EFFECTS OF EDUCATION ON INTERNATIONAL REMITTANCES INFLOW AND MIGRATION PROPENSITY IN NIGERIA

Abstract

Human capital development in education is a major problem facing both emigrating labour from Nigeria and Non-migrant labour in Nigeria. The distribution of international remittance inflow over the level of human capital development in education completed before migration was the aim of this study. Gini coefficient decomposition analysis for the emigrants’ remittance and logistic based regression were used to ascertain the distribution of emigrants’ remittance over the level of human capital development in education completed before migration and to measure the effects of the level of human capital development in education completed before migration on the odds ratio of sending money home to the household. Evidence from the study shows that log mean of the emigrants’ remittance over the level of human capital development in education completed before migration increases as education level completed before migration increases. Also, human capital development level in education completed before migration also contributes to the unequal distribution of remittance across the emigrating groups. The gini coefficient for primary school or less, Secondary and Technical, Tertiary and others are 0.09, 0.08, 0.07 and 0.08 respectively with their corresponding Theil indices as 0.014, 0.011, 0.001 and 0.011 respectively. These statistics suggested that the advancement in human capital development in education before migration would reduce the inequality in remittance inflow. The policy implication of this findings is that migration policies with human capital development can reduce the inequality in the remittance.