Publication:
Spatial and Sectoral Heterogeneity of Occupational Choice in Cameroon

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dc.contributor.authorBougna, Theophile
dc.contributor.authorNguimkeu, Pierre
dc.date.accessioned2018-07-16T13:29:24Z
dc.date.available2018-07-16T13:29:24Z
dc.date.issued2018-07
dc.description.abstractThis paper investigates the relationship between location, agglomeration, access to credit, informality, and productivity across cities and industries in Cameroon. Emphasizing the link between micro-foundations and the data, the paper develops and estimates a structural model of occupational choice in which heterogeneous agents choose between formal entrepreneurship, informal entrepreneurship, and non-entrepreneurial work. Their decision-making process is driven by institutional constraints such as entry costs, tax enforcement, and access to credit. The model predicts that agglomeration has a non-monotonic effect on formalization, and entrepreneurial profits increase with agglomeration effects. Estimating the model by the generalized method of moments, the paper finds that the returns to capital and labor are not uniform across sectors and cities. Manufacturing industries are highly constrained in capital and the elasticity of capital is higher in Yaoundé and Douala, whereas labor elasticity is higher in Kribi. Counterfactual simulations show that an increase in roads provision can have a substantial impact in terms of output, formalization, and productivity. A reduction in the current interest rate has a large and significant impact on formalization and no significant effect on business creation. Likewise, while the current tax rate is suboptimal for most cities, a tax reduction policy would have a much greater impact on formalization than on business creation. These effects differ substantially across cities and sectors, suggesting that those policy instruments could be implemented accordingly to support formalization and business creation.en
dc.identifierhttp://documents.worldbank.org/curated/en/604141531245135339/Spatial-and-sectoral-heterogeneity-of-occupational-choice-in-Cameroon
dc.identifier.doi10.1596/1813-9450-8515
dc.identifier.urihttps://hdl.handle.net/10986/29988
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 8515
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.subjectACCESS TO CREDIT
dc.subjectACCESS TO FINANCE
dc.subjectINFORMALITY
dc.subjectPRODUCTIVITY
dc.subjectLABOR MARKET
dc.subjectLABOR SKILLS
dc.subjectOCCUPATIONAL MOBILITY
dc.subjectOCCUPATION
dc.subjectENTREPRENEURSHIP
dc.subjectLABOR ELASTICITY
dc.subjectROADS
dc.subjectROAD QUALITY
dc.subjectROAD DENSITY
dc.subjectTAX RATE
dc.subjectINTEREST RATE
dc.subjectBUSINESS ENVIRONMENT
dc.subjectBUSINESS CREATION
dc.titleSpatial and Sectoral Heterogeneity of Occupational Choice in Cameroonen
dc.typeWorking Paperen
dc.typeDocument de travailfr
dc.typeDocumento de trabajoes
dspace.entity.typePublication
okr.crossref.titleSpatial and Sectoral Heterogeneity of Occupational Choice in Cameroon
okr.date.disclosure2018-07-10
okr.doctypePublications & Research
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://documents.worldbank.org/curated/en/604141531245135339/Spatial-and-sectoral-heterogeneity-of-occupational-choice-in-Cameroon
okr.guid604141531245135339
okr.identifier.doi10.1596/1813-9450-8515
okr.identifier.externaldocumentum090224b085d67e4d_1_0
okr.identifier.internaldocumentum30247853
okr.identifier.reportWPS8515
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/604141531245135339/pdf/WPS8515.pdfen
okr.region.administrativeAfrica
okr.region.countryCameroon
okr.statistics.combined2160
okr.statistics.dr604141531245135339
okr.statistics.drstats1816
okr.topicPrivate Sector Development::Business Environment
okr.topicPrivate Sector Development::Enterprise Development & Reform
okr.topicPrivate Sector Development::Microenterprises
okr.topicPrivate Sector Development::Private Sector Economics
okr.topicSocial Protections and Labor::Labor Markets
okr.unitDevelopment Research Group, Development Economics
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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