Performance of land reform projects in the North West province of South Africa: Changes over time and possible causes

Anecdotal evidence as well as selected studies on the performance and progress of South Africa’s land reform programme generally present mixed to rather negative results. Few longitudinal studies exist on the progress of redistributed farms, resulting in an incomplete picture of the performance and progress of land reform projects. In this article, we report on the progress and performance of a group of land reform projects in the North West province of South Africa over five years. As part of a comprehensive audit of land reform projects in the North West province, 43 farms were studied in 2005 to assess their performance, based on their production status. Five years later, in 2010, 37 of these farms were visited again to review their progress. The results indicate that the production status (and thus performance) of land reform projects is not static. Although some projects either improved or maintained their initial production status, the overall trend shows deterioration in performance. Numerous factors are responsible for the decline, including group characteristics where farms are owned by groups of beneficiaries. This article is thus the first to use two surveys of a group of land reform projects to show the true status of farms in their post-transfer phase in South Africa.     

New evidence on subjective well-being and the definition of unemployment in South Africa

Access to new nationally representative, individual-level panel data from South Africa has allowed for the revalidation of Kingdon and Knight's discussion on the definition of unemployment. This paper investigates subjective well-being as a measure of comparison between labour-market statuses. It finds that on the grounds of subjective well-being the non-searching unemployed (or ‘discouraged’) are significantly worse-off than the not economically active. Moreover, evidence suggests that, with regard to the relationship between life satisfaction and labour-market status, the non-searching unemployed consistently are the worst-off. This is especially true of both the young and senior non-searching unemployed; however, the findings are largely driven by the African subsample. This paper does not advocate for a change in the official definition of unemployment but does advocate for the inclusion and recognition of the non-searching unemployed in policy relating to labour and development in South Africa.     

Labour unions and wage inequality among African men in South Africa

One Achilles' heel of post-Apartheid South Africa is the growing intra-racial income inequality, particularly among Africans. This paper examines the role of labour unions in explaining this phenomenon among African men given that labour markets are at the core of income inequality in South Africa. Using cross-sectional data drawn from Labour Force Surveys for 2001–10, we find a monotonically declining union wage premium. Further, our results indicate that unions have both compressionary and disequalising effects on wages. The disequalising effect dominates the compressionary effect, suggesting that unions have a net effect of increasing wage inequality among African men in South Africa. This finding implies that there is scope for unions to reduce inequality through initiatives that promote wage compression.     

Inequality in South Africa: The distribution of income,expenditure and earnings

This article empirically analyses the state of inequality in South Africa. International comparisons show South Africa to be among the most unequal countries in the world. The levels of income inequality and earnings inequality are analysed with a range of measures and methods. The results quantify the extremely high level of inequality in South Africa. Earnings inequality appears to be falling in recent years, with relative losses in the upper-middle parts of the earnings distribution. Decomposing income inequality by factor source reveals the importance of earnings in accounting for overall income inequality. The article concludes by observing that, internationally, significant sustained decreases in inequality rarely come about without policies aimed at achieving that, and suggests that strong policy interventions would be needed to reduce inequality in South Africa to levels that are in the range typically found internationally.     

Underemployment in South Africa

With the introduction of the Quarterly Labour Force Survey since 2008, a newly derived variable, namely underemployed, has become available. It is derived according to the ‘time-related’ approach (i.e. those who are employed, but would like to work longer hours and are available to work longer hours in the near future). However, underemployment could also be derived according to the ‘inadequate employment situations’ approach (e.g. under-utilisation of skills, over-qualification). Because underemployment is a seriously under-researched topic in South Africa, this article investigates the extent of underemployment according to these two definitions, before examining whether the characteristics of the two groups of underemployed are significantly different.     

Measurements and determinants of multifaceted poverty in South Africa

Poverty, despite being a multifaceted concept, is commonly measured in either absolute or relative monetary terms. However, it can also be measured subjectively, as people form perceptions on their relative income, welfare and life satisfaction. This is the first study that uses the National Income Dynamics Study data to analyse poverty across various objective and subjective methods. The paper finds that while respondents' poverty status varies across methods, blacks remain the racial group most likely to be defined as poor by at least one method. The multivariate analysis reveals that the impact of some explanatory variables, such as experience of negative events, frequency of crime victimisation, health status and importance of religious activities, is mixed across methods.     

The Food (In)Security Impact of Land Redistribution in South Africa: Microeconometric Evidence from National Data

The South African land-reform program has been widely criticized for its slow pace as well as its apparent lack of contribution to poverty reduction. No econometric evidence of the impact of land transfers has been provided to date and this paper attempts to fill this gap by considering the impact of receiving a land grant on households’ food insecurity. Propensity score matching and univariate probit estimates using two national household surveys indicate that, on average, land grant recipients are more food insecure than comparable non-participants. Recursive bivariate probit estimates suggest that selection bias is not driving this result.     

The growth,poverty and inequality nexus in South Africa: Cointegration and causality analysis

This study empirically established the long-run relationship and causality effects that exist between growth, poverty and inequality. The analysis was carried out on a panel of nine South African provinces from 1995 to 2012. To capture poverty and inequality in a broader context, two measures of poverty (income and non-income) and three measures of inequality (income, education and land) were adopted for the study. The results confirm that there is a long-run relationship between growth, poverty and inequality. Notable results from the causality tests suggest that growth does not promote equal distribution of income in society but as income distribution begins to equalise, economic growth rises. This is regarded as growth–inequality disconnect. The unidirectional causality, which runs from income poverty to income inequality, suggests that a rising level of income poverty will lead to falling income inequality in the society; likewise, income inequality increases as non-income poverty declines.     

马克思恩格斯土地所有制理论及其现实意义

土地所有制理论在马克思主义经济学理论体系中具有十分重要的地位。马克思和恩格斯一贯反对土地私有化,他们认为土地私有是荒谬性的、不合理的,因而主张土地公有。实现土地公有化有两种途径,一是对于大地产要收归国有并交由农业工人组成的农业生产合作社经营;二是对农民的小块土地所有制,应采取农民合作社的形式促使其向集体所有制过渡。当前我们应以马克思恩格斯土地所有制理论为指导,继续坚持我国农村土地集体所有制,反对部分学者提出的土地私有化主张;以新型农民合作社为载体继续发展壮大我国农村的集体经济。     

Labour Market Dynamics in South Africa at the Onset of the COVID-19 Pandemic

This paper conducts an analysis of labour market dynamics in South Africa during the initial period of lockdown, from the end of March to the end of April 2020, using the first wave of the NIDS-CRAM (2020) survey. Within our sample of over 6,000 adults aged 18 to 59, we found that there was a very large decrease in employment. The fraction of the sample that was conventionally classified as employed decreased from 57% in February to 48% in April. If we further exclude temporarily absent workers, which we term “furloughed” employees, this fraction decreases further to 38%. Thus, about one out of every three employed people in our sample either lost their job or did not work and received no wages during April. This has extremely large implications for poverty and welfare. We further analyse the labour market by comparing across demographic groups as defined by race, by gender, by age groups, by geographic areas and by education levels. The over-arching finding from this analysis is that the job losses were not uniformly distributed amongst the different groups. In particular, groups who have always been more vulnerable – such as women, African/Blacks, youth and less educated groups – have been disproportionately negatively affected.     

An investigation into food-away-from-home consumption in South Africa

Food policy that ignores food-away-from-home (FAFH) in a developing country like South Africa will be misleading given changes in demand for food over time. This study contributes to our understanding of the factors that influence the demand for FAFH in South Africa. Using panel data from the Income and Expenditure Survey, this study analyses the effects of income and socio-demographic variables on FAFH expenditure using a double-hurdle model. The results show that small-sized households headed by younger white females/males and living in an urban settlement are most likely to purchase FAFH while male-headed households spend more than female-headed households. Furthermore, income of the household head is an important determinant of household FAFH expenditures. The income elasticity of expenditure on FAFH is inelastic and a normal good. The small size of the participation elasticities means that growth in the FAFH sector will be driven by households with existing expenditure.     

完善我国农村土地产权制度的几点思考

农村土地产权制度作为农村土地制度的核心,其完善与否直接关系到农村土地资源和农业生产要素的合理配置。由于法律规定的不合理、行政权的滥用和理论上的匮乏,我国现行的农村土地产权制度不合理。建议明确界定农村土地所有权主体范围,赋予农村土地所有者法人资格;规范农村土地产权的界区,建立合理的土地产权结构;明确土地承包合同的性质;健全土地流转机制,以完善农村土地产权制度。     

Inflation in South Africa: An Assessment of Alternative Inflation Models

We consider the relative empirical performance of a range of inflation models for South Africa. Model coverage is of Phillips curve, New Keynesian Phillips curve, monetarist and structural models of inflation. Our core findings are that the single most robust covariate of inflation is unit labour cost. We further decompose unit labour cost into changes in the nominal wage and real labour productivity. The principal association is a strong positive relationship between inflation and nominal wages, while improvements in real labour productivity report only a relatively weak negative association with inflation. Supply‐side shocks also consistently report an association with inflation. As to demand‐side shocks, the output gap does not return a robust statistical association with inflation. Instead, it is growth in the money supply and government expenditure which return robust and theoretically consistent associations with inflationary pressure.     

Infrastructure and Growth in South Africa: Direct and Indirect Productivity Impacts of 19 Infrastructure Measures

Empirical explorations of the growth and aggregate productivity impacts of infrastructure have been characterized by ambiguous (countervailing signs) results with little robustness. This paper, utilizing panel data for South African manufacturing over the 1970–2000 period, and a range of 19 infrastructure measures, explores the question of infrastructure endogeneity in output equations. The paper develops an instrumentation strategy generalizable to other contexts. Controlling for the possibility of endogeneity in the infrastructure measures renders the impact of infrastructure capital not only positive, but of economically meaningful magnitudes.