Determinants of Inequality in Cameroon: A Regression-Based Decomposition Analysis

Type Journal Article - Botswana Journal of Economics
Title Determinants of Inequality in Cameroon: A Regression-Based Decomposition Analysis
Author(s)
Volume 11
Issue 15
Publication (Day/Month/Year) 2013
URL https://www.ajol.info/index.php/boje/article/view/94194
Abstract
This paper applies the regression-based inequality decomposition approach to explore
determinants of income inequality in Cameroon using the 2007 Cameroon household
consumption survey. The contribution of each source to measured income inequality is the sum
of its weighted marginal contributions in all possible configurations of sources as sanctioned
by the Shapley value decomposition rule. Regressed-income sources attributable to education,
health, urban residency, household size, fraction of active household members, working in
the formal sector and farmland ownership are the main determinants of household income
inequality in that order. These results have policy vocation that policy-mix that simultaneously
combine efforts targeting human capital consolidation with other policy outlets will have an
overall higher effectiveness for both total welfare enhancement and human capital development
than when implemented alone.

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