Essays on rural-to-urban migration and urban industrial performance in Sub-Saharan Africa

Thesis

This thesis consists of three independent but thematically related papers exploring the income determination process in African labour markets from spatial and sectoral perspectives.

Using long-run household panel data from rural Tanzania, chapter 2 investigates the extent to which education can explain migrants' income and consumption gains. We expect that the higher return to schooling at the destination primarily drives migrants' gains, suggesting that those who cannot afford the cost of schooling cannot reap the benefits of migration. We find that education indeed plays the role, but that it does not appear to be a major factor in limiting the internal migration as a source of raising income and consumption.

Exploiting data drawn from urban household panel surveys in Ghana and Tanzania, chapter 3 investigates how rural-to-urban migrants' earnings compare with those of natives in urban labour markets. The chapter attempts to identify the growth of migrants' earnings at the destination (assimilation), making a distinction between wage and self-employed migrants. We find that wage-dependent migrants would achieve higher lifetime earnings if they entered a self-employed sector from their arrival, conditional on individuals' attributes and the varying returns to those attributes across urban residents. The evidence points towards the importance of capital constraints in a decision to start a business.

Using firm-level data of manufacturing and retailing from the Enterprise Surveys conducted in seven Sub-Saharan African countries, chapter 4 attempts to improve our understanding of enterprise performance in urban Africa by investigating three aspects of firms' productive structure: technology, total factor productivity (TFP), and firm size. We find that the technology is similar between sectors, that retailing firms are smaller and less capital intensive but not, on average, ones with lower TFP, and that TFP differences are primarily within sectors. All these findings might point towards the importance of factor prices in characterising the industrial structure in urban Africa.

Authors: Kudo, Y

• Publication date: 2011
• Type of award: DPhil
• Level of award: Doctoral
• Awarding institution: Oxford University, UK
• Language: English
• Keywords: Africa; demographic mobility; migration; productivity
• Subjects: Labour economics; Development economics