The relationship between formal and informal employment in South Africa

Kay, David D.

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

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

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

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

Copyright and License Information

Copyright 2011 David D. Kay

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