Abstract

The purpose of this study is to assess the effect of unemployment duration on the wages in Cameroon. In this light; the study used data from the Survey of Employment and Informal Sector (EESI 2). A control function approach is used to correct the endogeneity of the unemployment duration and selection in paid work is considered. The results indicate that an extra month of job search decreases hourly wage in Cameroon up to 4.1%. The highlighted wage penalty is higher in urban areas, varies by age group, and does not show significant gender disparity.

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