The rate of unemployment in South Africa remains stubbornly high despite vastly improved macroeconomic fundamentals and relatively high rates of economic growth for most of the post-1994 democratic era. Employment growth was much weaker than might have been expected given the improved economic outlook. This thesis investigates how the sectoral employment intensity of output growth in the eight non-agricultural sectors of the South African economy has evolved from 2000 to 2012, with a view to identifying key growth sectors that are employment intensive. An econometric model of the demand for labour is used to estimate employment elasticities in the major Standard Industrial Classification (SIC) divisions of the economy. The results suggest that aggregate employment and economic growth diverged and that jobless growth occurred in South Africa during the period under review. South Africa has become less labour intensive and more capital intensive, reflecting a structural adjustment that has weakened the employment-growth relationship. At the sectoral level, the results suggest the presence of a long-run relationship between employment and growth in finance and business services, manufacturing, transport and the utilities sectors. In particular, the results suggest that the tertiary sector performed best in terms of the employment intensity of output growth. This reflects the changing structure of the economy and the nature of employment shifting away from the primary towards the tertiary sectors. Investment in the tertiary sector may help to foster new employment opportunities and assist in improving the overall employment intensity of output growth in South Africa. / Economics / D. Litt. et Phil. (Economics)

Thesis (MBA)--Stellenbosch University, 2001. / ENGLISH ABSTRACT: When South Africa re-entered the global arena, her immediate priority was to search for and affirm her position in the global economy. In this process, South Africa has witnessed massive job losses that compounded the already existing problem of unemployment. South Africa is considered to be one of the countries with the highest levels of unemployment - a fact that has raised a great deal of concern among Government, Business and Labour. This study project examines the functioning of South Africa's labour market with the intention of establishing whether or not it is linked to the problem of unemployment. The study draws labour-flexibility comparisons between the world's most flexible and deregulated labour market (USA) and Europe; and, relatively, tries to find South Africa's position. The study has revealed that there is a relationship between flexibility and employment - countries with flexible labour markets, ceteris paribus, also have high levels of ~- employment and vice versa. The study has also revealed that a culmination of high levels of illiteracy, trade union activities and the new labour laws has resulted into labour market rigidities which are partly responsible for the high rate of unemployment in South Africa. The study has also revealed that any effort by South Africa to adopt the US-style of labour market flexibility should be accompanied by some other policy checks to ensure maximum benefits. This is based on the finding that flexibility per se could have devastating effects for the economy. It is not only the labour market rigidities that are responsible for the current high rate of unemployment in South Africa. Factors like persistent and systematic decline in labour absorption capacity vis-a '-vis persistent and systematic increase in labour supply, decline in economic growth and globalisation claim a lion's share. / AFRIKAANSE OPSOMMING: Met Suid-Afrika se hertoetrede tot die internasionale arena was sy eerste prioriteit om sy plek in die wêreldekonomie te vind en te bevestig. Algaande het Suid-Afrika 'n grootskaalse verlies aan werkgeleenthede ervaar, wat die reeds bestaande probleem van werkloosheid vererger het. Vandag word Suid-Afrika beskou as een van die lande met die hoogste vlakke van werkloosheid - wat groot kommer by die regering, besigheid en arbeid wek. Hierdie werkstuk ondersoek die funksionering van Suid-Afrika se arbeidmark met die doel om vas te stel of dit met die probleem van werkloosheid verband hou al dan nie. Die studie maak vergelykings ten opsigte van arbeidsbuigsaamheid tussen die wêreld se mees buigsame en gedereguleerde arbeidsmark (VSA) en Europa, en poog om Suid-Afrika se relatiewe posisie te bepaal. Die studie toon dat daar 'n verband tussen buigsaamheid en werkverskaffing is - dat lande met buigsame arbeidsmark, ceteris paribus, ook hoë vlakke van werkverskaffing het, en omgekeerd. Die studie het ook bevind dat 'n hoë vlak van ongeletterdheid, vakbondaktiwiteite en die nuwe arbeidswette aanleiding gegee het tot arbeidsmarkonbuigsaamheid, wat gedeeltelik verantwoordelik is vir die hoë werkloosheidsyfer in Suid-Afrika. Die studie toon verder dat enige poging deur Suid-Afrika om die arbeidsmarkbuigsaamheid van die VSA toe te pas, met ander beleidsmaatreëls gepaard moet gaan om maksimum voordele te verseker. Dit is gegrond op die bevinding dat buigsaamheid per se verreikende gevolge vir die ekonomie kan hê. Dit is nie net die onbuigsaamheid van die arbeidsmark wat vir die huidige hoë werkloosheidsyfer in Suid-Afrika verantwoordelik is nie. Faktore soos 'n volgehoue en stelselmatige afname in die kapasiteit om arbeid te absorbeer teenoor 'n volgehoue en stelselmatige toename in arbeidsaanbod, 'n afname in ekonomiese groei, en globalisering is vir 'n leeue-aandeel verantwoordelik.

Thesis (MComm)--Stellenbosch University, 2004. / ENGLISH ABSTRACT: Nearly five million South Africans were unemployed in 2002 and creating employment opportunities is a difficult challenge. Before this issue can be tackled, however, it is critical to understand the problem. This thesis opts to contribute to this understanding by considering aspects around the demand for labour. The analysis considers a selection of the theoretical literature on the demand for labour, estimates key labour market parameters and then undertakes a number of simulations using a structural model. There are many conflicting paradigms that can be used to analyse the issue: microeconomic versus macroeconomic; neoclassical versus structuralist; theoretical versus empirical and so forth. Some of these paradigms are considered as part of the attempt to build an empirical framework that can be used to analyse the issue. The empirical results of the thesis suggest that: • Higher real wages lead to lowering of the quantity demanded of labour. The thesis estimates an economy-wide wage elasticity of employment of approximately -0,67; • Higher output stimulates the demand for labour. The single equation estimate of the employment elasticity of output is between 0,66 and 0,75, whilst the economy-wide estimate is approximately 1,1. The latter takes into account feedback effects from other macroeconomic variables, such as productivity and wages; • There is little evidence to show that the efficiency wage hypothesis holds - higher productivity leads to higher wages, but the converse is not true; • Union power increases real wages, indirectly leading to a fall in the demand for labour. This suggests that the labour market has insiders and outsiders; and • The relative price of labour is also important, with a fall in the cost of capital leading to a decrease in the demand for labour. Simulations suggest that job creation can be achieved through policies that encourage wage moderation and increase economic growth. There is also a potential role, albeit limited, for fiscal incentives such as a mooted earned income tax credit. / AFRIKAANSE OPSOMMING: Byna vyf miljoen Suid-Afrikaners was werkloos in 2002 en werkskepping is 'n moeilike uitdaging. Voordat hierdie kwessie aangepak kan word, is dit egter noodsaaklik om die probleem te verstaan. Hierdie tesis dra by tot hierdie begrip deur te fokus op punte rondom die vraag na arbeid. Die ontleding kyk na 'n verskeidenheid van teoretiese literatuur oor die vraag na arbeid en identifiseer sleutel-parameters vir die arbeidsmark. Daar is soveel teenstrydige paradigmas wat gebruik kan word om die kwessie te ontleed: Mikro-ekonomies teenoor makro-ekonomies; neoklassiek teenoor strukturalisties; teoreties teenoor empiries, ensovoorts. Sommige van hierdie paradigmas word bespreek as deel van die poging om 'n empiriese raamwerk te bou wat gebruik kan word om die kwessie te ontleed. Die empiriese resultate van die tesis toon: • Hoër reële lone lei tot 'n verlaging van die hoeveelheid arbeid aangevra. Die tesis beraam die ekonomiewye loonelastisiteit van indiensneming op sowat - 0,67; • Hoër uitset stimuleer die vraag na arbeid. Die enkelvergelyking-raming van die uitset-elastisiteit van indiensneming is tussen 0,66 en 0,75, terwyl die ekonomiewye raming sowat 1,1 is. Laasgenoemde neem terugvoerinvloede van ander makro-ekonomiese veranderlikes in ag, bv. produktiwiteit en lone. • Daar is min bewyse dat die doeltreffende loon-hipotese water hou: Hoër produktiwiteit lei tot hoër lone, maar die teendeel is onwaar; • Vakbonde se mag verhoog reële lone, wat indirek lei tot 'n daling van die vraag na arbeid. Dit dui daarop dat die arbeidsmark 'n binnekring en buitestaanders het; en • Die relatiewe prys van arbeid is ook belangrik: 'n Afname van die koste van kapitaal veroorsaak 'n daling van die vraag na arbeid. Simulasies toon dat werkskepping bevorder kan word deur beleid wat loonmatiging en ekonomiese groei bevorder. Daar is ook 'n rol, alhoewel beperk, vir fiskale insentiewe, b.v. 'n loonsubsidie.

The literature trying to link the increase in unemployment in many western European countries since the middle of the 1970s to an increase in labour market rigidity has run into a number of problems. In particular, changes in labour market institutions do not seem to be able to explain the evolution of unemployment across time. We conclude that a new theory of medium run unemployment swings should explain the increase in unemployment in many European countries and the lack thereof in the United States. Furthermore, it should also help to explain the high degree of endogenous unemployment persistence in the many European countries and findings suggesting a link between disinflationary monetary policy and subsequent increases in the NAIRU. To address these issues, we first develop an endogenous growth sticky price model. We subject the model to an uncorrelated cost push shock, in order to mimic a scenario akin to the one faced by central banks at the end of the 1970s. Monetary policy implements a disinflation by following an interest feedback rule calibrated to an estimate of a Bundesbank reaction function. 40 quarters after the shock has vanished, unemployment is still about 1.8 percentage points above its steady state. The model also partly explains cross country differences in the unemployment evolution by drawing on differences in the size of the disinflation, the monetary policy reaction function and wage setting. We then draw some conclusions about optimal monetary policy in the presence of endogenous growth and find that optimal policy is substantially less hawkish than in an identical economy without endogenous growth. The second model introduces duration dependent skill decay among the unemployed into a New-Keynesian model with hiring frictions developed by Blanchard/Gali (2008). If the central bank responds only to inflation and quarterly skill decay is above a threshold level, determinacy requires a coefficient on inflation smaller than one. The threshold level is plausible with little steady-state hiring and firing ("Continental European Calibration") but implausibly high in the opposite case ("American calibration"). Neither interest rate smoothing nor responding to the output gap helps to restore determinacy if skill decay exceeds the threshold level. However, a modest response to unemployment guarantees determinacy. Moreover, under indeterminacy, both an adverse sunspot shock and an adverse technology shock increase unemployment extremely persistently.

published_or_final_version / Economics and Finance / Master / Master of Economics

Labor market change in societies where an information economy is evolving, is a central area of concern for information society scholars today. While there has been considerable research conducted on cases of developed countries, research on labor market changes during a transition to an information economy outside of the advanced industrial economies is scarce. Thus, this dissertation proposes to examine the changes in wage, employment, and occupation structure that take place when an NIC, such as Taiwan, ushers in an information economy, and to explore the reasons behind these changes. This dissertation combined the historical, policy, and statistical analyses and concluded that the transformation from labor intensive manufacturing to an information intensive economy, as arranged by the Taiwanese government due to its own political and governing purposes, and also in the context of international political and economic circumstances, determined Taiwan’s economic resource arrangement, which resulted in an increasingly unbalanced labor market in terms of wage distribution, unemployment, and occupation structure. This transformation changed and shaped the structure of the labor market to benefit workers more skilled with information, more professional, having higher level knowledge and a higher level of education, while an increasing amount of white-collar and service workers began earning comparatively low wages. At the same time the demand for blue-collar and lower skill workers severely declined. Moreover, the total labor demand of information manufacturing and information intensive service is much less than that of traditional labor intensive manufacturing, resulting in Taiwan’s increasing unemployment problem. Among these processes, many different social, political, policy, and economic factors interacted and collectively determined this result. Among them, the role of the state in shaping Taiwan’s information economy in general and the labor market situation in particular did matter considerably. / text

Over the past three decades, economic reforms have brought about dramatic changes in China. The wave of structural and economic reforms regarding the State-owned Sector (SOS), and the surge of the Non-State-owned Sector (NSOS), have influenced returns in the labor market, such as the returns concerning human capital and political capital in urban China. Presumably, the NSOS would be more marketed-oriented compared to the SOS, and it would have different returns concerning political capital, as represented by Chinese Communist Party (CCP) membership. This is likely because the NSOS would not value Party membership as much as the SOS does. The question of how Party membership is rewarded in the two sectors might also change with the development of the two ownership sectors, as more time passes since the establishment of the economic reforms. I examine whether CCP members display any earnings advantage in these two sectors, and I also explore how such an advantage might have changed over time. Unlike most of the previous studies that have focused on earnings in urban China, I treat Party membership affiliation and ownership sector selection as being endogeneous. I apply the Mlogit -OLS two-stage selection correction estimation proposed by Lee (1983) and discover evidence which suggests that Party membership serves as a proxy for both political and productive skills. A flat Party premium in the SOS and a decreasing Party premium in the NSOS suggest that the Party card served a similar function in the payment scheme present in the SOS during this three year span, whereas the NSOS valued political capital by a decreasing amount over time. The evidence presented in my dissertation indicates that economic reforms tend to mitigate the earning advantage of Party members that occurs as a result of unequal treatment based on Party membership. This evidence suggests that CCP membership is losing its earning power, at least in the NSOS. In addition, the CCP members sacrifice the benefits previously possessed in the adaptation to the transformed economic environment in urban China. However, the rewards to other forms of human capital have increased over time.

My dissertation offers three empirical studies of the outcomes following public policy changes designed to reduce the impact of discrimination. The first two chapters focus on the migration of black South Africans soon after the notorious apartheid policies of the South African government were eliminated in the early 1990s. The last chapter of my thesis touches another anti-discrimination policy, the American with Disabilities Act of 1990.Chapter 1 investigates the impact of internal migration on the human capital redistribution within South Africa. As apartheid was being dismantled, new opportunities for movement opened up to black workers, leading to a surge in internal migration. The empirical analysis shows that individuals prefer localities with higher expected log wages regardless of their educations and skills. Second, over the study period, brain drain arose among blacks within South Africa: the share of people with high school education rose in areas that had originally had more people with high school educations.Chapter 2 studies the impact of family migration on women's employment status in South Africa as apartheid was being dismantled. Black women in migrating households with both spouses were more likely to be unemployed than in nonmigrant households. Moreover, the initial negative relationship between migration and employment in a new area for white spouses of migrants was eliminated within 2 years, while black spouses of migrants experienced higher levels of unemployment relative to nonmigrants over a more extended period.Chapter 3 examines the changes in the Oaxaca decomposition measures of labor market discrimination for individuals with disabilities before and after the passage of the ADA. The results indicate that the employment and wage gaps between the disabled and the non-disabled have risen sharply over time, both before and after the passage of the ADA. Most of the rise prior to the ADA was attributable to a rise in differences that cannot be explained with measurable factors. Nearly all of the rises in the gaps after the introduction of the ADA, however, are attributable to factors that can be measured. The unexplained differential has held relatively constant during that period.

Baigiamajame magistro darbe nagrinėjamos migracijos įtakos Lietuvos darbo rinkai problemos. Išnagrinėti pagrindiniai darbo rinkos rodikliai, migracijos samprata ir migraciją lemiantys veiksniai. Atlikta migracijos teorijų lyginamoji analizė, remiantis analizės išvadomis atliktas užsienio lietuvių bendruomenių apklausos tyrimas. Trumpai apžvelgiami Lietuvos politikos veiksmai reguliuojant migraciją ir skatinant emigrantų sugrįžimą. Remiantis Lietuvos darbo biržos bei Statistikos departamento duomenimis, baigiamajame darbe pateikiama Lietuvos darbo rinkos ir migracijos analizė. Vertinant darbo rinkos rodiklių ir migracijos veiksnių tarpusavio ryšius, atlikta koreliacinė veiksnių analizė. Išanalizavus teorinius ir praktinius migracijos įtakos Lietuvos darbo rinkai aspektus, pateikiamas migracijos įtakos Lietuvos darbo rinkai tyrimo modelis, baigiamojo darbo išvados ir pasiūlymai. Darbą sudaro penkios dalys: įvadas, teoriniai darbo rinkos ir migracijos klausimai, migracijos teorijų analizė, migracijos įtakos Lietuvos darbo rinkai tyrimo modelis, Lietuvos darbo rinkos ir migracijos analizė, emigracijos įtakos Lietuvos darbo rinkai tyrimas, remiantis užsienio lietuvių bendruomenių apklausa, išvados ir pasiūlymai, literatūros sąrašas. Darbo apimtis – 80 p. teksto be priedų, 40 iliustr., 8 lent., 51 bibliografiniai šaltiniai. Atskirai pridedami darbo priedai. / It the final master work, the theme of the migration impact on Lithuanian labor market is researched. The main labor market indicators, the concept of migration and factors influencing migration are analyzed. A comparative analysis of migration theories are done, and based on the findings of the analysis, there was accomplished the poll of the foreign Lithuanian communities. Brief overview of Lithuanian political actions in regulating migration and encouraging return of emigrants is presented. According to the data of Lithuanian Labor Exchange and the Department of Statistics, in the final master work the Lithuanian labor market and migration analysis is presented. Evaluating the interrelationship between labor market indicators and migration factors a correlation analysis is done. After analyzing the theoretical and practical aspects of migration‘s impact on Lithuanian labor market, conclusions, recommendations and the research model of migration impact on Lithuanian labor market are presented. The work consists of five parts: introduction, theoretical questions of labor market and migration, analysis of migration theories, migration affect the Lithuanian Labor market research model, analysis of Lithuanian Labor market and migration, analysis of the impact of emigration on Lithuanian labor market, based on the poll of Lithuanian foreign communities, conclusions and suggestions, references. Thesis consists of: 80 p., 40 figures, 7 tables, 51 bibliographical entries... [to full text]

<p>This dissertation is comprised of three essays in the economics of education. In the first essay, I examine how college students' major choice and major switching behavior responds to major-specific labor market shocks. The second essay explores the incidence and persistence of overeducation for workers in the United States. The final essay examines the role that students' cognitive and non-cognitive skills play in their transition from secondary to postsecondary education, and how the effect of these skills are moderated by race, gender, and socioeconomic status.</p> / Dissertation