Allocation of Labour in Urban West Africa: Implication for Development Policies

37 Pages Posted: 25 Jun 2008

See all articles by Ralitza D. Dimova

Ralitza D. Dimova

Brunel University London - Economics and Finance; IZA Institute of Labor Economics

Christophe J. Nordman

Institut de Recherche pour le Developpement (IRD); IRD, DIAL, Paris

François Roubaud

Développement Institutions & Analyses de Long terme (DIAL) - Institut de Recherche pour le Développement (IRD)

Date Written: June 2008

Abstract

With the use of comparable data from seven West African capitals, we attempt to assess the rationale behind development policies targeting high rates of school enrollment through the prism of allocation of labour and returns to skills across the formal and informal sectors. We find that people with high levels of education allocate to the small formal sector and receive high compensation for their education and experience. Less educated workers allocate to the informal sector. While self-employment reveals some characteristics of a sector of dynamic entrepreneurship, the characteristics of the informal salaried sector are closer to those of a sector of hidden unemployment, or a stepping stone for better jobs in the future.

Keywords: returns to skills, allocation of labour, self-selection, informal sector, Sub-Saharan West Africa

JEL Classification: J24, J31, O12

Suggested Citation

Dimova, Ralitza D. and Nordman, Christophe Jalil and Nordman, Christophe Jalil and Roubaud, François, Allocation of Labour in Urban West Africa: Implication for Development Policies (June 2008). IZA Discussion Paper No. 3558, Available at SSRN: https://ssrn.com/abstract=1150747 or http://dx.doi.org/10.2139/ssrn.1150747

Ralitza D. Dimova

Brunel University London - Economics and Finance ( email )

Uxbridge UB8 3PH
United Kingdom

IZA Institute of Labor Economics

Schaumburg-Lippe-Str. 7 / 9
Bonn, D-53072
Germany

Christophe Jalil Nordman (Contact Author)

Institut de Recherche pour le Developpement (IRD)

213, rue La Fayette
75480 Paris cedex 10, 90009
France

IRD, DIAL, Paris

213, rue La Fayette
75480 Paris cedex 10, 90009
France

François Roubaud

Développement Institutions & Analyses de Long terme (DIAL) - Institut de Recherche pour le Développement (IRD) ( email )

4 rue d'Enghien
Paris 75010, 90009
France
+33 (0)1 53 24 14 76 (Phone)
+ 33 (0)1 53 24 14 50 (Fax)

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