Transitions into informal employment: an analysis of South African panel data: 2008-2012
- Authors: Muttze, Takudzwa
- Date: 2016
- Language: English
- Type: Thesis , Masters , MEcon
- Identifier: http://hdl.handle.net/10962/4498 , vital:20682
- Description: South Africa’s labour market is characterised by high unemployment but relatively low levels of informal employment, making it distinct from other developing countries. The existing literature appears to show evidence of high mobility rates of labour across labour market states. The coexistence of high labour mobility rates, yet high unemployment and weak informal employment in South Africa’s labour market is therefore puzzling. Considerable research has been done to explain this phenomenon and has suggested that barriers to informal entrepreneurship form the key reason why informal employment is relatively low in South Africa compared to other developing countries. Worker transitions have however not been a focal question in the literature. Using data from the National Tncome Dynamics Study (NTDS 2008-2012), this study sought to examine the characteristics of workers who move into informal employment, attaching importance to those who become self-employed. Transition matrices are constructed showing the proportion of workers who stayed or moved into different labour market states between 2008 and 2012, and linking the movements to 2008 personal characteristics. Churning between labour market states was found to be relatively high, albeit formal wage employment exhibiting immobility. Transitions out of informal employment were high, reflecting its survivalist nature. Conversely, those from unemployment into informal employment, particularly self-employment were low. Using the probit regression model, transitions to informal employment were found to be more associated with workers who are generally marginalised from formal employment opportunities. The results suggest that the South African labour market is to a larger extent not reflective of the Dualist narrative of ease of movement of workers from unemployment into informal employment and barriers into informal entrepreneurship are high. To date, policies which have sought to encourage informal entrepreneurship have not been a success. A central challenge to policymakers is to create an enabling environment for the unemployed to start their own informal businesses. This has the potential of reducing unemployment and poverty rates in the country.
- Full Text:
- Date Issued: 2016
- Authors: Muttze, Takudzwa
- Date: 2016
- Language: English
- Type: Thesis , Masters , MEcon
- Identifier: http://hdl.handle.net/10962/4498 , vital:20682
- Description: South Africa’s labour market is characterised by high unemployment but relatively low levels of informal employment, making it distinct from other developing countries. The existing literature appears to show evidence of high mobility rates of labour across labour market states. The coexistence of high labour mobility rates, yet high unemployment and weak informal employment in South Africa’s labour market is therefore puzzling. Considerable research has been done to explain this phenomenon and has suggested that barriers to informal entrepreneurship form the key reason why informal employment is relatively low in South Africa compared to other developing countries. Worker transitions have however not been a focal question in the literature. Using data from the National Tncome Dynamics Study (NTDS 2008-2012), this study sought to examine the characteristics of workers who move into informal employment, attaching importance to those who become self-employed. Transition matrices are constructed showing the proportion of workers who stayed or moved into different labour market states between 2008 and 2012, and linking the movements to 2008 personal characteristics. Churning between labour market states was found to be relatively high, albeit formal wage employment exhibiting immobility. Transitions out of informal employment were high, reflecting its survivalist nature. Conversely, those from unemployment into informal employment, particularly self-employment were low. Using the probit regression model, transitions to informal employment were found to be more associated with workers who are generally marginalised from formal employment opportunities. The results suggest that the South African labour market is to a larger extent not reflective of the Dualist narrative of ease of movement of workers from unemployment into informal employment and barriers into informal entrepreneurship are high. To date, policies which have sought to encourage informal entrepreneurship have not been a success. A central challenge to policymakers is to create an enabling environment for the unemployed to start their own informal businesses. This has the potential of reducing unemployment and poverty rates in the country.
- Full Text:
- Date Issued: 2016
A review of local government performance from 2004 - 2008: Sakhisizwe Local Municipality
- Authors: Dyani, Christopher Sidima
- Date: 2016
- Subjects: Local government -- South Africa -- Eastern Cape , Public administration -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MA
- Identifier: http://hdl.handle.net/10948/6271 , vital:21064
- Description: Loosely defined as “political units or instruments constituted by law (the peculiar or unique characteristics of which is their subordinate status to the central government) which have substantial control over local affairs and likewise have the power to tax” (Nyalunga, 2006: 15), local governments, and municipalities in particular, have been in existence since the early history of Anglo-Saxon England (post 1870). As political units, local governments have defined areas, defined populations, organised administrative structures and the authority to undertake and the power to carry out public activities within such defined areas (Nyulunga, 2006: 15). In the three-tiered form of government that is dominant world-wide, local government is the lowest sphere of government and, as such, “is often the first point of contact between an individual and a government institution” (Thornhill, 2008: 492). Although a number of different forms and structures of local government exist in the world, as it evolved, three critical matters defined the nature of local government in any particular country. Firstly, local government is defined by the extent of local self-government. Secondly, it is the autonomy and discretionary powers of the municipality and, thirdly, it is the extent to which the municipality is a momentous force in the lives of the people within a given area (Nyulunga, 2006: 16). Therefore, a consideration if these three defining factors provide clarity in terms of the nature of local government in a particular country. Due to the form of the South African state, which is a unitary state, South Africa established a system of local government aimed at governing various areas throughout the country. For the greater part of the country‟s history prior the 1994 democratic elections, what distinguished the South African local government system from the rest of the world was its relationship with the people it sought to govern. While in the majority of cases around the world municipalities were concerned with the welfare of all their citizens, in South Africa, the successive apartheid regimes worked tirelessly at the adoption and systematic enforcement of draconian policies that effectively brought misery to the majority of the South African population. Pieces of legislation, such as the various Natives Acts, the Reservation of Separate Amenities Act, and the Group Areas Act, implemented through local government – the form of government closest to the people – ensured that South Africa experienced gross human rights violations, the economic exclusion of the majority of the populace, separate and unequal development and, in effect, an absolute monopoly of social, economic and political power by the white minority (Landsberg and Mackay, 2006: 1). Given the immediate impact municipal policies had on the people they sought to govern - this as a direct result of the proximity of this sphere of government to the people - it is not surprising that this level of government was the first casualty in the apartheid resistance campaign led by various liberation movements in the country. With systematic protests against various local government actions, coupled with boycotts of municipal rates and taxes, local government increasingly became detached from the population it served and consequently, was rendered dysfunctional. The election of F.W. De Klerk as the president of South Africa in 1989 proved to be a turning point in the historical trajectory of the country. Understanding the deleterious effects that the repressive policies had on the country‟s social structure, both economically and politically, De Klerk embarked on a road less travelled by opening channels for negotiation between government (and by extension the National Party) and the liberation movements in the country (particularly the African National Congress). As such, from 1990, various political organisations, such as the African National Congress (ANC), the Pan Africanist Congress (PAC), the South African Communist Party (SACP) and the Inkatha Freedom Party (IFP) among others, which had, for many years, been banned on the basis of them being seen as terrorist organisations, were unbanned. This was accompanied by the unconditional release of political prisoners, including South Africa‟s first democratically elected President, Nelson Rolihlahla Mandela. One of the key outcomes of the negotiations that took place in the early 1990s was the development of the Interim, or Transitional, Constitution, Act 200 of 1993. This was an important document in that it provided a „historic bridge‟ between the apartheid state and the democratic dispensation that millions of South Africans aspired to. Additionally, this document provided a framework for the continued governance of South Africa pending the country‟s first democratic elections. The continued governance that the Interim Constitution provided for meant balancing human rights and the continued existence of the state and/or government. This was an important matter, particularly for local government, in that “a fragmented and incoherent range of local authorities cannot be transformed in one process as the negotiators for a democratic system of government wanted to ensure continuity in service provision” (Thornhill, 2008: 494). The temporal reprieve provided by the Interim Constitution allowed the negotiators to deal with the details of what would be the post-apartheid local government system of South Africa. The democratic government that emerged after the watershed event of 1994, under the stewardship of Nelson Mandela, had the immediate task of dismantling the apartheid legacy that had defined the country for many years and moving the country closer to achieving the democratic promise of a better life for all citizens. Practically, and importantly for the transformation of local government, this meant instilling democratic values and principles that would ensure that local government was responsive to the needs of the people and that it remained accountable to the electorate (the Presidency, 2003: 11). The ideal of the incoming democratic government was to transform this sphere of government into one that would ensure inclusive growth and development and equitable redistribution of the wealth of the country such that all people would have equal opportunity for a better life. It is important to note that the elections that were held on 27 April 1994 were only national and provincial elections. Local government elections could not be held at this point, simply because the new constitutional dispensation had not been finalised (Thornhill, 2008: 495). All parties to the negotiations agreed that the process of finalising the Constitution would be done through a democratically elected Constitutional Assembly. It was only after the Constitution of the Republic of South Africa, Act 108 of 1996 (the Constitution), was finalised, that the first local government elections could be held.
- Full Text:
- Date Issued: 2016
- Authors: Dyani, Christopher Sidima
- Date: 2016
- Subjects: Local government -- South Africa -- Eastern Cape , Public administration -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MA
- Identifier: http://hdl.handle.net/10948/6271 , vital:21064
- Description: Loosely defined as “political units or instruments constituted by law (the peculiar or unique characteristics of which is their subordinate status to the central government) which have substantial control over local affairs and likewise have the power to tax” (Nyalunga, 2006: 15), local governments, and municipalities in particular, have been in existence since the early history of Anglo-Saxon England (post 1870). As political units, local governments have defined areas, defined populations, organised administrative structures and the authority to undertake and the power to carry out public activities within such defined areas (Nyulunga, 2006: 15). In the three-tiered form of government that is dominant world-wide, local government is the lowest sphere of government and, as such, “is often the first point of contact between an individual and a government institution” (Thornhill, 2008: 492). Although a number of different forms and structures of local government exist in the world, as it evolved, three critical matters defined the nature of local government in any particular country. Firstly, local government is defined by the extent of local self-government. Secondly, it is the autonomy and discretionary powers of the municipality and, thirdly, it is the extent to which the municipality is a momentous force in the lives of the people within a given area (Nyulunga, 2006: 16). Therefore, a consideration if these three defining factors provide clarity in terms of the nature of local government in a particular country. Due to the form of the South African state, which is a unitary state, South Africa established a system of local government aimed at governing various areas throughout the country. For the greater part of the country‟s history prior the 1994 democratic elections, what distinguished the South African local government system from the rest of the world was its relationship with the people it sought to govern. While in the majority of cases around the world municipalities were concerned with the welfare of all their citizens, in South Africa, the successive apartheid regimes worked tirelessly at the adoption and systematic enforcement of draconian policies that effectively brought misery to the majority of the South African population. Pieces of legislation, such as the various Natives Acts, the Reservation of Separate Amenities Act, and the Group Areas Act, implemented through local government – the form of government closest to the people – ensured that South Africa experienced gross human rights violations, the economic exclusion of the majority of the populace, separate and unequal development and, in effect, an absolute monopoly of social, economic and political power by the white minority (Landsberg and Mackay, 2006: 1). Given the immediate impact municipal policies had on the people they sought to govern - this as a direct result of the proximity of this sphere of government to the people - it is not surprising that this level of government was the first casualty in the apartheid resistance campaign led by various liberation movements in the country. With systematic protests against various local government actions, coupled with boycotts of municipal rates and taxes, local government increasingly became detached from the population it served and consequently, was rendered dysfunctional. The election of F.W. De Klerk as the president of South Africa in 1989 proved to be a turning point in the historical trajectory of the country. Understanding the deleterious effects that the repressive policies had on the country‟s social structure, both economically and politically, De Klerk embarked on a road less travelled by opening channels for negotiation between government (and by extension the National Party) and the liberation movements in the country (particularly the African National Congress). As such, from 1990, various political organisations, such as the African National Congress (ANC), the Pan Africanist Congress (PAC), the South African Communist Party (SACP) and the Inkatha Freedom Party (IFP) among others, which had, for many years, been banned on the basis of them being seen as terrorist organisations, were unbanned. This was accompanied by the unconditional release of political prisoners, including South Africa‟s first democratically elected President, Nelson Rolihlahla Mandela. One of the key outcomes of the negotiations that took place in the early 1990s was the development of the Interim, or Transitional, Constitution, Act 200 of 1993. This was an important document in that it provided a „historic bridge‟ between the apartheid state and the democratic dispensation that millions of South Africans aspired to. Additionally, this document provided a framework for the continued governance of South Africa pending the country‟s first democratic elections. The continued governance that the Interim Constitution provided for meant balancing human rights and the continued existence of the state and/or government. This was an important matter, particularly for local government, in that “a fragmented and incoherent range of local authorities cannot be transformed in one process as the negotiators for a democratic system of government wanted to ensure continuity in service provision” (Thornhill, 2008: 494). The temporal reprieve provided by the Interim Constitution allowed the negotiators to deal with the details of what would be the post-apartheid local government system of South Africa. The democratic government that emerged after the watershed event of 1994, under the stewardship of Nelson Mandela, had the immediate task of dismantling the apartheid legacy that had defined the country for many years and moving the country closer to achieving the democratic promise of a better life for all citizens. Practically, and importantly for the transformation of local government, this meant instilling democratic values and principles that would ensure that local government was responsive to the needs of the people and that it remained accountable to the electorate (the Presidency, 2003: 11). The ideal of the incoming democratic government was to transform this sphere of government into one that would ensure inclusive growth and development and equitable redistribution of the wealth of the country such that all people would have equal opportunity for a better life. It is important to note that the elections that were held on 27 April 1994 were only national and provincial elections. Local government elections could not be held at this point, simply because the new constitutional dispensation had not been finalised (Thornhill, 2008: 495). All parties to the negotiations agreed that the process of finalising the Constitution would be done through a democratically elected Constitutional Assembly. It was only after the Constitution of the Republic of South Africa, Act 108 of 1996 (the Constitution), was finalised, that the first local government elections could be held.
- Full Text:
- Date Issued: 2016
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