scholarly journals Micro-evidence on day labourers and the thickness of labour markets in South Africa

2014 ◽  
Vol 17 (4) ◽  
pp. 484-499
Author(s):  
Waldo Krugell ◽  
Philip F Blaauw
Keyword(s):  
Labour Market ◽  
Recent Work ◽  
South African ◽  
Informal Sector ◽  
Vocational Training ◽  
Labour Markets ◽  
Policy Implications ◽  
High Unemployment ◽  
Informal Sector Employment

The South African labour market is characterised by sharp segmentation, high unemployment and apparently limited informal sector employment.  Recent work has focussed on the importance of the Micro-evidence on day labourers and the thickness of labour markets in South AfricaThe South African labour market is characterised by sharp segmentation, high unemployment and apparently limited informal sector employment. Recent work has focussed on the importance of the quality of education while others have argued that the rigidity of the labour market constrains employment growth. This paper considers the spatial aspects of the day labour market and argues that the size and proximity of economic activity found in agglomerations ensure a thick labour market that allows for better matching between workers and jobs. The results indicate that the day labourers who were hired by the same employer more often received higher earnings. Once workers have a matric qualification they receive earnings above the average, as do workers who have completed vocational training. Skills, as well as factors associated with a thicker labour market are positively associated with wages. The thicker metropolitan labour market allows workers to become more specialised and receive higher earnings. This has important policy implications and calls for the development of people and places.

scholarly journals The dual labour market theory and the informal sector in South Africa

2006 ◽  
Vol 6 (1) ◽  
Author(s):  
M. D. Uys ◽  
P. F. Blaauw
Keyword(s):  
South Africa ◽  
Labour Market ◽  
South African ◽  
Working Conditions ◽  
Informal Sector ◽  
Policy Implications ◽  
Informal Employment ◽  
The South ◽  
Market Theory

Purpose of the paper: The purpose of this paper is to revisit the dual labour market theory as far as the informal sector in South Africa is concerned. The hypothesis is that the dual labour market theory must be extended in order to be applicable to the informal sector of the South African economy. It is our view that within some informal occupations a further segmentation exists. Problem investigated: Among South Africa ’s grave socio-economic problems, unemployment is one of the most serious and intractable. An increase in informal and self-employment was experienced during the last decades. Traditional dual labour market theory maintains that jobs can be roughly divided into two groups: those with low wages, bad working conditions, unstable employment and little opportunity for advancement; and those with relatively high wages, good working conditions and opportunities for advancement. The problem that confronts researchers is that even within informal employment, further segmentation is possible. Approach: To determine whether the dualism, that described by the dual labour market theory, is also present within the informal sector itself, available data on a typical informal sector activity, namely car guarding, is analysed. This provides the evidence to achieve the objective of this paper. Findings and implications: The case study of car guards confirms that the dual labour market theory can also apply within the informal sector on the condition that it is expanded to make provision for a further segmentation of the periphery sector. This finding presents several important policy implications. A basket of policies is needed to address the problem of unemployment as effectively as possible. Value of the research: The paper provides further knowledge on informal employment in South Africa. This is an area that requires a lot of attention, given the importance of the informal sector in South Africa and Africa at large. It goes further than the traditional implications stemming from the dual labour market theory. Conclusion: The South African labour market is fragmented, consisting of a well-paid formal sector and the periphery that consists of workers in the informal sector, subsistence agriculture and the unemployed. Within the periphery, there is the possibility that a certain degree of dualism exists. The case study of car guards confirms that the dual labour market theory can be extended to make provision for this dualism, even within the informal sector.

scholarly journals A high unemployment and labour market segmentation: A three-segment macroeconomic model

2019 ◽  
Vol 22 (1) ◽  
Author(s):  
Philippe Burger ◽  
Frederick Fourie
Keyword(s):  
Labour Market ◽  
South African ◽  
Informal Sector ◽  
Entry Barriers ◽  
Barriers To Entry ◽  
The South ◽  
Partial Explanation ◽  
Involuntary Unemployment ◽  
High Unemployment ◽  
Economic Framework

Background: South Africa suffers from an unusually high unemployment rate – officially averaging 25% since 1999Q3. In addition, depending on whether one uses the official or broad definitions of unemployment, since 2008 there are on average between 2 and 3.3 times as many unemployed people as there are people in the informal sector. Hence the question: why do the unemployed not enter the informal sector to create a livelihood?Aim: To fill this gap we propose a macro-economic framework that incorporates both formal (primary) and informal (secondary) sectors, as well as involuntary unemployment resulting from entry barriers to the labour market. We believe such a model provides a more suitable basis for macroeconomic policy analysis.Setting: Standard macroeconomic theories at best provide a partial explanation for the South African unemployment problem, focusing mostly on the formal sector.Methods: The article uses a theoretical analysis.Results: The article presents a macro-economic framework that incorporates both formal (primary) and informal (secondary) sectors, as well as involuntary unemployment resulting from entry barriers to the labour market.Conclusion: If the assumptions on which the model draws hold in the South African reality, then a solution to the unem-ployment problem involve policies addressing product and labour market structures and behaviour in the primary sector, as well as policies addressing the numerous barriers to entry, such as borrowing constraints, that poten-tial entrants into the secondary sector face.

scholarly journals An Analysis of Underemployment among Young Graduates: The Case of a Higher Education Institution in South Africa

Economies ◽  
2021 ◽  
Vol 9 (4) ◽  
pp. 196
Author(s):  
Daniel Francois Meyer ◽  
Precious Mncayi
Keyword(s):  
South Africa ◽  
Labour Market ◽  
South African ◽  
Online Survey ◽  
Binary Logistic Regression ◽  
Education Institution ◽  
Labour Markets ◽  
Policy Implications ◽  
Primary Data ◽  
Complete Measurement

Labour markets have undergone vast transformations over the last few years. There are arguments that employment and unemployment measures have not been adequate in understanding the complexities of labour markets. Research on labour underutilisation has focused on one side of the spectrum, which is just about the scarcity of jobs. However, there is more to the labour market than just scarcity of jobs, and many researchers believe unemployment is not a complete measurement of unused labour capacity, which is why this study aimed to investigate the existence of underemployment from the perceptions of young graduates themselves. In this regard, the definition of young people entailed those younger than 35 years as officially defined in South Africa. The study employed a primary data method of data collection in which an online survey was used to collect the necessary data from the alumni database of a South African university. The study used binary logistic regression to determine factors that contributed to or influenced underemployment status. The main findings indicated that underemployment was rife according to age, where younger graduates (20–29 years) were more likely to be underemployed compared to their more mature counterparts; that is, those in the 30–34 age category, with non-White graduates most likely to encounter underemployment compared to their counterparts. This study resulted in important findings that carry significant policy implications and recommendations that may be crucial in correcting the current employment mismatches in the South African graduate labour market.

scholarly journals The association between employment status and QOL among foreign origin populations in Finland

2020 ◽  
Vol 30 (Supplement_5) ◽  
Author(s):  
S Nyk'nen
Keyword(s):  
Quality Of Life ◽  
Secondary Data ◽  
Well Being ◽  
Labour Markets ◽  
Policy Implications ◽  
Equal Access ◽  
Foreign Origin ◽  
Perceived Quality Of Life ◽  
Gender Groups

Abstract Introduction In Finland the employment rate of people with foreign origin backgrounds appear to be 10% lower than in general population (73.7%). Contradictory, higher levels of self-perceived quality of life (QOL) has been reported among the same population. This secondary data analysis aims to examine the association between level of employment and quality of life from the survey on work and well-being among people of foreign origin in Finland (UTH, 2014). Methods People of foreign foreign origin, living in Finland were included in statistical analysis (n = 2,987). Pearson Chi-squared (χ2) and likelihood ratio (LR) testing as well as logistic regression analysis were used to study the association between independent variable 'employment' and the dependent variable of 'quality of life'. Results Employment showed increased odds for 'good' QOL. However, when comparing the two gender groups, the odds of having 'good' QOL in employed men were higher (OR: 2.17 CI 2.11 - 2.24) compared to employed women (OR: 1.50 CI 1.45 - 1.53) respectively. When adjusted for sociodemographic and confounding factors, the levels of strength of the association between employment and quality of life remained. Conclusions Women with foreign origin backgrounds seem not to have equal benefits of employment and/or equal access to labour markets in Finland. Validation about barriers of entering the labour market in Finland are further needed. Policy implications and actions are needed to improve equal access and benefits of employment for better well-being for women with foreign origin backgrounds. Key messages Women with foreign origin backgrounds seem not to have equal benefits of employment and/or equal access to labour markets in Finland. Policy implications and actions are needed to improve equal access and benefits of employment for better well-being for women with foreign origin backgrounds.

scholarly journals Recent internal migration and labour market outcomes: Exploring the 2008 and 2010 national income dynamics study (NIDS) panel data in South Africa

2014 ◽  
Vol 17 (5) ◽  
pp. 653-672 ◽  
Author(s):  
Nhlanhla Cyril Mbatha ◽  
Joan Roodt
Keyword(s):  
Labour Market ◽  
South African ◽  
Urban Areas ◽  
National Income ◽  
National Development ◽  
Labour Markets ◽  
Positive Outcomes ◽  
Income Dynamics ◽  
Informal Labour ◽  
The Unemployed

We began with the premise that South African recent migrants from rural to urban areas experience relatively lower rates of participation in formal labour markets compared to local residents in urban communities, and that these migrants are overrepresented in the informal labour market and in the unemployment sector. This means that rural to urban migrants are less likely than locals to be found in formal employment and more likely to be found in informal employment and among the unemployed. Using perspectives from Development Economics we explore the South African National Income Dynamics Study (NIDS) panel datasets of 2008 and 2010, which only provide a perspective on what has happened between 2008 and 2010. We find that while migrants in general experience positive outcomes in informal labour markets, they also experience positive outcomes in formal markets, which is contrary to expectations. We also find that there are strong links between other indicators of performance in the labour market. Earned incomes are closely associated with migration decisions and educational qualifications (e.g. a matric certificate) for respondents between the ages of 30 and 60 years. The youth (15 to 30 years old) and senior respondents (over the age of 60) are the most disadvantaged in the labour market. The disadvantage is further reflected in lower earned incomes. This is the case even though the youth are most likely to migrate. We conclude that migration is motivated by both push (to seek employment) and pull (existing networks or marriage at destination) factors. For public policy, the emerging patterns – indicative and established – are important for informing strategies aimed at creating employment and developing skills for the unemployed, migrants and especially the youth. Similar policy strategies are embodied in the National Development Plan (NDP), the National Skills Development Strategy (NSDS), etc.

scholarly journals Evaluation of Strengths of Dual Vocational Educational Training in Andalusia (Spain): A Stake on the Future

2020 ◽  
Vol 10 (12) ◽  
pp. 392
Author(s):  
María Teresa Pozo-Llorente ◽  
María de Fátima Poza-Vilches
Keyword(s):  
Labour Market ◽  
Vocational Training ◽  
Educational Institutions ◽  
Youth Employment ◽  
Autonomous Community ◽  
Educational Training ◽  
Continuous Growth ◽  
The Future

Dual Vocational Training was introduced in Spain in 2012 with the purpose to reinforce training based on employment requirements and to promote youth employment within the labour market. Since its implementation, there has been continuous growth of the presence of this modality across every Autonomous Community, with Andalusia being one of the latest regions to dualize the Vocational Educational Training (hereinafter VET) educational scheme. From the outset however, this modality has faced a number of obstacles that question its sustainability. Without losing sight of these obstacles, and with the purpose of providing arguments that justify the suitability of this model in Andalusia, this study aims to identify—from the unique perspective of three Andalusian educational institutions—the strengths of this modality and the opportunities that the Andalusian context offers. To this end, we have used the SWOT technique to analyse the opinion of a group of teachers regarding their thoughts on the Andalusian Dual VET system, from both an internal and external perspective. Workforce insertion and the quality of skills gained through training are some of the strengths that characterize this model, with the greatest opportunities derived from the needs of the Andalusian business and productive sectors. Based on the scenarios drawn, we have suggested a number of guidelines to capitalize on some of the identified strengths and take advantage of the opportunities observed.

Labour-Market Theory, Quantification, and Policy

1987 ◽  
Vol 19 (11) ◽  
pp. 1477-1494 ◽  
Author(s):  
S P Pinch
Keyword(s):  
Quantitative Analysis ◽  
Labour Market ◽  
Social Theory ◽  
Social Systems ◽  
Labour Markets ◽  
Policy Implications ◽  
Market Theory ◽  
Quantitative Studies ◽  
Local Labour ◽  
Level Of Agreement

This paper contains a consideration of the relationships between social theory, quantification, and policy in the context of changing local labour markets. It is argued that different theories have different policy implications which cannot be resolved by quantitative analysis because these various theories embody differing methodological assumptions. There is, however, a common low level of agreement over certain possible changes and tendencies in social systems and these can be probed by quantitative studies.

scholarly journals (Mis)managing labour markets? The decline of the contemporary global labour market for British seafarers.

2010 ◽  
Vol 10 (1) ◽  
Author(s):  
S. Ruggunan
Keyword(s):  
Labour Market ◽  
South African ◽  
Empirical Work ◽  
State Intervention ◽  
The Philippines ◽  
The State ◽  
Labour Markets ◽  
Extensive Literature ◽  
Theoretical Contribution ◽  
British State

Purpose: The purpose of this article is to investigate the ways in which states are still significant actors in creating and shaping the nature and characteristics of global labour markets. My argument is demonstrated through an empirical case study of the global labour market for British seafarers. Problem Investigated: The last 30 years has witnessed a decimation of the number of employed British seafarers, particularly at lower rank levels, such as ratings. I contend that despite Britain's long and rich maritime history, the British state has not acted meaningfully to reverse the decline of British seafarers. The lack of meaningful action I contend is an attempt to crew British owned ships with cheaper seafaring labour from Asia, particularly south east Asia. In so doing the British state has contributed to the decline of a once thriving labour market. There has simultaneously been an upsurge in the employment of seafarers of other nationalities, and thus the creation of new labour markets in countries such as the Philippines. This paper is an attempt to understand some of the factors responsible for the decline of the British labour market for seafarers. Methodology and Approach: This paper is the outcome of a larger qualitative study undertaken for my doctoral thesis in industrial sociology which examined the transformation of the global labour market for South African, Filipino and British seafarers. The methodology consists of in depth interviews with maritime officials and trade union leaders. These were conducted in person in London, United Kingdom between 2005 and 2008. These interviews are supported by extensive literature and documentary research, to validate, support and test claims made by my interviewees. Implications and Value of the Research: The theoretical contribution of this paper is to reinsert the state more critically into the literature on labour markets. Empirically, seafaring labour markets are largely ignored by the disciplines of both sociology and commerce. The paper attempts to fill this gap by investigating a much neglected occupational sector. Very little empirical work is being done by South African researchers on global labour markets outside South Africa. This paper is therefore primarily addressed to a South African audience. Conclusion: The paper demonstrates that the state has to be a willing and active partner in ensuring employment security of its worker-citizens in global labour markets. The private sector and organised labour by themselves are unable or unwilling to prevent massive job losses without state intervention. As increasing numbers of workers join global labour markets, states need to become more involved rather than less involved in ensuring the stability of employment for their citizens.

scholarly journals Effectiveness of Active Labour Market Programmes on the Job Quality of Welfare Recipients in Germany

2019 ◽  
Vol 48 (4) ◽  
pp. 807-838 ◽  
Author(s):  
KATHARINA DENGLER
Keyword(s):  
Propensity Score ◽  
Labour Market ◽  
Propensity Score Matching ◽  
Vocational Training ◽  
Job Quality ◽  
Welfare Recipients ◽  
High Quality ◽  
Active Labour ◽  
Active Labour Market Programmes

AbstractUsing rich administrative data on unemployed welfare recipients in Germany and propensity score matching, the author analyses the effects of participating in four major active labour market programmes (ALMPs) on various dimensions of job quality. In Germany, welfare recipients may suffer from poor job quality because they are forced to accept any reasonable job offer. However, few studies consider the effects of participation in ALMPs on job quality. The results imply that participation in a programme not only increases the probability of taking jobs but also increases the probability of holding a high-quality job for some dimension of job quality. In particular, further vocational training is very effective in terms of job quality for West German women. Thus, job centres should focus on the activation of unemployed welfare recipients.

Factors that affect discouragement: A South African labour market analysis

2020 ◽  
Vol 11 (1) ◽  
pp. 90-90
Author(s):  
Precious Mncayi ◽  
Jacques de Jongh
Keyword(s):  
South Africa ◽  
Labour Market ◽  
South African ◽  
Market Analysis ◽  
International Standards ◽  
Labour Markets ◽  
Employment Opportunities ◽  
Unemployment Rates ◽  
The World ◽  
Very High

Labour markets across the world have in recent years been characterised by instability and scare employment opportunities. Despite the fact that the 21st century has carried with it massive technological change and a rise in the significance of education for better employment prospects, it has moreover brought about expanded vulnerability which has neglected to ensure employment for work-searchers. For those who want to work, the inability to find employment has been a source of enormous adversities both personally and economically. This is not unique to South Africa as the country is plagued with very high unemployment rates across all age categories and continually rising numbers of discouraged work-seekers. Although unemployment indicators have to a great extent followed international standards, the failure to incorporate those who have abstained from searching has inadvertently contributed to a lack of understanding regarding the nature of discouragement in the labour market. Keywords: Employment, discouragement; work-seekers, labour markets, South Africa, unemployment.

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