Non-linear Decomposition of Inequality of Opportunity Among the Young on the Labour Market in Cameroon: Evidences from Spatial Comparative Analysis

Abstract

Abstract The aim of this study is to investigate the determinants of Inequalities of Opportunity (IOP) among the young in Cameroonian labour market. IOP are the differences in outcomes which are explained by the circumstance factors, meaning that the variables which are beyond individual controls. For this purpose, this study performs the Human Opportunity Index (HOI) in order to quantify the IOP among employee over 10- to 25-year-olds. Using the data from the Fourth Cameroon Household Survey (FCHS4) carried out in 2014 by Statistical National Institute, IOP is quantified for each of 14 Cameroonian’s geographical areas. Based on the Dissimilarity index (D-Index) value, two main trends are outlined: a spatial subgroup including North-West, East and the urban regions which is characterized by a higher D-Index; meaning that IOP is relatively significant. In contrast, a more homogeneous subgroup with a lower IOP is found in rural, North and East regions. Moreover, regarding on the one hand the Shapley-Shorrock’s decomposition method, it appears that the mayor circumstances contributing to the D-index are socio-professional category, primary education and religious obedience of the household head which explain from 51% to 79% the overall IOP. While on the other hand, the Blinder-Oaxaca decomposition shows that 80% of the gap in D-Index is explained by disparities in circumstances, rather than individual efforts. Finally, our conclusions argue in favour of effective decentralization, for a more inclusive employment policy that takes into account local labour market features.