Labour Force Participation of Cameroonians in Informal Sector

Abstract

In this paper, we analyze the Labour Force Participation Rate (LFPR) of informal workers in Cameroon. We also estimate the effects of some determining factors on LFP decisions. We use data from the Cameroon National Institute of Statistics (CNIS), a three-wave panel obtained respectively in 2001, 2005 and 2010 for a sample of individuals in the labour market. The sample data of the national population is representative. All information’s on demographic, socioeconomic and employment characteristics used in this study are provided by the CNIS database. It is particularly remarkable that the LFPR in informal sector increased substantially during latest years, particularly those of young workers. This rise in the LFPR is principally explained by the significant increase in the labour-market activity of the urban younger generation which has been improved by migration. Estimating a simple model of LFP with logistic methodology, we find that poverty, age and urbanization are significantly related with LFPR of informal labour market in Cameroon.