This study analyses the relationship between remuneration (real wage) and labour productivity in South Africa at the macroeconomic level, using time series and econometric techniques. The results depict that there is a significant evidence of a structural break in 1990. The break appears to have affected the employment level and subsequently fed through into employees' remuneration (real wage) and productivity. A long run cointegrating relationship was found between remuneration and labour productivity for the period 1990 to 2011. In the long run, 1% increase in labour productivity is linked with an approximately 1.98% rise in remuneration. The coefficient of the error correction term in the labour productivity is large, indicating a rapid adjustment of labour productivity to equilibrium. However, remuneration does not Granger cause labour productivity and vice versa. / Thesis (M.Com.(Statistics) North-West University, Mafikeng Campus, 2014

After twenty years of democracy, the most pressing problem facing South Africa is the absence of sustainable economic growth and job creation. Since 1994, major economic reforms and adjustments have been made, which were seen as a requirement for achieving economic growth and development. However, despite these efforts, unemployment in South Africa remains a challenging problem. The main objectives of the study are, firstly, to examine South Africa’s economic policy initiatives implemented since 1994. Secondly, to determine whether the issue of unemployment has improved under a review of the economic policies that have been implemented since 1994. Finally, this is achieved by examining the changes in employment and, more specifically, the changes in the cost-neutral change in the capital/labour (K/L) ratio between 1995 and 2013 by means of a historical Computable General Equilibrium (CGE) modelling approach. The literature study focuses on employment, growth and human capital theories to reflect on the present state of knowledge and to contribute to evidence-based policy debates. It also provides an overview of South Africa’s economic policy, programmes and strategy decisions and of the country’s economic stance since the transition to democracy in 1994, with a specific focus on the labour market. Historical CGE modelling, applied using the PEKGEM – a dynamic CGE model of the South African economy, was chosen to examine the relationship between growth and structural changes under the different economic and development policies in South Africa between 1995 and 2013. The primary aim was to determine how the dynamics and structure of South African employment changed during the period in which these policies were implemented, using the historical CGE modelling approach. The focus was primarily on changes in the capital and labour markets across all sectors over this period. The results indicate an increase in capital relative to labour (K/L) over the period 1995 to 2013, despite the increase seen in the rental price of capital relative to wages (PK/PL). To better understand the structural shift, the theoretical specification of the capital/labour preference within PEKGEM was considered. The results suggests that at any given ratio of real wages relative to the rental price of capital, industries would choose a K/L ratio 8.1 per cent higher in 2013 than it would have in 1995. Considering the fact that South Africa has a comparative advantage in unskilled labour-intensive goods, especially given the country’s abundance of labour and high levels of unemployment, the shortcomings of South Africa’s economic policies in addressing the pressing issue of unemployment is emphasised. / MCom (Economics), North-West University, Potchefstroom Campus, 2015

This study examines the determinants of unemployment at the municipal level and as such aims to answer what the place-specific drivers of unemployment in South African cities and towns are. The purpose has been to test the arguments that local economies and labour markets matter for local unemployment. The empirical analysis makes use of a balanced panel data set for the period 1996 to 2012 for across 234 local and metropolitan municipalities to estimate a regression model in which the level of unemployment in a particular place is determined by a range of place-specific explanatory variables. It is found that the place-specific determinants of unemployment are a higher population growth rate and dense populations that are associated with lower unemployment rates, indicating the benefits from agglomeration economies. A large informal sector is negatively associated with unemployment, which supports the sentiments expressed in the literature that without agglomeration, economic opportunities for individuals in informal employment are limited. If people in a city or town are better educated this is associated with lower levels of unemployment on average. High inequality does not necessarily cause high unemployment; however, they do coincide. A positive association between specialisation and unemployment is found. Furthermore, the mining, manufacturing, construction and trade sectors that are locally bigger than in the national economy are associated with lower unemployment. The results support the findings that a link exists between geography and labour market outcomes and therefore the need exists for convergence of the social safety net and integration with the economic opportunities at the thriving cities and towns. / MCom (Economics), North-West University, Potchefstroom Campus, 2015

After twenty years of democracy, the most pressing problem facing South Africa is the absence of sustainable economic growth and job creation. Since 1994, major economic reforms and adjustments have been made, which were seen as a requirement for achieving economic growth and development. However, despite these efforts, unemployment in South Africa remains a challenging problem. The main objectives of the study are, firstly, to examine South Africa’s economic policy initiatives implemented since 1994. Secondly, to determine whether the issue of unemployment has improved under a review of the economic policies that have been implemented since 1994. Finally, this is achieved by examining the changes in employment and, more specifically, the changes in the cost-neutral change in the capital/labour (K/L) ratio between 1995 and 2013 by means of a historical Computable General Equilibrium (CGE) modelling approach. The literature study focuses on employment, growth and human capital theories to reflect on the present state of knowledge and to contribute to evidence-based policy debates. It also provides an overview of South Africa’s economic policy, programmes and strategy decisions and of the country’s economic stance since the transition to democracy in 1994, with a specific focus on the labour market. Historical CGE modelling, applied using the PEKGEM – a dynamic CGE model of the South African economy, was chosen to examine the relationship between growth and structural changes under the different economic and development policies in South Africa between 1995 and 2013. The primary aim was to determine how the dynamics and structure of South African employment changed during the period in which these policies were implemented, using the historical CGE modelling approach. The focus was primarily on changes in the capital and labour markets across all sectors over this period. The results indicate an increase in capital relative to labour (K/L) over the period 1995 to 2013, despite the increase seen in the rental price of capital relative to wages (PK/PL). To better understand the structural shift, the theoretical specification of the capital/labour preference within PEKGEM was considered. The results suggests that at any given ratio of real wages relative to the rental price of capital, industries would choose a K/L ratio 8.1 per cent higher in 2013 than it would have in 1995. Considering the fact that South Africa has a comparative advantage in unskilled labour-intensive goods, especially given the country’s abundance of labour and high levels of unemployment, the shortcomings of South Africa’s economic policies in addressing the pressing issue of unemployment is emphasised. / MCom (Economics), North-West University, Potchefstroom Campus, 2015

This study examines the determinants of unemployment at the municipal level and as such aims to answer what the place-specific drivers of unemployment in South African cities and towns are. The purpose has been to test the arguments that local economies and labour markets matter for local unemployment. The empirical analysis makes use of a balanced panel data set for the period 1996 to 2012 for across 234 local and metropolitan municipalities to estimate a regression model in which the level of unemployment in a particular place is determined by a range of place-specific explanatory variables. It is found that the place-specific determinants of unemployment are a higher population growth rate and dense populations that are associated with lower unemployment rates, indicating the benefits from agglomeration economies. A large informal sector is negatively associated with unemployment, which supports the sentiments expressed in the literature that without agglomeration, economic opportunities for individuals in informal employment are limited. If people in a city or town are better educated this is associated with lower levels of unemployment on average. High inequality does not necessarily cause high unemployment; however, they do coincide. A positive association between specialisation and unemployment is found. Furthermore, the mining, manufacturing, construction and trade sectors that are locally bigger than in the national economy are associated with lower unemployment. The results support the findings that a link exists between geography and labour market outcomes and therefore the need exists for convergence of the social safety net and integration with the economic opportunities at the thriving cities and towns. / MCom (Economics), North-West University, Potchefstroom Campus, 2015

The apartheid Johannesburg was built on spatial divisions, uneven development was undertaken literally to ensure that whites and blacks were to live apart from each other. In the post-apartheid Johannesburg, uneven development persists, though no longer solely based on racial differences. These spatial divisions, as they did under apartheid, reinforce existing structures of the privileged, which mutually reinforce the system of spatial, economic and social exclusion, particularly for the unemployed poor. In the light of the continuation of this urban form, the study aimed to show that people are not unemployed only because there are no jobs generally available to people lacking marketable skills, as primarily argued by most researchers; but also because there is a strong correlation between unemployment and the spatial distribution of employment opportunities within the Johannesburg city. The study also aimed to test the applicability of various theories imported from USA and Europe, which are generally used to explain urban problems in South Africa, through identification of possible areas of contention. In attempt to explain the continuation of the apartheid urban form by the current government policy, the study adopted qualitative data collection techniques focusing on literature studies, documentary, personal observation and the design of a theoretical framework Based on the theoretical framework, the study came to the conclusion that the preoccupation with compact city development to eradicate the effects of uneven development and urban unemployment in Johannesburg is misdirected. It has revealed the need for the government to explore how best to improve the circumstances of low-income households in condition of urban sprawl. The outcome of the study in relation to uneven development is that, although Johannesburg exhibits apartheid patterns of racial oppression and exploitation, in post-apartheid South Africa, Johannesburg is characterized by structural inequality driven by two income gaps: between an increasingly multiracial middle class and the rest; and between the African urban working class and the African unemployed and marginalized poor. In this context, uneven development in Johannesburg can no longer be explained solely by race. High levels of intra-racial inequality, especially among the African population, mean that there are other social forces at work. The study also found that there has been the steady relocation of economic activities to the southern part of Johannesburg, particularly in Soweto. And that the vast majority of new households in Johannesburg are settling in and on the edges of existing townships, most often on the outer edges, mainly because of the informal housing and government's subsidised housing. Nonetheless, these developments continue to perpetuate the apartheid legacy of uneven development. According to the conclusion of the study there is evidence to suggest that employment accessibility within different population groups is largely caused by spatial factors, such as employment decentralisation and residential segregation. / Development Studies / D. Litt. et Phil. (Development Studies)

This dissertation, titled “Flexibility in European Wage Structure and its implications for the European Unemployment,” studies the problem of high rates of unemployment in Europe during the last few decades through the optic of European wage behavior. It examines the European wage structure – within and between European countries – to find out factors that drive wages and thereby, unemployment rates in European countries. A conventional view of European problem of high unemployment argues that European wages are explained by cross-country differences in certain labor market policies and institutions, and that the policies and institutions at the country-level are the principal source of the problem. This dissertation argues instead that European wages are explained by differences in macroeconomic performances and in levels of international competitiveness between countries and also between sectors within the countries, and by certain continental and global level factors, and that a full understanding of the effects of those factors is necessary to explain the European problem of high unemployment. By applying numerical techniques, namely a combination of cluster analysis and discriminant function analysis, this dissertation finds that European wages are driven by factors pointed out by the dissertation, which also explain the high rates of unemployment in Europe over the last few decades. / text

<p>The dependence on oil has increased in many nations as a result of increasing industrialization and oil has been the factor of many crises as well as many wars. This paper examines how the price of oil affects the unemployment in Sweden. The case of Sweden is interesting since its politics are very different compared to other industrialized countries when it comes to unemployment and benefits. Our main objective is to see whether a change in the oil price will cause a change in unemployment at a later stage. We perform linear regression analysis relating current changes in the variables and Granger causality tests to conclude if there exists a direct relationship.</p><p>The result we received from our linear regression test on current changes and our Granger causality test showed a relationship between the price of oil and unemployment in Sweden. In the linear regression relating current changes in these variables, a positive relationship was indicated. Due to the fact that some of the coefficient estimates are positive and some are negative in the Granger causality regressions, we can not conclude whether an increase in the price of oil will cause a positive or negative effect on unemployment.</p>

Explicit parameterizations of labor supply are specified and estimated on a sample of single unattached individuals using data from the Panel Study of Income Dynamics and a generalized Tobit maximum likelihood method which is consistent under the assumption that employed hours are exogenous. Results of these estimations are then used to compute triangle approximation and direct closed form solutions for labor market constraint compensation. Underemployment compensation estimates are generated and compared to actual and hypothetical payments which would accrue under the UI systems of representative states. Certain compensation results for overemployment are also offered. Where they are directly comparable, results from Tobit estimation of the basic labor supply relations are found to strictly dominate ordinary least squares (OLS) results in terms of efficiency. While the OLS and Tobit parameter estimates differ dramatically in most cases, the latter are consistent with the bulk of recent empirical labor supply research. A corollary purpose of estimating the several labor supply specifications is the search for an appropriate structure of preferences to be used in modeling the labor-leisure choice problem. Direct likelihood ratio tests yielded no best form, but suggested that more flexible parameterizations are to be desired. Results on compensation amounts tend to support accepted standards of UI benefit adequacy. For all levels of unemployment the direct compensation results suggested that "one-half gross wage replacement" would slightly overcompensate individuals from a utility based perspective.

<p>This dissertation examines the extent of different forms of informal insurance provided by both co-resident and non-co-resident family members. Primarily relying on the Panel Study of Income Dynamics, a unique, longitudinal survey dataset from the United States, this dissertation provides new insight on the importance and unique motives that may drive interactions between family members. These two essays investigate the different forms of assistance that the family uses in two different contexts: in response to unemployment and health conditions. The results in this paper provide new insight into the role that informal interactions can have on decisions and behavior. This research suggests new direction for future economic models dealing with the family, networks, risk, unemployment, health, and location decisions. The overarching theme is that decisions are made jointly across households, not just within a household.</p> / Dissertation