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Journal of African Economies Advance Access published online on June 23, 2009
Journal of African Economies, doi:10.1093/jae/ejp011
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© The author 2009. Published by Oxford University Press on behalf of the Centre for the Study of African Economies. All rights reserved. For permissions, please email: journals.permissions@oxfordjournals.org

Migration, Self-selection and Returns to Education in the WAEMU

Philippe De Vreyera,*, Flore Gubertb and François Roubaudb

a LEDA, Paris Dauphine University, Place du Maréchal de Lattre de Tassigny, 75775 Paris Cedex 16, France and IRD, DIAL
b IRD, DIAL, 4 rue d'Enghien, 75010 Paris, France

* Corresponding author: Philippe De Vreyer. E-mail: devreyer{at}dial.prd.fr

Using data from labour force surveys conducted simultaneously in the capital cities of seven West African Economic and Monetary Union countries, we estimate a model of residential location choice in which expected earnings play a role. The model is first estimated in a reduced form. Estimates are then used to correct for the endogeneity of locational choice in the earnings equations estimated for each country. We find that migration behaviour has a significant effect in shaping earnings differentials between education levels and between the seven capital cities. Corrected predicted earnings in each country are then used as an independent variable in a structural multinomial logit of residential choice. Results show that individuals tend to reside in countries in which their expected earnings are higher than elsewhere.

JEL classification: C35, O15, J31


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