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Determinants of Active Income Inequality for Non-Wage Earners in Cameroon

In: Economic Well-Being and Inequality: Papers from the Fifth ECINEQ Meeting

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  • Simon Alain Song Ntamack

Abstract

Inequality is an essential factor for the alleviation of poverty. In Cameroon, most of the households derive their livelihoods from non-wage income and a better understanding of how different variables affect income inequality is a way to reduce those inequalities and improve social welfare. Studies carried out so far barely make out the determinants among non-wage earners. This study sets out to identify these determinants, using the regression-based decomposition technique and data obtained from the 2005 Employment and Informal Sector Survey (EISS) undertaken by the National Statistic Institute (INS) in Cameroon. Results show that the total inequality of an hourly active income ensues from the ratio of age/experience and unobserved individual heterogeneity among non-wage earners.

Suggested Citation

  • Simon Alain Song Ntamack, 2014. "Determinants of Active Income Inequality for Non-Wage Earners in Cameroon," Research on Economic Inequality, in: Economic Well-Being and Inequality: Papers from the Fifth ECINEQ Meeting, volume 22, pages 481-501, Emerald Group Publishing Limited.
    • Handle: RePEc:eme:reinzz:s1049-258520140000022016
    DOI: 10.1108/S1049-258520140000022016
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    More about this item

    Keywords

    Inequality; active income; non-wage earner; Shapley decomposition; human capital; D31; C71; J32;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions

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