Labor Market Performance As A Determinant Of Migration

In a comparison of migrants with nonmigrants, both observed and unobservable productivity factors are relevant. This paper focuses more on the unobservable factors and their correlation between places of origin and destination. A human capital model of migration demonstrates that more productive workers at the origin would choose to migrate only if the correlation between origin and destination factors is strongly positive. Longitudinal data drawn from the Cote d'Ivoire Living Standards Survey, 1985-86, are used to examine the pattern of migration in the light of labor market performance both of wage employees and non-farm self-employed workers. It is found that, indeed, the more productive workers migrate. Furthermore, the general direction of migration is toward cities. The conclusion is therefore that rural areas lose their productive workers and that urban areas may gain in productivity from the geographical shifts in population.