All jobs are equal, but some jobs are more equal than others: what a clustering algorithm reveals about the labour market segmentation in South Africa

dc.contributor.advisorRanchhod, Vimal
dc.contributor.advisorLeibbrandt, Murray
dc.contributor.authorKensett, Jonathan Matthew
dc.date.accessioned2022-02-20T11:11:31Z
dc.date.available2022-02-20T11:11:31Z
dc.date.issued2021
dc.date.updated2022-02-16T13:28:24Z
dc.description.abstractThe theory of labour market segmentation is often used to explain wage inequality in South Africa. It posits that labour markets consist of different segments that are differentiated from other segments based on some observable characteristics. Limited mobility between these segments prevents wages from equalising. In this paper, I make use of a clustering algorithm to identify these informal and formal segments in the labour market. I apply this methodology to a nationally representative panel dataset of employed South Africans. I find that employed South Africans fall into one of three segments. Two of these segments resemble what is commonly referred to as formal and informal employment. The third segment lies somewhere between these two segments and is referred to as semiformal employment. Findings suggest that informally and semiformally employed individuals have s relatively lower chance of entering formal employment. Those in formal employment are much more likely to remain formally employed. It also appears that much of the churning observed in the labour market is between semiformal and informal employment, rather than between informal and formal employment. The identification of this group of semiformally employed labour market participants helps contributes to a more nuanced understanding of labour market dynamics in South Africa and highlights the value that data driven methodologies can provide to applied labour economic analysis.
dc.identifier.apacitationKensett, J. M. (2021). <i>All jobs are equal, but some jobs are more equal than others: what a clustering algorithm reveals about the labour market segmentation in South Africa</i>. (). ,Faculty of Commerce ,School of Economics. Retrieved from http://hdl.handle.net/11427/35760en_ZA
dc.identifier.chicagocitationKensett, Jonathan Matthew. <i>"All jobs are equal, but some jobs are more equal than others: what a clustering algorithm reveals about the labour market segmentation in South Africa."</i> ., ,Faculty of Commerce ,School of Economics, 2021. http://hdl.handle.net/11427/35760en_ZA
dc.identifier.citationKensett, J.M. 2021. All jobs are equal, but some jobs are more equal than others: what a clustering algorithm reveals about the labour market segmentation in South Africa. . ,Faculty of Commerce ,School of Economics. http://hdl.handle.net/11427/35760en_ZA
dc.identifier.ris TY - Master Thesis AU - Kensett, Jonathan Matthew AB - The theory of labour market segmentation is often used to explain wage inequality in South Africa. It posits that labour markets consist of different segments that are differentiated from other segments based on some observable characteristics. Limited mobility between these segments prevents wages from equalising. In this paper, I make use of a clustering algorithm to identify these informal and formal segments in the labour market. I apply this methodology to a nationally representative panel dataset of employed South Africans. I find that employed South Africans fall into one of three segments. Two of these segments resemble what is commonly referred to as formal and informal employment. The third segment lies somewhere between these two segments and is referred to as semiformal employment. Findings suggest that informally and semiformally employed individuals have s relatively lower chance of entering formal employment. Those in formal employment are much more likely to remain formally employed. It also appears that much of the churning observed in the labour market is between semiformal and informal employment, rather than between informal and formal employment. The identification of this group of semiformally employed labour market participants helps contributes to a more nuanced understanding of labour market dynamics in South Africa and highlights the value that data driven methodologies can provide to applied labour economic analysis. DA - 2021_ DB - OpenUCT DP - University of Cape Town KW - Economics LK - https://open.uct.ac.za PY - 2021 T1 - All jobs are equal, but some jobs are more equal than others: what a clustering algorithm reveals about the labour market segmentation in South Africa TI - All jobs are equal, but some jobs are more equal than others: what a clustering algorithm reveals about the labour market segmentation in South Africa UR - http://hdl.handle.net/11427/35760 ER - en_ZA
dc.identifier.urihttp://hdl.handle.net/11427/35760
dc.identifier.vancouvercitationKensett JM. All jobs are equal, but some jobs are more equal than others: what a clustering algorithm reveals about the labour market segmentation in South Africa. []. ,Faculty of Commerce ,School of Economics, 2021 [cited yyyy month dd]. Available from: http://hdl.handle.net/11427/35760en_ZA
dc.language.rfc3066eng
dc.publisher.departmentSchool of Economics
dc.publisher.facultyFaculty of Commerce
dc.subjectEconomics
dc.titleAll jobs are equal, but some jobs are more equal than others: what a clustering algorithm reveals about the labour market segmentation in South Africa
dc.typeMaster Thesis
dc.type.qualificationlevelMasters
dc.type.qualificationlevelMCom
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