Abstract
In this paper, we use the quasi-experimental evaluation involves examining gender and sector
earnings gaps in Cameroon using data from an original household consumption surveys. We investigate
whether there are gender differences in earnings between formal and informal workers. Given that the
choice to work in formal or informal sector may be related to outcomes, we use a Probit selection model
and a switching regression model with endogenous switching to control for potential sample selection
bias.We also use the most common approach : OaxacaBlinder decomposition to identifying sources of
gender wage gaps. The estimates are obtained using the log of hourly rather than monthly earnings
to take account of the heterogeneity of working hours in different sectors. There is a very close link
between gender and the employment sector and earnings. Women have over 6 % likely more than men
to work in the informal sector. Then, implementing switching regression model, we find that there is
a gross wage penalty of a little over 11.8 % for women working in the informal sector, whereas the
gender earnings gap in the formal sector is around 5.9 %. In other words,the earnings penalty tends
to be greater for women than for men in both sectors. Our analyses thus highlights the importance to
face gender earnings in order to achieve development agenda.