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This paper identifies and decomposes sources that explain household economic well-being in Cameroon. It uses the 2001 and 2007 Cameroon Household Consumption Surveys, synthetic variables constructed by the multiple correspondence analysis and econometric approaches that correct for potential endogeneity and unobserved heterogeneity in a step-wise manner and simultaneously. Sources of well-being that explain poverty are then decomposed into growth and redistribution components. Variables that significantly explain household economic well-being are education, health, household size, fraction of active household members, working in the formal sector and area of residence. Decomposition analysis shows that the growth components largely account for changes in deprivation in terms of each regressed-income source. With the exception of the income source education, redistribution components slowed down progress in alleviating shortfall in other regressed-income sources. These results have implications for public interventions that affect education and health for all, labour market participation and infrastructure development. [ABSTRACT FROM AUTHOR]

Unemployment is more prevalent in urban than rural Ghana, while underemployment is pervasive in rural Ghana. The paper analyses trends in these two forms of human resource underutilization and examines their major determinants. It is found that a positive association exists between the underemployment rate and the incidence of poverty in specific industries. The data supports the importance of demographics, education and firm sizes as major determinants of unemployment. Furthermore, these factors together with type of employment are the factors influencing underemployment. To reduce the level of unemployment and underemployment, the government should provide support for: (1) growth of private sector firms and informal sector activities; and (2) rural alternatives to agricultural activities. These implications are also relevant to other African countries trying to combat the twin problems of unemployment and underemployment. [ABSTRACT FROM AUTHOR]