Estimating the benefits of linking ties in a deeply divided society: considering the relationship between domestic workers and their employers in South Africa
Stellenbosch Working Paper Series No. WP18/2013Publication date: 2013
Author(s):
[protected email address] (Departement Ekonomie, Universiteit van Stellenbosch)
[protected email address] (Departement Ekonomie, Universiteit van Stellenbosch)
In South Africa social exclusion remains a problem due to the multiple and overlapping divisions in post-apartheid society and the lack of linking ties bridging the worlds of those who have plenty and those without. To quantify the potential benefit of such linking ties for socio-economic mobility, we examine the relationship between domestic workers and their employers – a case where we find frequent, proximate and intimate contact between individuals from these two different worlds. We construct a well matched comparison group for domestic workers via propensity score matching using a pooled version of seven General Household Surveys. The households of domestic workers appear to have lower unemployment duration and better quality jobs, a higher likelihood of owning assets and a lower prevalence of child and adult hunger. These differences provide evidence that the linking ties of domestic workers with their more affluent employers increase well-being in a way that is consistent with social network theory.
JEL Classification:Z13, Z10, D63
Keywords:Social capital, social networks, domestic workers, inequality, South Africa
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Upcoming Seminars
Monday 28 July 202512:00-13:00
Dr Neil Rankin: Ceo Of Predictive Insights & Stellenbosch University
Topic: "TBC"
12:00-13:00
Prof Willem Boshoff
Topic: "Two competing approaches in South African competition policy: merger control and anti-cartel enforcement over the past 30 years"
12:00-13:00
Prof Derek Yu: University Of The Western Cape
Topic: "Examining the teaching, assessment and research activities of the South African Economics Departments"
BER Weekly
6 Jun 2025 SA GDP barely expands in Q1, while BCI and PMI suggest that Q2 remained weakIt was a busy week for local data releases, much of which painted a bleak picture of SA’s economy. Not only was first-quarter GDP growth dismal, but 2024 growth was also revised lower to just 0.5%. , The RMB/BER Business Confidence Index (BCI) showed sentiment remained shaky in the second quarter...
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