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Disparities in Labor Market Outcomes Across Geopolitical Regions in Nigeria. Fact or Fantasy?

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  • Ruth Uwaifo Oyelere

    (Georgia Institute of Technology)

Abstract

Questions focused on understanding Africa's lack of growth are not new in economics research. Ethnic fragmentation is one of the many reasons suggested for lack of growth of many developing countries especially in Africa. This is because many countries that are ethnically fragmentized find it difficult agreeing on societal goals and instead, focus on achieving dominance in the political arena of the country. These actions usually lead to: ethnic conflict, corruption, instability and other factors that hamper growth in the long-run. Nigeria is no stranger to the scenario described above. The basis of most ethnic and regional conflicts is claims of the marginalization of particular groups. Documented and anecdotal evidence of marked differences in basic economic and social indicators are usually the starting point for these assertions. However, general perception and beliefs play a role in solidifying these claims. In this paper, evidence of labor market disparities in Nigeria is sought first using descriptive analysis of the data. Subsequently, I test the null hypothesis that there are no significant differences in labor market outcomes across geopolitical regions using econometric techniques. By means of an instrument first suggested by Osilli and Long (2003) but constructed similarly to Uwaifo (2006), I estimate the returns to education using two stage least squares. This instrument is based on the exogenous implementation and withdrawal of free education across regions and states in Nigeria over time. I derive estimates for both Northern and Southern Nigeria.

Suggested Citation

  • Ruth Uwaifo Oyelere, 2008. "Disparities in Labor Market Outcomes Across Geopolitical Regions in Nigeria. Fact or Fantasy?," Journal of African Development, African Finance and Economic Association (AFEA), vol. 10(1), pages 11-31.
    • Handle: RePEc:afe:journl:v:10:y:2008:i:1:p:11-31
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    References listed on IDEAS

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    Cited by:

    1. Andinet Woldemichael & Margaret Joldowski & Abebe Shimeles, 2019. "Working Paper 330 - Labor Market Flexibility and Jobs in Selected African Countries," Working Paper Series 2456, African Development Bank.
    2. George Abuchi Agwu & Oussama Ben Atta, 2021. "University proximity at teenage years and educational attainment," Working Papers hal-03492963, HAL.
    3. Oussama Ben Atta, 2022. "University proximity at teenage years and educational attainment," French Stata Users' Group Meetings 2022 02, Stata Users Group.
    4. George Abuchi Agwu & Oussama Ben Atta, 2021. "University proximity at teenage years and educational attainment," Working papers of Transitions Energétiques et Environnementales (TREE) hal-03492963, HAL.
    5. Uwaifo Oyelere, Ruth, 2008. "Understanding Low Average Returns to Education in Africa: The Role of Heterogeneity across Education Levels and the Importance of Political and Economic Reforms," IZA Discussion Papers 3766, Institute of Labor Economics (IZA).
    6. Ogundari, Kolawole, 2012. "Returns to Education Revisited and Effects of Education on Household Welfare in Nigeria," 2012 Conference, August 31, 2012, Nelson, New Zealand 136051, New Zealand Agricultural and Resource Economics Society.

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    More about this item

    Keywords

    Nigeria; ethnic fragmentation; market disparities; geopolitics; school enrollment;
    All these keywords.

    JEL classification:

    • O5 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies
    • I0 - Health, Education, and Welfare - - General
    • J70 - Labor and Demographic Economics - - Labor Discrimination - - - General
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

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