Richard U. Agesa

Rural to Urban Migration as a Household Decision: Evidence from Kenya

A simple intertemporal expected-utility model for the household is developed to explore the determinants of split and family migration. Split migration occurs when the household head moves from a rural to an urban area first, and the rest of the family remains behind to join him later. Family migration occurs when the household moves together. The validity of the theoretical model is tested using data from Kenya. The findings support the predictions of the theoretical model; specifically, the results suggest that a large number of dependents may increase the likelihood of split migration. Copyright 2001 by Blackwell Publishing Ltd

Gender differences in the incidence of rural to urban migration: Evidence from Kenya

This article examines gender differences in the incidence of rural to urban migration in developing countries, particularly those of Sub-Saharan Africa. The study distinguishes itself from current migration literature by suggesting that the gain in returns to observable attributes, as a result of migration, may differ by gender and could provide an explanation for gender differences in migration. Using data from Kenya, we estimate the urban-to-rural wage gap, separately for each gender, and decompose the gap into the components due to urban to rural differences in observable attributes and differences in returns to observable attributes. We find that the portion of the wage gap that is due to the gain in returns to observable attributes is larger for males, suggesting that males receive larger monetary returns as a result of migration and, consequently, have greater incentive to migrate to urban areas.

One Family, Two Households: Rural to Urban Migration in Kenya

Many households in sub-Saharan Africa allocate their labor resources between rural and urban areas to diversify risks and maximize income. One such strategy would be for a husband in a rural area to migrate to an urban area while his wife and family remain in the rural area without any chance of joining the migrant husband in the urban area. The family maintains a rural home and an urban home. This article explores possible determinants of this type of migration using data from Kenya. Nontrivial findings suggest that such migratory behavior may be motivated by agglomeration effects of household size in the rural area, an increase in remittance by the migrant husband to his rural family, a relatively low education for the husband, and a high urban cost of living.

GENDER DIFFERENCES IN THE URBAN TO RURAL WAGE GAP AND THE PREVALENCE OF THE MALE MIGRANT

Using data from Kenya this paper estimates the rural to urban earnings gap separately for male and female migrants and then explores the influence of the gaps on the migration decision of each gender from rural to urban areas. A non-trivial finding suggests that despite relatively higher positive returns to urban earnings the urban to rural earnings gap appears to have no significant influence on female migration. The gap, however, seems to have a positive and significant influence on male migration, suggesting cultural values may frown upon females taking full advantage of relatively higher paying job opportunities in urban areas.

Sources of gender difference in rural to urban migration in Kenya: does human capital matter?

Using data from Kenya this article estimates the urban to rural gender gap in the rate of migration and then decomposes the gap into the explained portion and the portion due to gender differences in coefficients. The former is further decomposed to unveil the relative influence of each explanatory variable on the explained portion of the gender gap in the rate of migration. A non-trivial finding suggests that human capital variables may exert the strongest influence on gender differences in migration, partially explaining the higher incidence of male migration.

Higher residual wage dispersion for white workers in post apartheid South Africa, 1995-2006: composition effects or higher skill prices?

Apartheid in South Africa ensured whites received more and better-quality schooling relative to Africans, coloreds, and Asians. It is hence conceivable, consistent with human-capital theory whites would receive relatively higher prices to their measured human-capital skills and would have higher dispersion of their unmeasured human-capital skills. We test this hypothesis. Specifically, we employ a semiparametric procedure to decompose 1995-2006 racial wage differences into regression coefficients, covariates and residuals and extend the literature by decomposing residuals into unmeasured skills and skill prices. Our findings support the theory: whites receive relatively higher prices to measured skills and have relatively higher dispersion of unmeasured skills, with the latter attributed to higher prices of unmeasured skills. We suggest better-quality schooling yielded higher returns to measured human-capital attributes for whites, and higher skills enabled whites to benefit more from on-the-job-training resulting in higher dispersion of their unmeasured human-capital attributes.

Can imports mitigate racial earnings inequality

Purpose - The purpose of this paper is to extend recent literature regarding the effects of competition on racial earnings by examining the effects of global competition on racial wages of union and non-union workers of different skill levels. Additionally, it is intended that inference be drawn regarding whether global competition is a viable means to eliminate racial wage discrimination. Design/methodology/approach - This paper utilizes quantile regression to examine the effect of global competition on the racial wage gap of workers in high- and low-concentration industries at different points along the earnings distribution. Additionally, the analysis utilizes the highest level of import penetration in each industry over the sample period to examine whether global competition is a viable means to eliminate racial wage discrimination. Findings - In concentrated industries, non-union whites at most skill levels receive a substantial wage premium compared with their black counterparts. Further, imports reduce racial earnings inequality by significantly decreasing the wages of low- and medium-skill non-union whites. However, imports cannot mitigate racial earnings discrimination for non-union workers at most skill levels. Practical implications - These findings suggest that, if market forces cannot alleviate racial wage discrimination, government anti-discriminatory policies may be a necessary measure. Originality/value - No previous study has examined the effect of global competition on the racial wage gap of workers of different skill levels. Further, no study has empirically tested whether international competition is a viable means to eliminate racial wage discrimination.

Changes in Wages, Wage Inequality and the Return to Human Capital Skills in Kenya: 1977–2005

The conventional literature on wage inequality in Kenya has two drawbacks: first, by focusing on manufacturing sector wages, overlooking wages in other sectors, the results may be biased. Second, previous studies emphasize wage determination solely at the conditional mean rather than resort to wage determination across the entire earnings distribution. We remedy these weaknesses and add a new layer of research previously unexamined. Particularly, we consider wage changes during periods of wide GDP fluctuations from 1977 to 1986, 1986 to 1999, and 1999 to 2005 and explore if prices of measured human capital skills moved in tandem with changes in the dispersion of unmeasured human capital skills as is postulated by human capital theory. Our results support human capital theory: we find higher wages and higher residual wage dispersion during periods of rising GDP (1999–2005) but find lower wages and lower residual wage dispersion during periods of falling GDP (1977–86 and 1986–99).

Market structure-driven discrimination and the earnings of subordinate managers: an analysis by union density

Recent work examines the market structure/racial earnings relationship for union and nonunion workers and finds that standardized union earnings protect black workers from market structure-driven earnings discrimination. This study examines the market structure/racial earnings relationship for lowand mid-level managers in high-and low-union density industries. Our findings indicate that there is less market structure-driven discrimination of managers in highly unionized industries. We suggest that there is a spillover effect of reduced market structure-driven discrimination of managers in highly unionized industries that stems from standardized, more racially equitable wages of union workers.

Does an extra year of primary schooling yeild higher earnings?: Evidence from Kenya

In 1985 significant school reforms prolonged the duration of primary schooling in Kenya from 7 to 8 years. The goal of the reforms, amongst other changes, was to increase skills and consequently increase earnings for workers with primary school education. This paper explores whether the extra year of primary schooling may have enhanced skills and consequently increased relative wages for workers with the additional eighth year of primary schooling. Such an analysis is important for two reasons. First, we are the first to gauge the impact of the reforms on relative wage changes for workers with primary school education in a developing country setting particularly in sub-Saharan Africa. Second, and more importantly, such an inquiry is warranted because by focusing solely on relative wage changes for primary school educated workers, we consider whether the reforms did actually increase relative wages for workers with more i.e. 8 years of primary schooling without the confounding effects of post primary school education (i.e. secondary, tertiary, middle-level and university education) on earnings. Our empirical technique takes advantage of exogenous variation induced by the new policy and employs a data-driven pseudo regression discontinuity design to consider whether the new school reforms did indeed create a wage discontinuity for workers with 7 and 8 years of primary school education at the cutoff point in 1985. Utilizing data from the 2004/2005 Kenya Integrated Household Budget Survey, our findings shed new light. We find that although the relative wage for workers with 7 years of primary schooling is marginally higher, the trajectory of the age-earnings profile is relatively steeper for workers with the 8th year of primary schooling. This finding, consistent with human capital theory, suggests that workers with the extra year of primary schooling would earn a higher future relative wage. As such, from a policy standpoint, increasing the duration of primary school education may be a necessary but not a sufficient condition for increasing relative wages for workers with the added year of primary schooling at least in the short run. Short run underlying factors, such as differences in age, years of labor market experience, compounded by transition bottlenecks (not considered in this paper but widely discussed in the literature) may inhibit an instantaneous wage increase for workers with the added year of primary schooling.