Mejoramiento continuo de los procesos

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In examining variables that influence labour market outcomes, Fadayomi and Ogunrinola (2011) focused on the influence of household structure on labour participation decision in Nigeria, using data from the defunct National Manpower Board in 2005. The theoretical underpinnings of this study followed the traditional neoclassical theory modified with the inclusion of household production decisions.

Age, education, being married and southern residence was shown to raise the probability of labour participation. However, residence in the urban area was seen to reduce participation probability. The study found no significant contribution of household structure to the level of labour force participation in Nigeria. This study failed to recognise that the highly informal nature of the Nigerian labour force reduces substitution possibilities of market and home production such that household structure may not significantly affect labour force participation or employment decision.

Aminu (2010) considered the determinants of labour force participation and earnings in wage employment in Nigeria. The findings of this study showed that education is a key determinant of participation. Other determinants of labour force participation of an employable household member include ownership of assets such as home ownership, residence particularly urban residence as well as household size and number of young children. This study showed that home ownership reduces probability of participation in the labour force. Urban residence increases significantly the probability of male participation in wage employment except in incorporated private sector organisation.

Household size increases significantly the probability of participation in private sector wage employment and also the probability of male participation in public employment.

Living with young children aged 2 to 4 years significantly reduces probability of female participation in public wage employment but does not affect it in private wage employment. On the other hand, it increases the probability of male participation in informal private sector employment. One reason that accounts for none effect of the presence of young children in private wage employment particularly for females is premised on the fact that the informal labour market; a basic feature of developing economies requires no trade off of home time and work time in market and non-market activities. Thus, women participation in the labour force may not be affected significantly with the presence of young children. Increased male labour force participation with the presence of young children can be associated with financial

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demands particularly due to rising family needs given high fertility rates in most developing economies like Nigeria.

Smith (1981) on the determinants of female labour force participation in Mexico showed that household structure has no influence on their participation particularly in the traditional sector. This conclusion buttresses arguments that the number of children does not affect female labour force participation especially for developing economies.

Some work types in the informal setting such as tending a small store at home can be performed simultaneously with childcare. Further findings in this study showed that increase in wives wage potential, for instance, education and health stock simultaneously promote greater participation; this possibility is in the modern sector.

Using National Household Survey data in Chile, Contreras et al (2010) considered the determinants of labour force participation in a utility maximisation framework.

Individual choices to work or not were based on a number of variables that enter the utility function. Education, age, number of children and household structure as determinants of labour force participation, showed similar findings to other studies in the literature. For instance, increase in years of schooling raises the probability of participation particularly for those with at least 12 years of schooling. An increase in the number of children raised male participation but decreases female labour force participation. This influence was not examined in terms of formal or informal sector employment of females. One variable included in this study which significantly influences labour force participation is household income. Participation in the labour force falls with increase in income, especially for affluent households. This finding corroborates the labour-leisure trade off of the neoclassical theory of labour supply.

This theory predicts that with dominance of income effect over the substitution effect of a rise in non-labour income, an increase in wage rates makes individuals prefer to work less time and raise leisure hours (Durnel, 2010). The influence of age on labour force participation is also shown to be non-linear in this study. Labour force participation rises with age in a non-linear fashion for males and females and is notably higher in the urban than in the rural areas.

The omission of the health variable as an important determinant of labour force participation in some studies (Fadayomi and Ogunrinola, 2011; Aminu, 2010; Smith, 1981; Contreras et al 2010) is a lopsided assumption of the role of human capital in

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labour supply decisions and earning ability of labour. Predictions of the human capital theory specifically by Grossman (2000) showed that health is an important component of human capital which determines the number of days available for market and non-market activities. Ill health determines whether an individual is employed or not in the labour force.

Stern (1989) examined the effect of poor health on labour participation decisions by grouping illness disability in three measures. One form relates to whether health limits the amount or kind of work done by labour. The answer to this question is termed limits (Yes=1, No= 0). Another measure of disability relates to the rating of health status, where for instance, excellent health = 0, good health=1, fair health=2 and poor health=3. The third measure considers health in relation to symptoms termed conditions such as weakness, seizures and mental retardations. The second and third measures are together termed the health question. Experimenting with each of these measures of illness disability shows preference for the use of the limit variable as a measure of health. The limit variable shows marginally better results as it explains more of the variation in the data than the health question. The health question theoretically confounds the pure age effect with a disability effect. Both measures should be used when available because they have independent and significant effects on labour force participation (Stern, 1989).