Structure of Sectoral Decomposition of Aggregate Poverty Changes in Cameroon

Abstract: This paper reviews theoretical frameworks for sectoral decomposition and assesses the within‐ and between‐sector contributions to changes in aggregate poverty in Cameroon informed by the Shapley Value decomposition rule. Between 1984 and 1996 poverty remained a rural phenomenon in Cameroon. It became more widespread, deeper and severer in both rural and urban areas, but more so in urban than rural areas. While the within‐sector effects disproportionately accounted for the increase in poverty in the period 1984–96, the between‐sector contributions in both rural and semi‐urban areas played a mitigating role on the worse effects of the increase in poverty. These findings infer the potential positive feedback effects of migration such as remittances, and/or increases in rural consumption expenditure in the face of rural underemployment, as effective strategies used by migrants to lift their families and villages out of the worse effects of poverty. The implication of this interpretation is that decision‐makers need to better understand the factors that push or pull potential migrants. Rural–urban mobility could, therefore, be viewed as a strategy used by households to moderate the worse effects of poverty and a vector of shared growth. The implications for public policy, in terms of open unemployment and associated social and insecurity problems at the receiving end, point to the wisdom of addressing the push‐factors via targeting more in favour of rural areas.