Ibadan Journal of the Social Sciences
Volume 10, No. 1, 2012
DOI: 10.36108/ijss/2102.01.0150

Implications of Labour Force Participation Across Employment Segments for Public Sector Downsizing in Nigeria

Alarudeen Aminu

Department of Economics, University of Ibadan, Ibadan, Nigeria



The study investigates whether the determinants of participation in especially private wage employment and self-employment have any implications for public sector downsizing in Nigeria. A set of multinomial logit models is estimated for male and female employees across four wage employment segments and self-employment in both rural and urban areas. The results of the estimated multinomial logit models show that the probability of participation of employable household members in wage employment segments and self-employment is affected mainly by the levels of education attained and that the probability of participation in public sector wage employment increases with the level of education. The study concludes that there are no discernible impediments to the absorption of retrenched public sector workers into the various segments of private sector employment and that the retrenched workers will be contributing immensely to the productivity and production in at least the private sector 011 account of the fact that they possess a higher number of years of schooling than their private sector counterparts.
Keywords: Labour Force Participation, Multinomial Logit Model, Private Sector Employment, Public Sector Downsizing JEL Codes: C21, J31, J45


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