This study sought to investigate the effect of differences in
educational levels and wage earnings in Cameroon. To achieve this, data
was obtained from Cameroon household survey (ECAM4) database. The study
employed the regression-based decomposition technique and the Shapley
value approach to attain the objective. The findings revealed that there
was a positive relationship. Equally, the result further revealed that,
there was also a positive relationship between work experience and wage
earnings in Cameroon. More results indicated that primary education
explain 5.36% of inequality in wage earnings on a scale of 100.
Equally, secondary and higher education explain 1.09% and 0.03%
respectively. Meanwhile, work experience explains 27.17% of inequality
in wage earnings. Hours’ work, household’s size, age, sex, marital
status and residence explain 41.68%, 2.70%, 12.76%, 1.13%, 7.07%,
and 0.99% respectively. It was recommended that education for all
should be encouraged not only at the primary level as spelt out in the
development goals but even at tertiary levels. This can be done by
sensitizing parents on the importance of education for their children as
well as offering study leave possibilities to most workers. It can also
be done by further subsidizing education at the tertiary level.
Highlights - This study examined the effect of educational
levels on wage earnings in Cameroon using regression-based decomposition
and the Shapley value approach. - The findings revealed a positive
relationship between educational levels and wage earnings in Cameroon. -
Primary education explained 5.36% of wage earnings inequality, while
secondary and higher education explain 1.09% and 0.03% respectively. -
Work experience was a significant factor, explaining 27.17% of wage
earnings inequality.