Download or read book Linking Migration and Household Welfare in Cameroon: Zooming Into the Effect of Return Migration on Self-employment written by Belmondo Tanankem Voufo and published by . This book was released on 2017 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: International migration and its impacts on development is a crucial theme widely discussed in Cameroon. Although Cameroonians, especially the youth, have long been traveling, studying or living abroad, the idea of finding better living conditions elsewhere has gained prominence over the recent years. According to the most recent estimates from the International Organization for Migration (IOM), the number of Cameroonians living abroad was estimated at 170,363 in 2007, for a population estimated at 20 million inhabitants. Moreover, in 2016 official remittances inflows to Cameroon were estimated at US$ 250 million, up from US$ 135 million in 2010, and representing approximatively 0.9% of GDP. There are evidences around the world supporting the existence of significant links between migration and remittances and (1) employment (including self-employment), (2) households welfare, and (3) income distribution and economic development. However, despite the substantial number of Cameroonians living abroad and the large amount of remittances inflows to the country, the effects of migration and remittances on development outcomes are still not well known. The available studies have investigated the effects of migration on income poverty and on the education of left behind children, as well as the effects of remittances on households expenditures. To the best of our knowledge, the effects on non-monetary poverty and employment have not been explored. This research thus seeks to contribute to a better understanding of the effects of migration and remittances on household welfare and labour market participation in Cameroon, by answering the two following questions: (i) How do migration and remittances affect households welfare in Cameroon? (ii) How do migration and remittances affect labour market participation (self-employment) in Cameroon? These research questions are relevant for Cameroon from a policy viewpoint, considering not only the countrys rich migration experience but also the fact that the Government is currently implementing the Growth and Employment Strategy Paper, which aims to improve households living conditions and create job opportunities, among others. A well-articulated and well-managed migration and remittances policies can help the Government achieving these development objectives. Findings from the current study could then support policies and actions toward the creation of the enabling environment that fosters the contribution of migration to the countrys development. The data used for the analyses were gathered from the survey on the impact of migration on development in Cameroon conducted in 2012 by the Observatory on Migration of the African Caribbean Organization, in collaboration with the Institute of Demographic Research and Training. The data set counts 1,235 households, of which 453 (or 36.68%) have an absent migrant, and 294 (23.80%) a return migrant. For 83.45% of households with absent migrant, the migrant resides in an African country. Moreover, having an absent migrant does not necessarily leads to reception of remittances by the household. Indeed, 52.82% of households with absent migrants received remittances in the past 12 months prior to the survey. Remittances recipient households generally have higher monthly per capita expenditures than non-recipient ones. They also allocate less of their budget on food expenditures, and more on education expenditures than their non-recipient counterparts. Migration and remittances may then contribute to human capital accumulation through investment in education. To further investigate the impact of migration and remittances on household welfare, we used the Principal Component Analysis to construct an asset index combining 26 assets variables capturing ownership of household consumer goods (TV, washing machine, radio, etc.), productive assets (land, agricultural equipment, livestock, etc.), and access to basic utility services (potable water, electricity, sanitation, etc.). The welfare index is also broken down into three sub-indexes capturing ownership of household consumer goods, ownership of productive assets and access to basic utility services. Remittances can indeed reduce income poverty in the short run, but if remittances help household accumulating productive assets, diversifying their income sources through entrepreneurial activities, then a significant poverty reduction effect in the long run will be possible. The study finds that having a migrant member or receiving remittances increases the households per capita expenditures, and reduces the likelihood of living below the poverty line. In addition, migration and remittances contribute to the accumulation of consumer assets, to access to basic utility services, but do not significantly affect productive assets ownership. Besides, self-employment is more likely to occur in households having a return migrant, while receiving remittances decreases the likelihood of being self-employed. Meanwhile, the effect of the presence of absent migrants in the household on self-employment decision is negative but insignificant. Our results then show that while migrants staying abroad contribute to the left-behind families welfare improvement through the remittances they send, the returnees are more prone to set-up a business hence generating employment opportunities. To support these entrepreneurs, the Government should intervene to create an enabling environment, by improving the business environment and making it easier to access finances.