Macroeconomic Determinants of Labour Mobility in Nigeria

Abstract

This study examined the macroeconomic determinants of labour mobility in Nigeria. The main objective of the study was to examine the macroeconomic variables that affect labour mobility in Nigeria while the specific objectives were to ascertain the demographic factors that determine labour mobility in Nigeria, investigate the relationship between secondary school enrolment, government expenditure, inflation rate and access to electricity on labour mobility in Nigeria. The pull and push theory of labour mobility was the main theoretical framework of the study. The first model was analyzed using the Auto regressive Distributed lag (ARDL) model while the second model was analyzed using ordinary least square multiple regression technique. The results of the analyses showed that geographic location, marital status, education level, and current occupation were all positive and significant demographic variables that affect labour mobility in Nigeria. Additionally, access to electricity and other necessities, as well as the rate of inflation, were positive and significant factors that influenced labour mobility in the short run in Nigeria. The study concluded that inflation rate and the need for access to electricity and other basic amenities have a significant impact on the decision to migrate to urban areas, and that demographic factors such as location, marital status, education, and occupation significantly drive labour mobility in Nigeria. The study suggested that the Nigerian government should increase investment in basic infrastructure at the rural level.