University of Illinois Urbana-Champaign

The relationship between formal and informal employment in South Africa

Kay, David D.

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Kay_David.pdf

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https://hdl.handle.net/2142/24306

Description

Title
The relationship between formal and informal employment in South Africa
Author(s)
Kay, David D.
Issue Date
2011-05-25T15:02:36Z
Director of Research (if dissertation) or Advisor (if thesis)
Baylis, Katherine R.
Department of Study
Agr & Consumer Economics
Discipline
Agricultural & Applied Econ
Degree Granting Institution
University of Illinois at Urbana-Champaign
Degree Name
M.S.
Degree Level
Thesis
Date of Ingest
2011-05-25T15:02:36Z
Keyword(s)
  • employment
  • unemployment
  • formal employment
  • informal employment
  • South Africa
  • developing country
  • poverty
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.
Graduation Semester
2011-05
Permalink
http://hdl.handle.net/2142/24306
Copyright and License Information
Copyright 2011 David D. Kay

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