Defining and measuring informal employment in South Africa: A review of recent approaches

Stellenbosch Working Paper Series No. WP09/2010
 
Publication date: 2010
 
Author(s):
[protected email address] (Department of Economics, University of Stellenbosch and University of the Western Cape)
 
Abstract:

This paper reviews the Stats SA methodologies to measure informal employment before and after the introduction of the Quarterly Labour Force Survey (QLFS), as well as other recently proposed approaches (e.g., Devey, Skinner and Valodia, Heintz and Posel, etc.), so as to investigate the congruence, if any, between the various measures of the rate of informality. Furthermore, econometric techniques are used to investigate commonalities and differences in the way in which the different measures of informality are associated with demographic and employment characteristics. The results suggest that informal employment is much bigger if the post-2007 Stats SA methodology, which considers employment as informal regardless of whether the activities take place in the informal sector or not, is adopted.

 
JEL Classification:

J00

Keywords:

South Africa, Household survey, Labour market trends, Informal employment

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BER Weekly

27 September 2021
Besides the escalating woes at leading Chinese property group Evergrande, global and domestic financial markets were focused on a slew of central bank policy meetings last week. ...

Read the full issue