Accounting for Heterogeneity in Growth Incidence in Cameroon

This paper presents counterfactual decompositions based on both the Shapley method and a generalization of the Oaxaca-Blinder approach to identify proximate factors that might explain differences in the distribution of economic welfare in Cameroon in 1996-2007. In particular, the analysis uses re-centered influence function regressions to link the growth incidence curve for 2001-2007 to household characteristics and account for heterogeneity of impact across quantiles in terms of the composition (or endowment) effect and structural (or price) effect. The analysis finds that the level of the growth incidence curve is explained by the endowment effect while its shape is driven by the price effect. Observed gains at the bottom of the distribution are due to returns to endowments. The rest of the gains are accounted for by the composition effect. Further decomposition of these effects shows that the composition effect is determined mainly by household demographics while the structural effect is shaped by the sector of employment and geography. Finally, analysis of the rural-urban gap in living standards shows that, for the poorest households in both sectors, differences in household characteristics matter more than the returns to those characteristics. The opposite is true for better-off households.

Bibliographic Details

Main Authors:	Bassole, Leandre, Essama-Nssah, B., Paul, Saumik
Language:	English
Published:	2010-11-01
Subjects:	ADVERSE EFFECTS, AGGREGATE POVERTY, AGRICULTURAL EMPLOYMENT, AGRICULTURAL PRODUCTS, AGRICULTURAL SECTOR, ANNUAL GROWTH, ANNUAL GROWTH RATE, AVERAGE GROWTH, AVERAGE GROWTH RATE, AVERAGE INCOME, CHANGES IN POVERTY, COMMUNITY ASSETS, COMPETITIVENESS, COUNTERFACTUAL, DATA ISSUES, DEBT, DEBT RELIEF, DECOMPOSABLE POVERTY, DECOMPOSABLE POVERTY MEASURES, DECOMPOSITION TECHNIQUES, DENSITY FUNCTION, DEPENDENT VARIABLE, DEVALUATION, DEVELOPMENT EFFORTS, DEVELOPMENT POLICY, DEVELOPMENT REPORT, DEVELOPMENT STRATEGY, DISTRIBUTION FUNCTION, ECONOMIC ACTIVITY, ECONOMIC GROWTH, ECONOMICS, EMPIRICAL RESULTS, EMPLOYMENT OPPORTUNITIES, ESTIMATED COEFFICIENTS, EXCHANGE RATE, EXPECTED VALUE, EXPECTED VALUES, EXPORT MARKETS, EXPORT PRICE INDEX, EXPORTS, FEMALE-HEADED HOUSEHOLDS, FOOD CROPS, GDP, GINI COEFFICIENT, GINI INDEX, GNP, GROSS DOMESTIC PRODUCT, GROWTH COMPONENT, GROWTH EFFECT, GROWTH EPISODE, GROWTH PROCESS, GROWTH PROSPECTS, GROWTH RATES, HEADCOUNT POVERTY, HOUSEHOLD COMPOSITION, HOUSEHOLD DEMOGRAPHICS, HOUSEHOLD HEAD, HOUSEHOLD LEVEL DATA, HOUSEHOLD SURVEY, HOUSEHOLD SURVEYS, HOUSEHOLD WELFARE, HUMAN CAPITAL, INCIDENCE OF POVERTY, INCOME, INCOME DISTRIBUTION, INCOME EFFECT, INCOME GROWTH, INCOME GROWTH RATE, INCOME INEQUALITY, INCOME SHARE, INCREASING INEQUALITY, INEQUALITY, INEQUALITY EFFECT, LABOR FORCE, LAND OWNERSHIP, LIVING STANDARDS, LORENZ CURVE, MACROECONOMIC STABILITY, MARGINAL EFFECT, MEAN GROWTH, MEAN INCOME, MULTIPLIER EFFECTS, NATIONAL POVERTY, NEGATIVE SIGN, PER CAPITA EXPENDITURE, PER CAPITA INCOME, POLICY REFORMS, POLICY RESEARCH, POLITICAL STABILITY, POOR, POOR COUNTRIES, POOR INFRASTRUCTURE, POOR PEOPLE, POPULATION SHARE, POVERTY ANALYSIS, POVERTY GAP, POVERTY IMPACT, POVERTY INCIDENCE, POVERTY INDICES, POVERTY LEVELS, POVERTY LINE, POVERTY MEASURE, POVERTY MEASURES, POVERTY OUTCOMES, POVERTY RATES, POVERTY REDUCTION, POVERTY REDUCTION STRATEGY, POVERTY REDUCTION STRATEGY PAPER, PUBLIC INVESTMENT, PUBLIC POLICY, PUBLIC SECTOR, PUBLIC SPENDING, REAL GDP, REAL INCOME, REDUCTION IN POVERTY, REGIONAL DIFFERENCES, REGIONAL DISPARITY, REGIONAL DISTRIBUTION, REGIONAL DISTRIBUTIONS, REGIONAL DUMMIES, REGIONAL INEQUALITY, REGIONAL LEVEL, REGIONAL POVERTY, REGRESSION ANALYSIS, RELATIVE CONTRIBUTION, RELATIVE INEQUALITY, RURAL, RURAL AREA, RURAL AREAS, RURAL COUNTERPARTS, RURAL DIFFERENCES, RURAL INEQUALITY, RURAL MARKETS, RURAL POVERTY, RURAL SECTOR, SCALE EFFECT, SCHOOLING, SIGNIFICANT IMPACT, SMALLHOLDER AGRICULTURE, SQUARED POVERTY GAP, STRUCTURAL ADJUSTMENT, SUBSISTENCE, TRADE SHOCKS, URBAN AREAS, URBAN POVERTY, URBAN REGION, WELFARE INDICATOR, WELFARE LEVEL,
Online Access:	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20101101154309 https://hdl.handle.net/10986/3945
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