Labour market segmentation in Cameroonian manufacturing
利用喀麦隆经济危机作为自然实验,检验了劳动力市场分割的不同成因,发现直接立法是主要因素,而正规化成本导致的配给效应证据有限。
The economic crisis in Cameroon has provided a test for distinct causes of labour market segmentation. Many firms that previously followed rigid legislation have ceased to do so, while a traditional informal sector has continued outside almost all regulation. We categorise workers as informal, formal, or regulated, by firm characteristics, and test for labour market segmentation between these sectors. Direct legislation is the most significant cause of segmentation. We find limited evidence that the costs of becoming formal create rationing in formal‐sector jobs. While addressing both sets of rigidities would have maximum impact on unemployment in Cameroon, reforming direct labour legislation is likely to have the most beneficial short‐term impact.