The Economics of Migration in the Volta Basin of Ghana

This study addresses migration determinants and effects in the Volta Basin of Ghana. The study is carried out at household and district levels, in which the two major data sources are the household survey and the Ghana Census 2000 data (a complete matrix of inter-district migration flows) respectively. Based on the household survey data, this study investigated the determinants of the decision to migrate within the Volta Basin of Ghana with a special emphasis on the role of migration income affecting household migration decisions. To do this, it built upon the New Economics of Labour Migration (NELM), a theory which considers the role of intra-household exchange of information for the migration decision of household members. As migrants are non-random part of the population, the migration equation was corrected for selectivity bias using the Heckman procedure. The direct and indirect effects of rural out-migration in the source community are also examined using the survey data. Iterated Three Stages Least Squares (3 SLS) method was employed to determine and measure the net effect of migration on the income sources of households. This study, using the Ghana Census 2000 data, also attempted to explain gross inter-district migration flows by readily relating migration to certain aggregate proxy district-level variables. The gravity model is employed and modified to include basic district characteristics.