The paper proposes a micro-macro model of labour market of a developing city, and its empirical implementation on the case of the capital town of Madagascar, Antananarivo. The model recognises the existence of measured and unmeasured heterogeneity of skills, preferences and opportunities within...

Using data covering three successive generations of Malagasy people, we construct a new semiparametric estimator of the effect of parental income on the decision to send children to school. We propose new tests of simultaneity and hereditary biases affecting the usual estimates of this effect....