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Impact of Minimum Wage non-compliances on Employment in Cameroon

Author

Listed:
  • Joachem Meh Bin

    (Faculty of Economics and Management, University of Bamenda-Cameroon)

  • Aloysius Mom Njong

    (Faculty of Economics and Management, University of Bamenda-Cameroon)

  • Moses Ofeh Abit

    (Faculty of Economics and Management, University of Bamenda-Cameroon)

Abstract

This paper investigates the impact of minimum wage theft for employment in Cameroon using the 2005 and 2010 Cameroon labour force surveys. To achieve these objectives, use is made of the Difference-in-Differences estimator, hackman two step approach, instrumental variables approach. Empirical results revealed that minimum wage theft is more prevalent, deeper and severer among rural (female) workers than their urban (male) counterparts. Results also reveals a negative relationship between minimum wage theft and employment in 2005 and a deeper disincentive effect on employment between 2005 and 2010. These findings suggest that government should increase minimum wage theft control and impose penalty for violating firms.

Suggested Citation

  • Joachem Meh Bin & Aloysius Mom Njong & Moses Ofeh Abit, 2022. "Impact of Minimum Wage non-compliances on Employment in Cameroon," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 6(10), pages 208-214, October.
    • Handle: RePEc:bcp:journl:v:6:y:2022:i:10:p:208-214
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    References listed on IDEAS

    as
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    3. Card, David & Krueger, Alan B, 1994. "Minimum Wages and Employment: A Case Study of the Fast-Food Industry in New Jersey and Pennsylvania," American Economic Review, American Economic Association, vol. 84(4), pages 772-793, September.
    4. David Card, 1990. "The Impact of the Mariel Boatlift on the Miami Labor Market," ILR Review, Cornell University, ILR School, vol. 43(2), pages 245-257, January.
    5. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    6. Moses Abit Ofeh & Joachem Meh BIN & Sergeo Beng CHE, 2020. "An Empirical Analysis of the Impact of Decentralization on Poverty in Cameroon," Journal of Social Economics Research, Conscientia Beam, vol. 7(2), pages 91-106.
    7. David Card & Alan B. Krueger, 1997. "A Reanalysis of the Effect of the New Jersey Minimum Wage Increase on the Fast-Food Industry with Representative Payroll Data," Working Papers 772, Princeton University, Department of Economics, Industrial Relations Section..
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