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Are searching and non-searching unemployment distinct states when unemployment is high? The case of South Africa

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  • Geeta G. Kingdon
  • John B. Knight

Abstract

Broadly and narrowly measured unemployment rates differ very markedly in certain countries, and the measure chosen to be the ‘official’ unemployment rate affects perceptions about the extent of the problem. The appropriate measure of the unemployment rate depends on whether jobless persons who say they want work but who are not actively searching should be regarded as part of the labour force. This paper examines whether the non-searching-unemployed state is distinct from the searching-unemployed state in a developing country - South Africa - where the broad unemployment rate and the gap between the broad and narrow rates are both very high. It asks whether lack of job-search among jobless persons claiming to want work is an outcome of tastes or of constraints. It finds evidence in support of adopting the broad definition.

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Bibliographic Info

Paper provided by Centre for the Study of African Economies, University of Oxford in its series CSAE Working Paper Series with number 2000-02.

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Date of creation: 2000
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Handle: RePEc:csa:wpaper:2000-02

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  1. Geeta Kingdon & John Knight, 1999. "Unemployment and wages in South Africa: a spatial approach," Economics Series Working Papers WPS/1999-12, University of Oxford, Department of Economics.
  2. Stephan Klasen & Ingrid Woolard, 1999. "Levels, trends and consistency of employment and unemployment figures in South Africa," Development Southern Africa, Taylor and Francis Journals, vol. 16(1), pages 3-35.
  3. H. Bhorat, 1999. "The October Household Survey, Unemployment and the Informal Sector: A Note," South African Journal of Economics, Economic Society of South Africa, vol. 67(2), pages 143-146, 06.
  4. DiTella, Rafael & MacCulloch, Robert & Oswald, Andrew J., 1999. "The macroeconomics of happiness," ZEI Working Papers B 03-1999, ZEI - Center for European Integration Studies, University of Bonn.
  5. Christopher J. Flinn & James J. Heckman, 1982. "Are Unemployment and Out of the Labor Force Behaviorally Distinct Labor Force States?," NBER Working Papers 0979, National Bureau of Economic Research, Inc.
  6. David G. Blanchflower & Andrew J. Oswald, 1995. "The Wage Curve," MIT Press Books, The MIT Press, edition 1, volume 1, number 026202375x.
  7. Theodossiou, I., 1998. "The effects of low-pay and unemployment on psychological well-being: A logistic regression approach," Journal of Health Economics, Elsevier, vol. 17(1), pages 85-104, January.
  8. Füsun Gönül, 1992. "New Evidence on Whether Unemployment and out of the Labor Force are Distinct States," Journal of Human Resources, University of Wisconsin Press, vol. 27(2), pages 329-361.
  9. Devine, Theresa J. & Kiefer, Nicolas M., 1991. "Empirical Labor Economics: The Search Approach," OUP Catalogue, Oxford University Press, number 9780195059366, September.
  10. Clark, Andrew E & Oswald, Andrew J, 1994. "Unhappiness and Unemployment," Economic Journal, Royal Economic Society, vol. 104(424), pages 648-59, May.
  11. repec:fth:oxesaf:99-12 is not listed on IDEAS
  12. Kim B. Clark & Lawrence H. Summers, 1979. "Labor Market Dynamics and Unemployemnt: A Reconsideration," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 10(1), pages 13-72.
  13. F. S. Barker, 1999. "On South African Labour Policies," South African Journal of Economics, Economic Society of South Africa, vol. 67(1), pages 1-14, 03.
  14. Blundell, Richard & Ham, John & Meghir, Costas, 1998. "Unemployment, discouraged workers and female labour supply," Research in Economics, Elsevier, vol. 52(2), pages 103-131, June.
  15. Goldsmith, Arthur H. & Veum, Jonathan R. & Darity, William Jr., 1995. "Are being unemployed and being out of the labor force distinct states?: A psychological approach," Journal of Economic Psychology, Elsevier, vol. 16(2), pages 275-295, July.
  16. Tachibanaki, Toshiaki & Sakurai, Kojiro, 1991. "Labour supply and unemployment in Japan," European Economic Review, Elsevier, vol. 35(8), pages 1575-1587, December.
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