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Educational Levels and Wage Inequalities: Empirical evidence from Cameroon
  • Paul AKUMBOM,
University of Bamenda

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Benue State University
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This study sought to investigate the effect of differences in educational levels and wage earnings in Cameroon. To achieve this, data was obtained from Cameroon household survey (ECAM4) database. The study employed the regression-based decomposition technique and the Shapley value approach to attain the objective. The findings revealed that there was a positive relationship. Equally, the result further revealed that, there was also a positive relationship between work experience and wage earnings in Cameroon. More results indicated that primary education explain 5.36% of inequality in wage earnings on a scale of 100. Equally, secondary and higher education explain 1.09% and 0.03% respectively. Meanwhile, work experience explains 27.17% of inequality in wage earnings. Hours’ work, household’s size, age, sex, marital status and residence explain 41.68%, 2.70%, 12.76%, 1.13%, 7.07%, and 0.99% respectively. It was recommended that education for all should be encouraged not only at the primary level as spelt out in the development goals but even at tertiary levels. This can be done by sensitizing parents on the importance of education for their children as well as offering study leave possibilities to most workers. It can also be done by further subsidizing education at the tertiary level. Highlights - This study examined the effect of educational levels on wage earnings in Cameroon using regression-based decomposition and the Shapley value approach. - The findings revealed a positive relationship between educational levels and wage earnings in Cameroon. - Primary education explained 5.36% of wage earnings inequality, while secondary and higher education explain 1.09% and 0.03% respectively. - Work experience was a significant factor, explaining 27.17% of wage earnings inequality.