ISSN 2756-3634
International Journal of Accounting, Auditing and Taxation ISSN: 2756-3634 Vol. 10 (6), pp. 001-008, June, 2023. © International Scholars Journals
Full Length Research Paper
Sector of activity and poverty status in Benin
Alastaire Sèna Alinsato* and Wilfied Houedokou**
*University of Abomey-Calavi Faculty of Economics and Management 02BP2163 Gbégamey-Cotonou
Republic of Benin, Cel (+229) 97871700
**CAPOD/Rep of Benin
Corresponding author Email: [email protected]
Accepted 09 January 2023
Abstract
This article, based on the theory of labor market segmentation tries to assess the participation in the labor market in connection with poverty status. Using cross-sectional data from household standard living condition survey of 2006 and K-means algorithm, the paper shows that the labor market in Benin consists in five segments that can be characterized by irregular workers, rural vulnerable independent, rural competitive salaried, urban competitive salaried and a mixed group of protected employees and independent with capital. The poverty profile for each segment is produced. The segments of rural vulnerable independent and that of the rural competitive salaried proved to be the poorest. The poverty status is estimated with a continuous censored dependent variable with selection controlled for by the conditional probabilities deriving from a multinomial logit. Results show the presence of unobserved factors affecting participation in segments that influence poverty status.
Keywords: K-mean algorithm, poverty, labor market, selection bias.