International Journal of Educational Development 28 (2008) 320–339 Educational expansion in Ghana: Economic assumptions and expectations Caine Rolleston, Moses Oketch à School of Lifelong Education and International Development, Institute of Education, University of London, 20 Bedford Way, London,WC1H 0AL,UK Abstract The neo-classical ‘human capital theory’ continues to be invoked as part of the rationale for educational expansion in the developing world. While the theory provides a route from educational inputs to economic outputs in terms of increased incomes and standards of living, the route is contingent and relies upon a number of key assumptions. This study examines these assumptions alongside student expectations of their educations in the context of Ghana using data collected from a survey conducted at higher education institution and from the Ghana Statistical Service’s ongoing living standards surveys. Data indicate that students have high economic expectations but that trends in wages and employment are leading to ‘wage compression’ which may ultimately make expectations difficult to fulfill. The relatively low private costs of education, particularly higher education, may mean, however, that educational investment remains very much a ‘rational’ choice in economic terms. However, the study finds that key assumptions of successful human capital investment went largely unsatisfied in Ghana. r 2007 Elsevier Ltd. All rights reserved. Keywords: Human capital; Education economics; University students; Qualifications; Ghana 1. Introduction The belief that human skills and abilities en- hanced through education may be considered analogous to physical capital in their productive capacities and investment potential is often traced back at least as far as the work of Smith (1776). The empirical basis for Smith’s assertions was not explored, however, until the 1960s when it coincided with political independence and rapid educational growth in sub Saharan Africa pioneered by Ghana. Economic rationales for educational investment and expansion continue to be cited frequently in Ghanaian and international policy documents. However, while there is no doubt that individuals do increase their economic potential through wise investment in education and skills, the ‘human capital’ route to increased incomes, economic growth and reduced poverty relies on a number of important assumptions about education and the wider economy which must be considered in context. This study begins by exploring the extent to which ‘human capital’ rationales may be detected in the expectations of Ghanaian students through a small scale survey. Secondly, it examines key trends ARTICLE IN PRESS www.elsevier.com/locate/ijedudev 0738-0593/$ - see front matter r 2007 Elsevier Ltd. All rights reserved. doi:10.1016/j.ijedudev.2007.05.006 à Corresponding author. Tel.: +44 20 7612 6629; fax: +44 20 7612 6632. E-mail address: m.oketch@ioe.ac.uk (M. Oketch).