estimation techniques are employed. The latter is justified, in view of potential sampling selection bias in the annual savings model. The main finding is that, an increase women’s bargaining power engenders a corresponding increase in the probability of ownership of savings account and amount saved. We therefore recommend that, one of the strategies to improve household savings habit in Ghana, is through empowering women via better education.
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