How Does Inequality of Opportunities Affect the Distribution of Economic Wellbeing in Cameroon?

Abstract

The objective of this study is to measure the empirical effects of inequality of opportunities (IOP) on the distribution of economic wellbeing, which is captured by consumption per adult equivalent of households in Cameroon. To this effect, we apply both the parametric and non-parametric approaches to measure the magnitude of IOP, and Shapley’s method for its decomposition. The results show that IOP has an estimated effect of 25% in 2001 and 35% in 2007. Its main sources are the agro-ecological zone with a contribution of 45.59% in 2001 and 44% in 2007, the place of residence with a contribution of 31.22% in 2001 and 29.49% in 2007, and the distance relative to a good road with a contribution of 12.57% and 13.83%, respectively. We recommend that the government should reinforce national integration policies for local agricultural product markets. She should also extend in rural areas, vocational training that characterizes human capital in urban areas; and she should expand and improve road infrastructure, especially in rural areas.