Baye, Francis Menjo

Impact of education on inequality across the unconditional wage distribution in Cameroon

By Baye, Francis Menjo

This paper evaluates the impact of education on inequality using the recentered influence function regression and standard inequality measures. Results indicate that between 2005 and 2010, the returns to education declined from the 10th to the 50th percentiles, but increased at the upper tail of the distribution. Inequality is lower in the counterfactual education-equalising distribution, revealing the inequality increasing effect of education in the actual distribution. This implies that educational expansion widens inequality relative to educational equalisation. As such, policies that target disadvantaged groups in terms of educational attainment should be a key focus for policy interventions than educational expansion. © 2023 Informa UK Limited, trading as Taylor & Francis Group.