Measuring regional labour markets in South Africa: How robust are sub-national estimates from the Quarterly Labour Force Survey?

This article explores the limitations of using data from the Quarterly Labour Force Survey (QLFS) to estimate robust sub-national labour market indicators in South Africa. The precision of labour market indices in the QLFS is very sensitive to which geographic scale is examined – national, provincial or metro – and in each instance the size of the population of the province or metro. The results show that errors from sampling at regional and city levels may be prohibitively large although in some instances broad patterns between regions can be identified notwithstanding a fairly blunt instrument. The findings highlight the imperative to be transparent about sampling errors and to foster sensitivity within government, business and the public in general. This exercise is instructive for generating other regional socio-economic indicators that are based upon similar household sample surveys such as the General Household Survey, Living Conditions Survey and Income and Expenditure Survey.     

IS THERE EVIDENCE OF A WAGE PENALTY TO FEMALE PART‐TIME EMPLOYMENT IN SOUTH AFRICA?

In this paper, we investigate female part‐time employment in South Africa. Using household survey data for South Africa from 1995 to 2004, we show that women are over‐represented in part‐time employment, and that the growth in part‐time work has been an important feature of the feminisation of the labour force. In contrast to many studies of part‐time work in other countries, however, we find evidence of a significant wage premium to female part‐time employment. The premium is also robust to fixed effects estimations using Labour Force Survey panel data from 2001 to 2004, where controlling for unobservable differences increases its size. The premium persists with different hourly thresholds defining part‐time employment and when we account for possible reporting errors in hours worked.     

Child Labour in the Philippines: Determinants and Effects

This paper analyses the supply-side socioeconomic determinants of child labour in the Philippines using data from the National Household Survey and the Labour Force Survey of the Philippines. The research methodology is that of a sequential probit model which assumes that household decisions are made in a hierarchical manner. Using this model, the impact of various household and economic characteristics on the probability of child labour is estimated. The findings highlight specific populations that should be targeted, for example, single working mothers in urban areas and poor households in rural areas. Working towards elimination of child labour will involve a multi-angled policy approach with policies complementing each other.     

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.     

REVISITING INFORMAL EMPLOYMENT AND SEGMENTATION IN THE SOUTH AFRICAN LABOUR MARKET

This study revisits the definition of informal employment, and it investigates the puzzle of high open unemployment co‐existing with relatively limited informal employment in South Africa. We estimate earnings equations using data from the September 2004 Labour Force Survey and present evidence of persistent earnings differentials not only between formal and informal employment, but also between types of informal employment. These persistent earnings differentials are suggestive of complex segmentation in the South African labour market and challenge the presentation of informal employment as an undifferentiated residual with no barriers to entry or mobility.     

Poverty,gender and migrancy: Lesotho's migrant farmworkers in South Africa

During the 1990s, eastern Free State vegetable farmers increasingly relied on migrants from neighbouring Lesotho for seasonal labour. This coincided with a major downsizing of the mine labour force in South Africa, hitherto the major employer of Basotho migrant workers. However, there was no simple process of transfer of unemployed migrants from the mining to the farming sector; rather, decisions were mediated by domestic relationships and household poverty in Lesotho. Basotho women and girls have been a major casualty of mine retrenchments and the drying up of remittances, and those with domestic skills but little formal training have been forced into the labour market, mainly domestic work in towns and labour on farms. This article examines the Basotho migrants' experiences and conditions of employment, the regulatory environment within which they are recruited and employed, and their future in the context of changing immigration and migration legislation in South Africa.     

Sampling methodology and fieldwork changes in the October Household Surveys and Labour Force Surveys

The 1999 October Household Survey was the first time that Statistics South Africa introduced a master sample of Enumeration Areas. There were several important changes in sampling and fieldworker practice that accompanied the introduction of the master sample of Enumeration Areas, which have not been systematically documented and which make comparability of the surveys undertaken by Statistics South Africa before and after this time difficult. We document these changes in this research note and provide evidence that these changes were partly responsible for the odd trends in the total number of single-person households estimated from the October Household Surveys and the Labour Force Surveys, as well as rapid increases in employment, in the late 1990s.     

Food poverty,hunger and household production in rural Eastern Cape households

More than two decades since the advent of democracy in South Africa, the place of small-scale agriculture in rural development, poverty alleviation and food security remains ambiguous and highly contested. However, there is now some new evidence that official income poverty estimates in South Africa may be underestimating the contribution of rural, land-based livelihoods when measuring household well-being. This paper aims to explore this possibility further by identifying how household production activities are associated with improved food security among rural Eastern Cape households in the former homelands. The analysis is based on data from Statistics South Africa’s 2008/9 Living Conditions Survey and its annual General Household Surveys. In adopting a food poverty lens, the findings suggest that hunger levels are lower among farming households in the Eastern Cape even though a higher percentage of these households (relative to non-farming households) live below the national food poverty line. The paper concludes by discussing some implications for policy.     

Revisiting unemployment levels and trends in South Africa since the transition

Many recent studies compared the 1995 October Household Survey (OHS) with the latest available Labour Force Survey (LFS) to derive the unemployment ‘trends’ in South Africa since the transition, but this approach only gives a snapshot of unemployment at two points in time. Although the better approach is to examine all available labour surveys to derive the real unemployment trends during the period, this does not mean these trends are fully reliable and comparable, as the sampling method, weighting technique, questionnaire design and labour market status derivation methodology to define the unemployed are different across the surveys. In particular, the unemployment estimates in OHS 1995–99 and during the changeover between OHS and LFS in both narrow and broad terms increased rapidly. This paper aimed to address these issues, if possible, in order to improve the comparability and reliability of unemployment aggregates across the surveys.     

Who are the heads of household,what do they do,and is the concept of headship useful? An analysis of headship in South Africa

In most household surveys, headship is not defined by objective criteria but is self-identified by respondents. The first part of this article examines whether self-reported heads in South Africa are those household members in whom more control over decision-making is vested. Although the head is typically found to be the oldest household member, there is also a strong relationship between headship and the highest income-earner in the household. Furthermore, heads have final say over decisions even when they do not earn the most income. This is the case particularly in households headed by women. The second part of the article evaluates whether the gender of the head provides a useful marker for distinguishing between household types and their access to resources. Female- and male-headed households are not homogeneous groupings, and male-headed households are not equally advantaged. However, female-headed households in South Africa on average contain fewer income-earners, whose income is also lower, than male-headed households. Overall, therefore, households headed by women are considerably more likely to be economically vulnerable.     

Perceptions of economic and financial conditions of households in 2000

'The economy grew by 3,0 per cent in 2000. This was the fastest growth since 1996, buoyed by a strong recovery in household consumption spending and an increase in exports of over 7 per cent in real terms' (Trevor Manuel, Minister of Finance, Budget speech, 21 February 2001). 'Growth won't solve our problems. The faster the economy grows, the faster will be the creation of jobs for the highly skilled. So there will be more, not fewer, problems with income disparity' (Iraj Abedian, Standard Bank Group Economist, cited in Financial Mail , 2001a). The aim of this article is to examine the extent to which economic growth, experienced in 2000, improved the financial and economic conditions of South African households, by analysing a national representative survey of 2 700 adult South Africans conducted by the Human Sciences Research Council in September 2000. The survey results were analysed by disaggregating data by race, gender, area type, province and Living Standard Measure (LSM). The theme emerging from this article is that although the majority of households were negatively affected financially and economically, proportionally more Africans, women, rural residents and poor households were hardest hit. Although South Africa achieved a 3 per cent economic growth rate in 2000, there is limited evidence to suggest that this growth trickled down to the majority of households.     

Re-estimating gender differences in income in South Africa: The implications of equivalence scales

Most studies of poverty and inequality in South Africa measure individual welfare by deflating total household resources, such as income, by household size. This per-capita method makes no adjustments for the different consumption needs of children or for household economies of scale. However, in addition to being more likely to live in households where average per-capita household income is lower compared with men, we show that women in South Africa also live in significantly larger households which include more children. These gendered differences in household composition are driven to a large degree by low rates of co-residency between men and women. We therefore investigate how adjusting household resources for the presence of children and economies of scale affects measures of the gender gap in income.     

Determinants of labour force participation in the North West province of South Africa

Based on data extracted from the 1995 October Household Survey of Statistics South Africa, this study has found that potential income is a major factor in labour force participation by African women in the North West province of South Africa. Other significant determinants of participation for both genders are age, education, region, marital status and relationship to the head of the household. The results imply that significant discrimination against African women still exists in the North West province, which partly explains the much lower participation rate for African women (64 per cent), compared with that of African men (86,5 per cent). The study supports the North West government's development strategy of developing human resources to eradicate poverty.     

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.     

Migration and development in Mozambique: poverty,inequality and survival

Migration is many Mozambicans' preferred employment option (and sometimes last resort). Rural southern Mozambique, short of resources and traditionally less productive agriculturally than other regions of Mozambique, is now more developed and better off than other rural areas. An inter-regional analysis of the South, Centre and North of Mozambique demonstrates developmental differences largely attributable to labour migration (mainly to South Africa) and remittances. However, although migrant worker households, usually deficit agricultural producers largely dependent on migrant remittances, are often better off than non-migrant ones, many are still vulnerable to poverty. Migration has changed significantly over the last 15 years, with the eclipsing of mine migration and the increasing scarcity of jobs available to young Mozambicans. Despite the overall positive economic impact of migrant labour in southern Mozambique, as remittances decrease because earnings are lower and mechanisms for transfer are limited, its benefit may diminish.     

Household satisfaction: Past,present and future perspectives

In the past two decades South African quality of life has been measured at the individual level in nationwide surveys and studies of special groups using happiness and satisfaction measures. In 1993 the Southern Africa Labour and Development Research Unit (Saldru) pioneered a satisfaction measure to capture subjective well‐being at the household level for the Project for Statistics on Living Standards and Development (PSLSD). The article assesses the usefulness of the new indicator by comparing present household satisfaction with individual‐level satisfaction trends and with PSLSD measures of past and projected future satisfaction and household income and expenditure. It is concluded that the household satisfaction measure is a useful social indicator in that it yields consistent and readily interpretable results and is sensitive to income and expenditure differentials. In confirmation of findings from a recent cross‐national study, the higher income households in the Saldru study reported higher levels of perceived well‐being.     

Perceptions of return migration and rural development: A case study of migrant views prior to the lifting of influx control measures∗

Until recently circulatory migration was entrenched in legislation controlling the influx control of labour to South African centres of employment. Research conducted among urban‐based male migrants in 1983/84 revealed that a majority held an ideal conception of migration which was consistent with the prescribed pattern of that period. Subjects’ projections of successful return migration was typically conservative rather than innovative or development‐oriented. However, research results intimated that landless migrants would contemplate deviation from the circular pattern of migration. The conclusion is drawn that South African labour migrancy may undergo a major shift in paradigm in future, particularly in areas where rural resources are overstressed. These conclusions gain new significance in the light of the recent abolition of influx control legislation.     

British working‐class household composition,labour supply,and commercial leisure participation during the 1930s

The early twentieth century constituted the heyday of the ‘breadwinner–homemaker’ household, characterized by a high degree of intra‐household functional specialization between paid and domestic work according to age, gender, and marital status. This article examines the links between formal workforce participation and access to resources for individualized discretionary spending in British working‐class households during the late 1930s, via an analysis of household leisure expenditures. Leisure spending is particularly salient to intra‐household resource allocation, as it constitutes one of the most highly prioritized areas of individualized expenditure, especially for young, single people. Using a database compiled from surviving returns to the Ministry of Labour's national 1937/8 working‐class expenditure survey, we examine leisure participation rates for over 600 households, using a detailed set of commercial leisure activities together with other relevant variables. We find that the employment status of family members other than the male breadwinner was a key factor influencing their access to commercial leisure. Our analysis thus supports the view that the breadwinner–homemaker household was characterized by strong power imbalances that concentrated resources—especially for individualized expenditures—in the hands of those family members who engaged in paid labour.     

The export of manpower from Pakistan to the Middle East, 1975–1985

This article summarizes the major findings of recent research undertaken on: (1) Pakistani migration to the Middle East, and (2) on international labour migration in the Middle East and North Africa. The export of manpower from Pakistan for temporary employment in the Middle East has risen dramatically since the oil boom of the mid-1970s. As a consequence, remittances, which constitute the major gain from migration, have become an important source of foreign exchange, amounting to almost 80% of total merchandise export earnings by 1980/ 1981. The direct beneficiaries of these remittances are a million or so migrant households, whose average premigration income was somewhat above the national average household income. Remittances have enabled these households to significantly increase current consumption and purchase assets with the potential of improving their future income stream. Domestic labour has also benefited to the extent that migration has contributed to rising real wages in recent years.Migration has not, however, been an unqualified gain for the economy as a whole. The major cost has been the decline in productivity caused by the departure of quality labour among manual skills and professional categories, both of which cannot be easily replaced. It seems that, on balance, Pakistan has benefited from this labour export. Prospects for continuing migration on a substantial scale remain good for the near future, provided, of course, that projected growth rates of oil exporters materialize. The net benefits for the economy from migration in the coming years will primarily depend upon the extent to which scarce skills can be speedily replaced and remittances utilized to build productivity-increasing assets.     

The puzzle of migrant labour shortage and rural labour surplus in China

The paper examines the contentious issue of the extent of surplus labour that remains in China. China was an extreme example of a surplus labour economy, but the rapid economic growth during the period of economic reform requires a reassessment of whether the second stage of the Lewis model has been reached or is imminent. The literature is inconclusive. On the one hand, there are reports of migrant labour scarcity and rising migrant wages; on the other hand, estimates suggest that a considerable pool of relatively unskilled labour is still available in the rural sector. Yet the answer has far-reaching developmental and distributional implications. After reviewing the literature, the paper uses the 2002 and 2007 national household surveys of the Chinese Academy of Social Sciences to analyse and explain migrant wage behaviour, to predict the determinants of migration, and to examine the size and nature of the pool of potential rural–urban migrants. An attempt is also made to project the rural and urban labour force and migration forward to 2020, on the basis of the 2005 1% Population Survey. The paper concludes that for institutional reasons both phenomena are likely to coexist at present and for some time in the future.