Decomposing the impact of human capital on household income inequality in South Africa: Is education a useful measure?
- Friderichs, Tamaryn J, Keeton, Gavin R, Rogan, Michael
- Authors: Friderichs, Tamaryn J , Keeton, Gavin R , Rogan, Michael
- Date: 2023
- Subjects: To be catalogued
- Language: English
- Type: text , article
- Identifier: http://hdl.handle.net/10962/470842 , vital:77400 , https://doi.org/10.1080/0376835X.2022.2163228
- Description: Human capital (HC) has increasingly been identified as a driver of economic development, with the potential to reduce income inequality, which, in South Africa, originates in the labour market. HC is, however, a complex concept to measure. This study uses Fields’ regression-based decomposition method to analyse the relationships between income inequality and HC in South Africa. The Fields method allows for the analysis of the impact of several factors contributing to HC on the distribution of a measure of income. Data from the National Income Dynamics Study (NIDS) wave 1 (2008) and 5 (2017) are used. The findings suggest that increasing educational attainment, through improved school quality for all, would likely play a key role in reducing income inequality in South Africa. Furthermore, the large role of education attainment in explaining household income inequality supports the use of education attainment as a proxy for HC in South Africa.
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- Authors: Friderichs, Tamaryn J , Keeton, Gavin R , Rogan, Michael
- Date: 2023
- Subjects: To be catalogued
- Language: English
- Type: text , article
- Identifier: http://hdl.handle.net/10962/470842 , vital:77400 , https://doi.org/10.1080/0376835X.2022.2163228
- Description: Human capital (HC) has increasingly been identified as a driver of economic development, with the potential to reduce income inequality, which, in South Africa, originates in the labour market. HC is, however, a complex concept to measure. This study uses Fields’ regression-based decomposition method to analyse the relationships between income inequality and HC in South Africa. The Fields method allows for the analysis of the impact of several factors contributing to HC on the distribution of a measure of income. Data from the National Income Dynamics Study (NIDS) wave 1 (2008) and 5 (2017) are used. The findings suggest that increasing educational attainment, through improved school quality for all, would likely play a key role in reducing income inequality in South Africa. Furthermore, the large role of education attainment in explaining household income inequality supports the use of education attainment as a proxy for HC in South Africa.
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The COVID-19 crisis and the South African informal economy: A stalled recovery
- Rogan, Michael, Skinner, Caroline
- Authors: Rogan, Michael , Skinner, Caroline
- Date: 2022
- Subjects: To be catalogued
- Language: English
- Type: text , book
- Identifier: http://hdl.handle.net/10962/478161 , vital:78160 , ISBN 978-92-9267-171-6 , doi:10.35188/UNU-WIDER/2022/171-6
- Description: This paper seeks to identify the differentiated impacts of the crisis on specific groups of informal workers. The analysis draws on official nationally representative labour force surveys collected quarterly by South Africa's national statistical agency (Statistics South Africa). Based on an analysis of six quarters of labour market data (with the first quarter of 2020 as the 'pre-COVID' baseline), the paper aims to identify the labour market impacts of the first three waves of the pandemic and of one of the world's strictest 'lockdowns' (as it was described at the time-in April 2020). In investigating the contours of the pandemic's impact on the South African informal economy, the paper focuses, in particular, on the different impacts by gender, sector, and status in employment. The findings show that both relative and absolute job losses have been greater in the informal economy, while the rate and level of recovery have been greater for formal employment. Further, the data suggest uneven impacts within the informal economy with women informal workers, those working in the informal sector and those in retail and community and social services being particularly hard hit. The pandemic period has thus widened pre-existing inequalities and fault lines. In policy terms, this suggests that the informal economy should be a priority in economic recovery efforts but also that support requires differentiated approaches and a range of measures
- Full Text:
- Authors: Rogan, Michael , Skinner, Caroline
- Date: 2022
- Subjects: To be catalogued
- Language: English
- Type: text , book
- Identifier: http://hdl.handle.net/10962/478161 , vital:78160 , ISBN 978-92-9267-171-6 , doi:10.35188/UNU-WIDER/2022/171-6
- Description: This paper seeks to identify the differentiated impacts of the crisis on specific groups of informal workers. The analysis draws on official nationally representative labour force surveys collected quarterly by South Africa's national statistical agency (Statistics South Africa). Based on an analysis of six quarters of labour market data (with the first quarter of 2020 as the 'pre-COVID' baseline), the paper aims to identify the labour market impacts of the first three waves of the pandemic and of one of the world's strictest 'lockdowns' (as it was described at the time-in April 2020). In investigating the contours of the pandemic's impact on the South African informal economy, the paper focuses, in particular, on the different impacts by gender, sector, and status in employment. The findings show that both relative and absolute job losses have been greater in the informal economy, while the rate and level of recovery have been greater for formal employment. Further, the data suggest uneven impacts within the informal economy with women informal workers, those working in the informal sector and those in retail and community and social services being particularly hard hit. The pandemic period has thus widened pre-existing inequalities and fault lines. In policy terms, this suggests that the informal economy should be a priority in economic recovery efforts but also that support requires differentiated approaches and a range of measures
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The crisis is far from over for informal workers: we need an inclusive recovery for the majority of the World’s workforce
- Reed, Sarah O, Rogan, Michael, Grapsa, Erofili, Ismail, Ghida, Valdivia, Marcela
- Authors: Reed, Sarah O , Rogan, Michael , Grapsa, Erofili , Ismail, Ghida , Valdivia, Marcela
- Date: 2021
- Subjects: To be catalogued
- Language: English
- Type: text , book
- Identifier: http://hdl.handle.net/10962/478051 , vital:78150 , ISBN , https://www.wiego.org/resources/COVID-Global-policy-insights
- Description: In The Crisis is Far from Over for Informal Workers — We Need an Inclusive Recovery for the Majority of the World’s Workforce, WIEGO presents the key findings and policy recommendations from Round 2 of the WIEGO-led COVID-19 Crisis and the Informal Economy study. In mid-2021, WIEGO and its partners re-interviewed 1,391 Round 1 respondents (87.5% of the sample) and 213 new respondents (13.3% of the sample) to measure the longer-term impacts of the pandemic on livelihoods for domestic workers, home-based workers, street vendors and waste pickers in 11 cities. Key findings from Round 2 are: Most respondents have not recovered the ability to work. The average number of days worked per week was only 4 in mid-2021, still considerably lower than 5.5 in the pre-COVID period. Earnings for informal worker respondents are still far below their pre-pandemic levels. By mid-2021, the typical worker was only earning 64% of their pre-COVID earnings. Four in every ten (40%) domestic workers, street vendors and waste pickers were still earning less than 75% of their pre-COVID earnings in mid-2021. Home-based workers remain the hardest-hit sector, by far. In mid-2021, typical earnings of this group were only 2% of pre-pandemic levels, reflecting the depth of devastation in this predominantly female sector. Food insecurity threatens urban workers. Nearly one-third of respondents in mid-2021 said an adult and/or child in their household had gone hungry over the last month. 57% reported challenges with dietary diversity and/or skipping meals. Relief access is not improving and may be in decline. Access to government cash support stagnated and the percentage of respondents who received food support declined since the first three months of the pandemic. The percentages of workers who received forgiveness of rent, utilities and/or school tuition were in the single digits.
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- Authors: Reed, Sarah O , Rogan, Michael , Grapsa, Erofili , Ismail, Ghida , Valdivia, Marcela
- Date: 2021
- Subjects: To be catalogued
- Language: English
- Type: text , book
- Identifier: http://hdl.handle.net/10962/478051 , vital:78150 , ISBN , https://www.wiego.org/resources/COVID-Global-policy-insights
- Description: In The Crisis is Far from Over for Informal Workers — We Need an Inclusive Recovery for the Majority of the World’s Workforce, WIEGO presents the key findings and policy recommendations from Round 2 of the WIEGO-led COVID-19 Crisis and the Informal Economy study. In mid-2021, WIEGO and its partners re-interviewed 1,391 Round 1 respondents (87.5% of the sample) and 213 new respondents (13.3% of the sample) to measure the longer-term impacts of the pandemic on livelihoods for domestic workers, home-based workers, street vendors and waste pickers in 11 cities. Key findings from Round 2 are: Most respondents have not recovered the ability to work. The average number of days worked per week was only 4 in mid-2021, still considerably lower than 5.5 in the pre-COVID period. Earnings for informal worker respondents are still far below their pre-pandemic levels. By mid-2021, the typical worker was only earning 64% of their pre-COVID earnings. Four in every ten (40%) domestic workers, street vendors and waste pickers were still earning less than 75% of their pre-COVID earnings in mid-2021. Home-based workers remain the hardest-hit sector, by far. In mid-2021, typical earnings of this group were only 2% of pre-pandemic levels, reflecting the depth of devastation in this predominantly female sector. Food insecurity threatens urban workers. Nearly one-third of respondents in mid-2021 said an adult and/or child in their household had gone hungry over the last month. 57% reported challenges with dietary diversity and/or skipping meals. Relief access is not improving and may be in decline. Access to government cash support stagnated and the percentage of respondents who received food support declined since the first three months of the pandemic. The percentages of workers who received forgiveness of rent, utilities and/or school tuition were in the single digits.
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Trends in the working poverty rate (WPR) in post-apartheid South Africa, 1997–2012
- Rogan, Michael, Reynolds, John
- Authors: Rogan, Michael , Reynolds, John
- Date: 2019
- Subjects: To be catalogued
- Language: English
- Type: text , article
- Identifier: http://hdl.handle.net/10962/478117 , vital:78156 , https://doi.org/10.1080/0376835X.2019.1590181
- Description: As South Africa prepares to implement a national minimum wage for the first time, a number of questions about the potential benefits of a minimum wage have emerged. However, most of the South African literature, to date, has been concerned with the country's high unemployment rate and not on the quality of employment. In particular, there has been very little attention given to one widely used indicator of decent work, the working poverty rate (WPR). Using the October and General Household Surveys, we present an analysis of trends in working poverty over most of the post-apartheid period (from 1997 to 2012). The findings reveal that, while income poverty has decreased, poverty among the employed is a persistent feature of the post-apartheid period and that the contributions of earnings from employment to overall poverty reduction have been disappointing.
- Full Text:
- Authors: Rogan, Michael , Reynolds, John
- Date: 2019
- Subjects: To be catalogued
- Language: English
- Type: text , article
- Identifier: http://hdl.handle.net/10962/478117 , vital:78156 , https://doi.org/10.1080/0376835X.2019.1590181
- Description: As South Africa prepares to implement a national minimum wage for the first time, a number of questions about the potential benefits of a minimum wage have emerged. However, most of the South African literature, to date, has been concerned with the country's high unemployment rate and not on the quality of employment. In particular, there has been very little attention given to one widely used indicator of decent work, the working poverty rate (WPR). Using the October and General Household Surveys, we present an analysis of trends in working poverty over most of the post-apartheid period (from 1997 to 2012). The findings reveal that, while income poverty has decreased, poverty among the employed is a persistent feature of the post-apartheid period and that the contributions of earnings from employment to overall poverty reduction have been disappointing.
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