Earnings and Employment Sector Choice in Kenya
The level of participation in employment and wages paid in the labour market can assessed by comparing relative sectoral labour compensation amounts, participation rates and skill distribution of the workforce. In addition, the level of participation in employment and differences in wages paid in any given sector are affected by both individual factors and sector-specific factors. The study estimates a multinomial logit model and selection-corrected earnings models to determine participation and earnings in various employment sectors. This study finds clear differences in the formal private and public employment sectors relative to the vast informal sector. Regression results confirm that education is the key determinant of both participation and wage earnings. Attainment of higher levels of education is related to a greater likelihood of working in private and public sectors and earning higher wages in these sectors, relative to working in the informal sector. Gender disaggregated participation and earnings models show that in contrast to men, university education has a considerable effect on women’s participation and earnings in the formal sectors. Education attainment however, a primary factor in participation and earnings determination, weakly explains participation in the typically low-wage informal sector whose stable employment growth coincides with the stagnation in the public and private sectors. Even with its characteristic low wages, to many job seekers the informal sector is where jobs can still be found.
|Date of creation:||Jul 2010|
|Contact details of provider:|| Postal: P.O. Box 62882, Nairobi|
Phone: (254-2) 228057
Fax: (254-2) 219308
Web page: http://www.aercafrica.org
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:aer:rpaper:rp_199. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Steven Kinuthia)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.