The structure of the South African labor market, 1970–83

The structure of the labor market in the Republic of South Africa over 1970–83 is strongly linked to the Natives Land Act of 1913, No. 27, which dispossessed blacks of their legal right to land ownership. One of the intended results of this act was to increase the supply of cheap black labor to South Africa’s predominantly white-owned industry. Thus, over the 1970–83 period, as before, blacks occupied the lowest ends of the educational, occupational, employment, and income distributions among all races in South Africa. On the other hand, the white minority lived at a standard equal to that of Americans and Scandanavians. However, even within these constraints, the demographics of South Africa are such that over the next decade or more, and even in the absence of major political upheaval, blacks may comprise an increasing percentage of the workforce and occupy positions which have been mainly occupied by whites to date.     

The black scholar: An endangered species

This article explores black participation in scholarly careers. Relatively few blacks have been pursuing graduate training to complete research doctorates, especially in the disciplines of engineering, mathematics and physical sciences, where a mere 1 percent of the doctorates granted were awarded to blacks. The article also examines a major determinant of this low rate of black participation—losses from the education pipeline. The analysis covers losses after completion of high school. Although large, these losses do not differ substantially between black students and nonblack students, suggesting that the origins of the low participation of blacks are located at the precollege level. The analysis also finds no substantial differences in participation among high-achieving black and nonblack students. The article closes with a discussion of the role the scholarly community can play in recruiting more black talent to scholarly careers.     

Nineteenth Century Black and Mixed-Race Physical Activity,Calories, and Life Expectancy: Nutrition,Sanitation, or Medical Intervention?

Using data from late 19th and early twentieth century US prisons, this study considers how black and mixed-race basal metabolic rates and calories varied with economic development. During the nineteenth century, African-American physical activity and net nutrition decreased across their BMR and calorie distributions, and increasing black life expectancy indicates that decreasing mortality was not likely due to improved nutrition. Physically active farmers had greater BMRs and required more calories per day than workers in other occupations. Black diets, nutrition, and calories varied by residence, and rural blacks in the Deep South required the most calories per day, while their Northeastern urban counterparts required the least. Policy implications are that public sanitation facilities may be of greater import than nutrition during economic development.     

Black enterprise and the legacy of slavery

The 1997 Economic Census data on minority and women-owned businesses reveals distinct cross-state and cross-county differences in ownership characteristics. The breakdown of this data into racial groups provides the opportunity to study the geographical features of black enterprise. As will be seen, both in aggregate and across states and counties, significant differences exist in the prevalence and magnitude of black and white enterprise. I propose a "legacy of slavery" hypothesis to explain these observed differences. Preliminary analysis indicates that this hypothesis has considerable explanatory power. A significant negative relationship exists between the geographical concentration of slavery in 1840 and the current prevalence and magnitude of black-owned enterprise. At the state level, this relationship remains even after controlling for the normal business climate as indicated by white enterprise levels. County level regressions with state fixed-effects yield similar estimated coefficients. In total, I find that the legacy of slavery has reduced the number of black-owned businesses by at least 71,009 and sales by $27.3 billion per year.     

Housing for blacks: A challenge for kansas city

City planners, neighborhood groups and financial institutions, and other business partners need to develop a comprehensive plan to increase affordable housing for minorities and to integrate neighborhoods. Kansas City, Missouri is a city with a high potential for good housing for all of its citizens, but adequate housing continues to elude many of its black residents. Compared to other U.S. cities of similar size, Kansas City has good housing stock, but a large number of black people are suffering from a shortage of low rent housing. In addition, among Kansas Citians, blacks have the lowest quality housing stock. Two reasons for the deficit in housing for black Americans in Kansas City are demolitions among the low-rent housing stock and discrimination in housing rentals.     

More is More: Some Economics of Distinctively-Named White Kids

Using data covering every child born in California from 1961 to 2000, Fryer and Levitt (2004) find that in the 1960s, the differences in name choices by blacks and whites were relatively small, but that a profound shift began among blacks in the mid-1970s toward more distinctively black names, especially among blacks in racially isolated neighborhoods. As an extension of Fryer and Levitt (2004), this study uses data on the names of about 1,300 white children born over the four-year period from 1997 to 2000 and living in a segment of a Metropolitan Statistical Area in the Deep South, and finds that use of combination first names—largely based on combinations of single names included among the names of high-end white children from Fryer and Levitt (2004) and Levitt and Dubner (2005)—is significantly more prevalent among high-end white children than it is among low-end white children. Unlike the data described in Fryer and Levitt (2004), which support an Identity Model wherein distinctively black names result from the Black Power movement that encouraged blacks to “accentuate and affirm black culture and fight the claims of black inferiority,” the present study suggests that high-end parents may use the combination first name convention to increase the likelihood of the child’s future success in various partnership markets, such as dating, marriage and business-partnership markets.     

Black Americans’ business ownership factors: A theoretical perspective

The black American struggle in the United States continues to occur in the political, cultural and economic spheres with some measure of success. Regarding the economic sphere as the most critical because it is the source of real power in this country, and business ownership as the ultimate manifestation of economic liberation, this article examines black Americans’ business ownership and factors facilitating it. Defining successful business ownership in terms of: (1) increasing business formations by black Americans, (2) survival/longevity of the formed businesses, (3) their creation of jobs, and, (4) their profitability, this article identifies three factors facilitating it. The facilitating factor types are: (1) individual-specific, (2) group-specific, and (3) environment-consequent. It is suggested that the complex interaction of elements of these factors at any time, most likely determines the proportion of black ownership of American businesses.     

Rates of return to education of blacks in South Africa

The aim of this empirical study was to calculate private and social rates of return to education and to test the hypothesis that education is a major determinant of earning differentials for blacks in South Africa. Data for 23 278 working men and women were extracted from the 1985 Current Population Survey files. This comprised a sample representative of the black population in the Republic of South Africa excluding the former Transkei, Bophuthatswana, Venda and Ciskei territories. Lifetime earnings profiles were constructed from these data for five educational levels, namely, no schooling up to Standard 1; Standards 2 to 4; Standards 5 to 7; Standards 8 to 9; and Standard 10. Schooling was assumed to account for 60 per cent of the earnings differentials between these profiles. Imputed average household outlays on schooling were taken as the private direct cost of education. These were supplemented by estimates of per pupil spending by the various government departments responsible for black education, to calculate the social costs per year of primary and secondary schooling. Indirect costs in the form of imputed foregone earnings were included from Standard 5 (age 15) onwards. The private internal rates of return to education of males were found to be about 16 per cent at primary level and 24 per cent for secondary schooling. Corresponding social rates of return are about 6 per cent for primary and 15 per cent for secondary education. Estimates for females showed negative rates of return between no schooling and Standards 2 to 4, the private and social rates being estimated at ‐1 per cent and ‐4 per cent respectively; from Standards 2 to 4 to Standards 5 to 7, a private rate of 12 per cent and a social rate of 4 per cent are reported; and for the remaining secondary school phases private rates of about 32 per cent and social rates of about 15 per cent are estimated. The study confirms that education is a major determinant of earnings differentials and education expansion can be regarded as a powerful earnings equaliser.     

Exploring income variations across traditional authorities in KwaZulu‐Natal,South Africa

To understand income inequality and poverty, one must go beyond the important and much‐studied differences rural and urban living and investigate inequalities within rural areas. Using new South African data aggregated by ‘traditional authorities’, this article examines variations in per capita income across poor, rural, mostly black areas of KwaZulu‐Natal (KZN) province. The inequalities are significant. In explaining them, the article examines the importance of such variables as education, proportion of females in the resident population, population density, soil quality and rainfall. A geographical information system is used to map both the raw data and the residuals from a regression analysis, and this combination of statistical and geographical analyses yields new insights. Finally, the article suggests how these techniques might be supplemented by qualitative and quantitative studies of ‘overachieving’ and ‘underachieving’ traditional authorities ‐ those whose incomes per capita are well above or below what regression equations would predict.     

Strengthening institutional safety nets in South Africa: Sharing operation hunger's insights and experiences

Poverty and malnutrition are major problems in South Africa, especially among black people in rural areas. The poorest are heavily dependent on social pensions, remittances, low wages, piece jobs and, to a very small extent, household agriculture. Industrial safety nets are weak and do not necessarily help the vulnerable to overcome their poverty. This article draws on the experience of Operation Hunger, a South African NGO founded in 1980, to examine the impact of poverty‐alleviation programmes on the recipients. The article reviews the strategies employed by the government and NGOs to strengthen vulnerable households ‐food aid, public works and agricultural programmes ‐ drawing on Operation Hunger's experience in these areas. The article concludes that targeting, monitoring and evaluating, and piloting development programmes are crucial, and stresses the importance of NGOs in this regard.     

Desegregation in Pietersburg after the repeal of the Group Areas Act

Since the Group Areas Act was repealed in 1991, black people have for the first time become legal home‐owners in previously whites‐only areas of South African cities. This survey is concerned with residential changes in Pietersburg between June 1991 and May 1993. The residential location of black people was monitored and mapped, and the first new black home‐owners were interviewed to determine their reasons for moving to Pietersburg. The survey shows that only blacks in the middle‐ and high‐income groups made the move, and that property values were not a deciding factor in the purchase of a home.     

Evidence of short-term household change in South Africa from the National Income Dynamics Study

We use longitudinal data from the National Income Dynamics Study to document the extent of recent short-term residential and household compositional change in South Africa. We analyse the demographic correlates of these transitions, including population group, age, urban/rural status, and income. We examine educational and labour-market transitions among movers and the prevalence of the four major types of compositional change – births, addition of joiners, deaths, and loss of leavers. We find that short-term household change is prevalent in South Africa. During a two-year period from 2008 to 2010, 10.5% of South Africans moved residence and 61.3% experienced change in household composition. We find that moving is more common among blacks and whites, very young children, young adults, urban individuals, and those with higher incomes. Among non-movers, compositional change is more likely for blacks and coloureds, young adults and children, females, urban individuals, and individuals with lower incomes.     

Debt and household finance: evidence from the Financial Diaries

The Financial Diaries data-set is a unique, new set of year-long daily income, expense and financial transactions for households from three different areas of South Africa. These data show that over-indebted households (those that spend 20 per cent or more of their gross monthly income on debt) do not fit one homogeneous profile. Formal debt tends to be responsible for over-indebtedness in the urban areas, while in the rural areas the cause tends to be informal debt. In the urban areas high indebtedness is more prevalent among medium-income and high-income households, whereas in the rural areas it occurs at all income levels. High indebtedness in grant-dependent rural households tends to be persistent, whereas in wage-dependent urban households it is often short-lived. These findings present a new financial picture of poor rural populations that is unlikely to be touched by recent policy measures to address over-indebtedness.     

THE EMERGENCE OF INSTITUTIONALISED SOCIAL DIALOGUE IN SOUTH AFRICA

This paper looks at the conceptual framework of social dialogue, investment in social capital and some international definitions of social dialogue as background to developments in this sphere in South Africa. Social dialogue is viewed as a mechanism for problem‐solving and reducing transaction costs. The paper considers the ramifications of the 1979 Wiehahn Report on labour relations, as well as the nature of social dialogue in the apartheid era and its workplace origins. Institutionally, the stepping stones to the emergence of the NEF and Nedlac are discussed, together with some of the issues involved in, and formal outcomes of, Nedlac over the past eleven years in public policy choices. It closes with an evaluation of institutionalised social dialogue in South Africa and its future. “With the transition to non‐racial democracy in 1994, it became the task of an ANC‐led government to attempt to resolve the economic contradictions that apartheid had created. To achieve this requires massive economic and social changes, great programmes of investment and structural change. It is necessary to create the vital human capital needed at every level, from rudimentary literacy to the highest ranks of science and technology; to overcome enormous deficiencies in all forms of social infrastructure, including housing, schools, health, and transport; to return land to the black population and restore ravaged rural areas; to expand black ownership of mining, industry, commerce, and finance; and to diminish enormous inequalities in income and wealth. The new regime has made a promising start, but South Africa's past will exert a powerful influence on its present and future for a long time to come, and these huge tasks will not be swiftly or easily accomplished.” Charles Feinstein (2005 )     

Assessing black progress: employment,occupation, earnings,income, poverty

Farley discusses changes in employment, occupation, earnings, income, and poverty among US blacks. Among black men, there has been a persistent rise in unemployment since 1960. By the early 1980s, 1 black man out of 8 had dropped out of the labor force, compared to 1 in 20 white men. Some contend that many black men lack the skills to be employed or have personal habits and criminal records which make them unacceptable to employers. Others believe that the expansion of federal welfare programs offers attractive alternatives to men who have limited earnings potential. Still others stress that blacks are concentrated within cities, while the growth of employment is occurring in suburbs. Among those blacks over age 54, labor force participation has declined because of improved Social Security benefits, better private pensions, and the greater availability of Supplemental Security Income. The employment of young blacks compared to whites has deteriorated since 1960. For both races, there has been a steady rise in the employment of women. The recent increases, however, have been great for whites. By the early 1980s, white women caught up with black women in terms of employment. Unlike the indicators of employment itself, there is unambiguous evidence that the occupational distribution of employed blacks has been upgraded and is gradually becoming similar to that of whites. Findings from many studies show that blacks once earned much less than similar whites, but this racial difference has declined among men and has nearly disappeared among women. The proportion of blacks impoverished fell sharply in the 1960s, reaching a minimum of 30% in the early 1970s. Since the early 1970s, blacks have made few gains. The proportion impoverished actually increased and the ratio of black-to-white family income declined. The fact that the earnings of black males are no longer rising faster than those of whites and that there is no longer a migration from southern farms to cities plays a role, but changes in family structure are also important. At all dates, poverty rates have been high and income levels low in families headed by women. In 1984, for example, 52% of the black families with a woman as head of household were below the poverty line, compared to 15% of the black married-couple families. While similar trends are occurring in white families, there has been a sharper increase in the proportion of blacks living in these female-maintained families which have high poverty rates.     

我国应确立农村土地的国家所有权制度

我国现行农村土地集体所有权制度存在一些缺陷,针对这些缺陷学者们提出了多种改革方案,其中国家所有农民永久使用的农村土地制度既能保持公有制,又能避免集体所有制的种种弊端,是各种改革方案中最佳的一种。土地国有化的方式总的来说是自然转化即在集体虚置的情况下,国家自然而然地接替这个虚置的主体成为农村土地所有权的主体,无须向农民购买土地。     

Rural minority business development

This study is a first attempt to undertake formal research and policy analysis of a heretofore neglected topic, rural minority business development. Data show that only about one-sixth of all minority-owned firms are located in rural (nonmetro) areas with some groups recording even lower percentages. For example, only 11 percent of Hispanic firms were found in rural areas in 1987. However, proportions of nonmetro Hispanic firms reach 20 to 50 percent in some southwestern states and proportions of nonmetro black enterprises reach 30 to 70 percent in some southeastern states. Review of the research literature discloses that rural minority businesses experience critical problems associated with four kinds of capital needed to support any successful enterprise: physical, financial, social and human. Examples are given of programs devoted to rural enterprise development which address problems related to the four forms of capital. Insights gleaned from the examples and additional observations by policy analysts are used to suggest policy directions for expanding rural minority business.     

The accumulation of property by southern blacks and whites: Individual-level evidence from a South Carolina cotton county, 1910-1919

This paper examines new data on wealth and wealth accumulation by blacks and whites in Calhoun County, South Carolina between 1910 and 1919. Despite focusing on a single county, the data utilized in this paper make it possible to explore property accumulation by southern blacks and whites in new ways. Unlike previous studies, this one provides information on both real quantities and dollar assessments. This breakdown reveals that the rapid accumulation of property by blacks was entirely real and not due in part to an increasingly discriminatory assessment policy. By merging the assessment data with individual-level census records, it is possible to examine how wealth and wealth accumulation were influenced by race, gender, age, occupation, and literacy. In particular, the effect of literacy on the wealth of black men in 1910 was found to be economically strong in high wealth quantiles but weak in low wealth quantiles. By 1919, the impact of literacy on the wealth of black men had become economically important across the board. Furthermore, literacy had a significant influence on the relative size of wealth accumulations but offered little protection against low accumulations.     

Capital issues and the minority-owned business

This article presents some of the results from an unusual survey of small business owners who differ in their ethnicity: Asians, blacks, Hispanics, and nonminorities. Contrary to the prevailing view of black and Hispanic business owners and their firms, the blacks and Hispanics in the data base—in general and on average—had the same human and financial capital as their Asian and nonminority counterparts. As a result, the black-owned and Hispanic-owned firms performed as well as the Asian-owned and nonminority-owned firms. Nevertheless, black business owners had lower success rates than nonminority men in obtaining commercial bank loans, although the terms for loans granted were similar for the two groups. In light of the apparent credit discrimination, U.S. Small Business Administration (SBA) loans remain an important source of debt-type capital to black-owned firms.     

Race,amenities, and psychic income

Even when there are no racial wage differences between black and white faculty in institutions of higher learning in the Deep South, there are significant racial differences in amenities such that the psychic income of blacks is lower than that of whites. It is demonstrated that black faculty will tend to have higher turnover rates than whites if racial discrepancies in amenities exist. The maintenance of old traditions that affect job satisfaction of blacks acts as a margin to neutralize integration efforts. The assumption that equal pay is equivalent to equal opportunity is challenged.