Working Paper

Spatial and Sectoral Heterogeneity of Occupational Choice in Cameroon

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collection.link.5
https://openknowledge.worldbank.org/handle/10986/9
collection.name.5
Policy Research Working Papers
dc.contributor.author
Bougna, Theophile
dc.contributor.author
Nguimkeu, Pierre
dc.date.accessioned
2018-07-16T13:29:24Z
dc.date.available
2018-07-16T13:29:24Z
dc.date.issued
2018-07
dc.date.lastModified
2018-07-17T05:10:34Z
dc.description.abstract
This 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.identifier
http://documents.worldbank.org/curated/en/604141531245135339/Spatial-and-sectoral-heterogeneity-of-occupational-choice-in-Cameroon
dc.identifier.uri
http://hdl.handle.net/10986/29988
dc.language
English
dc.publisher
World Bank, Washington, DC
dc.relation.ispartofseries
Policy Research Working Paper;No. 8515
dc.rights
CC BY 3.0 IGO
dc.rights.holder
World Bank
dc.rights.uri
http://creativecommons.org/licenses/by/3.0/igo
dc.subject
ACCESS TO CREDIT
dc.subject
ACCESS TO FINANCE
dc.subject
INFORMALITY
dc.subject
PRODUCTIVITY
dc.subject
LABOR MARKET
dc.subject
LABOR SKILLS
dc.subject
OCCUPATIONAL MOBILITY
dc.subject
OCCUPATION
dc.subject
ENTREPRENEURSHIP
dc.subject
LABOR ELASTICITY
dc.subject
ROADS
dc.subject
ROAD QUALITY
dc.subject
ROAD DENSITY
dc.subject
TAX RATE
dc.subject
INTEREST RATE
dc.subject
BUSINESS ENVIRONMENT
dc.subject
BUSINESS CREATION
dc.title
Spatial and Sectoral Heterogeneity of Occupational Choice in Cameroon
en
dc.type
Working Paper
en
okr.date.disclosure
2018-07-10
okr.doctype
Publications & Research
okr.doctype
Publications & Research :: Policy Research Working Paper
okr.docurl
http://documents.worldbank.org/curated/en/604141531245135339/Spatial-and-sectoral-heterogeneity-of-occupational-choice-in-Cameroon
okr.googlescholar.linkpresent
yes
okr.identifier.doi
10.1596/1813-9450-8515
okr.identifier.externaldocumentum
090224b085d67e4d_1_0
okr.identifier.internaldocumentum
30247853
okr.identifier.report
WPS8515
okr.imported
true
en
okr.language.supported
en
okr.pdfurl
http://documents.worldbank.org/curated/en/604141531245135339/pdf/WPS8515.pdf
en
okr.region.administrative
Africa
okr.region.country
Cameroon
okr.topic
Private Sector Development :: Business Environment
okr.topic
Private Sector Development :: Enterprise Development & Reform
okr.topic
Private Sector Development :: Microenterprises
okr.topic
Private Sector Development :: Private Sector Economics
okr.topic
Social Protections and Labor :: Labor Markets
okr.unit
Development Research Group, Development Economics

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