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Title:The relationship between formal and informal employment in South Africa
Author(s):Kay, David D.
Advisor(s):Baylis, Katherine R.
Department / Program:Agr & Consumer Economics
Discipline:Agricultural & Applied Econ
Degree Granting Institution:University of Illinois at Urbana-Champaign
formal employment
informal employment
South Africa
developing country
Abstract:Over the last several decades several theories have dominated debates about the nature of informal employment in developing countries. The dualistic theory claims that the informal sector is a substitute for formal employment, the alternative theory claims that the informal sector is a compliment to formal employment, and the structural articulation theory claims that informal employment is both a substitute for and compliment to formal sector employment because heterogeneous groups exist within the informal sector. This study contributes to the literature by providing empirical evidence that heterogeneous sub-sectors do exist within South Africa’s informal sector, and that the Structural Articulation theory, with its focus on dynamic and static sub-sectors, is the most appropriate framework to adopt when thinking about informal employment in South Africa . Furthermore, the study also adds to the literature by providing evidence that a national poverty line can be used to identify the dynamic and static sub-groupings within South Africa’s informal sector. Finally, I suggest that the existence of heterogeneous sub-groupings implies the need to better target policy interventions for the informal sector.
Issue Date:2011-05-25
Rights Information:Copyright 2011 David D. Kay
Date Available in IDEALS:2011-05-25
Date Deposited:2011-05

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