Early Human Capital Accumulation and Decentralization

TL;DR

This paper models decentralization in Cameroon, predicting positive effects on early human capital accumulation, especially when local authorities effectively utilize information, with empirical evidence supporting these predictions.

Contribution

It introduces a simple hierarchy model to analyze decentralization effects and provides empirical evidence of positive impacts on human capital in Cameroonian municipalities.

Findings

Decentralization positively impacts early human capital accumulation.

Effects are consistent across Anglophone and Francophone municipalities.

Larger effects are observed at advanced primary school levels.

Abstract

Decentralization is a centerpiece in Cameroonian's government institutions' design. This chapter elaborates a simple hierarchy model for the analysis of the effects of power devolution. The model predicts overall positive effects of decentralization with larger effects when the local authority processes useful information on how to better allocate the resources. The estimation of the effects of the 2010's power devolution to municipalities in Cameroon suggests a positive impact of decentralization on early human capital accumulation. The value added by decentralization is the same for Anglophone and Francophone municipalities; the effects of decentralization are larger for advanced levels of primary school.