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2. Employment transitions with high unemployment and a small informal sector: Examining worker flows during normal and recessionary periods in South Africa
- Author:
- Shakeba Foster
- Publication Date:
- 04-2023
- Content Type:
- Working Paper
- Institution:
- United Nations University
- Abstract:
- This paper examines employment transitions in the South African labour market. Using the Post-Apartheid Labour Market Series, it analyses flows between the formal sector, informal sector, and unemployment, paying specific attention to how these flows differ during recessions. It explicitly considers heterogeneity within the informal sector by separately accounting for wage employment and self-employment as well as upper-tier and lower-tier informal sector segments. Transition probabilities are estimated using dynamic discrete choice models, and the extent to which transitions affect changes in real wages is estimated using a linear model. The results provide evidence of heterogeneity within the informal sector and segmentation between wage employment and self-employment. They also show a lag in the employment impacts following a recession. Finally, the paper provides suggestive evidence that the upper-tier segment of the informal sector acts as a buffer during recessionary periods by absorbing labour that would otherwise be unemployed or relegated to precarious lower-tier informal employment.
- Topic:
- Employment, Labor Market, Informal Economy, and Recession
- Political Geography:
- Africa and South Africa
3. Youth unemployment in the South of the Mediterranean: A chronic challenge to development and stability
- Author:
- Hussein Suleiman
- Publication Date:
- 01-2022
- Content Type:
- Working Paper
- Institution:
- IEMed/EuroMeSCo
- Abstract:
- Unemployment among youth, aged 15 to 24 years old according to the International Labour Organization (ILO)’s definition, is the highest in the south of the Mediterranean, and in the larger Middle East and North Africa (MENA), compared to other regions in the world. This problem is exacerbated by very low labour force participation rates for this age group in the region, also compared to other regions. Furthermore, this issue of high youth unemployment is not a recent development but has been chronic in the region for at least the last three decades, as shown in detail further on. Youth unemployment south of the Mediterranean is a major challenge, and a symptom of deeply-rooted problems in the region’s labour markets. Unemployment is largely a youth unemployment issue. The problem is mainly one of new entrants’ transition from school age to work (Assaad & Krafft, 2016) but with consequences that could easily shape the entire life trajectories of individuals in the region and also have widespread impacts on their societies and even neighbouring countries. Such worrying and chronic challenges in the region’s labour markets have been largely shaped by structural deeply-rooted issues, reflected in the rise of work informality as a result of falling public employment, and a slow growth of formal private employment in the region throughout the last few decades, which will be discussed in detail in the paper. This paper aims to provide policy recommendations to address such chronic problems in the region, focusing mainly on Southern Mediterranean countries in North Africa, Egypt, Tunisia, Algeria and Morocco, excluding Libya because of the exceptional impact of the civil war on its labour market during the last decade. The paper first explores some prominent implications of low employment among the youth, for their own lives and their societies. It then proceeds to examine the magnitude of the problem in the selected countries and its development across the last three decades, relying mostly on ILO estimates, which, unlike national estimates, have a few missing entries in that extended period, and also allow for disaggregation by age groups and gender that might not always be available for national estimates. Next, the paper highlights the now-established explanation of the youth employment problem in the region and how it developed, before finally moving to the recommended policy measures, both domestic and through regional cooperation, to address this chronic problem that has played a major role in the radical political and social shocks in the region in the last decade.
- Topic:
- Labor Issues, Employment, Youth, and Unemployment
- Political Geography:
- Africa, Europe, Middle East, and Mediterranean
4. Employment policy in Mainland Tanzania: what’s in it for women?
- Author:
- Roosa Lambin and Milla Nyssölä
- Publication Date:
- 06-2022
- Content Type:
- Working Paper
- Institution:
- United Nations University
- Abstract:
- Tanzania has experienced relatively strong and stable economic growth accompanied by social stability over the past two decades. The country is also pursuing an ambitious development plan with significant employment objectives. For development to be fully inclusive, specific attention must be paid to the gendered dimensions of employment policy, in terms of both design and outcomes. This constitutes a key challenge in Tanzania, where women and femaleheaded households are constrained by lower levels of education and social capital, deeper levels of poverty, and limited access to assets—while also being impacted disproportionately by the economic implications of the COVID-19 pandemic. This paper interrogates Tanzania’s employment policies from a gender perspective by adopting a functional approach. We examine policies with (1) a labour market entry-facilitating function, (2) an enterprise- and productivityenhancing function, and (3) a job quality-enhancing function, through their effects on workingage women’s employment in the 2000s. We also discuss the extent to which women’s employment is considered in the broader development approach and social policy model in the country. The analysis draws on a desktop-based scoping review of diverse sources of evidence. The paper shows that several progressive policies have been introduced in the areas of financial services, labour market regulations, and entrepreneurship support, and women’s labour market position has slightly improved in the new millennium. However, women remain at the margins of the broader development strategy, and much needs to be done to enhance women’s access to assets, skills training, and better-quality employment. Further gender-responsive social policy investments would facilitate this process.
- Topic:
- Women, Employment, Social Policy, and Gender
- Political Geography:
- Africa and Tanzania
5. Urbanisation and Rural Development in Developing Countries: A Review of Pathways and Impacts
- Author:
- Tekalign Gutu Sakketa
- Publication Date:
- 01-2022
- Content Type:
- Working Paper
- Institution:
- German Institute of Development and Sustainability (IDOS)
- Abstract:
- This paper reviews the current state of literature on the impacts of urbanisation on rural development in developing countries, with an emphasis on Sub-Saharan Africa (SSA). Assessments of these effects diverge greatly. While some authors see urbanisation as strongly benefitting rural areas, for instance, through increased demand for agricultural goods and services, others highlight negative effects, for example, through the loss of livelihoods emanating from displacements and the conversion of agricultural land. Given this complexity, a review that thoroughly analyses the causal relationships between urbanisation and rural development is warranted. To do this, this Discussion Paper identifies seven channels through which urbanisation affects rural development: i) production and consumption linkages; ii) employment linkages; iii) financial linkages; iv) land market linkages; v) information and public service linkages; vi) social interactions linkages; and vii) environmental externalities. As to the first channel, production and consumption linkages, the review suggests that urbanisation has increased demand for agricultural products and services; natural resources; commercialisation and modernisation of agricultural technologies; and smallholders’ participation in modern agricultural value chains. The employment channel suggests that rapid urbanisation is enabling the diversification of rural livelihoods by bringing new economic opportunities to rural areas, but the effects have not been uniform across countries and communities. With regard to financial linkages, flows from cities have increased in many developing countries, benefitting rural areas; yet some studies point to no or to negative effects due to reduced agricultural productivity from the loss of labour and technology, and the crowding out of investment. Land market effects are particularly heterogeneous. While urbanisation tends to drive land value up and encourages investments, there are also negative developments in terms of crowding out and speculation. As to information and public service linkages, the review suggests that urbanisation has fostered information and knowledge flows from urban areas to rural areas which have improved income, innovation, and employment. Social interactions among urban and rural citizens more generally may bridge cultural gaps, improve the flow of information, knowledge, and resources pertinent for rural economic transformation, and thereby enhance social cohesion; yet little empirical evidence exists so far in terms of effects and causalities. Finally, urbanisation affects rural development through the environmental externalities it generates: waste disposal, environmental degradation, and loss of biodiversity. If appropriate technologies are put in place, urbanisation can also improve waste management and soil fertility, thus reducing the cost of agricultural production. To this end, the review has identified research gaps that have important policy implications. First, although effective rural-urban planning, monitoring and evaluation of rural-urban development policies require better data, there is lack of data collection systems or their quality is poor. In this respect, investing in emerging data sources such as satellites data can help countries improve their data collection systems and measures. Second, research is needed to revise and reformulate better theoretical frameworks that take into account the uniqueness of African urban cities. Third, empirical evidence which documents to what extent and how rural-urban linkages provide an important arena for improving social interactions among neighbours, societies, and communities is needed. Finally, as many African countries continue to experience rapid urbanisation (mostly urban sprawl), a thorough study of the impacts of urban externalities on agricultural productivity, food security, biodiversity, and the health of rural communities is necessary.
- Topic:
- Development, Environment, Urbanization, Employment, Finance, and Public Service
- Political Geography:
- Africa and Sub-Saharan Africa
6. The effect of wage subsidies on job retention: Evidence from South Africa during the COVID-19 pandemic
- Author:
- Timothy Köhler, Robert Hill, and Haroon Bhorat
- Publication Date:
- 10-2022
- Content Type:
- Working Paper
- Institution:
- United Nations University
- Abstract:
- Wage subsidies have served as a primary labour market policy used around the world to mitigate job losses in response to the COVID-19 pandemic. In South Africa, where unemployment is among the highest globally, the Temporary Employer–Employee Relief Scheme supported millions of workers in a far-reaching and progressive manner. We make use of unique labour force panel data to estimate the causal effect of the policy on short-term job retention among formal private sector workers, who represent the majority of workers in the country, by exploiting a temporary institutional eligibility detail and estimating a difference-in-differences model. We find that the policy increased the probability of remaining employed by 16 percentage points in the short-term. This finding holds when subjected to several robustness tests. We further estimate heterogeneous and progressive effects across the wage distribution with larger effects observed for lower-wage workers, against a backdrop of regressively distributed job loss in the country. Our analysis provides evidence on the role of wage subsidies in the mitigation of job loss during crises in developing countries.
- Topic:
- Employment, Wage Subsidies, COVID-19, Labor Market, and Job Loss
- Political Geography:
- Africa and South Africa
7. Trade liberalization, employment, and gender in Ethiopia
- Author:
- Giorgia Giovannetti, Marco Sanfilippo, and Arianna Vivoli
- Publication Date:
- 03-2021
- Content Type:
- Working Paper
- Institution:
- United Nations University
- Abstract:
- This paper analyses the impact of trade liberalization on local labour markets in Ethiopia, with a focus on the gender dimension of employment. By exploiting rich micro-level data on Ethiopian workers, we evaluate the effect of the Ethiopian trade reforms on the changes and composition of employment, adopting as unit of analysis Ethiopian districts. We find that districts more exposed to trade liberalization experienced reductions in their employment levels, especially in female employment. We also show that reductions in (agricultural) input tariffs triggers a process of sectoral reallocation from agriculture to services and that this process is particularly pronounced for women. This in turns contributes to increase sectoral segregation.
- Topic:
- Gender Issues, Employment, Trade, and Liberalization
- Political Geography:
- Africa and Ethiopia
8. New Directions in Mining Governance and the Sustainable Development Goals in Africa
- Author:
- Sara Ghebremusse
- Publication Date:
- 05-2020
- Content Type:
- Working Paper
- Institution:
- Centre for International Governance Innovation
- Abstract:
- Despite Africa's wealth of natural resources, millions of its people live in extreme poverty. Effective mining governance can help Africa address this imbalance by achieving UN Sustainable Development Goal (SDG) 1 (to end poverty) and SDG 8 (to create sustainable economic growth and decent work for all). Reforms aimed at generating more revenue for national governments to address poverty and building new partnerships between public and private sectors to promote economic growth and boost employment can help achieve these goals.
- Topic:
- Poverty, United Nations, Natural Resources, Employment, Sustainable Development Goals, and Private Sector
- Political Geography:
- Africa
9. Education and Labour Market Activity of Women in Botswana
- Author:
- Goitseone Khanie
- Publication Date:
- 03-2019
- Content Type:
- Working Paper
- Institution:
- Botswana Institute for Development Policy Analysis
- Abstract:
- This study examines the prevalence of female participation in labour market activities and investigates the role played by education in this participation. Using the 2015/16 Botswana Multi Topic Household Survey data and a multinomial logit model, the study found that women with tertiary education are more likely to be wage employed relative to self-employment, whereas those with lower to no education are more likely to be unemployed or out of the labour force. This is because higher education is normally considered a prerequisite for most wage jobs. It is therefore imperative for the government to continue educating women beyond secondary level as it will better equip them to participate in more meaningful labour market activities. On the other hand, there is need to stimulate the demand side of the labour market in order to accommodate the rising numbers of women with high levels of education. In order to encourage participation of women in high rewarding self-employment activities, there is need to intensify empowerment schemes that are largely oriented towards their self-employment.
- Topic:
- Education, Gender Issues, Labor Issues, Women, and Employment
- Political Geography:
- Africa and Botswana
10. Unemployment in the SADC Region
- Author:
- Johanne Motsatsi
- Publication Date:
- 03-2019
- Content Type:
- Working Paper
- Institution:
- Botswana Institute for Development Policy Analysis
- Abstract:
- The objective of this study is to estimate the determinants of unemployment in the Southern African Development Community (SADC) region using annual data from 2000 to 2016. Given the characteristic of the data, the study adopts Fixed Effect (FE) estimation technique. For further analysis, the study also estimated the ARDL panel model to capture persistence effect of unemployment in the region. The FE results reveals that real GDP, foreign direct investment, consumer price index, credit to the private sector and interest rate are negatively related to unemployment. While trade openness, labour productivity and population have a positive sign. The results estimated with ARDL model are not very different from those of FE model, but we obtained a noticeably smaller estimates for ARDL model. Variables which have negative association with unemployment suggest that they are likely to reduce unemployment. Therefore, such indicators may be of interest to policy makers when formulating unemployment reduction strategies. In terms of policy advise, the study recommends the government of SADC member states to encourage the education system that can equip leaners with entrepreneurial skills and in-job practical skills, in order to promote high success rate of SMMEs as well as to provide skills needed in the labour market. It also recommended enforcement of free trade of goods and services in the region as a means of making the industrial sector an engine of economic growth in order to create much needed employment.
- Topic:
- Development, Economics, Labor Issues, Employment, Labor Policies, Macroeconomics, and Unemployment
- Political Geography:
- Africa and Botswana
11. Financial Inclusion and its Impact on Employment Creation in Botswana
- Author:
- Koketso Molefhi
- Publication Date:
- 03-2019
- Content Type:
- Working Paper
- Institution:
- Botswana Institute for Development Policy Analysis
- Abstract:
- The study examines the impact of financial inclusion on employment creation in Botswana using quarterly time series data for the period 2004-2016. Using Autoregressive Distributed Lag (ARDL) model, we find that availability of bank branches, ownership of bank account and borrowing from the commercial bank have a positive impact on employment creation in the short run. Similarly, in the long run, availability of bank branches, ownership of bank account has a positive relationship with employment creation in the long run. Depositors with commercial banks has a negative bearing on employment creation, both in the short run and in the long run. Therefore, policies should be aimed at ensuring easy access into the financial sector by way of reducing costs associated with account opening as well as creating affordable deposit and borrowing windows to the financially excluded groups.
- Topic:
- Economics, Labor Issues, Employment, Finance, Financial Markets, and Macroeconomics
- Political Geography:
- Africa and Botswana
12. Get Real: A discussion paper about whether a compliance-based approach to LGBTI economic empowerment can work in South Africa
- Author:
- Tracy-Lynn Humby
- Publication Date:
- 12-2019
- Content Type:
- Working Paper
- Institution:
- The Other Foundation
- Abstract:
- In 1996, South Africa made human rights history by being the first country in the world to prohibit unfair discrimination on the basis of sexual orientation in its constitution. But 25 years after this resounding document was passed by the Constitutional Assembly, the lived realities of most LGBTI South Africans lag well behind the constitution’s ringing promises.
- Topic:
- Human Rights, Employment, Discrimination, LGBT+, and Compliance
- Political Geography:
- Africa and South Africa
13. Youth Employment in Botswana: Comparative Analysis of 2009/10 and 2015/16
- Author:
- Tshepiso Gaetsewe
- Publication Date:
- 03-2019
- Content Type:
- Working Paper
- Institution:
- Botswana Institute for Development Policy Analysis
- Abstract:
- The study examines determinants of youth unemployment in Botswana by comparing two different datasets- (2009/10 Botswana Core Welfare Indicator Survey (BCWIS) and 2015/16 Botswana Multi-Topic Household Survey (BMTHS)). The main objective of the study is to identify the factors that determine the employment probabilities of the youth. Using a probit model we find that gender, age, marital status and education level have an impact on the employment probabilities in both 2009/10 and 2015/16 time periods. Males had a higher chance of employability compared to females. The government and private sector need to develop programmes that will increase women participation in the labour market. Results also indicate that youth with post-secondary education have a better chance of employment. Individuals dwelling in rural and urban areas are less likely to get employment. Government needs to boost business activity in rural areas by identifying and investing in economic activities located there.
- Topic:
- Employment, Youth, Unemployment, and Job Creation
- Political Geography:
- Africa and Botswana
14. Impacts of Access to ICTs on Employment Status in Botswana
- Author:
- Masedi K. Tshukudu
- Publication Date:
- 03-2019
- Content Type:
- Working Paper
- Institution:
- Botswana Institute for Development Policy Analysis
- Abstract:
- It is clear that technology has brought about significant changes in the livelihoods of people, creating new forms of employment and advancing the traditional forms of employment for individuals. Many countries continue to invest in Information and Communication Technologies (ICTs) with the view to tackling some of the economic challenges such as unemployment. Botswana like other African countries has made annual budgetary allocations towards ICT Infrastructure. Despite, the Government’s efforts to invest and improve access to ICT, the country still faces a high unemployment rate, particularly for the youth. This study therefore, investigates the impact that access to ICTs has on the employment of individuals in Botswana. In order to provide a detailed analysis of the impact of ICTs on employment we apply a probit model for binary choice responses to being employed or not being employed, using the data from the 2014 Botswana Household Access and Individual use of Information Communication Technology Survey carried out by the Statistics Botswana. The empirical results provide evidence that access to ICTs collectively has a positive impact on employment in Botswana. However, disaggregating the ICTs forms presents slightly different results, e-skill training and access to the internet in Botswana are not significant in explaining an individual’s employment status, this may be associated with low uptake of internet and ICTs skills by individuals in Botswana. The policy message from this study is that there is a need for aggressive implementation of collective ICT. [In addition, there is need to improve collective ICTs infrastructure to create more employment].
- Topic:
- Science and Technology, Communications, Infrastructure, and Employment
- Political Geography:
- Africa and Botswana
15. Financial Inclusion and its Impact on Employment Creation in Botswana
- Author:
- Koketso Molefhi
- Publication Date:
- 03-2019
- Content Type:
- Working Paper
- Institution:
- Botswana Institute for Development Policy Analysis
- Abstract:
- The study examines the impact of financial inclusion on employment creation in Botswana using quarterly time series data for the period 2004-2016. Using Autoregressive Distributed Lag (ARDL) model, we find that availability of bank branches, ownership of bank account and borrowing from the commercial bank have a positive impact on employment creation in the short run. Similarly, in the long run, availability of bank branches, ownership of bank account has a positive relationship with employment creation in the long run. Depositors with commercial banks has a negative bearing on employment creation, both in the short run and in the long run. Therefore, policies should be aimed at ensuring easy access into the financial sector by way of reducing costs associated with account opening as well as creating affordable deposit and borrowing windows to the financially excluded groups.
- Topic:
- Employment, Finance, Financial Institutions, and Inclusion
- Political Geography:
- Africa and Botswana
16. Exploring the relationship between unemployment and mental illness among the youth in selected communities of Eswatini.
- Author:
- Thula Dlamini, Tengetile G. Hlophe, and Mangaliso Mohammed
- Publication Date:
- 01-2019
- Content Type:
- Working Paper
- Institution:
- Eswatini Economic Policy Analysis and Research Centre (ESEPARC)
- Abstract:
- Studies have demonstrated that the effects and consequences of a lack of work has detrimental effects on one’s mental health. With high levels of youth unemployment presenting a threat to the country’s efforts to sustainable economic development the study seeks to understand the link between the increasing mental illness cases and rising youth unemployment in Eswatini. Using secondary data from the Health Management System, the study traces the areas that have high reported cases of mental illness and conducts 99 semi-structured interviews within these case areas. A rapid assessment is used to assess the relationship between mental health and youth unemployment. Using Jahoda’s latent deprivation model, the study finds that youth unemployment negatively affects mental health particularly through increased idleness and stress leading to high levels of substance abuse, which has a negative impact on mental health. The study also finds that mental health disorders such as anxiety, depression and sometimes schizophrenia are exacerbated by the lack of recreational and structured activities for out of school and unemployed youth in Eswatini. Therefore, policy makers should consider the impact of youth unemployment on mental health as a way of investing in Eswatini’s human capital, thus creating more economically productive interventions for youth to undertake during the periods of unemployment and being out of school.
- Topic:
- Health, Employment, Youth, Mental Health, and Unemployment
- Political Geography:
- Africa and Eswatini
17. An Insight into Community-Based Ecotourism in Eswatini: Theory versus Practice
- Author:
- Tamika Du-Pont and Thabo Sacolo
- Publication Date:
- 01-2019
- Content Type:
- Working Paper
- Institution:
- Eswatini Economic Policy Analysis and Research Centre (ESEPARC)
- Abstract:
- The study provides a baseline of the performance of Community-based Ecotourism (CBET) ventures in Eswatini using primary data collected from 186 participants. The data was collected through face-to-face interviews amongst across five CBET sites. Descriptive and thematic analysis were used to identify; the benefits of CBET accrued to host communities, challenges communities experience in providing goods and services to CBET ventures, and the factors preventing broad based participation. Frequencies of responses were used to determine the perceptions and attitudes of host communities towards CBET. The study finds that many of the promises of CBET have not been fully met in Eswatini. Economic benefits have not been widespread and remain minimal, with approximately 42 jobs in total. Participants receive an average monthly income of E1457.40 ± 933.80, an indication of high disparities in monetary incentives amongst participants. The study finds that CBET has been a catalyst for infrastructural development within rural landscapes and provides participants with additional intangible benefits such as a sense of empowerment and belonging. Poor infrastructural maintenance, inadequate marketing and declining tourist visitations are major threats to the sustainability of CBET ventures. Efforts to augment the performance of CBET in Eswatini should focus on investment in research and monitoring of present and potential new CBET ventures. The study recommends integrated and inclusive policies that will promote and allow for expanded local production in the tourism supply chain, partnerships between host communities and industry experts, and local capacity enhancement to reignite CBET within the tourism sector as a serious contender for economic growth.
- Topic:
- Economics, Tourism, Employment, and Community
- Political Geography:
- Africa and Eswatini