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The Winner Takes It All: Internal Migration, Education and Wages in Ethiopia

Author

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  • Blunch, Niels-Hugo

    () (Washington and Lee University)

  • Laderchi, Caterina Cruggeri

    () (World Bank)

Abstract

Previous studies of migration have mainly examined international dynamics. Yet, internal migration is an important issue, especially in Sub-Saharan Africa. Using the 2001 Ethiopia Child Labor Survey, a nationally representative household survey, this paper examines internal migration in Ethiopia, focusing on the linkages among internal migration, education and wages. The results suggest that migrants are better educated and obtain higher wages than non-migrants, controlling for other factors (including education), and also obtain higher returns to their education. In other words, the more educated reap higher returns from their education as a main effect, as well as higher returns to their education from migration than non-migrants – that is, "the winner takes it all." This result should be of concern to policy makers in Ethiopia and elsewhere – especially in Sub-Saharan Africa – since individuals with low levels of education already are in a vulnerable group. The study therefore also discusses the policy implications of these results.

Suggested Citation

  • Blunch, Niels-Hugo & Laderchi, Caterina Cruggeri, 2015. "The Winner Takes It All: Internal Migration, Education and Wages in Ethiopia," IZA Discussion Papers 8926, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp8926
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    References listed on IDEAS

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    1. Alan de Brauw & Valerie Mueller, 2012. "Do Limitations in Land Rights Transferability Influence Mobility Rates in Ethiopia?," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 21(4), pages 548-579, August.
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    14. repec:bla:blaboo:1557860300 is not listed on IDEAS
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    More about this item

    Keywords

    education; wages; internal migration; Ethiopia;

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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