Impact of Minimum Wage non-compliances on Employment in Cameroon

Joachem Meh Bin, Aloysius Mom Njong and Moses Ofeh Abit
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Joachem Meh Bin: Faculty of Economics and Management, University of Bamenda-Cameroon
Aloysius Mom Njong: Faculty of Economics and Management, University of Bamenda-Cameroon
Moses Ofeh Abit: Faculty of Economics and Management, University of Bamenda-Cameroon

International Journal of Research and Innovation in Social Science, 2022, vol. 6, issue 10, 208-214

Abstract: This paper investigates the impact of minimum wage theft for employment in Cameroon using the 2005 and 2010 Cameroon labour force surveys. To achieve these objectives, use is made of the Difference-in-Differences estimator, hackman two step approach, instrumental variables approach. Empirical results revealed that minimum wage theft is more prevalent, deeper and severer among rural (female) workers than their urban (male) counterparts. Results also reveals a negative relationship between minimum wage theft and employment in 2005 and a deeper disincentive effect on employment between 2005 and 2010. These findings suggest that government should increase minimum wage theft control and impose penalty for violating firms.

Date: 2022
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