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The change in Inequality in the Distribution of Living Standards

Author

Listed:
  • Mbu Daniel Tambi

    (University of Dschang, Faculty of Agronomy and Agricultural Sciences, Department of Agricultural Economics, Cameroon)

  • Francis Menjo Baye

    (Department of Quantitative Economics, Cameroon)

Abstract

This study attempts to carry out a comprehensive analysis of the evolution of inequality trends using CHS I and II collected in 1996 and 2001 respectively. The theoretical decomposition frameworks propelling the study are motivated mainly by the Shapely value while empirical estimates are obtained from DAD 4.4. As concerning the result, we observed the dominant contribution of the Within-group inequality in the distribution of living standard in Cameroon and the Between-group contribution to inequality trends was found to be non negligible. On the global scale, inequality retreated at the national level, Yaounde, Douala and Rural savannah regions in the period 1996-200 and got worse in Rural forest, Rural highlands and other towns. We recommend that, policies and strategies for reducing inequality should place particular emphasis on the countryside (increase employment avenues through potential investment) and on a region-by-region approach (decentralisation, equal distribution of the national cake).

Suggested Citation

  • Mbu Daniel Tambi & Francis Menjo Baye, 2012. "The change in Inequality in the Distribution of Living Standards," EuroEconomica, Danubius University of Galati, issue 3(31), pages 97-111, August.
    • Handle: RePEc:dug:journl:y:2012:i:3:p:97-111
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    References listed on IDEAS

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    1. Donaldson, David & Weymark, John A., 1980. "A single-parameter generalization of the Gini indices of inequality," Journal of Economic Theory, Elsevier, vol. 22(1), pages 67-86, February.
    2. Abdelkrim Araar, 2006. "On the Decomposition of the Gini Coefficient: an Exact Approach, with an Illustration Using Cameroonian Data," Cahiers de recherche 0602, CIRPEE.
    3. International Monetary Fund, 2003. "Cameroon: Poverty Reduction Strategy Paper," IMF Staff Country Reports 2003/249, International Monetary Fund.
    4. Shorrocks, Anthony F, 1984. "Inequality Decomposition by Population Subgroups," Econometrica, Econometric Society, vol. 52(6), pages 1369-1385, November.
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