The adverse impact of the Covid-19 pandemic on the labor market in Cameroon.
TL;DR: In this paper, the impacts of the Covid-19 pandemic on employment in Cameroon were analyzed using data collected from a rapid survey led by the National Institute of Statistics, on a sample of 1,310 respondents from April to May 2020.
Abstract: This paper analyzes the impacts of the Covid-19 pandemic on employment in Cameroon. Using data collected from a rapid survey led by the National Institute of Statistics, on a sample of 1,310 respondents from April to May 2020. These data show that a large proportion of workers suffered a wage cut (60.93%) and temporary job suspension (31.6%), and the smallest proportion suffered job loss (7.47%). The results of the logistic regression show that lower frequency of outgoings to work, difficulties in accessing transport services and the loss of customer confidence have a strong negative impact on both wage cuts and temporary suspensions of work. The closure (total or partial) of activities has increasingly enhanced job loss. Further, the log of odds show that workers in private firms are more affected than their peers in public firms, and the middle-aged are the most affected group. So, it is recommended to revamp the old methods of activity into digital innovation that enables less physical touch and find an appropriate way to support those who have lost their jobs during this Covid-19 pandemic, particularly in the private sector.
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TL;DR: The study found that the COVID‐19 outbreak led to increases in food prices of the sampled countries, and restrictions on movements or lockdowns in the wake of CO VID‐19 was associated with an increase in the price of maize only.
Abstract: This study investigated the impact of the novel coronavirus disease 2019 (COVID-19) outbreak on prices of maize, sorghum, imported rice and local rice in sub-Saharan Africa (SSA). We estimated dynamic panel data models with controls for macroeconomic setting using general method of moments estimation. The study found that the COVID-19 outbreak led to increases in food prices of the sampled countries. Restrictions on movements or lockdowns in the wake of COVID-19 was associated with an increase in the price of maize only. We also found that exchange rate, inflation and crude oil prices exerted a detrimental effect on food prices. We recommend that governments of SSA countries invest in infrastructure that improves efficiencies in the food supply chain during pandemics. Providing adequate support to industries in the value chain will also improve food availability and food price stability post-COVID-19.
58 citations
TL;DR: A computable general equilibrium (CGE) model that assesses the impacts of the Covid-19 pandemic on different economic sectors in Cameroon has been presented in this paper, where a special feature of the CGE model used in this study is that it accounts for the importance of the informal sector in Cameroon.
Abstract: This paper presents a computable general equilibrium (CGE) model that assesses the impacts of the Covid-19 pandemic on different economic sectors in Cameroon A special feature of the CGE model used in this study is that it accounts for the importance of the informal sector in Cameroon Indeed, more than 80% of the employed work in the informal sector, which is characterized by the precariousness and instability of income and employment over time and space Simulation results suggest that economic sectors such as construction, education, hotels and restaurants and commerce should receive special attention, as they have experienced the most severe employments losses This calls for a differentiated support from the government to protect employment in these industries
11 citations
TL;DR: In this article , the authors analyzed the impact of malnutrition on infant mortality and life expectancy in 36 African countries during the 2003 to 2018 period and found that mild or moderate malnutrition reduces infant mortality, whereas severe malnutrition leads to an increase in deaths among children under 5 y.
7 citations
6 citations
TL;DR: In this article , the authors examined the impact of the COVID-19 pandemic on economies in Africa through the application of a novel Debt, Investment and Growth model with a segmented labor market.
Abstract: Abstract The article examines the impact of the COVID‐19 pandemic on economies in Africa through the application of a novel Debt, Investment and Growth model with a segmented Labor market (DIG‐Labor). The pandemic is modeled via supply shock that disrupts economic activities in countries in Africa, followed by effects on household consumption behavior and welfare, and business investment decisions. The DIG‐Labor model is calibrated to account for informality, which is a key characteristic of economies in Africa. We find that, in the absence of appropriate remedial measures, the COVID‐19 pandemic reduces employment in the formal and informal sectors and scales back consumption for savers and non‐savers, with the reduction in consumption being more pronounced for savers. These contractions lead to an economic recession in Africa and widen the fiscal and current account deficits, among others. The effects of fiscal stimulus packages in response to the COVID‐19 pandemic and various financing mechanisms are also examined. A key finding is that various policy responses to the emerging COVID‐19 induced macroeconomic imbalances have diverse implications, which should be carefully examined to mitigate the negative consequences while maximizing the opportunities for a swift, stronger and more inclusive economic recovery.
5 citations
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TL;DR: The economic downturn caused by the current COVID-19 outbreak has substantial implications for gender equality, both during the downturn and the subsequent recovery as discussed by the authors, which has a particularly large impact on working mothers.
Abstract: The economic downturn caused by the current COVID-19 outbreak has substantial implications for gender equality, both during the downturn and the subsequent recovery. Compared to “regular” recessions, which affect men’s employment more severely than women’s employment, the employment drop related to social distancing measures has a large impact on sectors with high female employment shares. In addition, closures of schools and daycare centers have massively increased child care needs, which has a particularly large impact on working mothers. The effects of the crisis on working mothers are likely to be persistent, due to high returns to experience in the labor market. Beyond the immediate crisis, there are opposing forces which may ultimately promote gender equality in the labor market. First, businesses are rapidly adopting flexible work arrangements, which are likely to persist. Second, there are also many fathers who now have to take primary responsibility for child care, which may erode social norms that currently lead to a lopsided distribution of the division of labor in house work and child care.
955 citations
TL;DR: The authors used a repeated large-scale survey of households in the Nielsen Homescan panel to characterize how labor markets are being affected by the covid-19 pandemic, and found that job loss has been significantly larger than implied by new unemployment claims.
Abstract: We use a repeated large-scale survey of households in the Nielsen Homescan panel to characterize how labor markets are being affected by the covid-19 pandemic. We document several facts. First, job loss has been significantly larger than implied by new unemployment claims: we estimate 20 million lost jobs by April 6th, far more than jobs lost over the entire Great Recession. Second, many of those losing jobs are not actively looking to find new ones. As a result, we estimate the rise in the unemployment rate over the corresponding period to be surprisingly small, only about 2 percentage points. Third, participation in the labor force has declined by 7 percentage points, an unparalleled fall that dwarfs the three percentage point cumulative decline that occurred from 2008 to 2016.
376 citations
TL;DR: In this paper, the authors make several contributions to understand the socio-demographic divide in early labor market responses to the U.S. COVID-19 epidemic and its policies, benchmarked against two previous recessions.
Abstract: We make several contributions to understanding the socio-demographic divide in early labor market responses to the U.S. COVID-19 epidemic and its policies, benchmarked against two previous recessions. First, monthly Current Population Survey (CPS) data show greater declines in employment in April and May 2020 (relative to February) for Hispanics, younger workers, and those with high school degrees and some college. Between April and May, all the demographic subgroups considered regained some employment. Re-employment in May was broadly proportional to the employment drop that occurred through April, except for Blacks who experienced a smaller rebound. Further, we show that compared to the 2001 recession and the Great Recession, employment losses in the early COVID-19 recession were smaller for groups with very low or very high (vs. medium) education. Second, we show that job loss was larger in occupations that require more interpersonal contact and that cannot be performed remotely. Third, we find pre-COVID-19 sorting of workers into occupations and industries along demographic lines can explain a sizeable portion of the gender, race, and ethnic gaps in new unemployment. For example, while women did suffer more job losses than men, their disproportionate pre-epidemic sorting into remote work compatible occupations shielded women from what would have been even larger employment losses during the epidemic. However, there remain substantial gaps in employment losses across groups that cannot be explained by socio-economic differences. We find some larger gaps in labor market impacts when we consider the “employed but absent from work” measure present in the CPS, in addition to the more traditional employment and unemployment measures. We conclude with a discussion of policy lessons and future research needs implied by the disparities in early labor market losses from the COVID-19 crisis.
313 citations
TL;DR: In this paper, the authors empirically studied the key drivers of gender equality in employment (proxied by the ratio of female employment rate to male employment rate for the age group 15-64 over the period, 1991 and 2009), using cross-sectional data.
Abstract: Gender equality in employment is currently one of the greatest development challenges facing countries globally, including those in Africa. In 2011, the male employment-to-population ratio, globally, was estimated at about 72.7 per cent compared to the female employment-to-population ratio of only 47.9 per cent. For Africa as a whole, the male employment-to-population ratio was estimated at about 69.2 per cent compared to the female employment-to-population ratio of only 39.2 per cent. In addition to analysing the characteristics of gender equality in employment in Africa, this paper empirically studies the key drivers of gender equality in employment (proxied by the ratio of female employment rate to male employment rate for the age group 15–64 over the period, 1991 and 2009), using cross-sectional data. Our results suggest that for the all-Africa and sub-Saharan African samples, increased democracy (and its quadratic form), higher gross domestic investment, more primary education, and higher urban share of the population increase gender equality in employment while higher level of real GDP per capita, higher foreign direct investment, sex population ratio, and being a net oil-exporting country tend to lower it. However, North Africa is different. Apart from a negative and highly significant North African dummy in the overall results, the North African specific sample result indicates that while the quadratic element of real GDP per capita, higher gross domestic investment, higher urban share of the population, more secondary education, and being an oil-exporting country increase gender equality in employment, higher levels of real GDP per capita, more primary education, and sex population ratio tend to lower gender equality in employment in the sub-region. The policy implications and lessons of these results are discussed. These policies are directed at making the African labor market more inclusive and hence enhancing women's employment for the purpose of greater economic empowerment, household welfare and poverty reduction, in particular.
89 citations
TL;DR: It is recommended that SSA countries should make efforts to increase health expenditure with a view to reducing the burden of private health spending on individuals, particularly through effective health insurance schemes, which will enable people to save against financial crisis that may arise due to ill health, thereby reducing out-of-pocket health expenditure.
Abstract: The study examines the effect of health expenditure on health outcomes in sub-Sahara African (SSA) countries. These countries have made significant efforts in increasing health expenditure over the years, with the aim of improving health outcomes. Despite this, health outcomes have only responded marginally, raising concerns on the significance of health expenditure in improving health outcomes. The data for the study were sourced from the 2014 World Bank's World Development Indicators for a sample of 40 SSA countries. The study was based on the Grossman Human Capital Model on the demand for health and the fixed effect was used in the empirical analysis. The findings indicate that health expenditure has a significant but inelastic effect on health outcomes in SSA, reducing mortality rates and improving life expectancy at birth. Reductions in mortality rates were significantly influenced by public health expenditure, whereas improvements in life expectancy at birth were significantly influenced by private health expenditure. There is, however, a strong complementary relationship between public and private health expenditures in SSA, despite the dominance of the former over the latter. Given the significant but inelastic effect of health expenditure on health outcomes, the study recommends that SSA countries should make efforts to increase health expenditure in order to improve health outcomes. In particular, there should be deliberate efforts to increase public health expenditure with a view to reducing the burden of private health spending on individuals. This perhaps can be achieved through effective health insurance schemes, which will enable people to save against financial crisis that may arise due to ill health, thereby reducing out-of-pocket health expenditure.
64 citations