Preprint Article Version 1 This version is not peer-reviewed

A Semi-parametric Recursive Trivariate Probit Modeling of the Contemporaneous Dynamics of Literacy, Labor Market Participation and Poverty in Burkina Faso: What role does Formal Education Play?

Version 1 : Received: 19 February 2018 / Approved: 19 February 2018 / Online: 19 February 2018 (16:00:35 CET)

A peer-reviewed article of this Preprint also exists.

Niankara I. and Traoret, R. I. (2019) “Formal education and the contemporaneous dynamics of literacy, labour market participation and poverty reduction in Burkina Faso”, Int. J. Education Economics and Development, Vol. 10, No. 2, pp.148–172. DOI: 10.1504/IJEED.2019.098679 Niankara I. and Traoret, R. I. (2019) “Formal education and the contemporaneous dynamics of literacy, labour market participation and poverty reduction in Burkina Faso”, Int. J. Education Economics and Development, Vol. 10, No. 2, pp.148–172. DOI: 10.1504/IJEED.2019.098679

Journal reference: International Journal of Education Economics and Development (IJEED) 2019, 10, 2
DOI: 10.1504/IJEED.2019.098679

Abstract

This research contributes to the overall debate on education for sustainable development (ESD) by shed- ding lights on the contributing role of formal education to the contemporaneous dynamics of literacy, labor market participation and poverty reduction in Africa, with a focus on Burkina Faso. The study uses a semi-parametric recursive trivariate probit modeling approach, and data from the 2014 National Survey on Household Living Conditions in Burkina Faso. The results show that the embraced systemic approach in this analysis is statistically signi cant as shown by the 95% con dence intervals on the three correlation coeffcients in the model. Furthermore, education does improve literacy skills, however improved literacy skills in itself does not guaranty active labor market participation in Burkina Faso. Active labor market participation seem to be affected by labor market rates of return, and individual reservation wage (or income). When labor market rate of return is short of high literacy skilled individuals' reservation wage, then the natural response is a choice of inactivity in the labor market, by the later group. Simultaneously however, it is found that active labor market participation leads to poverty reduction; therefore, in addition to new industrial policies for structural transformation of the economy, policy makers in Burkina Faso should consider education and minimum wage reforms to give highly literate household members the incentive to be active in the labor market.

Supplementary and Associated Material

Subject Areas

Formal Education, Labor Market Participation, Literacy, Poverty, Sustainable Development, Semipametric Trivariate Probit

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