Labour Contracts and Performance of Cameroonian Firms

Benjamin Fomba Kamga ()
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Benjamin Fomba Kamga: University of Yaounde II

No 6211, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: The aim of this study is to evaluate employees' productivity in relation to their contract status. This study uses (a) survey data collected among manufacturing sector firms, having more than 15 employees, in Cameroon between April and May 2006 and (b) information issued by the National Institute of Statistics. Information collected concerned 45 firms spanning the period 2003 to 2005. This study uses the stochastic production frontier, distinguishing employees holding fixed-term contract (FTC) from employees that do not have fixed-term contracts (indefinite-term contract (ITC)). Results are estimated in 2 stages. First, we evaluate the determinants of the utilisation of FTC workers and second, we estimate the level of efficiency and productivity of two types of workers. Empirical results indicate that employees holding FTC are twice more productive than those holding ITC. Likewise, parameters indicating returns to scale are 1.3. This parameter, though not significant, is greater than one indicating constant returns to scale in the firm production function.

Keywords: labour contract; fixed-term contract; indefinite-term contract; production frontier (search for similar items in EconPapers)
JEL-codes: J41 J82 L25 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2011-12
New Economics Papers: this item is included in nep-eff, nep-hrm, nep-lab and nep-lma
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