nep-afr New Economics Papers
on Africa
Issue of 2013‒04‒20
24 papers chosen by
Quentin Wodon
World Bank

  1. Religious Diversity and Economic Development in Sub-Saharan Africa: So Far So Good By Kodila-Tedika, Oasis; Agbor , Julius
  2. Wage protection legislation in Africa By Ghosheh, Najati
  3. Wheat Consumption in Sub-Saharan Africa: Trends, Drivers, and Policy Implications By Mason, Nicole M.; Jayne, Thomas S.; Shiferaw, Bekele A.
  4. Hybrid Seed, Income, and Inequality among Smallholder Maize Farmers in Zambia By Smale, Melinda; Mason, Nicole M.
  5. Fiscal sustainability in South Africa: Will history repeat itself? By Estian Calitz; Stan du Plessis; Krige Siebrits
  6. The Impact of Maize Hybrids on Income, Poverty, and Inequality among Smallholder Farmers in Kenya. By Mathenge, Mary K.; Smale, Melinda; Olwande, John
  7. The impact of extension services on farming households in Western Kenya: A propensity score approach By Deschamps-Laporte, Jean-Philippe
  8. Does the Source of Oil Price Shocks Matter for South African Stock Returns? A Structural VAR Approach By Rangan Gupta; Mampho P. Modise
  9. The Causal Relationship between Exports and Economic Growth in the Nine Provinces of South Africa: Evidence from Panel-Granger Causality Tests By Tsangyao Chang; Beatrice D. Simo-Kengne; Rangan Gupta
  11. Measuring Agglomeration Economies: The Case of the Ethiopian Cut Flower Industry By Mano, Yukichi; Suzuki, Aya
  12. Cereal Market Dynamics: The Malian Experience from the 1990s to Present By Kelly, Valerie A.; Murekezi, Abdoul Karim; Me-Nsope, Nathalie Mongue; Perakis, Sonja Melissa; Mather, David
  13. Trends in Per Capita Food Availability in West Africa, 1980-2009 By Me-Nsope, Nathalie Mongue; Staatz, John M.
  14. Seeds of Distrust: Conflict in Uganda By Dominic Rohner; Mathias Thoenig; Fabrizio Zilibotti
  15. Water partial privatization: access and quality consequences for urban areas in Senegal By Nassima Rabhi
  16. Relationship between young women and parents in rural Ethiopia By Kodama, Yuka
  17. The impact of economic policy shocks on the outcomes of the fiscal adjustment policies in Tanzania By Kihaule, Arnold Mathias
  18. Adoption and Intensity of Adoption of Conservation Farming Practices in Zambia By Arslan, Aslihan; McCarthy, Nancy; Lipper, Leslie; Asfaw, Solomon; Cattaneo, Andrea
  19. Farmers’ Production and Marketing Response to Rice Price Increases and Fertilizer Subsidies in the Office Du Niger. By Kelly, Valerie A.; Mather, David
  20. How Can the Zambian Government Improve the Targeting of the Farmer Input Support Program? By Mofya-Mukuka, Rhoda; Kabwe, Stephen; Kuteya, Auckland N.; Mason, Nicole M.
  21. The health of workers in selected sectors of the urban economy : challenges and perspectives By Comaru, Francisco; Werna, Edmundo
  22. The Impact of Capital Structure on Firms’ Performance in Nigeria. By Ogebe, Patrick; Ogebe, Joseph; Alewi, Kemi
  23. L'UEMOA : interrogation sur la pertinence économique en termes de zone monétaire optimale (ZMO) By Papa Gueye Fam
  24. Health and Labour Income of Wage Earners and Self-Employed Workers in Cameroon By Fomba Kamga, Benjamin; Kengne Kamga, Arline; Audibert, Martine

  1. By: Kodila-Tedika, Oasis; Agbor , Julius
    Abstract: This paper investigates the effects of religion on a broad set of development outcomes in sub-Saharan Africa. We regroup these outcomes into three broad categories, namely, development process outcomes (growth, investment, conflict, and government quality), institutional outcomes (property rights and the rule of law) and social development outcomes (social and gender protection). Using two new measures of religion – religious fractionalization (RELFRAC) and religious polarization (RELPOL), alongside the traditional measure of religious diversity, our results suggest that broadly speaking, religion or religious diversity has no statistically significant impact on the institutional and social aspects of development in sub-Saharan Africa. However, our findings do suggest that religion has important effects on the development process through its effects on investment. The analysis suggests that African policy-makers need to pay attention to the changing religious dynamics and increasing religious polarization of African societies.
    Keywords: Economic development, Africa, Religious Polarization; Conflict; Religious diversity
    JEL: D74 O1 O55 Z12
    Date: 2013–04–17
  2. By: Ghosheh, Najati
    Keywords: wages, wage policy, labour legislation, comment, Africa, salaire, politique des salaires, législation du travail, commentaire, Afrique, salario, política salarial, legislación del trabajo, comentario, Africa
    Date: 2013
  3. By: Mason, Nicole M.; Jayne, Thomas S.; Shiferaw, Bekele A.
    Abstract: Wheat consumption in Sub-Saharan Africa (SSA) is increasing rapidly, faster than any other major food grain. Between 2000 and 2009, per capita wheat consumption in SSA increased at a rate of 0.35 kilogram (kg)/year, outpacing maize and rice. Total wheat consumption increased by nearly 650,000 Metric tons (MT)/year. Staple grain consumption in Sub-Saharan Africa is rising at the same time that the region is becoming more dependent on imported staples. Wheat consumed in SSA is increasingly coming from imports from non-SSA countries as wheat production in SSA has failed to keep up with growing demand. Africa’s growing reliance on imported staples including wheat received a great deal of attention in the 1980s and 1990s, yet there has been relatively little research on this issue in recent years. This paper takes stock of trends in wheat consumption and net imports in SSA since 1980, and identifies the drivers of growing demand for wheat at country-level in SSA. It also discusses the potential dilemmas posed by SSA’s increasing reliance on imported staples, and examines the pros and cons of various options for African countries to meet their staple grain needs.
    Keywords: Agricultural and Food Policy, Demand and Price Analysis, Food Consumption/Nutrition/Food Safety, International Development, International Relations/Trade, Marketing,
    Date: 2012–12
  4. By: Smale, Melinda; Mason, Nicole M.
    Abstract: The successful development and diffusion of improved maize seed in Zambia is a major achievement in African agriculture. Since independence in 1964, and most notably from the 1970s, the commitment of the Government of Zambia (GoZ) to ensuring food security through the involvement of smallholder farmers was an important aspect of this process. Most recently, the commitment of the GoZ has entailed the re-introduction of input subsidies.
    Keywords: Agricultural and Food Policy,
    Date: 2013–03
  5. By: Estian Calitz (Department of Economics, University of Stellenbosch); Stan du Plessis (Department of Economics, University of Stellenbosch); Krige Siebrits (Department of Economics, University of Stellenbosch)
    Abstract: Several empirical studies have found that fiscal policy has been sustainable in South Africa since 1960. This paper complements these studies by providing perspective on the manner in which fiscal sustainability was maintained. It discusses two episodes of significant increases and one period of substantial reduction in the public debt burden to show that periods of rising deficits and government debt in South Africa were followed by returns to sustainable levels, thereby preventing major domestic economic crises and external interventions. The paper also provides a projection of the fiscal outlook for South Africa based on a structural VAR model. The results suggest that the discretionary fiscal decisions of 2007 to 2010 might pose a serious threat to the sustainability of fiscal policy unless the authorities respond as they did in the past by checking large budget deficits and concomitant rapid increases in the public debt burden promptly.
    Keywords: fiscal policy, fiscal sustainability, South Africa
    JEL: H62 H63
    Date: 2013
  6. By: Mathenge, Mary K.; Smale, Melinda; Olwande, John
    Abstract: The development and diffusion of hybrid maize seed in Kenya is a widely documented success story. Yet, to our knowledge, a missing link in existing research on maize hybrids in Kenya has been a rigorous analysis of the impacts of seed adoption on farmer welfare. The objective of this study is to initiate that research, using econometric methods applied to a balanced panel of 1,243 maize-growing households surveyed in 2000, 2004, 2007, and 2010. Data were collected by Tegemeo Institute of Egerton University in collaboration with Michigan State University.
    Keywords: Agricultural and Food Policy, International Development,
    Date: 2012–11
  7. By: Deschamps-Laporte, Jean-Philippe (Department of Business, Economics, Statistics and Informatics)
    Abstract: The aim of this paper is to assess the impact of the adoption of technological packages in agriculture Kenya on the farming households, as promoted by the National Agriculture and Livestock Extension Programme (NALEP), a program run by the Government of Kenya. To this end, we collected data on beneficiaries through a survey of 1000 households in the district of Lugari, in Western Kenya. We use propensity score matching to compute the average treatment effect on the treated. We find evidence that: I) program beneficiaries picked up a set of practices and technologies; II) treated households increased their fertilizer dosage by at least 24.91%; III) treated households were more likely to use improved water harvesting techniques; IV) in terms of production, treated household appear to have followed the promoted practices of crop rotation, yet productivity per acre is not affected by the treatment; V) treated households also improved post-harvesting handling and marketing.
    Keywords: Agricultural Extension; Kenya; Propensity Score Matching; Maize; Fertilizer; Water Harvesting; Productivity
    JEL: Q12 Q13 Q16
    Date: 2013–04–04
  8. By: Rangan Gupta (Department of Economics, University of Pretoria); Mampho P. Modise (Department of Economics, University of Pretoria)
    Abstract: In this paper, we investigate the dynamic relationship between different oil price shocks and the South African stock market using a sign restriction structural vector autoregression (VAR) approach for the period 1973:01 to 2011:07. The results show that for an oil-importing country like South Africa, stock returns only increase with oil prices when global economic activity improves. In response to oil supply shocks and speculative demand shocks, stock returns and the real price of oil move in opposite directions. The analysis of the variance decomposition shows that the oil supply shock contributes more to the variability in real stock prices. The main conclusion is that different oil price shocks affect stock returns differently and policy makers and investors should always consider the source of the shock before implementing policy and making investment decisions.
    Keywords: Oil price shocks, stock returns, sign-restrictions, structural vector autoregression
    JEL: C32 C58 G1 Q43
    Date: 2013–04
  9. By: Tsangyao Chang (Department of Finance, Feng Chia University, Taichung, Taiwan); Beatrice D. Simo-Kengne (Department of Economics, University of Pretoria); Rangan Gupta (Department of Economics, University of Pretoria)
    Abstract: This paper examines the causal relationship between exports and growth in nine provinces of South Africa for the period 1995-2011, using panel causality analysis, which accounts for cross-section dependency and heterogeneity across regions. Our empirical results support unidirectional causality running from economic growth to exports for Mpumalanga only; a bi-directional causality between exports and economic growth for Gauteng; and no causality in any direction between economic growth and exports for the rest of provinces. This suggests that export expansion might not be an efficient strategy to improve provincial economic performance in South Africa as neither exports nor economic growth is sensitive to each other in almost all provinces.
    Keywords: Exports, Economic Growth, Dependency and Heterogeneity, Panel Causality Test
    JEL: C33 F14 R11 R12
    Date: 2013–04
  10. By: Mahamat MASSOUD (Laboratoire de Recherche sur l'Industrie et l'Innovation. ULCO)
    Abstract: L’étude présente le contexte institutionnel de la Banque des Etats de l’Afrique Centrale (BEAC) et procède à l’analyse de sa gouvernance. Il en ressort un management aux objectifs imprécis ou contraires à ceux de la Communauté Economique et Monétaire de l’Afrique Centrale (CEMAC)1. Le postulat est que des degrés de liberté pour une politique monétaire originale existent. Son avènement suppose une appropriation des principes de bonne gouvernance applicables aux banques centrales, une requalification des critères de recrutement des dirigeants et un réajustement des priorités de la BEAC. The study presents the institutional context of the Bank of the Central African States (BEAC) and proceeds to the analysis of its governance. It shows a management where the purposes are unclear or in conflict with those of the economic and monetary community of Central Africa States (CEMAC)[1]. The premise is that degrees of freedom for the development of an original monetary policy exist. Its development needs the implementation of the principles of good governance to central banks, a redefinition of leaders’ recruitment criteria and an adjustment of the priorities of the BEAC.
    Keywords: politique monétaire, banque centrale, gouvernance, CEMAC
    JEL: E5 E52 E58 O55
    Date: 2013–01
  11. By: Mano, Yukichi; Suzuki, Aya
    Abstract: Industrial clusters are ubiquitous, and the associated low transaction costs allow producers to benefit from information spillovers, interfirm division and specialization of labor, and the development of skilled-labor markets. Previous studies, however, have seldom quantified the benefits on business performance. Ethiopia’s cut flower industry provides a rare opportunity to compare agglomerated with dispersed producers. Agglomerated farms frequently share technological knowledge and market information to decide when and even whether products are worth harvesting and shipping and to select product varieties. Econometric results indicate that agglomerated farms export higher valued flowers and achieve higher productivity and profitability. These findings imply that promotion of industrial clusters would further develop the industry.
    Keywords: agglomeration economies, information spillovers, market information, technological knowledge, cut flower, Sub-Sahara Africa, Ethiopia
    JEL: L15 L25 O12 O25
    Date: 2013–04
  12. By: Kelly, Valerie A.; Murekezi, Abdoul Karim; Me-Nsope, Nathalie Mongue; Perakis, Sonja Melissa; Mather, David
    Abstract: This paper assesses the role that cereal markets have played in stimulating farm-level productivity growth and marketing of staple foods, in responding to changing demand patterns, in satisfying minimum food security needs, and in contributing to poverty reduction in both urban areas (through reductions in food prices) and rural areas (through increases in farm incomes). The paper uses a case study approach based on the Malian experience. Mali presents a particularly good case study of cereal market development because of (1) a unique approach to donor and government coordination during the early stages of market liberalization, (2) the contrasting development paths of the irrigated rice and the rainfed coarse grains subsectors, (3) Mali’s growing role in West Africa’s regional cereal trade, and (4) on-going policy debates that are relevant to the entire region. These policy debates include questions such as (1) how to balance consumer and producer interests via trade, tax, and safety net policies, (2) how to shape land policies that encourage a mix of family and commercial farms capable of meeting both national food production goals and poverty reduction objectives, and (3) how to provide incentives that reduce rural poverty by assisting resource poor farmers while also stimulating greater productivity among better-off farmers.
    Keywords: Agricultural and Food Policy,
    Date: 2013–04–01
  13. By: Me-Nsope, Nathalie Mongue; Staatz, John M.
    Abstract: The goal of this paper is to provide evidence of shifts in food consumption patterns in the ECOWAS countries of West Africa from 1980 through 2009.1 In particular, the analysis is intended to identify major contributors to diets, changes in the levels as well as in the composition of food supply at the country-level, and to enhance understanding of the food supply situation within the ECOWAS zone using national-level FAOSTAT food balance sheet data from 1980-2009. The paper provides detailed displays of per capita food availability for each of the 15 countries, which will serve as the basis for more detailed quantitative and qualitative analysis in subsequent reports.
    Keywords: Consumer/Household Economics, Demand and Price Analysis, Food Consumption/Nutrition/Food Safety, Food Security and Poverty,
    Date: 2013–02
  14. By: Dominic Rohner; Mathias Thoenig; Fabrizio Zilibotti
    Abstract: We study the effect of civil conflict on social capital, focusing on the experience of Uganda during the last decade. Using individual and county-level data, we document large causal effects on trust and ethnic identity of an exogenous outburst of ethnic conflicts in 2002-05. We exploit two waves of survey data from Afrobarometer 2000 and 2008, including information on socioeconomic characteristics at the individual level, and geo-referenced measures of fighting events from ACLED. Our identification strategy exploits variations in the intensity of fighting both in the spatial and cross-ethnic dimensions. We find that more intense fighting decreases generalized trust and increases ethnic identity. The effects are quantitatively large and robust to a number of control variables, alternative measures of violence, and different statistical techniques involving ethnic and spatial fixed effects and instrumental variables. We also document that the post-war effects of ethnic violence depend on the ethnic fractionalization. Fighting has a negative e¤ect on the economic situation in highly fractionalized counties, but has no effect in less fractionalized counties. Our findings are consistent with the existence of a self-reinforcing process between conflicts and ethnic cleavages.
    Keywords: conflict, Uganda, seeds of distrust, ethnic conflicts, ACLED, cross-ethnic
    JEL: D74 Q34
    Date: 2012
  15. By: Nassima Rabhi (UP1 UFR02 - Université Paris 1, Panthéon-Sorbonne - UFR d'Économie - Université Paris I - Panthéon-Sorbonne - PRES HESAM)
    Abstract: Access to clean water and sanitation are essential for human life, dignity and developement. Since the 1990s, there are growing calls to privatize water services in order to improve both the coverage of the network and the quality of water, especially in Sub-Saharan Africa. In 1996, Senegal has implemented a Public-Private Partnership (PPP) in the water sector, viewed as an example of success in the region. In this paper, using difference-in-differences matching methods on pseudo-panel data, I measure the degree to which the increasing access to piped water in Senegal is due to the private participation. I also gauge whether the PPP has induced an improvement in the quality of water, by the first children's water-related disease, diarrhea. The results show that the participation of the private sector is associated to enhancement in water private connections, as well as less childrens' diarrheas. The first impact is greater for the poor, wheareas the second is only for the rich. Yet, the results should be taken with caution, as the privatization was partial, coincided with more aid flows and a public's investments and prices management.
    Keywords: eau, distribution, Sénégal, privatisations, partenariat public-privé, maladies d'origine hydrique
    Date: 2012–06
  16. By: Kodama, Yuka
    Abstract: In rural Ethiopia, parents play an important role in the major life events of their daughters such as education and marriage. However, parents’ roles have been evolving, likely due to the rapid expansion of educational opportunities for girls and the growing need of cash income among rural households. Currently, encouraging their daughters to take up further education and jobs in the formal sector contrasts with rural Ethiopian women’s conventional life course events in the past, which are characterized by early marriage and low educational profiles. An interview analysis with parents of young women indicated that under the continuing de-agrarianization among rural households, women are expected to have their own cash income generating activities to qualify as marriage partners.
    Keywords: Ethiopia, Women, Education, Marriage, Household, Young women, Parents
    JEL: R23 Z13
    Date: 2013–03
  17. By: Kihaule, Arnold Mathias
    Abstract: This paper examines the outcomes of the fiscal adjustment policies adopted during the period in which Tanzania experienced economic shocks. The econometric models are used to determine the impact of exogenous and economic policy shocks on gdp growth, public spending and the fiscal balance. The results revealed that policy shocks resulted in structural changes in output growth and public spending instability in Tanzania. Specifically, economic policy shocks led to changes in macroeconomic conditions, which adversely affected the fiscal position after 1986. The results suggest that fiscal adjustment policies should not be undertaken when a number of economic policy changes are envisaged in an economy.
    Keywords: fiscal adjustment policies, fiscal deficit, public spending, economic policy shock, Tanzania,
    JEL: E62
    Date: 2012–12
  18. By: Arslan, Aslihan; McCarthy, Nancy; Lipper, Leslie; Asfaw, Solomon; Cattaneo, Andrea
    Abstract: This paper contributes to literature on agricultural technology adoption by using a novel data set that combines data from two large-scale household surveys with historical rainfall data to understand the determinants and the intensity of adoption of Conservation Farming (CF)practices in Zambia. Conservation agriculture (CA), defined as practicing minimum soil disturbance, cover crops and crop rotation, has the technical potential to contribute to food security and adaptation to climate change. It has been actively promoted in seven of Zambia’s nine provinces since the 1980s in the form of CF including planting basins and dry season land preparation in addition to the 3 CA practices. Rigorous analyses of the determinants of adoption/dis-adoption of these practices, however, are still scarce. This paper fills this gap using panel data from two rounds of the Supplemental Survey to the Central Statistical Office’s 1999/2000 Post Harvest Surveys, which were implemented in 2004 and 2008, as well as (district level) historical rainfall estimate (RFE) data obtained from the National Oceanic and Atmospheric Administration’s Climate Prediction Center (NOAA-CPC) for the period of 1996-2011.
    Keywords: Agricultural and Food Policy, Farm Management,
    Date: 2013–02
  19. By: Kelly, Valerie A.; Mather, David
    Abstract: Many African governments responded to the dramatic increases in international and domestic grain prices of 2008 and 2009 through a mixture of trade policy changes and input/output market subsidies. In the case of Mali, the Government put in place a rice promotion program at the beginning of the 2008/09 production season. The program, called Initiative Riz (IR or Rice Initiative), made subsidized fertilizer available to rice producers nationwide with a particular focus on farmers in the Office du Niger, where roughly 50% of Mali’s rice is produced. The goal of the program was to increase domestic rice production by 50% over the 2007/08 level, thereby increasing marketable surpluses and putting downward pressure on cereal prices.
    Keywords: Agricultural and Food Policy, Crop Production/Industries, International Development, Marketing,
    Date: 2012–12
  20. By: Mofya-Mukuka, Rhoda; Kabwe, Stephen; Kuteya, Auckland N.; Mason, Nicole M.
    Abstract: The Farmer Input Support Program (FISP, formerly the Fertilizer Support Program) has expanded the scale of its fertilizer distribution from 48,000 metric tons (MT) in 2002/03, when the program started, to nearly 183,000 MT in the 2012/2013 farming season. Yet, after more than a decade of input subsidies, rural poverty rates have remained persistently high at around 80%. Poor targeting of FISP inputs may partially explain the lack of progress on addressing persistently high rural poverty levels over the last decade.
    Keywords: Agricultural and Food Policy,
    Date: 2013–02
  21. By: Comaru, Francisco; Werna, Edmundo
    Abstract: Aims at analysing and systematizing the health challenges faced by the poorest strata of urban workers and to discuss solutions. Uses interviews carried out with ILO and WHO staff members from different departments and programmes, completed with interviews with professionals from other institutions, and focuses on five sectors of urban workers, namely: construction, waste picking and recycling, street trading, domestic work and agriculture.
    Keywords: occupational health, occupational safety, low income, capacity building, good practices, construction industry, waste recycling, street vendor, scavenger, domestic work, agriculture, child labour, urban area, Benin, Brazil, China, Colombia, Mexico, Sudan, Tanzania, Turkey, Uganda, ILO mentioned
    Date: 2013
  22. By: Ogebe, Patrick; Ogebe, Joseph; Alewi, Kemi
    Abstract: This study seeks to investigate the impact of capital structure on firm performance in Nigeria from 2000 to 2010. We considered the impact of some key macroeconomic variables (gross domestic product and inflation) on firm performance. The traditional theory of capital structure was employed to determine the significance of leverage and macroeconomic variables on firm’s performance. The study makes a comparative analysis of the selected firms which are classified into highly and lowly geared firms setting a leverage threshold of above 10% as being highly geared. A static panel analysis was used to achieve the objectives of the study. Using fixed effect regression estimation model, a relationship was established between performance (proxied by return on investment) and leverage of the firms over a period of ten years. The results provide strong evidence in support of the traditional theory of capital structure which asserts that leverage is a significant determinant of firms’ performance. A significant negative relationship is established between leverage and performance. From our findings, we strongly recommended that firms should use more of equity than debt in financing their business activities, this is because in spite of the fact that the value of a business can be enhanced with debt capital, it gets to a point that it becomes detrimental. Each firm should establish with the aid of professional financial managers, that particular debt-equity mix that maximizes its value and minimizes its weighted average cost of capital.
    Keywords: Capital Structure,Firm Performance and Leverage
    JEL: G31
    Date: 2013–03–27
  23. By: Papa Gueye Fam (USTV UFR SEG - Université Sud-Toulon-Var - UFR Sciences économiques et de gestion - Ministère de l'Enseignement Supérieur et de la Recherche Scientifique)
    Abstract: Au niveau empirique, aucune zone monétaire n'est optimale car les pays ne disposent pas en même temps de tous les paramètres justificatifs qui permettraient à des espaces monétaires nationaux de former une zone optimale marquée par l'existence, soit d'une monnaie unique, soit d'une structure de parités fixes irrévocables. On s'interroge alors non pas sur l'optimalité mais plutôt sur la pertinence économique en termes de zone monétaire des pays de l'UEMOA. L'étude montre que si la zone monétaire UEMOA n'est pas optimale au regard des critères usuellement retenus par la théorie économique, il existe un processus de rattrapage. Cependant, il s'agit d'une convergence vers le bas depuis la dévaluation de 1994 renforcée par la mise en place de l'Euro en 1999. Elle est essentiellement liée aux pertes de performances économiques du pays leader (la Côte d'Ivoire) depuis le début de la décennie 2000.
    Keywords: Zone monétaire optimale, Chocs asymétriques, Convergence économique, Intensité commerciale, UEMOA
    Date: 2012–09–24
  24. By: Fomba Kamga, Benjamin (University of Yaounde II); Kengne Kamga, Arline (University of Yaounde II); Audibert, Martine (CERDI, University of Auvergne)
    Abstract: The objective of this paper is to assess the relationship between the health and the income from work of wage earners and self-employed workers in Cameroon. Health status is measured by a self-assessment of an individual's health; and income is measured by the monthly wage of the wage earners and monthly profits of the self-employed workers. This paper uses a simultaneous equation model to explore the relationship between health and income, allowing for the endogeneity of health, income, and selection into each employment status. The data used in this study is obtained from the 2007 Cameroon household consumption survey. Using OLS estimates, we find a positive and significant effect of health on labour incomes for self-employed workers. Using TSLS IV estimates, we find that health has a positive and significant effect on incomes for self-employed women, but not for men. We also undertake a reverse effect analysis from income to health, using the ordered probit estimation process. We find that, for men, the effect of income on health status is positive and significant for wage earners. For women, this effect is positive and significant for the self-employed.
    Keywords: health, labour income, wage earners, self-employed, Cameroon
    JEL: I12 J21 J31
    Date: 2013–03

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