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Responsiveness of Private Sector Household Income to Employment Vulnerability in Cameroon

This paper investigates the determinants of employment vulnerability among private sector workers and assesses it effects on private sector household income in Cameroon. To address these objectives, use is made of multiple correspondence and the IV econometric analyses. Econometric results indicate that the density of formal institutions is negatively and significantly associated with employment vulnerability. Equally, more educated and skilled workers are less likely to be vulnerable in employment. Results show that employment vulnerability generally correlates inversely with private sector income. We found evidence of compensation for managerial and supervisory duties in the private sector. Other correlates like years of schooling, cumulated labour market experience and access to microcredit are important in determining private sector household income, slightly more so in the informal and farming sectors than other sectors.