Determinants of Labour Contracts in Ivory Coast

Abstract

A broad range of knowledges has oriented explanations of occupational choices and motivated empirical researches in testing the driving variables of labour market segmentation and individuals’ labour market participation. In this paper, we study a multinomial logistic analysis of labour contract selection in Ivory Coast. The data were collected on the 2015 National Household Living Standard Survey, composed of 15,861 individuals aged 16-60. The study has three main results. First, females are more likely than males to prefer unwritten contracts to written contracts or self-employment. The forms of compensation held during work lead individuals to choose unwritten contracts to written contracts or self-employment. Second, education levels, age categories and interpersonal networks to access jobs lead workers to choose written contracts or self-employment relative to unwritten contracts. Third, high skilled workers with highest degrees are more likely to choose written contracts relative to unwritten ones but they prefer unwritten contracts to self-employment. These reveal the institutional foundations of occupational choices in Ivory Coast and invite important reforms in labour force and labour market.

Keywords: Occupational choice, Contract Selection, Institutions, Multinomial Logistic Regression

DOI: 10.7176/JESD/12-24-03

Publication date: December 31^st 2021