Carlene Van der Westhuizen - Academia.edu (original) (raw)

Papers by Carlene Van der Westhuizen

Http Dx Doi Org 10 1080 0376835x 2013 817308, Aug 19, 2013

ABSTRACT Existing studies on shifts in income welfare in South Africa since the demise of aparthe... more ABSTRACT Existing studies on shifts in income welfare in South Africa since the demise of apartheid suggest that income inequality increased, while headcount poverty rates declined since 2000, after some evidence of an increase or no change in poverty in the 1995–2000 and 1996–2001 periods. This study provides an analysis of the shifts in non-income welfare that have occurred in South Africa between 1993 and 2004. We use factor analysis to construct an asset index as a measure of non-income-based welfare. Variables reflecting household access to a range of services and assets are used in the construction of the index. Significantly different results emerge when non-income welfare shifts are considered: we show statistically significant decreases in the headcount asset poverty rates between 1993 and 2004 across a range of covariates. Finally, asset inequality decreased significantly between 1993 and 2004 – in stark contrast to results based on consumption data.

During the first decade of democracy in South Africa, the economy recorded one of its longest per... more During the first decade of democracy in South Africa, the economy recorded one of its longest periods of positive growth in the country's history. One of the more vexing issues on the economic policy terrain in post-apartheid South Africa, however, has been the impact of this consistently positive growth performance on social welfare, specifically income poverty and inequality.

The role of bargaining councils, the central pillar of collective bargaining in South Africa, in ... more The role of bargaining councils, the central pillar of collective bargaining in South Africa, in the formation of wages is important in the context of high unemployment rates in South Africa. In this study we find that while institutionalised collective bargaining system covered substantially more formal sector workers in 2005 (30 percent) compared to 1995 (15 percent), this still meant

gives an overview of South Africa's economic changes over the last few decades and analyzes the k... more gives an overview of South Africa's economic changes over the last few decades and analyzes the key factors that have shaped the economy's chronic labour market crisis. Finally, it gives concrete recommendations to ameliorate the social consequences of trade liberalization and the crisis on the employment situation. With this paper, which was published in combination with three other country-studies (Chile, Mexico, and India), ICTSD aims to contribute to a knowledge based debate on the impact of trade liberalization and the economic and financial crisis on trade and labour market. These studies also aim to inform the debate on whether development assistance and aid for trade in particular, can help to mitigate different impacts of the trade liberalization process and the crisis on the labour market.

SSRN Electronic Journal, 2000

SSRN Electronic Journal, 2000

The role of bargaining councils, the central pillar of collective bargaining in South Africa, in ... more The role of bargaining councils, the central pillar of collective bargaining in South Africa, in the formation of wages is important in the context of high unemployment rates in South Africa. In this study we find that while institutionalised collective bargaining system covered substantially more formal sector workers in 2005 (30 percent) compared to 1995 (15 percent), this still meant that less than a third of the formally employed were covered by bargaining councils. Notwithstanding this, the overall rise in the number of workers covered by bargaining council agreements between 1995 and 2005 was driven almost primarily by the introduction of public sector councils. Thus, bargaining council coverage in the first decade of democracy is characterised by an erosion of coverage within the private sector bargaining council system on the one hand and the rapid rise of this system of bargaining in the public sector. The descriptive data and multivariate models show therefore a significant wage premium associated with coverage under public sector councils in 2005, in excess of the large and significant union wage premium. The decline in the bargaining council system in the private sector is accompanied by declining wage premia for formal sector workers covered under private sector bargaining council agreements, with our preferred specification in 2005 indicating no significant private sector bargaining council wage premium. The wage premium associated with union membership however remains very strong between 1995 and 2005. Furthermore, not only did union membership in 1995 and 2005 award wage premia across the wage distribution, it also served to reduced wage inequality, particularly in the bottom half of the wage distribution. 6. Conclusion.

SSRN Electronic Journal, 2000

When debating the key issues in the labour regulatory environment, it is important to consider th... more When debating the key issues in the labour regulatory environment, it is important to consider the wider legal framework-such as the relevant international conventions, the South African Constitutions and the set of South African labour laws-as well as the labour market environment which provides the context for the implementation of labour market regulations. These parameters, in fact, remain at the core of any discussion around labour regulation in South Africa. 2.1 International Conventions, Constitution and Labour Regulation South Africa is a member of the International Labour Organisation (ILO) and as such has ratified a number of ILO Conventions. This means that the country's labour legislation and regulations have to comply with the ILO Constitution and those ratified Conventions. Amongst others, these obligations include upholding the rights to freedom of association, to engage in collective bargaining, to equality at work and to eliminate forced labour and child labour (Cheadle, 2006: 4; Van Niekerk, 2007: 6). The South African Constitution has a Bill of Rights that entrenches various rights that has to be taken into account when labour regulation is drawn up and implemented. These include the rights to equality, freedom of assembly, access to courts and administrative justice and also labour rights. Section 23 of the Constitution specifically relates to labour relations. It states that "everyone has the right to fair labour practice" and sets out the rights of workers, employers, trade union and employer organisations (RSA, 1996). These rights can be limited by a law of general application but only if it meets certain standards of justification set by the Constitution (Cheadle, 2006: 4). The incoherent and inconsistent, and in many cases, still racist, system of industrial relations which characterised the pre-1994 era was clearly in need of significant overhaul with the advent of democratic rule. Within the labour market policy environment, the immediate period following the election of the first majority government was characterised by a frantic process of recasting the country's labour regulatory environment. The outcome of negotiations between employers and employees as well as significant rewriting of existing laws, were four key pieces of legislation. These

SSRN Electronic Journal, 2000

SSRN Electronic Journal, 2000

South African Journal of Economics, 2012

The literature on the union wage gap in South Africa is extensive, spanning a range of datasets a... more The literature on the union wage gap in South Africa is extensive, spanning a range of datasets and methodologies. There is however, little consensus on the appropriate method to correct for the endogeneity of union membership or the size of the union wage gap. Furthermore, there are very few studies on the bargaining council wage premium in South Africa due to the lack of data on coverage of employees under bargaining council agreements. Our study, using 2005 Labour Force Survey data, firstly reconsiders the union wage gap controlling for both firm-level and job characteristics. When correcting for endogeniety of union status through a two-stage selection model and including firm size, the type of employment, and non-wage benefits in our wage estimations, we find a much lower union wage premium for African workers in the formal sector than premia reported in some previous studies. Secondly, our study estimates bargaining council wage premia for the private and public sectors. We find that extension procedures are present in both the private and public bargaining council systems, but that unions negotiate for additional gains for their members at the plant-level. The total estimated wage premium for formal sector African workers in the public sector who are both union members and covered by bargaining council agreements stands at 22 percent. Furthermore, there is some evidence that unions negotiate for awards for their members in the private sector, irrespective of bargaining council coverage.

The South African Journal of Economics, 2008

Analysts agree that South Africa's unemployment is structural in the sense that the unemployed ge... more Analysts agree that South Africa's unemployment is structural in the sense that the unemployed generally possess lower skills than what is required by the economy. In the context of increasing demand for skilled workers due to technological changes and the need to become globally more competitive, graduates would be expected to find employment without difficulty. However, against expectations unemployment has been increasing among young people with tertiary qualifications since 1995. This paper investigates the nature of this phenomenon. Evidence suggests that learners are inadequately prepared for both tertiary studies and entry into the labour market. Lack of, or inadequate career guidance means that they do not choose fields of study and types of qualifications with good employment prospects. In addition, lack of soft skills and workplace experience mean that employers are reluctant to employ graduates, preferring more experienced people instead.

Development Southern Africa, 2012

Development Southern Africa, 2013

ABSTRACT Existing studies on shifts in income welfare in South Africa since the demise of aparthe... more ABSTRACT Existing studies on shifts in income welfare in South Africa since the demise of apartheid suggest that income inequality increased, while headcount poverty rates declined since 2000, after some evidence of an increase or no change in poverty in the 1995–2000 and 1996–2001 periods. This study provides an analysis of the shifts in non-income welfare that have occurred in South Africa between 1993 and 2004. We use factor analysis to construct an asset index as a measure of non-income-based welfare. Variables reflecting household access to a range of services and assets are used in the construction of the index. Significantly different results emerge when non-income welfare shifts are considered: we show statistically significant decreases in the headcount asset poverty rates between 1993 and 2004 across a range of covariates. Finally, asset inequality decreased significantly between 1993 and 2004 – in stark contrast to results based on consumption data.

Http Dx Doi Org 10 1080 0376835x 2013 817308, Aug 19, 2013

ABSTRACT Existing studies on shifts in income welfare in South Africa since the demise of aparthe... more ABSTRACT Existing studies on shifts in income welfare in South Africa since the demise of apartheid suggest that income inequality increased, while headcount poverty rates declined since 2000, after some evidence of an increase or no change in poverty in the 1995–2000 and 1996–2001 periods. This study provides an analysis of the shifts in non-income welfare that have occurred in South Africa between 1993 and 2004. We use factor analysis to construct an asset index as a measure of non-income-based welfare. Variables reflecting household access to a range of services and assets are used in the construction of the index. Significantly different results emerge when non-income welfare shifts are considered: we show statistically significant decreases in the headcount asset poverty rates between 1993 and 2004 across a range of covariates. Finally, asset inequality decreased significantly between 1993 and 2004 – in stark contrast to results based on consumption data.

During the first decade of democracy in South Africa, the economy recorded one of its longest per... more During the first decade of democracy in South Africa, the economy recorded one of its longest periods of positive growth in the country's history. One of the more vexing issues on the economic policy terrain in post-apartheid South Africa, however, has been the impact of this consistently positive growth performance on social welfare, specifically income poverty and inequality.

The role of bargaining councils, the central pillar of collective bargaining in South Africa, in ... more The role of bargaining councils, the central pillar of collective bargaining in South Africa, in the formation of wages is important in the context of high unemployment rates in South Africa. In this study we find that while institutionalised collective bargaining system covered substantially more formal sector workers in 2005 (30 percent) compared to 1995 (15 percent), this still meant

gives an overview of South Africa's economic changes over the last few decades and analyzes the k... more gives an overview of South Africa's economic changes over the last few decades and analyzes the key factors that have shaped the economy's chronic labour market crisis. Finally, it gives concrete recommendations to ameliorate the social consequences of trade liberalization and the crisis on the employment situation. With this paper, which was published in combination with three other country-studies (Chile, Mexico, and India), ICTSD aims to contribute to a knowledge based debate on the impact of trade liberalization and the economic and financial crisis on trade and labour market. These studies also aim to inform the debate on whether development assistance and aid for trade in particular, can help to mitigate different impacts of the trade liberalization process and the crisis on the labour market.

SSRN Electronic Journal, 2000

SSRN Electronic Journal, 2000

The role of bargaining councils, the central pillar of collective bargaining in South Africa, in ... more The role of bargaining councils, the central pillar of collective bargaining in South Africa, in the formation of wages is important in the context of high unemployment rates in South Africa. In this study we find that while institutionalised collective bargaining system covered substantially more formal sector workers in 2005 (30 percent) compared to 1995 (15 percent), this still meant that less than a third of the formally employed were covered by bargaining councils. Notwithstanding this, the overall rise in the number of workers covered by bargaining council agreements between 1995 and 2005 was driven almost primarily by the introduction of public sector councils. Thus, bargaining council coverage in the first decade of democracy is characterised by an erosion of coverage within the private sector bargaining council system on the one hand and the rapid rise of this system of bargaining in the public sector. The descriptive data and multivariate models show therefore a significant wage premium associated with coverage under public sector councils in 2005, in excess of the large and significant union wage premium. The decline in the bargaining council system in the private sector is accompanied by declining wage premia for formal sector workers covered under private sector bargaining council agreements, with our preferred specification in 2005 indicating no significant private sector bargaining council wage premium. The wage premium associated with union membership however remains very strong between 1995 and 2005. Furthermore, not only did union membership in 1995 and 2005 award wage premia across the wage distribution, it also served to reduced wage inequality, particularly in the bottom half of the wage distribution. 6. Conclusion.

SSRN Electronic Journal, 2000

When debating the key issues in the labour regulatory environment, it is important to consider th... more When debating the key issues in the labour regulatory environment, it is important to consider the wider legal framework-such as the relevant international conventions, the South African Constitutions and the set of South African labour laws-as well as the labour market environment which provides the context for the implementation of labour market regulations. These parameters, in fact, remain at the core of any discussion around labour regulation in South Africa. 2.1 International Conventions, Constitution and Labour Regulation South Africa is a member of the International Labour Organisation (ILO) and as such has ratified a number of ILO Conventions. This means that the country's labour legislation and regulations have to comply with the ILO Constitution and those ratified Conventions. Amongst others, these obligations include upholding the rights to freedom of association, to engage in collective bargaining, to equality at work and to eliminate forced labour and child labour (Cheadle, 2006: 4; Van Niekerk, 2007: 6). The South African Constitution has a Bill of Rights that entrenches various rights that has to be taken into account when labour regulation is drawn up and implemented. These include the rights to equality, freedom of assembly, access to courts and administrative justice and also labour rights. Section 23 of the Constitution specifically relates to labour relations. It states that "everyone has the right to fair labour practice" and sets out the rights of workers, employers, trade union and employer organisations (RSA, 1996). These rights can be limited by a law of general application but only if it meets certain standards of justification set by the Constitution (Cheadle, 2006: 4). The incoherent and inconsistent, and in many cases, still racist, system of industrial relations which characterised the pre-1994 era was clearly in need of significant overhaul with the advent of democratic rule. Within the labour market policy environment, the immediate period following the election of the first majority government was characterised by a frantic process of recasting the country's labour regulatory environment. The outcome of negotiations between employers and employees as well as significant rewriting of existing laws, were four key pieces of legislation. These

SSRN Electronic Journal, 2000

SSRN Electronic Journal, 2000

South African Journal of Economics, 2012

The literature on the union wage gap in South Africa is extensive, spanning a range of datasets a... more The literature on the union wage gap in South Africa is extensive, spanning a range of datasets and methodologies. There is however, little consensus on the appropriate method to correct for the endogeneity of union membership or the size of the union wage gap. Furthermore, there are very few studies on the bargaining council wage premium in South Africa due to the lack of data on coverage of employees under bargaining council agreements. Our study, using 2005 Labour Force Survey data, firstly reconsiders the union wage gap controlling for both firm-level and job characteristics. When correcting for endogeniety of union status through a two-stage selection model and including firm size, the type of employment, and non-wage benefits in our wage estimations, we find a much lower union wage premium for African workers in the formal sector than premia reported in some previous studies. Secondly, our study estimates bargaining council wage premia for the private and public sectors. We find that extension procedures are present in both the private and public bargaining council systems, but that unions negotiate for additional gains for their members at the plant-level. The total estimated wage premium for formal sector African workers in the public sector who are both union members and covered by bargaining council agreements stands at 22 percent. Furthermore, there is some evidence that unions negotiate for awards for their members in the private sector, irrespective of bargaining council coverage.

The South African Journal of Economics, 2008

Analysts agree that South Africa's unemployment is structural in the sense that the unemployed ge... more Analysts agree that South Africa's unemployment is structural in the sense that the unemployed generally possess lower skills than what is required by the economy. In the context of increasing demand for skilled workers due to technological changes and the need to become globally more competitive, graduates would be expected to find employment without difficulty. However, against expectations unemployment has been increasing among young people with tertiary qualifications since 1995. This paper investigates the nature of this phenomenon. Evidence suggests that learners are inadequately prepared for both tertiary studies and entry into the labour market. Lack of, or inadequate career guidance means that they do not choose fields of study and types of qualifications with good employment prospects. In addition, lack of soft skills and workplace experience mean that employers are reluctant to employ graduates, preferring more experienced people instead.

Development Southern Africa, 2012

Development Southern Africa, 2013

ABSTRACT Existing studies on shifts in income welfare in South Africa since the demise of aparthe... more ABSTRACT Existing studies on shifts in income welfare in South Africa since the demise of apartheid suggest that income inequality increased, while headcount poverty rates declined since 2000, after some evidence of an increase or no change in poverty in the 1995–2000 and 1996–2001 periods. This study provides an analysis of the shifts in non-income welfare that have occurred in South Africa between 1993 and 2004. We use factor analysis to construct an asset index as a measure of non-income-based welfare. Variables reflecting household access to a range of services and assets are used in the construction of the index. Significantly different results emerge when non-income welfare shifts are considered: we show statistically significant decreases in the headcount asset poverty rates between 1993 and 2004 across a range of covariates. Finally, asset inequality decreased significantly between 1993 and 2004 – in stark contrast to results based on consumption data.