Labour Economics

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Quality jobs or mass employment
(African Economic Research consortium, 1999-10-04) Boateng, Kwabia
The general objective of the study is to explain the apparent failure of employment in the Ghanaian labour market under SAP/ERP by evaluating changes in the qualitative distribution of labour demand, based on trends in advertised job vacancies from 1981 to 1995. The results indicate a significant (25%) increase in the demand for high-skill labour relative to low-skill labour in the ERP/SAP period, compared with pre-ERP/SAP period. Using decomposition techniques it is found that 51.2% of the increase in demand for high-skill labour is explained by changes in skill composition and 48.8% by changes in sectoral composition of jobs. The policy implication is that improvement in employment performance in Ghana will require additional investments in skill training and a keener effort to enhance occupational mobility.
Female labour force participation in Ghana: The effects of education
(African Economic Research consortium, 2005-09-04) Sackey, Harry A.
To participate in the labour market or not to participate appears to be an issue of survival for women in the Ghanaian economy. Parallel to the rising trend in female participation rates, there has been a tendency towards a decline in fertility. At the core of these patterns has been the schooling factor. This study uses data from the Ghana living standards surveys with demographically enriched information to estimate female labour force participation and fertility models. We find that female schooling matters in both urban and rural localities; both primary and post-primary schooling levels exert significant positive impact on women’s labour market participation, and have an opposite effect on fertility. We conclude that although the gender gap in education has become narrower over the years, it is important for government policy to ensure the sustainability of the female educational gains obtained. Arguably, this is the key mechanism for enhancing female human capital and productive employment with favourable impacts on perceptions of ideal family size and fertility preferences.
Incidence and determinants of child labour in Nigeria: Implications for poverty alleviation
(African Economic Research consortium, 2006-06-30) Okpukpara, Benjamin Chiedozie; Odurukwe, Ngozi
Various official reports have established that child activity options have a link to household poverty. Specifically, research acknowledges a two-way link between child labour and household poverty. Some researchers argue that the increasing participation of children in economic activities is a result of illiteracy and poverty, among other social and economic problems. Others view such participation as an important strategy by poor households to rise above the poverty line. In Nigeria, reports have identified an increasing incidence of child labour, but comprehensive national analyses of the descriptive and causal factors of the child welfare variables – schooling and work – have not been possible until now. This study is therefore expected to fill this gap in knowledge using data from the Nigeria Child Labour Survey, 2001. Among the major conclusions emerging from the study is that there are structural differences in the choice of child activity options across gender, age, sector and zones in Nigeria. Although the evidence of a sector gap exists, the participation of children in economic activity particularly increases in rural areas. In all the measures of poverty used, there are also differences in child activity options across poverty status, which points to poverty as an important variable of child welfare. Finally, there were percentage differences in income contribution across age groups, gender and zones in Nigeria. The econometric estimation noted that some child, parent, household and community variables significantly affect the child activity options. Specifically the age of the child, household composition, education of father, sector, zone and adult income determine child activity options. Most of these contradict or support many of the findings of child labour studies in other developing countries. Based on this it is recommended that for formulating effective policy to reduce child labour in Nigeria, the age of the child, income status of the household, education of the parents, and sector and zone must constitute important variables. Also, awareness campaigns on the cost of child participation in economic activities should be given priority. More importantly, if overall economic conditions are not improved to lift families out of poverty, children will continue to get involved in economic activities to enhance family income, irrespective of any regulatory or legislative prohibitions.
Female participation in the labour market: The case of the informal sector in Kenya
(African Economic Research consortium, 2006-07-04)
The informal sector has become increasingly important as a source of income and employment in Kenya. This contrasts with the declining performance of the formal sector, and underscores the sector’s potential for absorbing the country’s increasing labour force as more households become dependent on it. One important attribute of the sector is that it has become a major employer of the female labour force in the country. This study investigated the factors determining the participation of women in informal sector activities given a range of other available labour market options. The results show that education is one of the important factors determining women’s participation in the different categories of the labour market. The study concludes that efforts to address the problem of women’s access to the labour market should focus on improving their access to education as one of the important factors for improving their human capital. Given the nature of the informal sector, and the fact that access to the labour market is an outcome of the interaction between demand and supply, addressing female participation in the sector may require addressing the demand side of the Kenyan labour market in addition to the factors expected to explain labour market participation.
Extent and Determinants of Child Labour in Uganda
(African Economic Research consortium, 2007-06-30) Mwebaze, Tom
Despite the prevalence and the many dangers associated with child labour, the phenomenon has received the attention of researchers, academicians and policy makers only recently, and not until International Labour Organization (ILO) estimates showed a large and increasing number of working children worldwide. It is now recognized that in order to combat child labour effectively, policies should be grounded in an informed understanding of its causes, roles and implications. This study uses data from the 1992, 1999 and 2002 Uganda National Household Surveys to explore the extent, determinants and forms of child labour in a poor but growing economy. Of note here is that over this period Uganda introduced universal and compulsory primary education. The study highlights the extent, characteristics and determinants of child labour in Uganda and their evolution over the decade. The theoretical framework is a standard household production model that analyses the allocation of time within the household. Using probit and tobit models, we estimate the determinants of child labour for the individual child worker. The results indicate that child labour is still common, widespread and starts at an early age in Uganda, although it has reduced significantly over the years. Education and formal employment of the household head significantly decrease the probability that a child will work. Household welfare is another indicator of child labour, as poor households are more likely to have working children. A comparison of the three data sets reveals an increase in the percentage of children combining work and study over time. Nevertheless, the likelihood of child labour increases with the age of the child. The findings provide important results for informing policies to reduce, and possibly eliminate, child labour in the country
The Determinants of School Attendance and Attainment in Ghana: A Gender Perspective
(African Economic Research consortium, 2007-12-03) . Sackey, Harry A
This study examines the determinants of school attendance and attainment in Ghana with a view to deriving implications for policy direction. Using micro-level data from the Ghana living standards surveys, our gender disaggregated probit models on current school attendance and attainment show that parental education and household resources are significant determinants of schooling. The effect of household resources on current school attendance is higher for daughters than it is for sons. It appears that for male and female children the impact of household resources on school attendance has reduced, statistically speaking. Father’s schooling effects on the education of female children decreased between 1992 and 1999. Mother’s schooling effects on school attendance of daughters in 1992 were not significantly different from those realized in 1999. However, the effects of mother’s schooling levels on school attendance of male children appear to have reduced. Other significant determinants of children’s schooling are the age of children, school infrastructure, religion and urban residency. The paper concludes that education matters and has an intergenerational impact. Arguably, sustainable poverty reduction approaches cannot ignore the role of education and implications for employment, earnings and social development. Hence, gender sensitive policies to ensure educational equity are vital.
Determinants of Child Labour and Schooling in the Native Cocoa Households of Côte d'Ivoire
(African Economic Research consortium, 2009-10-30) Nkamleu, Guy Blaise
Child labour is a widespread and growing phenomenon in the developing world. This paper looks at the determinants of child labour participation in the cocoa farming sector of Côte d’Ivoire, an issue of special interest because the country accounts for approximately 40% of the world’s cocoa production. The study investigates child labour in conjunction with schooling status of children. It is based on a study done in 2002 that surveyed a representative sample of more than 11,000 members of cocoa households. A multinomial logit model was used to capture choice probabilities across work and school options. The results reveal that child labour in cocoa farms and non-enrolment in schools are significant. Moreover, many children are involved in potentially dangerous and/or harmful tasks. Data also highlight gender and age dimensions in the participation of children in tasks and the way labour is allocated. Econometric results generally indicated that the gender and age of children, whether or not the child is the biological child of the household head, parents’ education, the household dependency ratio, the farm size, the cocoa productivity level, the number of sharecroppers working with the household head, agroecological zone and communities’ characteristics are all pertinent in explaining the child work/schooling outcome
Determinants of Employment in the Formal and Informal Sectors of the Urban Areas of Kenya
(African Economic Research consortium, 2010-04-05) Wamuthenya, Wambui R.
By applying a multinomial logit model and economic theory to labour force survey data, this study examines the determinants of formal and informal sector employment in the urban areas of Kenya. The fi ndings show that the determinants of employment in public, private and informal sectors of Kenya’s urban labour market vary by age cohort and gender. Special emphasis is placed on the importance of sex (being male rather than female), marital status, household-headship and education variables, of which the fi rst three illustrate the disadvantaged position of women in the labour market. Education has the strongest impact on formal sector employment, yet most women work in the informal sector despite signifi cant improvements in their education attainment. Two observations merit concern, high youth unemployment and gender imbalance in access to employment. Unemployment is particularly high amongst women, especially younger women. Younger women are either unemployed or employed in the inferior informal sector (in the sense of low income, precarious and unregulated forms of employment), as opposed to males in a similar age bracket who are likely to work in the private sector. Overall results confi rm that the urban labour market is heterogeneous and reveal how labour supply factors are valued in the labour market. They also indicate the existence of sex discrimination in the labour market. The study raises the following questions for further research while identifying education and employment policy gaps: What specifi c skills or qualities do employers look for when recruiting new employees? Are the recruitment practices gender balanced? Which training and skills are sought for what sectors? Is the current education system demand or supply driven, and does it equip graduates with adequate skills to become self-employed? Does the current policy environment and infrastructure encourage self-employment? What are the real constraints faced by women in fi nding reasonable work given their remarkably high unemployment rates? Answers to these questions have broad policy implications towards an achievement of gender balance in education, the labour market and poverty eradication.
Earnings and Employment Sector Choice in Kenya
(African Economic Research consortium, 2010-06-14) Nyaga, Robert Kivuti
The level of participation in employment and wages paid in the labour market can be assessed by comparing relative sectoral labour compensation amounts, participation rates and skill distribution of the workforce. In addition, the level of participation in employment and differences in wages paid in any given sector are affected by both individual factors and sector-specific factors. The study estimates a multinomial logit model and selection-corrected earnings models to determine participation and earnings in various employment sectors. This study finds clear differences in the formal private and public employment sectors relative to the vast informal sector. Regression results confirm that education is the key determinant of both participation and wage earnings. Attainment of higher levels of education is related to a greater likelihood of working in private and public sectors and earning higher wages in these sectors, relative to working in the informal sector. Gender disaggregated participation and earnings models show that in contrast to men, university education has a considerable effect on women’s participation and earnings in the formal sectors. Education attainment however, a primary factor in participation and earnings determination, weakly explains participation in the typically low-wage informal sector whose stable employment growth coincides with the stagnation in the public and private sectors. Even with its characteristic low wages, to many job seekers the informal sector is where jobs can still be found.
Child labour and poverty linkages: a micro analysis from rural malawian data
(African Economic Research consortium, 2010-11-05) Chiwaula, Levison
Urban Youth Labour Supply and Employment Policy in Côte d’Ivoire
(African Economic Research consortium, 2011-08-06) Kouakou, Clément Kouadio
This study analyses the challenges of creating employment for the urban youth in Côte d’Ivoire and the government’s policies in this respect. The study is essentially about identifying the determinants of job creation for the youth and to assess government policies aimed at guaranteeing access to employment by the youth. The study used secondary and primary data. The secondary data were obtained mainly from household surveys carried out in 1993, 1995, 1998 and 2002. A study on the integration of young people into the world of work was then conducted to assess government policies on this matter. The results of this survey indicate a predominance of social capital over human capital in the process of integrating young people into employment, a state of affairs that led to unequal opportunities for the youth in the job market. Measures aimed at ensuring equal opportunities were then taken by the government. Despite the fact that these measures did not necessarily target the right beneficiaries, they produced a positive effect in terms of access to employment and improvement in working conditions. Consequently, much still needs to be done to enhance the effectiveness of these measures. What essentially needs to be done is to set strict selection criteria targeting the most disadvantaged populations.
Analysis of Labour Market Participation in Senegal
(African Economic Research consortium, 2014-02-04) Kane, Abou
An Analysis of Married Women’s Empowerment in Sub-Saharan Africa
(African Economic Research consortium, 2015-02-23) BATANA, Yélé Maweki; ALI, Pitaloumani GNAKOU
Promoting women’s empowerment is good for economic development. The third Millennium Development Goal (MDG) is indeed about promoting gender equality and women’s empowerment. This empowerment is not only an important dimension of well-being, but it is also a means to achieving other development goals. Most research has explored this issue from a conceptual point of view. The aim of this study was to analyse married women’s empowerment in some Sub-Saharan Africa (SSA) countries. It used an approach based on the structural equation model with latent variables, a model that has been developed in psychometric literature. This approach enabled the study, within the same model, to measure the socio-demographic and cultural determinants of empowerment, as well as the effects of it on other dimensions of well-being in four SSA countries (Ghana, Madagascar, Malawi, and Nigeria). Data for this study were obtained from demographic and health surveys (DHSs). The findings highlighted the significant impact of the level of wealth, household size, level of education, and fertility rate on women’s empowerment. Further, the distributive analysis used in the study revealed the existence of significant differences between countries.
Employment Vulnerability in Cameroon's Private Sector
(African Economic Research consortium, 2017-04-30) Anweh, Njang Vera; Thomas, Ndamsa Dickson
This study aims to empirically investigate the distribution, sources, and consequences of employment vulnerability among private sector workers across subgroups in Cameroon. We construct an employment vulnerability index using the 2005 and 2010 Cameroon employment and informal sector surveys (EES I and II). Results indicate that, in terms of employment vulnerability, the youths, the informal sector, the female, and the other cities (except Yaoundé or Douala) dominate the adult, the formal sector, the male and the labour force in Yaoundé and Douala, respectively. The incidence of employment vulnerability among the private sector labour force increased between 2005 and 2010. Interestingly, we found that the responsiveness of private sector income to an increase in employment vulnerability witnessed a drop between 2005 and 2010 in the private sector, across gender and age group. Our results showed that people without tertiary education and those in rural areas are exposed to vulnerable employment. We found that formal sector employment correlates negatively with employment vulnerability. Employment vulnerability generally reduces monthly income in the private sector. The effect of employment vulnerability on income is gender neutral, but adults register more adverse effects of employment vulnerability on income than the youths. These results have implications for upgrading the skills, with emphasis on the rural areas, adults and female workers in the fight against employment vulnerability. The results also highlight the role that formalization of large informal sector may play in alleviating employment vulnerability
Labour Market Performance and Pro-poor Growth in Cameroon
(African Economic Research consortium, 2017-09-22) Mongbet, Ousseni
This study uses the 1996, 2001 and 2007 Cameroon household surveys to investigate the implications of changes in labour market performance for propoor growth in the period before (1996-2001) and after the Decision Point of the heavily-indebted poor countries initiative (2001-2007). The study also investigates growth in income within the period under review, with the aim of understanding how growth in income relates to pro-poor growth. This study uses absolute and relative pro-poor growth measures to unveil the implications of specific employment sector growth and changes in labour market performance indicators for income growth, propoor growth and inequality in Cameroon in the periods 1996-2001 and 2001-2007. The results show that growth was not pro-poor in relative terms between 1996 and 2001 in Cameroon, and that it was accompanied by an increase in social inequalities. On the other hand, between 2001 and 2007, the growth was pro-poor in relative terms in all the sectors considered because poor households benefited relatively more from the fruits of growth than the other households. On the whole, between 1996 and 2001, the growth in per capita income (0.11 points) is explained by growth in employment rate (0.03 points), number of days worked per employed person (0.12 points) and participation rate of the workforce (0.02 points). Between 2001 and 2007, the pro-poor growth rate of real income of the households (2.86 points) is largely explained by the pro-poor growth rate of daily real income of the households (2.78 points), followed by the pro-poor growth rate of number of days worked per employed persons (0.42 points). We note, however, that this pro-poor growth is slowed down by the decline of the pro-poor participation growth rate (-0.16 points) and the pro-poor employment growth rate (-0.17 points). Relevant policy recommendations derived from the results include: (1) Increase household income per time period (for instance per day as used in this study or per month), and the number of days worked per employed person, because the reduction in pro-poor growth is mainly due to low household daily incomes and days worked per week by employed individuals; (2) Increase employability and the quality of the labour force in poor households because analyses reveals that the gains of growth are also slowed down by reduction in the pro-poor growth rate of labour force participation (0.16 points) and the pro-poor growth rate of employment (0.17 points).
Econometric Analysis of Gender and Labour Market Outcomes in Urban Cameroon
(African Economic Research consortium, 2018-01-05) Akono, Christian Zamo
In every country, gender disparities are observed in various aspects of daily life, the most visible ones being those related to labour market outcomes. This paper highlights the importance of the labour market related gender disparities in Cameroon with special focus on the relative contribution of identified determinants on unemployment duration, employment status and remuneration. Based on the 2010 Employment and the Informal Sector Survey by the National Institute of Statistics, both parametric and non-parametric analyses of unemployment durations have been used. They include probit model estimates for the choice of non-wage earner status, estimates of Mincer-type equations and various extensions of the Blinder-Oaxaca decomposition. The results obtained can be summarized in three main points as follows. Firstly, women have longer periods of unemployment and are less likely to leave unemployment for a job than men. Results indicate that these gender disparities in exit probabilities from unemployment are due to differences in human capital endowments and to socioeconomic factors, which have a tendency of increasing women’s reservation wage. Also, unobserved heterogeneity with greater positive duration dependence for women is confirmed. Secondly, there are gender differences in probability transitions to either wage or non-wage employment with women being more likely to be self-employed. Of these gender differences, human capital endowment and job search methods account for 20.64% and 38.20%, respectively. The remaining part is due to unobserved factors. Thirdly, gender differences in labour market earnings are around 6% and 17% among wage and non-wage earners, respectively. Observable factors in wage equations account for only for 6% and 30% in the respective groups. These results suggest the formulation of several policies to reduce the observed differences. Some of these policies relate to the conception and implementation of vocational training targeting women and, to some extent, the setting up of programmes for relocating unemployed individuals to where employment opportunities are greater. Others relate to reducing the use of informal job search channels by increasing the effectiveness of formal employment agencies.
Employment Vulnerability in Cameroon’s Private Sector
(African Economic Research consortium, 2018-05-22) Njang Vera Anweh; Ndamsa Dickson Thomas
This study aims to empirically investigate the distribution, sources and consequences of employment vulnerability among private sector workers across subgroups in Cameroon. We construct an employment vulnerability index using the 2005 and 2010 Cameroon employment and informal sector surveys (EES I and II). Results indicate that, in terms of employment vulnerability, the youth dominate the adults, the informal sector dominates the formal sector. and the female dominate the male. The results further show that the labour force in other cities dominate the labour force in Yaoundé and Douala. The incidence of employment vulnerability among the private sector labour force increased between 2005 and 2010. Interestingly, we found that the responsiveness of private sector income to an increase in employment vulnerability witnessed a drop between 2005 and 2010 in the private sector, across gender and age group. Our results showed that people without tertiary education and those in rural areas are exposed to vulnerable employment. We found that formal sector employment correlates negatively with employment vulnerability. Employment vulnerability generally reduces monthly income in the private sector. The effect of employment vulnerability on income is gender neutral, but adults register more adverse effects of employment vulnerability on income than the youths. These results have implications for upgrading the skills, with emphasis on the rural areas, adults and female workers in the fight against employment vulnerability. The results also highlight the role that formalization of large informal sector may play in alleviating employment vulnerability.
Intimate Partner Violence Against Women in Kenya
(African Economic Research Consortium, 2019-05) Owiti, Elizabeth
Intimate partner violence is the most prevalent type of violence that women experience and it has significant public health and socioeconomic impacts. Studies of these impacts are limited in developing countries like Kenya, yet for accurate policy advice and resource allocation there is a need for precise empirical data on the determinants of spousal violence. Using the Demographic and Health Survey Data 2003, 2008/09 and 2014, this study used both linear probability and logit models to establish the determinants of various types of spousal violence. In addition, a multivariate probit analysis was carried out to account for potential unobserved heterogeneity among the factors affecting women’s exposure to violence. The bivariate relationship between spousal income variation and attitudes towards violence as well as actual exposure to violence showed that 48% (95%, CI = 43%–54%) of women earning more than their husband/partner reports acceptance of spousal violence, 41% (95% CI = 36%–47%) report having experienced physical partner violence, while 76% (95% CI = 71%–81%) report having experienced at least one form of partner violence in their lifetime. In terms of multivariate analysis, the absolute level of women’s education did not protect them against partner violence, but increased vulnerability, while differential education shows a different picture with women who are more educated than their partners reporting less violence compared to their counterparts with the same or lower education. Conversely, women earning more than their husbands were more vulnerable to partner violence than their counterparts earning less or the same. This showed that compared to the education gap, the income gap threatened the position of men much more. This is in line with the socialization, cultural beliefs and norms of most of the Kenyan patriarchal communities in which the men are expected to be the household heads and financial providers. When this position is challenged, men use violence as an instrument of control. In addition, earning less and having a lower level of education significantly increased women’s risk of exposure to physical violence, while intra-household income and education equality was a significant barrier to physical violence, control violence and exposure to at least one type of partner violence. In conclusion, to reduce physical, control or any other type of violence, the government needs to promote girl child education and income parity among men and women with the same level of education. Additionally, reproductive health education and interventions aimed at delaying or eliminating early pregnancies should be strengthened as this will not only improve women’s health, but also act as a barrier to spousal violence against women. The government should integrate maternal health services and gender-based violence interventions to support regular screening and treatment of women victims of violence.
Characteristics and Determinants of Underemployment in Cameroon
(African Economic Research consortium, 2019-10-05) Stéphane, Hyéfouais Ngniodem Achille
The objective of this study was to improve the analysis of the labour market in Cameroon, through a better understanding of the characteristics and determinants of underemployment. Specifically, this study aims to: identify the profile of an average visible and invisible underemployed; identify the determinants of the visible and invisible underemployment; and assess the contribution of these determinants to the underemployment gap existing between rural and urban residents. The method used for empirical analysis was both descriptive and econometric. The level of visible underemployment was 11.5% among individuals aged between 15 and 64 years. It showed no disparity in age, gender and place of residence, and increased with education. The estimated invisible underemployment rate was about 62.7%. Visible underemployment affects young people and women the most. Although it is more accentuated in rural areas, the informal sector represents the seat of the lowincome jobs. Probit and sample selection, and Fairlie decomposition (2006) are the econometric techniques used to model the probability of being underemployed. The results of the probit models suggest that education, business sector, employment sector, socio-professional category, sex, age and location have significant impact on the probability of being underemployed. The total gap in mean probability of the invisible underemployment between rural and urban workers was 26.4%. Results of the Fairlie decomposition shows that 81.1% of this gap are explained by the difference in the distribution of observable characteristics between rural and urban populations. The remaining 18.9% can be assigned to the difference due to the effects of observed characteristics. The findings also indicate that the business sector has the highest contribution (36.4%) in the distribution of observable characteristics, alongside education (13.1%) and the employment sector (10.8%).
Gender-Based Credit Constraints and Firm Performance in Cameroon
(African Economic Research consortium, 2020-06-30) Johannes, Tabi Atemnkeng; Adze, Ndam Romanus
This paper revisits the empirical literature on gender and access to formal finance by enterprises and examines the effect of financial constraints on firm performance in Cameroon. Existing literature on the importance of gender of the firm’s owner as a determinant of the firm’s access to finance is clouded with mixed findings. Based on the objective measure of access to finance variable where firms are constrained if they applied and were refused, including those that did not apply because they expected to be refused. The analysis finds evidence that female-owned firms are less likely to be credit-constrained once sample selection bias is accounted for. Furthermore, unobservable heterogeneity does not explain gender difference in access to finance while using a two stage least squares regression, no significant gender gap in firm performance between male- and female-owned companies was found, though financial constraint render firms to be less efficient.

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