SEASONAL AND PERMANENT MIGRATION IN BURKINA FASO Adama KONSEIGA ABSTRACT This study examines the determinants of households’ decision to migrate from Burkina Faso to Cote d’Ivoire, a leading country in the Regional West African Union. The paper, unlike most of the previous works, uses a dataset constituted from a two-sided survey conducted in 2002 at the origin and the host country. Therefore, it enables to study two groups of migrants: the seasonal and the permanent migrant households. As the migrants are not randomly selected from the population, Heckman procedures are used to estimate consistent migration incomes. Then the structural model of migration decision is analyzed after correction for complex sampling schemes. The empirical results found significant effects of income differential on migration decision only for the case of permanent migration whereas other motivations explain the likelihood of being seasonal migrant. Among these factors are the need to diversify income sources, education, ethnic network, population density, social capital, use of modern agricultural inputs, natural resources endowments and their management. In the Sahel region of origin subject to unstable climate, households who stay home diversify their incomes sources through off- farm activities while others receive remittances, the later being a better risk pooling strategy. JEL Classifications: C25, F15, F22, R23, J31 Keywords: International migration, Todaro model, New Economics of Migration, sample selection, income functions. Contact information: akonseig@uni-bonn.de Center for Development Research (ZEF) 1 1. Introduction Restriction of the movement of persons is increasingly gaining recognition as a severe impediment to trade, particularly in services. Removal of these restrictions could result in important benefits to the world as a whole and in particular to the suppliers of this labor. The migrant workers produce, earn wages, pay taxes and consume in the host country, as well as send remittances back to their home countries. Even though these benefits are dampened with the brain-drain phenomenon, Barro et al. (1999) view the later as extreme case that is likely to offset the benefits in conditions of crumbling empires. Based on a household survey conducted in Summer 2002, this study aims to shed light on the migration phenomenon and to allow a better understanding of migration in Burkina Faso as it plays a central role in its decision to participate profitably in the regional union of UEMOA1. Burkina Faso is the largest supplier of migration labor to Cote d’Ivoire and it is worth assessing the welfare and policy implications of theories of migration concerning its participation to the common union. The purpose is to develop a model that deals with the so far ignored question of the benefits of further regional liberalization of the movement of labor and re-examines the uncertain economic impact of the Union on landlocked countries (Decaluwé, B. et al., 2000). The migration model introduced by Todaro (1969) and Harris and Todaro (1970) has been for long time the dominant formal theory of migration in developing countries. As suggested by Todaro, income gap (or expected income) constitutes the principal aspect of migration motivation. The larger is this gap, the stronger is the migration propensity. Burkina Faso has shown a long history of migration with Cote d’Ivoire that started even before the formal constitution of the two countries, during French colonization. However, considered as a labor pool for surrounding countries economic development, the erstwhile forced migration became the outcome of free decision of Burkinabe households after independence. This labor mobility has been also reinforced by the constitution of regional blocks. The differences of natural resources endowments and the capacity of Cote d’Ivoire to attract foreign direct investment brought several decades of rapid growth and consolidated large income gaps between the two neighboring countries. The sole factor of income gaps gives enough incentives 1 West African Economic and Monetary Union of 8 francophone countries. 2 to farmers to leave their hard dry land agricultural conditions in Burkina Faso for available cocoa and coffee farms in Cote d’Ivoire. Using our recent survey data collected in both countries, we try to test the prediction of the Todaro model, which suggests that migration decision depends on income gaps. However, with the New Economics of Migration, migration is no more solely an individual decision but rather a decision made at household level. Other than income gaps, factors such as individual and family characteristics, labor and capital market conditions in the destination and home countries influence migration decisions, too. The empirical work conducted in this paper firstly analyzes the determinants of migrants' income at home and in the host country. In a second step, we study the impact of income gaps on migration decision. There are two important types of migration to Cote d’Ivoire that are considered: the seasonal migration and the permanent one. The rest of the paper is organized as follows. Section 2 presents the econometric model used. Then, the data and the estimation methods are described and related methodological problems highlighted. The econometric results follow in the fourth section. We close the study by drawing the main conclusions and subsequent research perspectives. 2. Econometric methodology Analyzing migrant households behavior from a population leads to incidental truncation problem because migrants are a restricted nonrandom part of an entire population2 . With such a distortion, results from a standard OLS are simply biased. The regression model that includes the above selection issue is the migration model à la Nakosteen and Zimmer (1980). The simultaneous system writes: Net benefit of moving: Vi * = α ' Z i + γ ' X i + ε i Income of migrant households: (1) log w fi = β ' f . X fi + µ fi and income of nonmigrant households: ( 2) log w hi = β ' h . X hi + µ hi ( 3) 2 34% of the seasonal migration sample is migrants households, whose migration project appears beneficial to them according to the theory. Migrants are not randomly and uniformly distributed in the population so that there is a selectivity phenomenon of migration. The same apply to the households that supply migrants labor, therefore these households may possess unobserved characteristics that are generally positively related to the income resulting in a sample selection bias. 3 To estimate the simultaneous migratio n income and decision equations, it is assumed that log w f and V * have a bivariate normal distribution with correlation ρ . A preliminary analysis of the last two equations is necessary in the process of understanding the structural model of migration decision based of the net benefit of moving. However, an analysis of income in either sub-sample must account first for the structural differences of both markets and for the incidental truncation of the mover’s (stayer’s) income on the sign of the net benefit. To face estimation problems of model with sample selection, a double Heckman two-step procedure is used. The Heckman regression model can be written for the selected sample as: - Selection model Pi* = α ' Z i + γ ' X i + ε ' i (1)' where P * is the probability of the variable indicator of the sign of the selection criteria, that is the net benefit from migration. Z i and X i represent the independent variables of the selection equation identification and those of the income equation respectively. - Income model log wi = β ' . X i + β λ λi + ν i ( 2 − 3)' where the following relationship exists between the coefficient of the inverse mills ratio λ and the model statistics: β λ = ρσ µ . The inverse mills ratio itself evaluates as the ratio of the probability and cumulative density functions from the selection equation. Heckman (1979) argues that this function is a monotone decreasing function of the probability that an observation is selected into the analyzed sample. The Heckman’s two-step estimation procedure applies to each of the selected group taking into account the fact that migrants and nonmigrants face distinct labor market structure respectively in Cote d’Ivoire and in Burkina Faso. For observations in each group, the probit equation (1)’ is estimated to obtain estimates of α and γ and compute the inverse Mills’ ratio. At a second step, the inverse Mills’ ratio is added to the earnings equation to produce the estimated coefficients of β and β λ . Finally the structural model of migration can be studied for the prediction of Todaro model and those of the New Economics of migration using the expected income gap for each household. 4 P * = α ' Z i + η (log wˆ fi − log wˆ hi ) + ε ' i ( 4) However the coefficients estimated measure how the log-odds in favor of migrating change as the independent variables change by a unit. For interpretation, marginal effects should then be computed together with several other approaches for interpreting nonlinear outcomes for meaningful profiles of the independent variables (Long and Freese, 2001). 3. Estimation There is a considerable body of empirical work on intra-country migration using crosssectional survey data that have been developed based on a discrete choice model. Lucas (1985) and Zhu (2001) are some applications on Botswana and China, respectively. However, the specificity of the current paper remains the dataset as well as the region of interest. The two-sided survey data collected in 2002 at the origin and the host country (Burkina Faso and Cote d’Ivoire) allows a detailed analysis of migration in West Africa. At the core of the model is an earning equation expressing households’ income as a function of individual and external characteristics (Ghatak, 1996). Firstly, we estimate simultaneously income equations for the migrants and nonmigrants in Burkina Faso. Secondly we study the impact of income gaps between these two groups on migration decision. The method is a structural probit model using the two-step procedure developed by Heckman (1979) and applied in previous studies such as Nakosteen et al. (1980); Perloff (1991); Agesa et al. (1999). 3.1. Data description Two sources of data from surveys conducted in summer 2002 in Burkina Faso 3 and in Cote d’Ivoire 4 are used for the empirical study. In Burkina Faso, the head of household of the randomly constituted sample had to answer the household questionnaire whereas the village leaders were chosen to answer two additional questionnaires: the village questionnaire and the institutional questionnaire. The survey in Burkina is a second round of ILRI project (CAPRI 2) started in 2000, however the migration aspects of interest were completely revised. 3 As a collaboration project of ILRI and ZEF, this survey concerned 48 villages of two northern provinces: Oudalan and Seno. 4 This project is a collaboration between ZEF and two other research centers in Bu rkina Faso (UERD) and in Cote d’Ivoire (ENSEA). 5 In Cote d’Ivoire, only the household level questionnaire was applied. The total sample included 513 households among which 250 in Burkina Faso and 263 in Cote d’Ivoire. 3.2 Estimation samples The analysis applies to two types of migration: the seasonal migrants that have been interviewed in the Sahel of Northern Burkina and the permanent migrants interviewed in Cote d’Ivoire at their residence place. The nonmigrants living in the Sahel constitute the reference group for both categories of migrants. As summarized in tables A and B (see Appendix), the survey completed in Burkina Faso concerned 102 migrant households to Cote d’Ivoire, 135 nonmigrant households and 13 households that do not sent a member in Cote d’Ivoire but elsewhere (only 5% of the sample). Among the 102 migrant households, while 14 cases have only a relative external to the household composition in Cote d’Ivoire, 69 are defined as seasonal migrants as the migrant returned yearly home for the agricultural activities of the rainy season that last on average 3 months of intensive work. The remaining 19 migrant households are permanent migrants who established durably in Cote d’Ivoire (RCI). This later group of migrants is studied through the survey of Burkinabe residing in Cote d’Ivoire where necessary information on their incomes and other characteristics are collected. Overall the potential estimation samples are respectively 204 and 398 households for the seasonal and the permanent migration study. It is assumed that the integrated regional market within the UEMO A5 facilitates the migration decision. However, the permanent migrants live in Cote d’Ivoire and own cocoa farms that constitute a very important source of income whereas the seasonal migrants are forced to temporary positions in towns where they work in non-qualified positions (guards or butchers) for less than 12 months. The second group generally can just get positions that do not interest Ivorians whereas the first group asserted that they earn a much better living than the local people. 5 West African Economic and Monetary Union of 8 francophone countries 6 3.3 Variables The objective of the following empirical work is to analyze the impact of income gaps on migration behavior of these two groups of migrants (respectively the seasonal and permanent) from Burkina to Cote d’Ivoire. Following the Heckman procedure, the income regression equation and the selection equation are simultaneously estimated before the structural migration economy can then be studied. The migration income (households with observed remittances flows) regression model is estimated using the Heckman procedure to take into account the fact that the assumption of randomparticipation- in-the-migration is unlikely to be true and thus, standard regression techniques would yield biased results. Households who would have negative benefit of migrating may be unlikely to choose to migrate (Ghatak, 1996), their personal reservation income (including the off- farm income) being greater than the income offered by moving from home. Two distinct migration models for the seasonal migrants and the permanent migrants are successively studied. Variables and their theoretical expected sign for the migration decision (wherever it is non-ambiguous) are summarized in the following tables. The selection binary variable is dmover that includes 34% of seasonal migration and therefore identifies the households for which the migration income is observed or not observed. In the permanent migration model, dmove plays an identical role . Table C in Appendix summarizes the statistics of the variables used in the seasonal migration study whereas the statistical information on permanent migration are summarized in table 1bis. 7 Table 1: Variables considered in model 1 of seasonal migration study Variable names Dgor SocialK Qtotbov_02 Paginput Pbovinp Ceekol Seeno inov_d1 Lmyield Mage Mecol_d3 Mans elev_ind typac150 Hdethag Monogam T150med T150high Loghhinc Dmover Popdens Distdogo Inno Children Sqmage risk3 risk4 Apparent_02 Dstayer Qtotbov_02 Dhilo Labels and expected sign of variables Residential region Gorom-Gorom indicator (+) never confide cattle to other villager due to mistrust total number of bovines per village (+) input spending per ha (-) input spending per bovine (-) frequency of the best soil quality (Ceekol) at household level (-) frequency of the second best soil quality (Seeno) at household level Technological innovation indicator in agricultural plots management (+) Logarithmic mean of millet yield (-) mean household age (+) number of members who attended kuranic school (+) number of schooling years per households (+) main source=livestock small dikes in village (-) head of household is a cropper monogamist household (+) dikes*rainmed dikes*rainhigh Logarithmic household total income (in CFA francs) seasonal and nonmigrant household indicator density household (+) distance to regional capital (+) household uses agricultural innovation (zai, diguette or both) number of kids under 12 (+) mean household age squared household risk coping strategy is gold panning (+) Household risk coping strategy is migration (+) Household receives aid from extended family in case of shock choice of not to migrate total number of bovine per village (+) income gap between seasonal and nonmigration choices (+) Similarly the variables used in the permanent migration study are summarized as follows: 8 Table 1bis: Mean value of explanatory variables in model 2 of permanent migration study Model 2 Variables names Variables labels Permanent Nonmigrants Migrants hhsize Household total size 4.84 5.70 Age Head of household’s age 45.17 52.3 Radio Number of radios in the Household 0.59 0.37 Dumorg dummy, Household participates to a 0.30 0.64 local organization (social capital) Meannsch average education years per 1.66 0.63 household popdens provincial population density 64.96 24.95 Dhhcoran dummy, Head of Household 0.14 0.38 attended coranic school Loginc Annual income of the household 1648 347 (thousand of CFA francs) Number of observations 263 135 *Note: only variables effectively used in model 2 are summarized in the table. The design of the two surveys is not fully identical and some information in the CAPRI survey is missing in the one conducted in Cote d’Ivoire. 4. Empirical results This section implements the econometric analysis and interprets successively the income model and the migration participation structural model. The later evaluates the impact of the income gap corrected for selection bias. As the methods applied identically to the two groups of interest, the seasonal migrat ion is studied first and the results of the permanent migration follow with. The income model Unlike the permanent migrants, the seasonal migrants and the nonmigrants have similar income sources as they try to cope with agricultural risks related to the dry lands of Burkina Faso. For all households in rural Sahel, only 55% have farm activities as main source of their earnings while off- farm and migration activities represent 45%. Remittances alone represent the main source of income in more than 21% of households while other local off- farm activities stand for more than 22%. The truncated migration income distribution follows a nonlinear function (Greene, 2000, p. 901) and incomes in the population are supposed lognormally distributed. This assumption is supported by the graphical test (see graph A in Appendix) and justifies the use of the natural 9 logarithm of household annual income (measured in the UEMOA common currency, francs CFA) as dependent variable. The independent variables for the “seasonal” income equation as described above are mans, risk3, socialK, paginput, inov_d1, t150med, t150high, and typac150 whereas those of the selection equation identification are tothh, hdethag, monogam, children, mage and sqmage. The later that strongly affect the chances for migration (the cost of migrating, the reservation income and therefore the net benefit) in the model may not influence the offer earnings. Table2: Heckman selection model for seasonal migration (1) loghhinc mans 0.089 (2.08)** -1.732 (-4.55)*** 0.549 (2.03)** 0.000 (2.63)*** 0.226 (2.58)*** -0.779 (-3.49)*** -0.650 (-2.05)** 0.005 (0.02) risk3 socialK paginput inov_d1 t150med (2) dmover -0.069 (-1.07) -0.821 (-1.93)* -0.707 (-1.92)* 0.000 (0.48) -1.269 (-2.69)*** t150high -1.598 (-3.11)*** typac150 0.357 (0.99) inno 0.550 (1.45) hdethag 0.669 (2.18)** monogam 0.704 (1.57) popdens 11.793 (2.96)*** qtotbov_02 0.000 (1.47) distdogo 0.003 (0.37) Constant 12.662 -1.560 (45.78)*** (-2.56)** Observations 126 126 Absolute value of z statistics in parentheses * significant at 10%; ** significant at 5%; *** significant at 1% Wald chi2(15) = 69.97 Prob > chi2 = 0.0000 10 The results support that the seasonal migrant households earnings is a function of education, risk coping strategy, social capital, use of agricultural inputs (fertilizer etc.), innovation adoption and climatic variables and their interaction to natural resources management (adoption of dikes against erosion). The likelihood of migrating is significantly dependent on income factors as well as village population density and household's ethnic network. However, the parameters estimated under the earnings regression are the marginal effects of the regressors in the income equation representing the entire population. It should therefore be noted that the coefficients ß can be used for inference only when analyzing the whole population. The marginal effects in the income regression for the subgroup of migrants are different from the estimated coefficients and can be obtained from equation (2)’: [ ] [ ] E log w i V > 0 = E log w fi = β f . X ' fi + ρ σ w λ fi ( 5) It follows that the marginal change in income as one independent variable changes, holding all other variables constant is: ∂E (log w fi ) ∂X i δ i = β − γ (β λ )δ i 6 where = λ 2 i − ψλ i ( , ψ = − α ´Z i + γ ' X i ) It is necessary while studying migration to evaluate these quantities because it is quite possible that the magnitude, sign, and statistical significance of the real marginal effects might all be different from those of the Heckman estimate of β (Greene, 2000). The outcome depends on the level of all variables in the model and is evaluated in the next table by computing the marginal effect for each observation in the sample and then averaging across all values. 6 δ i is strictly comprised between 0 and 1, playing then an attenuation role. 11 Table 2: Marginal effect of seasonal income MIGRANTS mans_ma 0.083 risk3_ma -1.616 SocialK_ma 0.512 Paginput_ma 0.00002 inov_d1_ma 0 .211 t150med_ma -0.727 t150high_ma -0.607 typac150_ma 0.0046 migration factors on TOTAL POPULATION 0.089 -1.732 0.549 0.00003 0.226 -0.779 -0.65 0.0049 Now we can proceed with the interpretation of results for the seasonal migration. As expected the results indicate that the migration income depends positively on household human capital (mans), household’s investment in agricultural inputs 7 (paginput) and innovation in agricultural plots management mainly technologies used against erosion. However, the level of mistrust regarding the main activity of livestock farming in the region appears to have a positive impact on migration income. The level of dead or stolen bovines in case of supervision contract could partly explain this unexpected result. On the other hands, households who do not confide their assets (cattle) to other villagers by lack of trust are most often the nonmigrants (39% versus 12%), therefore the seasonal migrants may not suffer for this problem of mistrust level in the village. The later have better income when they avoid leaving their cattle to other villagers during the absence of some members while the same variable appears non significant in the nonmigrants regression, giving support to the argument (table 2c in Appendix). The expected sign from theory is that a household who implements innovation to contain erosion would have better income in the event of high or medium rainfalls compare to low rainfall8 . This is not apparent in some aspects of our results and to understand the variation of the effect of innovation on income and migration along with climatic conditions, the interaction of innovation in dikes and rainfall is added through the three variables t150med t150high typac150. The reference group of low rainfalls is captured by the remaining main effect of innovation in 7 Investments in modern agricultural inputs are mainly fertilizer, pesticides, animal work force and tractors. 8 As there are three variables that reflect the impact of innovation (t150med t150high typac150), a test of innovation in dikes significance involve a joint hypothesis test, which reveals significant effect of the interaction between innovation in natural resource management and rainfall. 12 small dikes that appears in typac150. The resulting interaction effects are significantly negative but do not imply negative effects of these multiplicative variables. Rainfall (high and medium) relatively to low rainfall would decrease the chances of migrating for a household who innovated in dikes, meaning that households would stay home if the climatic situation were favorable. But simultaneously this would decrease the household average income probably because agriculture contributes less in households income compare to migration. Therefore the marginal impact on income of investing in dikes are obviously lower when the rainy season is average or above compare to a situation where there are low rainfalls (Graph B in Appendix). This outcome should be related to the unstable climatic conditions in the Sahel and the migration as a coping strategy (Stark, 1991). To cope with the difficult climatic conditions that correspond to low rainfalls on average in the region, it seems that households who are selected for migration have the highest impact on income from these climatic conditions, as they are able to diversify their income sources. The interpretation that implies high and medium rainfall coupled with innovation represent households who have more propensity to stay home is supported by the same graph where the implicit positive effect of innovation make fighting against erosion more favorable in case of high rainfall compare to medium ones. The direct effect of innovation can also be deducted from the regression outputs of table 2 because households who innovate have greater income regarding the positive effect of variable inov_d1. A second Heckman selection model is applied to the non-selected group under assumption of households choosing not to participate into migration and the results presented in table 2c (see Appendix) allow estimating the income gap for each household conditional to his participation or not to migration. The structural migration decision model The income differential between seasonal and nonmigration choices dhilo is now used to study the structural model of migration where additional control variables are mage, sqmage, tothh, hdethag, monogam, children. In a simple OLS regression, the estimators and its standard errors are derived under the assumption of simple random sampling with replacement. However, due to practical fieldwork difficulties, the sampling probabilities might differ between observations and estimations should be corrected for complex sampling schemes (equations 2 and 3 of table 3). 13 One aspect of the survey bias arises as households differ by their sizes and members may have different probabilities of selection. Therefore, one needs a weighting variable, which is equal (or proportional) to the inverse of the probability being sampled to avoid bias of estimates and standard errors. Here we use household size (hhtotsiz) as sampling weight and the results are stronger and presented in table 3 (column 2). On the other hands, Drabo et al. (2001) stressed the bias introduced by the enumerators during the first round of the CAPRI survey. Some responses are over-represented depending on the enumerator’s specific representation of questions even though they all follow the same training and pre-test. In fact every enumerator may have introduced a bias of dependency among the cases he or she interviewed. Column 3 of table 3 takes this additional bias into account by using the variable psu that is the enumerator identifier number. Finally the complex sampling schemes results are presented together with the marginal effects of the independent variables (column 3b). The village level density of households has a significant positive effect on the probability of migrating. Similarly richer villages (cattle size) produce positive externalities on the household decision to migrate and this supports the argument that financing the initial cost of moving may constitute a barrier for a household that wants to send a member abroad. Households usually receive financing from relative in addition to their own savings. Households from Gorom-Gorom region have relative higher propensity to migrate as well 9 . Ceekol, the best quality of soil in the region prevents households from migrating, which supports the idea that uncertain climatic conditions, drought and famine may constitute a push-factor that motivates them to leave their home areas. Migration is then viewed as a survival strategy for the sample households and a mean to cope with income risk. This is strengthened by the effect of elev_ind, which indicates that in the Sahel region where livestock farming is the most successful activity, a household with livestock as main income source may have relatively less incentive to migrate. Households with more education (kuranic education, mecol_d3) show also higher propensity to migrate as expected. 9 The survey was conducted in 2 provinces of northern Burkina (Seno and Oudalan in respectively three localities (Dori, Bani and Gorgadji) and one locality (Gorom-Gorom). 14 Table 3: Structural model of decision to migrate (1) (2) (3) (3)b dmover dmover dmover dy/dx hdethag 0.328 0.308 0.308 0.116 (0.98) (0.92) (0.99) (1.00) monogam 0.583 0.389 0.389 0.137 (1.10) (0.84) (0.88) (0.95) popdens 13.665 14.542 14.542 5.49 (3.07)*** (3.75)*** (3.62)*** (3.56)*** qtotbov_02 0.0001 0.0001 0.0001 0.0001 (1.67)* (2.13)** (2.80)** (2.82)** distdogo 0.009 0.010 0.010 0.004 (0.95) (1.12) (1.22) (1.24) children 0.018 0.028 0.028 0.011 (0.37) (0.62) (0.57) (0.57) dgor 1.362 1.449 1.449 0.510 (3.73)*** (3.72)*** (5.50)*** (7.04)*** Ceekol -0.574 -0.653 -0.653 -0.247 (1.68)* (2.20)** (1.83) (-1.80)* lmyield -0.289 -0.362 -0.362 -0.137 (1.02) (1.43) (1.12) (-1.11) mecol_d3 0.229 0.262 0.262 0.099 (2.10)** (2.95)*** (3.05)*** (2.95)*** elev_ind -1.019 -0.964 -0.964 -0.360 (-3.27)*** (-2.84)*** (-7.63)*** (-7.84) dhilo 0.038 0.070 0.070 0.026 (0.17) (0.27) (0.33) (0.33) Constant -0.618 -0.183 -0.183 (0.32) (0.11) (0.10) Observations 115 115 115 Absolute value of z statistics in parentheses *** significant at 1% ** significant at 5%; * significant at 10% (3)b represent the marginal effects after the survey probit (3). (1) scalar measures of fit: Prob > chi2 = 0.0000 Pseudo R2 = 0.3312 Log likelihood = -51.76175 Count R2: 0.79110 Adj Count R2: McKelvey and Zavoina's R2: 0.575 0.478 Additionally we also constructed and tested the direct effect of some risk management indicator variables on migration decision in the Sahel. According to the New Economics of Migration, families indeed spread their labor assets over geographically dispersed and structurally different markets to reduce risks. Even though a positive effect of migration as a diversification strategy is confirmed when households’ risk coping strategy is migration (risk4 in table 2b, Appendix), gold panning strategy (risk3) shows the opposite sign in the selection equation of table 2 above. However, using a one-tailed test, the hypothesis that risk3 does significantly affect a household's 10 Contructed using observed and predicted values of the model. As suggested by Long et al. (2002) it is corrected for the largest row marginal. 15 probability to migrate is rejected 11 . Even though risk4 needs to be checked for possible endogeneity, the results seem give support to migration as a better strategy regarding risk management than off-farm income sources such as gold panning, small commerce in the village as the later source of income is positively correlated to agricultural outcomes in the region. Finally, the most important result is the unexpected non-significant effect of income gap. This indicates that for seasonal migration, other factors (income diversification, population density, natural resources, ethnic network) are stronger than the traditional income motivations. In the Sahel subject to unstable climate, households who stay home diversify their incomes sources through off-farm activities 12 while others receive remittances, the later being a better risk pooling strategy. Summary statistics of the predicted probabilities of migration shows a median probability of about 0.37 while the average predicted chance of migrating in the population is around 0.4 with a standard error of 0.3. This low average propensity to migrate suggests examining the predictions at specific values and for some profiles of interest. Table E to G in Appendix are computed for this purpose. The table E shows the strong impact of household’s endowments on his decision to send a member in migration. A household who relies on livestock farming with high number of educated members would probability leave a place of origin densely populated. Table F is used to interpret the combined potential effect of number of children and kuranic schooling attendance. The table confirms the potential positive effect on migration decision of having children at home, effect that get stronger with the human capital level of the household. The last table (G) shows that households choose to stay home when their endowment of good quality soil increase. However, the effect of soil in keeping households home is stronger of course with cropper groups. This difference between croppers and others narrows as expected with the frequency of good natural resources in the region of origin. Finally Graph C in Appendix illustrates the effect of village wealth (total number of cattle) on migration decision for quartiles of population density. The probabilities increase both with wealth of a village and with population density. The graph reveals that under extreme assumption of a 11 Since the coefficient is in the wrong direction regarding the theory, a one-tailed test must then be conducted, which shows variable risk3 does not significantly affect a household's probability to migrate. 12 22% of all households obtained their income mainly from off-farm activities while 21% from migration. 16 rich village with very high population density, all households would have strong incentive to move abroad. Determinants of the permanent migration decision Several stylized facts exp lain a particular attention to permanent migrants groups. The observed income gaps between permanent migrant and nonmigrant is very high (5 times) whereas the income of the seasonal migrants is only 1.38 times the income of the same group of nonmigrants. As expected, permanent migrants are also younger than nonmigrants. These migrants who reside now in Cote d’Ivoire have smaller family size than households at home. Formal education is nearly inexistent in rural Sahel and households attend quranic school where a good deal of learning is about religion whereas migrants in Cote d’Ivoire have access to much more public school education. The Heckman two-step results are presented in this section in two parts. The estimated reduced form probit equation of selection, which includes the independent variables of the migration decision function and those of the income function, is presented in Appendix (table 4b). Then, we estimate both migrants income equation and the stayers’ income equation respectively, introducin g the inverse Mills ratios that come from the reduced form probit equation to correct for the sample selection bias (table 4). Models 2 results show a significant threshold effect of age regarding permanent migrants income residing in Cote d’Ivoire (Regression 1). As age increases, migrants’ human capital (experience and personnel connections in the host country) increases as well causing an increase of their income. However, age reaches an optimal level above which, a further increase of age affects negatively the efficiency and income of these rural and physical workers in their farms. Social capital in a form of participation to local organization seems to negatively affect migrants income in Cote d’Ivoire, which means that time allocated to a community association (associations reserved to Burkinabe living in Cote d’Ivoire) does not improve private income. Migrants seem to have understood that because organization life is significantly less active in Cote d’Ivoire than in Burkina Faso (30% against 65% of participation level respectively). It is a better strategy to integrate the local community and expand personnel connections. 17 Table 4 – Logarithmic income equation corrected for sample selection bias (Model 2 of permanent migration) Dependent variable: Logarithmic income Head of household’s age Regression 1 Permanent Migrants 0.075 (2.30)** Squared age -.001 (-2.39)*** Household participation to a -0.586 local organization (-5.32)*** Average education years per 0.006 household (0.14) Squared education years per -0.001 household (-0.38) Head of Household attended -0.289 coranic school (-2.00)** Household total size 0.107 (5.40)*** Inverse Mills Ratio 0.078 (0.53) Constant 11.924 (15.49)*** Adjusted R2 0.191 Number of observations used 251 Regression2 Nonmigrants 0.072 (2.33)** -.001 (-2.49)*** -0.485 (-2.82)*** -0.002 (-0.02) 0.016 (0.88) -0.236 (-1.22) 0.142 (5.39)*** 1.208 (3.61)*** 10.463 (12.23)*** 0.252 132 Note: The t-students are presented in parentheses. *** indicates coefficient significant at 1%; ** indicates coefficient significant at 5% level; * indicates coefficient significant at 10% level. In the context of Cote d’Ivoire, the head of household attendance to quranic school has a negative impact on income as well. In general people who learned Quran have a very influential social status and allocate a lot of their time in teaching religion and to other religious activities, which may conflict with farms activities. Additionally the result indicates that the human capital in form of Quranic education is not rewarded in the ivorian labor market where formal schooling in rural areas is much more developed. On the opposite, hous eholds with high formal education are more prone to migration as indicated in the selection probit (table 4b). Finally household size (number of members above 12 years old) has a very important positive role in income determination because these farmers need manual labor for their cacao farming. Using predicted income gaps between permanent migrants and nonmigrant families, the structural probit of migration decision can then be studied as presented in table 5. 18 Table 5 – Decision to migrate: structural model Dependent variable: Migrant=1, NonModel 2 Marginal effects migrant=0 Permanent Permanent Migrants Migrants Head of household’s age 0.357 0.059 (1.88)* (1.88)* Squared age -0.004 -0.001 (-1.82)* (-1.82)* Ethnic group 0.156 0.026 (3.53)*** (3.53)*** Income gap 2.297 0.379 (6.02)*** (6.02)*** Constant -15.953 (-3.20)*** Log likelihood -29.024 -29.024 Correctly classified 95.60% 95.60% Number of observations used 250 250 Note: The t-statistics are presented in parentheses. ***, **, * indicate significance at 1%, 5%, and 10% level, respectively. Network represented by ethnic conclaves acts as strongly in favor of migrants choice to establish durably in Cote d’Ivoire while age indicates a U- form effect to that migration decis ion. The most appealing result from the above structural migration equation is the confirmation of Todaro’s prediction. When the migration project leads the household to reside permanently in Cote d’Ivoire and integrate to the host society, the income gain relative to the counterfactual of staying home has a strong positive effect (Graph D). As indicated in the previous section, the Sahel is a region that is subject to strong climatic risk and nonmigrant households’ strategy to cope with such a risk in gene ral is to diversify their activity into non- farm sectors. However such strategy is available for households who have investment funds on their own, credit market being inexistent. On the contrary migrant households send their members in Cote d’Ivoire where they find funds for the domestic investment and consumption plans. Big size households are more likely to send their extra- labor force abroad so that the opportunity cost of migration in term of the shortage of labor force at home may not offset the benefit of owning a farm abroad. This result is strengthened if remittances sent home are invested in modern agricultural inputs, a substitution effect of labor factor by capital. 19 5. Conclusion To our knowledge, this paper is the first applied work to migration decision inside UEMOA. The results confirm the prediction of the Todaro model only in one case: permanent migrants stay in Cote d’Ivoire because they earn incomes that are more than 5 times of what they could expect if they would stay home. However, other factors explain seasonal and permanent migration decision as well. Among these factors are the need to diversify income sources, education, ethnic network, population density, natural resources and endowments and their management. An interesting questio n raised by the current study remains the household’s selection of different migration types. Why do some households become seasonal and others permanent migrants? The next steps of this analysis include also an analysis of income gaps of the two groups of migrants. A natural approach following the migrants and nonmigrants incomes analyses in this paper is the Oaxaca approach while it may be interesting to consider a counterfactual approach comparing the incomes prospects of migrant households with and without remittances, the later considered as substitute for home earnings (Barham et al., 1998). Finally further investigations of migration and its economy-wide and regional impact in West Africa request extension of the analyses in a general equilibrium framework (Decaluwé et al., 1998 and 2000; Robinson et al., 1995). 20 References Agesa, J., & Agesa, R.U., (1999). 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(2002), “The impacts of income gaps on migration decisions in China”, China Economic Review, vol. 113, p.1-18. 21 Appendix Table A: GROUPS FINAL SAMPLE INCLUSION (seasonal migration) Definition of groups involved in CAPRI 2002 NONMIGRANT HOUSEHOLDS (nonrecipients of remittances) A (Not observed in migration) RECIPIENT HOUSEHOLDS (a member or non-member in migration) B: member + non-member in RCI C: only member in RCI D: only nonmember in RCI E*: No contact in RCI but in other destination. + + Seasonal if length of stay <=12 months + seas onal - - Table B: CAPRI 2 Sample structure Flow direction Seasonal Migrants Burkina Faso to Cote 69 d’Ivoire Burkina Faso to other direction Non-migrants 135 (Reference group) Sample for seasonal 204 migration analysis *Non-membership to the household. Permanent Migrants 19 permanent if l.o.s>12 Other migrants 14* 13 22 - Table C: mean value of explanatory variables --- Quantiles -------------Variable Mean S.D. Min .25 Mdn .75 Max n Dgor 0.41 0.49 0.00 0.00 0.00 1.00 1.00 250 SocialK 0.20 0.40 0.00 0.00 0.00 0.00 1.00 250 Qtotbov_02 943.20 1480.41 54.00 310.00 597.00 850.00 8960.00 250 Paginput 2001.37 5651.74 0.00 0.00 120.00 1600.00 57242.06 155 Pbovinp 3409.56 3543.38 77.50 1243.75 2445.45 4333.33 27075.00 174 Ceekol 0.36 0.66 0.00 0.00 0.00 1.00 3.00 250 Seeno 1.14 1.12 0.00 0.00 1.00 2.00 7.00 250 Inov_d1 0.56 1.03 0.00 0.00 0.00 1.00 5.00 250 Lmyield 5.78 0.58 3.61 5.40 5.87 6.18 6.91 227 Mage 36.13 21.71 18.67 29.57 33.10 38.64 353.50 250 mecol_d3 0.96 1.44 0.00 0.00 0.00 1.00 8.00 250 Mans 1.79 2.68 0.00 0.00 0.82 3.00 20.00 250 Elev_ind 0.55 0.50 0.00 0.00 1.00 1.00 1.00 250 Typac150 0.69 0.46 0.00 0.00 1.00 1.00 1.00 248 Hdethag 0.49 0.50 0.00 0.00 0.00 1.00 1.00 248 Monogam 0.88 0.33 0.00 1.00 1.00 1.00 1.00 248 t150med 0.22 0.41 0.00 0.00 0.00 0.00 1.00 248 t150high 0.23 0.42 0.00 0.00 0.00 0.00 1.00 248 Loghhinc 12.58 0.87 9.80 12.04 12.68 13.16 14.49 250 Dmover 0.34 0.47 0.00 0.00 0.00 1.00 1.00 204 Popdens 0.04 0.04 0.01 0.03 0.03 0.05 0.20 248 Distdogo 34.61 19.71 3.00 18.00 35.00 47.50 73.00 248 Inno 0.22 0.42 0.00 0.00 0.00 0.00 1.00 250 Children 3.62 3.10 0.00 2.00 3.00 4.00 22.00 250 Sqmage 1775.26 7865.98 348.44 874.47 1095.89 1492.77 124962.25 250 risk3 0.10 0.31 0.00 0.00 0.00 0.00 1.00 250 risk4 0.34 0.48 0.00 0.00 0.00 1.00 1.00 250 aparent_02 0.31 0.46 0.00 0.00 0.00 1 1 250 dstayer 0.66 0.47 0.00 0.00 1.00 1.00 1.00 204 lamda 1.15 0.60 0.07 0.64 1.11 1.55 3.03 154 dhilo 0.29 0.65 -1.64 0.32 0.32 0.61 2.95 154 23 Table D: Sources of incomes Main source of income Rainfall agriculture Livestock farming Migration activities Craft industry Truck farming Retail trade Paid activities including gold panning Other % of Sample households (CAPRI2) 0.40 56.40 21.60 2.40 0.80 3.20 11.20 1.20 Table E: Specific groups profiles Specific groups Predicted probability of seasonal migration Average household Non-livestock 0.35 farmer household from low households density area, without education and quality soil endowments 0.32 Households with major source of income in livestock farming and highly endowed in 0.99 education and from high-density area. 24 Table F Number of children under 12 0 1 2 3 4 5 6 7 8 9 10 Table G Predicted Probability according to Kuranic school attendance Number of members who attended koranic school 0 3 6 8 0.2319 0.2376 0.2433 0.2491 0.2550 0.2610 0.2670 0.2731 0.2792 0.2855 0.2918 0.7400 0.7460 0.7518 0.7576 0.7633 0.7690 0.7746 0.7801 0.7855 0.7908 0.7961 0.8648 0.8687 0.8726 0.8764 0.8802 0.8838 0.8874 0.8908 0.8943 0.8976 0.9008 Predicted Probability according to activity Number of plots with the best soil quality 0 1 2 3 0.4822 0.4896 0.4969 0.5043 0.5116 0.5190 0.5263 0.5337 0.5410 0.5483 0.5556 Not cropper 0.3486 0.1678 0.0622 0.0174 Cropper Ethnic group 0.4758 0.2629 0.1135 0.0374 25 Table2b: Heckman selection model for seasonal migration: migration as a risk coping strategy13 (1) loghhinc mans risk3 risk4 aparent_02 socialK paginput inov_d1 t150med 0.087 (2.08)** -2.171 (-6.35)*** 0.421 (2.09)** -0.111 (-0.65) 0.518 (2.09)** 0.000 (3.08)*** 0.231 (2.53)** -0.991 (-4.06)*** -1.101 (-4.46)*** 0.252 (1.10) (2) dmover -0.054 (-0.79) -0.488 (-1.05) 1.663 (5.09)*** 0.667 (2.08)** -0.332 (-0.84) 0.000 (1.51) -0.637 (-1.43) t150high -0.947 (-2.27)** typac150 0.178 (0.49) mage 0.035 (3.22)*** sqmage -0.000 (-2.63)*** inno 0.629 (2.02)** tothh 0.002 (1.56) hdethag 0.525 (1.51) monogam 0.981 (1.84)* children -0.130 (-2.48)** Constant 12.153 -3.122 (42.89)*** (-3.82)*** Observations 126 126 Absolute value of z statistics in parentheses * significant at 10%;** significant at 5%; *** significant at 1% Log likelihood = -67.28029 Wald chi2(10) = 94.96 Prob > chi2 = 0.0000 13 One has to be cautious in interpreting the impact of risk4 because even though the correlation between dmover and risk4 is not perfect (0.62), the unpaired test of mean comparison do not reject the null hypothesis of mean equality. 26 Table 2c: Heckman nonselection model for nonmigrants households mans mage risk3 socialK inov_d1 t150med (1) loghhinc -0.061 (-2.17)** -0.003 (-1.51) -0.186 (-0.53) 0.265 (1.22) 0.166 (2.07)** -0.784 (-3.10)*** -0.434* (-1.68) 0.349 (1.61)* 0.000 (1.20) 0.160 (2.07)** (2) dstayer 0.016 (0.19) -0.012 (0.49) 0.135 (0.19) 0.985 (1.87)* 1.022 (1.78)* t150high 1.836 (2.47)** typac150 0.048 (0.11) pbovinp 0.000 (1.07) Seeno -0.113 (0.73) sqmage 0.000 (0.70) paginput -0.000 (0.52) inno -1.541 (-2.51)** hdethag -0.876 (-2.25)** monogam -0.648 (-1.23) children 0.054 (0.90) popdens -11.451 (-2.33)** qtotbov_02 -0.000 (-1.47) distdogo -0.023 (-1.99)** Constant 12.750 2.380 (49.21)*** (2.17)** Observations 92 92 Absolute value of z statistics in parentheses *** significant at 1%, ** significant at 5%; Wald chi2(19) = 40.40 Prob > chi2 = 0.0029 27 * significant at 10% Table 4b: Probability of migration (Selection equation of Model 2 in Heckman procedure) Dependent variable: Migrant=1, Nonmigrant=0 Log likelihood Correctly classified Selection model Permanent Migrants -0.035 (-2.50)*** -1.431 (-4.39)*** 0.383 (3.16)*** 0.172 (6.50)*** -1.442 (-3.48)*** -3.442 (-3.59)*** -44.502 96.61% Number of observations used 383 Head of household’s age Household participation to a local organization Average education years per household Provincial population density Head of Household attended Quranic school Constant Note: The t-statistics are presented in parentheses. *** and ** indicate significance at 1% and 5% level, respectively. 28 Graph A: Skewness and Kurtosis of income variable Quantiles of totrev in 1000 CFA 1.7e-06 Density Quantiles of totrev in 1000 CFA 1958 1.4e-08 18 -58952.3 0 Graph B: .25 .5 Fraction of the data .75 2.0e+06 hh'S grand total income 1 Kernel Density Estimate Conditional effects of rainfall and dikes interactions on income variable cond eff of dikes on inc high rainfalls with inno on inc c eff of med rainfalls with inn 13.1371 12.5109 0 1 innovation 29 Graph C: Effects of village wealth in livestock on migration decision for quartiles of population density popdens=minimum popdens quantile .75 popdens=median popdens=max 1 Pr(migrating) .75 .5 .25 0 100 1000 2500 5000 village livestock 30 7500 9000 Graph D: Todaro’s Prediction in the model of permanent migration Predicted probability to migrate 1 .5 0 0 5 income gap Relation between probability of migration and income gap 31 10