Labour Economics

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Accounting for the Gender Gap in Urban Youth Unemployment in Africa: Evidence from Kenya
(AERC, 2021-04-19) Kamau, Paul; Wamuthenya, Wambui R.
Using a decomposition framework and Kenyan data from 1986, 1998 and 2005, this study analyzes the factors associated with the likelihood of unemployment among the urban youth labour force and the disproportionately higher vulnerability to unemployment among female youth compared to male youth. Overall, the results indicate that household-headship, training, marital status and being male as opposed to being female are significantly correlated with the likelihood of being unemployed. Level of formal education appears less important while experience appears to be more important for female youth. After controlling for potential endogeneity of training results indicate that access to training/skills could help to diminish overall youth unemployment by about 58% and by 53% and 51% for females and males, respectively. The decomposition analysis indicates that the observed gender gaps in youth unemployment are largely explained by differences in average characteristics between female and male youth. Householdheadship exerts the most positive effect in widening the differential. Over time, the combined positive effect of human capital variables declines sharply, thus narrowing the gap. Marital status increasingly limits young women from being employed, thus widening the gap. Overall, the analysis provides limited justification for employment discrimination in the youth labour market along gender lines.
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.
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%).
Child labour and poverty linkages: a micro analysis from rural malawian data
(African Economic Research consortium, 2010-11-05) Chiwaula, Levison
Contract Type and Teacher Absenteeism in Benin: The Role of Teacher’s Supplemental Income
(African Economic Research Consortium, 2021-07-15) Senou, Barthelemy Mahugnon
Absenteeism is a phenomenon that has been noted in professional circles with consequences on the income of the wage earner as well as the profits of the firm, consequences that led, according to statistics from 2005, to losses in public finance amounting to close to 70 billion francs for the Government of Benin. Despite such losses, very few studies in economics have focused on the subject in order to try and give an understanding of the real causes of absenteeism and its consequences. The objective of this study is to explore the relationship between the status of the teacher, supplemental income of the teacher, and the absenteeism of the teacher. Using data from PASEC-CONFEMEN 2005, that will be applied to a theoretical model that we are developing, and through the use of a Tobit empirical method, after having taken the endogeneity bias on the practice of supplemental income generating activities by the teacher into account, this study demonstrates that the practice of income generating activities by teachers positively influences their absenteeism, with contract teachers being more frequently absent than those who are on permanent and pensionable employment contracts. Through linking the level of prices in a locality with absenteeism behaviours, we make it clear that the reasons for absenteeism are mostly related to low purchasing power in the context of earning relatively meagre salaries. These results elicit a set of recommendations that essentially suggest that there should be an improvement in the salaries and working conditions of teachers.
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.
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.
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.
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.
The Effect of Fertility on Women’s Labour Supply in West Africa
(African Economic Research Consortium, 2022-08) Kponou, M. Kenneth C.
This study sought to identify and analyze the effect of childbirth on female labour supply, specifically that of married women with at least one young child under 6 years of age. The number of children is the result of a decision that is endogenous. To take this endogeneity into account, the study used twins as an instrument. Accordingly, we estimated an instrumented Probit model given that female labour supply is measured by two different binary variables. Based on Demographic and Health Survey (DHS) data from five countries (Benin, Cote d’Ivoire, Ghana, Nigeria and Senegal), the study’s key findings are the following: (i) the effect of fertility on female labour supply is not uniform across all the countries considered, and (ii) the relationship between fertility and female labour force participation is sensitive to the measure of participation used to measure it. Based on our findings, we make the following key recommendations: (i) put in place policies to encourage the transition of women from traditional jobs that are quite vulnerable to more formal jobs; and (ii) implement corrective measures so that young children are no longer a penalty for women's access to formal jobs.
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
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.
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
Facilitating Regional Trade: Lessons from WAEMU and EAC on How to Increase Trade in CEMAC
(African Economic Research Consortium, 2023-06) Nguenkwe, Ronie Bertrand
This study explores the ways of facilitation and enhancing intra-CEMAC (Central African Economic and Monetary Community) trade, which has remained structurally weak over more than 20 years, by focusing on the East African Community and the West African Economic and Monetary Union (WAEMU). The study uses a descriptive analysis of trade and the indicators of facilitation of trade in those three communities. An econometric analysis of factors underlying the level of trade in those three communities is conducted using an augmented gravity model. The econometric results demonstrate that the number of documents and the number of days required to export has a negative and significant impact on trade in EAC and WAEMU, but a positive impact in CEMAC. Infrastructure services, notably the use of the Internet have a negative impact on intra-zone trade in EAC.
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.
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.
Gender Differentials in Access to Medical Services During COVID-19 Lockdown: Insights from Nigeria
(African Economic Research Consortium, 2022-09) Adewole, Ololade G.; Omotoso, Kehinde O.
Nigeria, like most countries of the world, implemented a lockdown policy during the COVID-19 pandemic, restricting all sorts of movements except for essential services and functions as a measure to contain the virus. Access to medical services is an important component of good healthcare systems, and with gender inequitable access to medical services, improving the health outcome of the population is not likely to be achieved. This study analyses gender differentials in access to medical services during the COVID-19 lockdown in Nigeria, using both descriptive and inferential analytical techniques. Results show that adult health services were the most needed medical services, and females needed these services slightly more than their male counterparts. However, access to these services was greater for males than for females. This same pattern is also observed for child health services. Further analysis shows that females are less likely to access adult health services than their male counterparts. Employment gap contributes about 79% to the gender differential in access to adult health services. Moreover, differences between males and females in the Northwest zone also account for the bulk of the gender differentials in access to adult health services. This suggests the possibility that females are disproportionately treated less equally than males in the zone. Meanwhile, receipt of social assistance increases males' access to adult health services by 6.4% and increases that of females' access by 1.6%. These results were substantiated by qualitative analysis. While some respondents were of the opinion that there was a gender differential in access to SRH, others opine that there was none. The study provides evidence-based recommendations for quality policy decisions on appropriate measures to promote gender-equitable and sustainable recovery in a time of crisis.
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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