Allocation of Labor in Urban West Africa: Insights from the Pattern of Labor Supply and Skill Premiums
AbstractUsing comparable data from five West African capitals, we assess the rationale behind development policies targeting high rates of school enrollment through the prism of allocation of labor and earnings effects of skills across the formal and informal sectors, and not working. We find that people with high levels of education allocate to the small formal sector, while less educated workers allocate to the informal sector. While high levels of education are given more value in the relatively smaller sectors of salaried employment, observed skills like education appear to be fairly unprofitable in the larger self-employment sector. The fact that only the small formal sector in urban West Africa both seems to absorb highly educated workers and provide high skill premiums may be an important reason for the observed low demand for education and high dropout rates. Copyright � 2010 Blackwell Publishing Ltd.
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Bibliographic InfoArticle provided by Wiley Blackwell in its journal Review of Development Economics.
Volume (Year): 14 (2010)
Issue (Month): 1 (02)
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Web page: http://www.blackwellpublishing.com/journal.asp?ref=1363-6669
Other versions of this item:
- Dimova, Ralitza & Nordman, Christophe Jalil & Roubaud, François, 2010. "Allocation of Labor in Urban West Africa: Insights from the Pattern of Labor Supply and Skill Premiums," Economics Papers from University Paris Dauphine 123456789/10597, Paris Dauphine University.
- O17 - Economic Development, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
- O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
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- Bocquier, Philippe & Nordman, Christophe Jalil & Vescovo, Aude, 2010.
"Employment Vulnerability and Earnings in Urban West Africa,"
Economics Papers from University Paris Dauphine
123456789/4294, Paris Dauphine University.
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- Ralitza Dimova & Monnet Gbakou, 2012. "A right price for rice? Côte d’Ivoire insights into the welfare implications of the ‘global food crisis’," Brooks World Poverty Institute Working Paper Series 17212, BWPI, The University of Manchester.
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- Dimova, Ralitza & Gbakou, Monnet, 2013. "The Global Food Crisis: Disaster, Opportunity or Non-event? Household Level Evidence from Côte d’Ivoire," World Development, Elsevier, vol. 46(C), pages 185-196.
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